Tenable Holdings Inc.

11/03/2026 | Press release | Distributed by Public on 11/03/2026 15:52

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, or this Form 10-Q, and (2) our consolidated financial statements, related notes and management's discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2025, or the 10-K, filed with the Securities and Exchange Commission, or the SEC, on February 27, 2026. This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements are often identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "would" or the negative or plural of these words or similar expressions or variations. Such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled "Risk Factors," set forth in Part I, Item 1A of the 10-K, in Part II, Item 1A of this Form 10-Q and in our other filings with the SEC. You should not rely upon forward-looking statements as predictions of future events. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Overview
We are the leading provider of exposure management solutions. Exposure management is an increasingly critical category that extends foundational vulnerability management capabilities to advance risk assessment and prioritization across the entire attack surface - from IT infrastructure and cloud environments to critical infrastructure and AI. We unify security visibility, insight and action across this attack surface, equipping modern organizations to quickly identify and close the cybersecurity gaps that erode business value, reputation and trust.
Tenable One, our AI-powered exposure management platform, gives enterprises a single, unified view of risk across all types of assets and attack pathways. The platform combines broad, industry-leading vulnerability coverage, spanning IT assets, cloud resources, containers, web apps, identity systems, third-party connectors and AI-related assets and workloads.
Our solutions are primarily sold on a subscription basis with a one-year term, but are increasingly being sold with longer contractual durations. Our subscription terms are generally not longer than three years. These subscriptions are typically invoiced in advance at the beginning of the term, however multi-year subscriptions are increasingly being invoiced annually in installments.
We sell and market our products and services through our field sales force that works closely with our channel network of distributors, resellers and managed security service providers (MSSPs), in developing sales opportunities. We typically use a two-tiered channel model whereby we sell our enterprise platform offerings to our distributors, who in turn sell to our resellers, who then sell to end users, who we call customers.
Financial Highlights
Below are our key financial results:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands, except per share data) 2026 2025 2026 2025
Revenue $ 276,387 $ 252,440 $ 806,953 $ 738,872
Income (loss) from operations 16,709 7,136 37,840 (18,023)
Net income (loss) 11,299 2,260 16,518 (35,381)
Net earnings (loss) per share, basic 0.10 0.02 0.15 (0.29)
Net earnings (loss) per share, diluted 0.10 0.02 0.14 (0.29)
Net cash provided by operating activities 72,516 53,850 205,203 183,720
Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 95% of revenue in the three and nine months ended September 30, 2026 and 95% and 96% of revenue in the three and nine months ended September 30, 2025, respectively.
Operating and Financial Metrics
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use and monitor the following operating and financial metrics, which include non-GAAP financial measures, to understand and evaluate our core operating and financial performance.
Customer Metrics
We believe that our customer base provides a significant opportunity to expand sales of our enterprise platform offerings. We define an enterprise platform customer as a customer that has licensed Tenable One, Tenable Vulnerability Management, Tenable Cloud Security, Tenable Identity Exposure, Tenable OT Security or Tenable Security Center for an annual amount of $5,000 or greater. New enterprise platform customers represent new customer logos during the periods presented and do not include customer conversions from Tenable Nessus Expert to enterprise platforms. The following tables summarize key components of our customer base:
Three Months Ended September 30,
2026 2025 Change (%)
Number of new enterprise platform customers added in period 413 437 (5)%
September 30,
2026 2025 Change (%)
Number of customers with $100,000 and greater in annual contract value at end of period
2,275 2,156 6%
Dollar-Based Net Expansion Rate
Our dollar-based net expansion rate reflects both our customer retention and ability to drive additional sales to our existing customers. Our dollar-based net expansion rate has historically fluctuated and is expected to continue to fluctuate on a quarterly basis as a result of a number of factors, including existing customers' satisfaction with our solutions, existing customer retention, the pricing of our solutions, the availability of competing solutions and the pricing thereof, and the timing of customer renewals. In addition, our sales pipeline opportunities vary from quarter to quarter between new customers and expansion from existing customers, and we do not prioritize one over the other to maximize the dollar-based net expansion rate.
