Tenable (TENB) Q2 FY26 earnings call: guidance and Q&A

Has the net dollar expansion rate hit a low watermark, and what are the trends in new customer acquisition, especially post-Mythos?

Management is pleased with the 106% net dollar expansion rate, expecting it to hold steady for the rest of the year. They noted strong demand for exposure management driven by the Mythos environment, leading to a significant uptick in competitive displacements and strong expansion within the installed base.

“that rate holds steady at 106, that's our expectation for the rest of the year, and that's the expectation that we've built into our guidance.”

asked by Robbie Owens · answered by Matthew Brown

How are customers responding to the new flex pricing and packaging, particularly the adoption of Tenable One Advanced, and what is the uplift?

Customers are responding very positively, with more opting for Tenable One Advanced at a 2:1 ratio compared to Foundation, which has a notably higher selling price. This has led to higher average deal sizes and a significant increase in net new 7-figure customers, driven by migration to the platform and expansion.

“More customers opted for Advanced, which has a notably higher selling price in comparison to stand-alone VM. We added a healthy number of net new 6-figure customers, but the big takeaway was the number of net new 7-figure customers, which more than double than what we typically do with one of our best net new 7-figure customers adds in nearly 2 years.”

asked by Matthew Calitri · answered by Matthew Brown

What is the initial customer feedback on Hexa AI, and what is the average selling price uplift for customers moving to Hexa?

Hexa AI has seen very high adoption, with hundreds of Tenable One customers using it to take action and automate remediation. The company even created a new SKU for incremental tokens due to customer overages. Hexa's availability only within the Tenable One platform is a major driver for customers adopting the platform, leading to a significant price uplift from stand-alone VM.

“we actually created a new SKU for incremental tokens for overages from the customers because customers with significant percentages were over on their tokens.”

asked by Conner Weed · answered by Mark Thurmond

Given the strong momentum, when can we expect to see accelerated revenue growth, especially considering the volatility in CCB and cRPO?

Revenue is a lagging indicator, but the company is in a better position than 90 days ago, raising full-year guidance. Expectations for Calculated Current Billings (CCB) have improved by $8 million to $10 million for FY26, with the majority benefiting the second half, indicating future revenue momentum.

“our expectations with respect to CCB that we laid out at the beginning of the year have improved by $8 million to $10 million, and the majority of that is coming into the second half.”

asked by Rudy Kessinger · answered by Matthew Brown

What makes Tenable's 'harness' unique compared to other exposure management providers, and are there concerns about LLM providers moving upstream?

The real moat is above and below the AI model. Above, the application layer (harness) provides context and trust for safe, deterministic operations. Below, the extensive sensor layer and data fabric collect proprietary data. This combination allows Tenable to orchestrate workflows and take action to reduce risk, differentiating it from LLM providers.

“The real moat will be the application layer, which provides the context and trust to run these models safely and securely and deterministically in your environment.”

asked by Jonathan Ho · answered by Matthew Brown

How is the 'Mythos' environment impacting pipeline acceleration and customer engagement, and are customers expanding their scanning coverage?

The Mythos AI lab discussions are a tailwind, creating urgency for exposure management. Customers are consolidating tools and platforms rather than increasing overall budgets. They are expanding asset coverage and looking at incremental asset types like OT and cloud, indicating a broader focus on their infrastructure.

“What you are seeing is this consolidation story happen at a very rapid pace. They do not want to have the number of tools. They want to consolidate. They want to do more, right, with fewer vendors and have platforms.”

asked by Brian Essex · answered by Mark Thurmond

Have there been any changes in competitive dynamics with larger platform vendors embedding LLM technologies?

Tenable had one of its best competitive quarters, with strong double-digit growth in competitive displacement programs. The company feels confident in its technical differentiation against larger players, particularly regarding visibility, accuracy, and coverage, which often surpass free bundled solutions offered by competitors.

“Our compete level in regard to the deals of [indiscernible] and replacing incumbent players was unbelievably strong with very specific programs, which grew double digits in Q2.”

asked by Grant Darling · answered by Mark Thurmond