Tenable (TENB) Q3 2026 Earnings Call: Tenable One Drives Growth and Higher Guidance
Source Tradingkey
Key Takeaways
- Q3 2026 revenue increased 9.5% year over year to $276.4 million, with recurring revenue accounting for 95% of the total.
- Tenable One generated a record 59% of new business, up from 50% in Q2 2026 and 39% in Q3 2025. The platform ended the quarter with more than 5,000 customers.
- Net dollar expansion rose to 107% from 106% in Q2, marking a second consecutive quarterly increase. Current calculated billings, or CCB, grew 9%.
- Non-GAAP operating margin expanded 380 basis points year over year to 27.1%, while unlevered free cash flow increased 18.7% to $69.4 million.
- Tenable raised its full-year 2026 guidance across revenue, non-GAAP operating income, net income and diluted EPS. Management expects Q4 CCB growth to improve slightly and net dollar expansion to remain at 107%.
- Management identified AI-driven exposure growth, Tenable One migrations and Hexa AI adoption as key demand drivers, but said it is too early to quantify the commercial impact of the PHP to Shell vulnerability.
Core Financial Data
| Metric | Q3 2026 | Change / context |
|---|---|---|
| Revenue | $276.4 million | Up 9.5% year over year |
| Recurring revenue mix | 95% | Remained high during the quarter |
| Tenable One share of new business | 59% | 50% in Q2 2026; 39% in Q3 2025 |
| Net dollar expansion rate | 107% | Up from 106% in Q2 2026 |
| CCB growth | 9% | Accelerated during Q3 |
| Non-GAAP gross margin | 81.5% | 81.6% in Q3 2025 |
| Non-GAAP operating income | $74.9 million | $58.9 million in Q3 2025 |
| Non-GAAP operating margin | 27.1% | Up 380 basis points year over year |
| Non-GAAP diluted EPS | $0.63 | $0.42 in Q3 2025; included a $0.03 tax benefit |
| Unlevered free cash flow | $69.4 million | Up 18.7% year over year |
| Cash and short-term investments | $495.3 million | Quarter-end balance |
| New enterprise customers | 413 | Added during Q3 |
| Net new six-figure accounts | 39 | New six-figure ACV increased 18% year over year |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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