Our dollar-based net expansion rate is evaluated on a last twelve months, or LTM, basis, and is calculated as follows:
•Denominator: To calculate our dollar-based net expansion rate as of the end of a reporting period, we first determine the annual recurring revenue, or ARR, from all active subscriptions (both revenue recognized ratably over the subscription term and upon delivery) and maintenance from perpetual licenses as of the last day of the same reporting period in the prior year. This represents recurring payments that we expect to receive in the next 12-month period from the cohort of customers that existed on the last day of the same reporting period in the prior year.
•Numerator: We measure the ARR for that same cohort of customers representing all subscriptions and maintenance from perpetual licenses based on customer orders as of the end of the reporting period.
We calculate dollar-based net expansion rate by dividing the numerator by the denominator.
The following table presents our dollar-based net expansion rate:
September 30,
2026 2025
Dollar-based net expansion rate 107 % 106 %
Components of Our Results of Operations
Revenue
We generate revenue from subscription arrangements for our software and cloud-based solutions, perpetual licenses, maintenance associated with perpetual licenses and professional services.
We typically experience seasonality in customer agreement volumes, entering into a significantly higher percentage of new and renewal agreements in the third and fourth quarters of the year. The increase in the third quarter is primarily driven by U.S. government and related agencies, and the increase in the fourth quarter reflects typical large enterprise buying patterns in the software industry. Although the ratable nature of our subscription revenue lessens the financial impact, these historical trends may be impacted by macroeconomic conditions and U.S. policy decisions, which may lengthen purchasing and approval phases of our sales cycle.
Cost of Revenue, Gross Profit and Gross Margin
Cost of revenue includes personnel costs related to our technical support group that provides assistance to customers, including salaries, benefits, bonuses, payroll taxes, stock-based compensation and any ordinary course severance. Cost of revenue also includes cloud infrastructure costs, the costs related to professional services and training, depreciation, amortization of acquired and developed technology, hardware costs and allocated overhead costs, which consist of information technology, facilities and insurance.
We expect our gross profit, or revenue less cost of revenue, to increase in absolute dollars but our gross margin, or gross profit as a percentage of revenue, may fluctuate from period to period, particularly as it relates to cloud infrastructure costs, as we expect revenue from our cloud-based subscriptions to increase as a percentage of revenue.
Operating Expenses
Our operating expenses consist of sales and marketing, research and development, general and administrative and restructuring expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, benefits, bonuses, payroll taxes, stock-based compensation and ordinary course severance. Operating expenses also include depreciation and amortization, allocated overhead costs, including IT and facilities costs, as well as acquisition-related expenses.
Sales and marketing expense consists of personnel costs, sales commissions, marketing programs, travel and entertainment, expenses for conferences, meetings and events, allocated overhead costs and acquisition-related expenses.
Research and development expense consists of personnel costs, software used to develop our products, travel and entertainment, consulting and professional fees for third-party development resources, allocated overhead and acquisition-related expenses. Our research and development expense supports our efforts to continue to add capabilities to our existing products and enable the continued detection of new network vulnerabilities.
General and administrative expense consists of personnel costs for our executive, finance, legal, human resources and administrative departments. Additional expenses include travel and entertainment, professional fees, insurance, allocated overhead and acquisition-related expenses.
Restructuring expenses consist of non-ordinary course severance, employee related benefits and other charges to reorganize business operations.
We expect our operating expenses to increase in absolute dollars and decrease as a percentage of revenue, although our actual expense may fluctuate from period to period due to the timing and extent of expenses.
Interest Income, Interest Expense and Other Income (Expense), Net
Interest income consists of income earned on cash and cash equivalents and short-term investments. Interest expense consists primarily of interest expense and the amortization of debt issuance costs related to debt, unused commitment fees and letter of credit fees. Other income (expense), net consists primarily of foreign currency remeasurement and transaction gains and losses and any realized and unrealized gains and losses, including impairment losses and gains related to our investments in privately held securities.
