Tenable Holdings, Inc. (NASDAQ:TENB): Is Breakeven Near?

Tenable Holdings, Inc. (NASDAQ:TENB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tenable Holdings, Inc. provides cyber exposure management solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. With the latest financial year loss of US$36m and a trailing-twelve-month loss of US$45m, the US$3.8b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Tenable Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 23 industry analysts covering Tenable Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$11m in 2027. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Tenable Holdings given that this is a high-level summary, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Tenable Holdings

Before we wrap up, there’s one issue worth mentioning. Tenable Holdings currently has a debt-to-equity ratio of 101%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Tenable Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Tenable Holdings, take a look at Tenable Holdings' company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Valuation: What is Tenable Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Tenable Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tenable Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.