TENB Stock Forecast & Price Target

Tenable Holdings demonstrated a solid financial performance in Q2, with current billings increasing by 8% and total revenue reaching $252.4 million, showing an 11% year-over-year growth. The company's long-term remaining performance obligations (RPO) expanded by 41% year-on-year, alongside a notable growth in customer retention, as reflected by the 13% year-over-year increase in current RPO. Additionally, the potential for faster revenue growth from non-vulnerability management products and enhanced cross-selling opportunities could further strengthen the company's financial outlook.

Tenable Holdings is experiencing a decline in key financial metrics, including a drop in Net Revenue Retention (NRR) to 106%, which may continue to decrease in the upcoming quarters. The company has reported a year-over-year decline in non-GAAP operating margins and has prudently cut its 2025 guidance for operating margins, attributed to incremental expenses from the recent Apex Acquisition. Additionally, Tenable faces potential risks from competitive pressures and reliance on major distributors, which could negatively impact growth metrics such as Calculated Current Billings and the Dollar-Based Net Expansion, thereby affecting investor sentiment and stock valuation.