TENB Stock Forecast & Price Target

Tenable Holdings has demonstrated solid financial performance, with current billings increasing by 8% in the second quarter, which aligns with consensus expectations, and total revenue reaching $252.4 million—a notable 11% year-over-year growth. Long-Term Remaining Performance Obligations (RPO) surged by 41% year-over-year, highlighting significant strength in future revenue visibility, while customer-related RPO (cRPO) growth of 13% considerably outpaced overall billings expansion. Moreover, a substantial contribution from channel partners, accounting for 94% of revenue in CY24, along with the potential for wider adoption of non-vulnerability management products, supports an optimistic long-term outlook for Tenable’s growth trajectory.

Tenable Holdings has shown signs of financial weakness, as evidenced by a decline in Net Revenue Retention (NRR) to 106% and a decreasing non-GAAP operating margin year-over-year in the second quarter. The company's decision to cut 2025 guidance for operating margins reflects concerns about rising incremental expenses, particularly related to the Apex Acquisition, and its gross margins have also been adversely impacted by investments in cloud products and third-party infrastructure costs. Additionally, risks from macroeconomic conditions, competitive pressures, and the reliance on a single distributor, Ingram Micro, whose contribution to sales has declined, pose significant threats to Tenable's financial stability and could negatively influence investor sentiment moving forward.