(Benefit) Provision for Income Taxes
(Benefit) provision for income taxes consists of income taxes in all jurisdictions in which we conduct business and the related withholding taxes on sales to customers as well as a discrete tax benefit associated with amending our 2024 U.S. federal income tax return to claim a refund of Base Erosion and Anti-Abuse Tax ("BEAT") previously paid. We have recorded deferred tax assets for which a valuation allowance has been provided, including net operating loss carryforwards and tax credits. We expect to maintain this valuation allowance for the foreseeable future as it is more likely than not that some or all of those deferred tax assets may not be realized based on our history of losses. The valuation allowance is subject to change based on our ability to generate future taxable income. We will continue to evaluate the realization of deferred tax assets to determine changes to valuation allowance in future periods.
Results of Operations
The following tables set forth our consolidated results of operations for the periods presented:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2026 2025 2026 2025
Revenue $ 276,387 $ 252,440 $ 806,953 $ 738,872
Cost of revenue(1)
61,332 56,753 178,334 163,647
Gross profit 215,055 195,687 628,619 575,225
Operating expenses:
Sales and marketing(1)
102,913 99,949 315,771 310,222
Research and development(1)
62,145 56,265 174,905 168,724
General and administrative(1)
33,141 32,337 96,874 114,302
Restructuring 147 - 3,229 -
Total operating expenses 198,346 188,551 590,779 593,248
Income (loss) from operations 16,709 7,136 37,840 (18,023)
Interest income 2,573 3,590 7,925 12,597
Interest expense (8,270) (7,213) (21,118) (21,363)
Other expense, net (248) (703) (1,860) (204)
Income (loss) before income taxes 10,764 2,810 22,787 (26,993)
(Benefit) provision for income taxes (535) 550 6,269 8,388
Net income (loss) $ 11,299 $ 2,260 $ 16,518 $ (35,381)
_______________
(1) Includes stock-based compensation expense as follows:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2026 2025 2026 2025
Cost of revenue $ 3,378 $ 3,495 $ 10,218 $ 10,270
Sales and marketing 17,935 17,051 53,276 51,499
Research and development 18,837 14,174 45,852 42,441
General and administrative(2)
11,067 10,162 32,074 43,101
Total stock-based compensation expense $ 51,217 $ 44,882 $ 141,420 $ 147,311
_______________
(2) Stock-based compensation in the nine months ended September 30, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards for our former Chairman and Chief Executive Officer.
Comparison of the Three Months Ended September 30, 2026 and 2025
Revenue
The following table presents the increase in revenue:
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Subscription revenue $ 254,600 $ 232,211 $ 22,389 10 %
Perpetual license and maintenance revenue 9,713 11,088 (1,375) (12) %
Professional services and other revenue 12,074 9,141 2,933 32 %
Revenue $ 276,387 $ 252,440 $ 23,947 9 %
The increase in revenue included an increase of $25.6 million from existing customers as of October 1, 2025, partially offset by a decrease of $1.7 million in revenue from new customers. U.S. revenue increased $9.1 million, or 7%. International revenue increased $14.8 million, or 12%.
Cost of Revenue, Gross Profit and Gross Margin
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Cost of revenue $ 61,332 $ 56,753 $ 4,579 8 %
Gross profit 215,055 195,687 19,368 10 %
Gross margin 78 % 78 %
The increase in cost of revenue was primarily due to:
•a $3.3 million increase in third-party cloud infrastructure costs; and
•a $1.1 million increase in professional services.
Operating Expenses
Sales and Marketing
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Sales and marketing $ 102,913 $ 99,949 $ 2,964 3 %
The increase in sales and marketing expense was primarily due to:
•a $1.1 million increase in selling expenses, including travel and meeting costs and software subscription costs;
•a $0.9 million increase in sales commissions; and
•a $0.7 million increase in personnel costs, primarily related to increased stock-based compensation.
