Cash and short-term investments totaled $387 million; accounts receivable were $181 million; total deferred revenue was $798 million, with current deferred revenue at $625 million.
Earnings per share were $0.34, $0.04 above the midpoint of guidance.
General and administrative expenses were flat at $22.7 million.
Gross margin remained stable at 82% compared to the previous quarter.
Income from continuing operations was $47.7 million, beating guidance by nearly $4 million.
Operating margin was 19%, approximately 100 basis points better than the midpoint of the guided range.
R&D expenses increased to $43.4 million (18% of revenue) from $39 million, driven by acquisitions and personnel costs.
Sales and marketing expenses were $85.5 million, flat as a percentage of revenue at 36%, with increases due to industry events and sales capacity investments.
Tenable delivered 12% year-over-year revenue growth in Q2 2025, with revenue reaching $247.3 million, exceeding the midpoint of guidance by $5.3 million.
Tenable repurchased 2 million shares for $65 million in the quarter, totaling 6.3 million shares for approximately $240 million since November 2023, with $60 million remaining in the repurchase authorization.
Unlevered free cash flow was $44 million for the quarter and $131 million year-to-date.
Strategic Focus on Public Sector Software Post-Healthcare Divestiture
The company has divested two major businesses in the past 12 months, including healthcare RCM and merchant services, to concentrate on core public sector offerings.
This strategic realignment aims to enhance product development, customer service, and market penetration within government markets.
Management highlighted that all subverticals, including education, utilities, transportation, and justice tech, are firing on all cylinders, indicating a successful strategic refocus.
Dafinchi