Company: TENB
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001660280-25-000090
Chunk: 24

Company: Tenable Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 and you should not consider it in isolation or as a substitute for an analysis of our results under GAAP. First, free cash flow is not a substitute for net cash flows from operating activities. Second, other companies may calculate free cash flow or similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a tool for comparison. Additionally, the utility of free cash flow is further limited as it does not reflect our future contractual commitments and does not represent the total increase or decrease in our cash balance for a given period. Because of these and other limitations, you should consider free cash flow along with net cash provided by operating activities and our other GAAP financial measures.

The following table presents a reconciliation of net cash provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow: 

Three Months Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Net cash provided by operating activities$42,463 $31,424 $129,870 $81,750 Purchases of property and equipment(4,348)(526)(10,901)(1,191)Capitalized software development costs(699)(2,235)(1,323)(4,767)Free cash flow(1)$37,416 $28,663 $117,646 $75,792 

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(1)    Free cash flow for the periods presented was impacted by:

Three Months Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Cash paid for interest and other financing costs$(6,859)$(7,839)$(13,433)$(15,450)Employee stock purchase plan activity4,923 3,702 (490)(2,630)Acquisition-related expenses(1,630)(197)(4,819)(663)Restructuring— (1,597)— (5,419)

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Customer Metrics

We believe that our customer base provides a significant opportunity to expand sales of our enterprise platform offerings. We define an enterprise platform customer as a customer that has licensed Tenable One, Tenable Vulnerability Management, Tenable Cloud Security, Tenable Identity Exposure, Tenable OT Security or Tenable Security Center for an annual amount of $5,000 or greater. New enterprise platform customers represent new customer logos during the periods presented and