Research and Development
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Research and development $ 62,145 $ 56,265 $ 5,880 10 %
The increase in research and development expense was primarily due to:
•a $2.9 million increase in personnel costs;
•a $1.8 million increase in third-party cloud infrastructure costs; and
•a $0.5 million increase in allocated overhead.
General and Administrative
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
General and administrative $ 33,141 $ 32,337 $ 804 2 %
The increase in general and administrative expense was primarily due to:
•a $1.6 million increase in personnel costs; partially offset by
•a $0.8 million decrease in professional services.
Interest Income, Interest Expense and Other Expense, Net
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Interest income $ 2,573 $ 3,590 $ (1,017) (28) %
Interest expense (8,270) (7,213) 1,057 15 %
Other expense, net (248) (703) (455) (65) %
The $1.0 million decrease in interest income was due to a decrease in short-term investments and reduced rates of return. Interest expense increased $1.1 million primarily due to $2.6 million of remaining unamortized debt issuance costs and fees related to our Term Loan, partially offset by lower interest expense on our Term Loan. The $0.5 million decrease in other expense, net was primarily due to decreased foreign exchange losses.
(Benefit) Provision for Income Taxes
Three Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
(Benefit) provision for income taxes $ (535) $ 550 $ (1,085) (197) %
In the three months ended September 30, 2026, the benefit for income taxes included:
•a $3.3 million discrete tax benefit associated with amending our 2024 federal return regarding a BEAT refund; partially offset by
•$1.4 million of discrete items primarily related to withholding taxes on sales to customers; and
•$1.4 million of income taxes in foreign jurisdictions in which we conduct business.
In the three months ended September 30, 2025, the provision for income taxes included:
•$2.2 million of discrete items primarily related to withholding taxes on sales to customers; partially offset by
•$1.6 million of net tax benefits in foreign jurisdictions in which we conduct business. Income tax expense related to foreign jurisdictions was reduced by a $3.2 million interim intraperiod allocation, which was reversed in the three months ended December 31, 2025.
Comparison of the Nine Months Ended September 30, 2026 and 2025
Revenue
The following table presents the increase in revenue:
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Subscription revenue $ 746,014 $ 680,685 $ 65,329 10 %
Perpetual license and maintenance revenue 29,737 34,051 (4,314) (13) %
Professional services and other revenue 31,202 24,136 7,066 29 %
Revenue $ 806,953 $ 738,872 $ 68,081 9 %
The increase in revenue included an increase of $73.5 million from existing customers as of October 1, 2025, partially offset by a decrease of $5.4 million in revenue from new customers. U.S. revenue increased $26.0 million, or 7%. International revenue increased $42.1 million, or 12%.
Cost of Revenue, Gross Profit and Gross Margin
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Cost of revenue $ 178,334 $ 163,647 $ 14,687 9 %
Gross profit 628,619 575,225 53,394 9 %
Gross margin 78 % 78 %
The increase in cost of revenue was primarily due to:
•a $7.4 million increase in third-party cloud infrastructure costs;
•a $3.4 million increase in personnel costs;
•a $2.9 million increase in professional services;
•a $1.2 million increase in amortization of acquired intangible assets; and
•a $1.0 million increase in the cost of goods; partially offset by
•a $1.9 million decrease in depreciation and amortization expense.
Operating Expenses
Sales and Marketing
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Sales and marketing $ 315,771 $ 310,222 $ 5,549 2 %
The increase in sales and marketing expense was primarily due to:
•a $3.3 million increase in sales commissions;
•a $3.1 million increase in personnel costs, including a $1.8 million increase in stock-based compensation and an unfavorable foreign currency impact of $1.6 million; and
•a $1.6 million increase in selling expenses; partially offset by
•a $1.5 million decrease in expenses for demand generation programs, including advertising, sponsorships, and brand awareness efforts; and
•a $1.3 million decrease in acquisition-related expenses.
Research and Development
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Research and development $ 174,905 $ 168,724 $ 6,181 4 %
The increase in research and development expense was primarily due to:
•a $4.6 million increase in personnel costs;
•a $2.5 million increase in third-party cloud infrastructure costs;
•a $2.1 million increase in allocated overhead;
•a $0.6 million increase in software subscription costs; and
•a $0.5 million increase in depreciation and amortization expense; partially offset by
•a $2.1 million increase in refundable R&D tax credits; and
•a $1.8 million decrease in acquisition-related expenses.
