Tenable Holdings: Strong Market Position, Growth Potential Justify Buy Rating

Tenable Holdings is a strong player in the market with growth potential, according to Robert W. Baird analyst Shrenik Kothari. The company's revenue growth in the EMEA region and acquisition of Apex Security are positives, despite some risks associated with channel partners. Kothari maintains a Buy rating with a $42.00 price target. Cantor Fitzgerald also reiterated a Buy rating with the same price target. However, corporate insider sentiment is negative, with an increase in insiders selling shares.

Tenable Holdings Inc. reported its Q1 2025 earnings on July 2, 2025, showcasing strong revenue growth and significant acquisitions. The company's quarterly revenue reached $247.3 million, up 12% year-over-year, and six-month revenue totaled $486.4 million, increasing 11% [1].

Subscription and maintenance services accounted for 96% of revenue, maintaining a stable gross margin of 78%. Despite these positive figures, Tenable recorded a GAAP net loss of $14.7 million for the quarter and $37.6 million for the six months, translating to $(0.12) and $(0.31) per share, respectively. However, the company generated $129.9 million in operating cash flow over the six months [1].

The company completed acquisitions of Vulcan ($148.5 million) and Apex ($47.8 million), increasing goodwill to $697.8 million and incurring acquisition-related expenses of $6.7 million year-to-date. These acquisitions were accompanied by significant cash uses, including business combinations and a $125.0 million treasury stock purchase, reducing cash balances from $328.6 million to $175.0 million [1].

Analysts at Robert W. Baird and Cantor Fitzgerald have maintained a Buy rating for Tenable Holdings, with a $42.00 price target. However, corporate insider sentiment remains negative, with an increase in insiders selling shares [1].

References:
[1] https://www.stocktitan.net/sec-filings/TENB/10-q-tenable-holdings-inc-quarterly-earnings-report-71bddf1fbf5a.html