Cybersecurity firm Tenable Holdings (TENB) delivered solid first-quarter results but warned that mounting policy uncertainty, particularly from within the federal government, is clouding its near-term outlook.
The company reported Q1 revenue of $239.1 million, up 11% from a year earlier, and calculated current billings of $215.4 million, up 9%.
Operating cash flow hit $87.4 million, with unlevered free cash flow also at a record $87 million for the quarter.
Despite the strong topline performance, Tenable adjusted its full-year guidance, citing disruptions caused by Elon Musk’s Department of Government Efficiency (DOGE) — an agency launched as part of President Trump’s second-term reforms.
“Since our last call, we’ve seen an acceleration in DOGE-related activities and significant disruption from a personnel standpoint,” Co-CEO Steve Vintz said on the earnings call.
“There are several open leadership roles in federal agencies, especially in cybersecurity, and that creates a confluence of uncertainty and less visibility for us in the short term.”
The warning underscores the broader economic ripple effects of Trump’s erratic policy. The company is also bracing for turbulence beyond the public sector.
“We’re applying the same level of caution to our enterprise business, given the potential for disruption due to tariffs and other geopolitical events,” Vintz added. “We think that’s a prudent stance heading into the rest of the year.”
Co-CEO Mark Thurmond echoed the concern, pointing out that “significant leadership positions, especially on the cyber side of the House, still haven’t been filled.”
Policy uncertainty aside, Tenable’s core offerings are resonating with customers. Vintz credited much of the quarter’s growth to the Tenable One analytics platform and strong demand for the company’s exposure management solutions.
“This was our best quarter ever for seven-figure wins,” he said. “Tenable One was absolutely the catalyst behind that success.”
Alphabet’s $32B Wiz deal “net positive” for Tenable
Tenable also addressed Alphabet’s (GOOGL) high-profile $32 billion acquisition of Israeli cybersecurity startup Wiz in March.
While the deal gives Google a powerful foothold in cloud security, Tenable executives say the merger has opened new doors for them.
“We’ve seen an uptick in invites to RFPs since the deal,” said Thurmond. “In cases where it might’ve been a locked-in Wiz decision, vendors are now re-evaluating, especially those that don’t want to be tied exclusively to Google Cloud.”
He emphasized that Tenable’s hybrid approach to asset visibility remains a key differentiator.
“The ability to assess not just your cloud environment but your entire asset landscape—that’s what exposure management is about, and that’s what Tenable One delivers,” he said. “So we view this as a net positive.”
Despite the upbeat tone, Tenable stock is down 22.4% year-to-date and 32% over the past 12 months.
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