General and Administrative
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
General and administrative $ 96,874 $ 114,302 $ (17,428) (15) %
The decrease in general and administrative expense was primarily due to:
•a $11.2 million decrease in personnel costs primarily related to the accelerated vesting of equity awards for our former Chairman and Chief Executive Officer in the nine months ended September 30, 2025;
•a $3.6 million decrease in acquisition-related expenses; and
•a $2.6 million decrease in professional services.
Restructuring
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Restructuring $ 3,229 $ - $ 3,229 100 %
Restructuring in the nine months ended September 30, 2026 included non-ordinary course severance and employee related benefits.
Interest Income, Interest Expense and Other Expense, Net
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Interest income $ 7,925 $ 12,597 $ (4,672) (37) %
Interest expense (21,118) (21,363) (245) (1) %
Other expense, net (1,860) (204) 1,656 812 %
The $4.7 million decrease in interest income was due to a decrease in short-term investments and reduced rates of return. Interest expense decreased $0.2 million primarily due to a decrease in interest expense for our Term Loan, partially offset by $2.6 million of remaining unamortized debt issuance costs and fees related to our Term Loan. Other expense, net increased $1.7 million primarily due to an increase in foreign exchange losses.
Nine Months Ended September 30, Change
(dollars in thousands) 2026 2025 ($) (%)
Provision for income taxes $ 6,269 $ 8,388 $ (2,119) (25) %
In the nine months ended September 30, 2026, the provision for income taxes included:
•$5.4 million of discrete items primarily related to withholding taxes on sales to customers; and
•$4.2 million of income taxes in foreign jurisdictions in which we conduct business; partially offset by
•a $3.3 million discrete tax benefit associated with amending our 2024 federal return.
In the nine months ended September 30, 2025, the provision for income taxes included:
•$4.9 million of discrete items primarily related to withholding taxes on sales to customers; and
•$3.5 million of income taxes in foreign jurisdictions in which we conduct business. Income tax expense related to foreign jurisdictions was reduced by a $3.2 million interim intraperiod allocation, which was reversed in the three months ended December 31, 2025.
Liquidity and Capital Resources
At September 30, 2026, we had $317.4 million of cash and cash equivalents, which consisted of bank deposits and money market funds, and $177.9 million of short-term investments, which consisted of commercial paper, asset backed securities, U.S. Treasury and agency obligations and corporate bonds.
We have historically generated significant operating losses, as reflected by our accumulated deficit of $880.9 million at September 30, 2026.
We typically invoice our customers in advance, however multi-year subscriptions are increasingly being invoiced annually in installments. Deferred revenue consists primarily of the unearned portion of billed fees for our subscriptions and perpetual licenses, which is subsequently recognized as revenue in accordance with our revenue recognition policy. At September 30, 2026, we had deferred revenue of $863.4 million, of which $685.4 million was recorded as a current liability and is expected to be recognized as revenue in the next 12 months, provided all other revenue recognition criteria are met.
Our principal uses of cash in recent periods have been funding our operations, expansion of our sales and marketing and research and development activities, investments in infrastructure, acquiring complementary businesses and technology, and repurchasing shares of our common stock. We expect to enter into arrangements to acquire or invest in other complementary businesses, services and technologies, including intellectual property rights, in the future.
We believe that our existing cash and cash equivalents, short-term investments and borrowing capacity under our 2026 Revolving Credit Facility will be sufficient to fund our operating and capital needs for at least the next 12 months and for the foreseeable future. Our future capital requirements will depend on many factors, including our revenue growth rate, subscription renewal activity, the timing and extent of spending to support further infrastructure and research and development efforts, the timing and extent of additional capital expenditures to invest in new and existing office spaces, the expansion of sales and marketing and international operating activities, any acquisitions of complementary businesses and technologies, the timing of our introduction of new product capabilities and enhancements of our platform and the continuing market acceptance of our platform. It may be necessary to seek additional equity or debt financing to fund our operating and capital needs. In the event that financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, or if we cannot expand our
operations or otherwise capitalize on our business opportunities because we lack sufficient capital, our business, operating results and financial condition would be adversely affected.
