Tenable Holdings, Inc. Q1 FY2026 earnings call

Steve mentioned in Q1 they exceeded guided metrics with 10% year-over-year revenue growth and 24% operating margins. Tenable One was 41% of new business, added 406 new enterprise customers and 43 net new six-figure customers. The rapid advancement of frontier AI models is impacting cybersecurity, and Tenable is engaging with leading providers. Tenable One leverages data for exposure management, and Tenable EXA AI is an agentic engine for orchestration. They announced OT discovery integration. Mark discussed customer conversations showing urgency, wins like a seven-figure deal with a Middle East financial institution, a six-figure deal for AI security, and a six-figure OT deal. Matt talked about strong Q1 execution, revenue growth, recurring revenue at 96%, momentum in Tenable One, non-GAAP margins, cash flow, and share repurchases. They also mentioned an Investor Day on May 21st in Boston.

In Q1, revenue was 262.1 million, up 9.6% year-over-year. Tenable One was 41% of new business this quarter, an eight-point increase from Q1 last year. Added 406 new enterprise platform customers and 43 net new six-figure customers. Non-GAAP gross margin was 82.2% for the quarter, an increase from 81.9% in Q1 2025. Non-GAAP income from operations for the quarter was 61.9 million, or 23.6% of revenue, compared to 48.7 million in Q1 2025, an increase of 27.1%. Non-GAAP earnings per share for the quarter was $0.47 compared to $0.36 in Q1 2025, an increase of 30.6%. Cash and short-term investments totaled $360.3 million. Generated $88.6 million of unlevered free cash flow during the quarter, which is an all-time record and represents 33.8% of revenue.

For Q2, expect revenue to be in the range of 263 to 266 million, up 7.0% at midpoint. For full year 2026, raise guidance range to 1.068 to 1.078 billion, up 7.4% at midpoint. Non-GAAP income from operations for Q2 expected to be 61 to 64 million, 23.6% at midpoint. Full year 2026 non-GAAP operating income guidance raised to 252 to 262 million, 24.0% at midpoint. Non-GAAP net income for Q2 expected 53 to 56 million, up 31.5% at midpoint. Full year 2026 non-GAAP net income guidance raised to $222 to $232 million, up 16.8% at midpoint. Non-GAAP earnings per share for Q2 expected 46 cents to 48 cents per share, up 38.2% at midpoint. Full year 2026 non-GAAP earnings per share guidance raised to $1.90 to $1.98 per share, up 22.0% at midpoint.

Questions and answers include discussions on frontier models in exposure management, security software access to budgets, sales capacity and new CRO, operational efficiencies and gross margins, CCB vs CRPO, sales cycle for Tenable One, platform expansion and NRR, EMEA win details, CRPO trends, guidance conservatism, remediation with HEXA AI, HEXA AI packaging and pricing, partnerships with Anthropic and OpenAI, bookings growth, Flex pricing unlock, and share buyback capital allocation