Share Repurchases
Our Board of Directors has authorized the repurchase of up to $700 million of our common stock. At September 30, 2026, we have $54.3 million remaining under our share repurchase authorization.
In addition, in connection with the issuance of our Convertible Senior Notes, our Board of Directors authorized the repurchase of $170.5 million, and we purchased 5.3 million shares from the net proceeds.
During the three and nine months ended September 30, 2026, we repurchased 6.8 million shares for $223.8 million and 18.2 million shares for $453.8 million, respectively. Since we began repurchasing our common stock in 2023 and through September 30, 2026, we have purchased a total of 28.8 million shares for $816.2 million.
Convertible Senior Notes
On September 15, 2026, we completed a private offering of $800.0 million aggregate principal amount of Convertible Senior Notes. After repaying the outstanding balance of our Term Loan of $358.1 million, repurchasing $170.5 million of common stock, paying $64.1 million for our Capped Calls and paying debt issuance costs of $21.2 million, net proceeds from our Convertible Senior Notes were $186.1 million.
The Convertible Senior Notes are senior, unsecured obligations that bear interest at 0.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning March 15, 2027. The Convertible Senior Notes mature September 15, 2031, unless earlier converted, redeemed, or repurchased. There are no required principal repayments on the Convertible Senior Notes prior to the maturity date. Refer to Note 7 to our consolidated financial statements for additional information about our Convertible Senior Notes.
2026 Revolving Credit Facility
On October 13, 2026, we entered into a $400.0 million senior secured revolving credit facility, including a $40.0 million sublimit for the issuance of letters of credit, that matures on October 13, 2031. The 2026 Revolving Credit Facility may be used for working capital and general corporate purposes.
Borrowings bear interest at a base rate, a term Secured Overnight Financing Rate ("SOFR") rate or an alternative currency rate, plus a margin based upon our Total Leverage Ratio. Additionally, we pay a commitment fee of 0.175% to 0.35% of unused availability based on our Total Leverage Ratio.
Cash Flows
The following table summarizes our cash flows for the periods presented:
Nine Months Ended September 30,
(in thousands) 2026 2025
Net cash provided by operating activities $ 205,203 $ 183,720
Net cash provided by (used in) investing activities 17,239 (170,290)
Net cash used in financing activities (91,126) (171,208)
Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,677) 983
Net increase (decrease) in cash and cash equivalents and restricted cash $ 129,639 $ (156,795)
Operating Activities
Our largest source of cash provided by operating activities is cash collections from sales of our products and services, as we typically invoice our customers in advance. Our primary uses of cash are employee compensation costs, third-party cloud infrastructure and other software subscription costs, demand generation expenditures and general corporate costs.
Investing Activities
Net cash provided by investing activities increased by $187.5 million, primarily due to a $196.2 million decrease in cash paid for acquisitions.
Financing Activities
Net cash used in financing activities decreased by $80.1 million, primarily due to $186.1 million net proceeds from our Convertible Senior Notes, partially offset by a $98.6 million increase in repurchases of our common stock under our repurchase program and a $7.1 million increase in cash paid for taxes related to net share settlement of equity awards.
Contractual Obligations
We have certain contractual obligations for future payments. See Notes 6, 7 and 8 to our consolidated financial statements for our required operating lease payments, debt and required payments to Microsoft and AWS for cloud services.
At September 30, 2026, there were no other material changes in our contractual obligations and commitments from those disclosed in our 10-K.
Critical Accounting Policies and Estimates
Our financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates.
There have been no material changes to our critical accounting policies and estimates as described in our 10-K.
Tenable Holdings Inc. published this content on November 03, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 03, 2026 at 21:52 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]