Tenable Announces Third Quarter 2025 Financial Results

Tenable Exceeds Q3 Revenue and Profit Expectations, Raises Full-Year Outlook

Revenue of $252.4 million, year-over-year growth of 11%
Calculated current billings growth of 8% year-over-year
GAAP operating margin of 2.8%; Non-GAAP operating margin of 23.3%, year-over-year increase of 350 basis points

COLUMBIA, Md., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended September 30, 2025.

"We delivered better-than-expected results on both the top and bottom line driven by strong demand for our Tenable One Exposure Management platform," said Steve Vintz, Co-CEO of Tenable. "Our outperformance reflects the industry's shift toward a more preemptive approach to cybersecurity."

"Tenable is leading the industry’s shift to exposure management, helping our tens of thousands of customers build stronger, smarter defenses for the AI era," said Mark Thurmond, Co-CEO of Tenable. "Enterprises are turning to Tenable to move from reacting to risk to staying ahead of it. They are trusting our platform to deliver the visibility and context required to see and take action on threats before they strike."

Third Quarter 2025 Financial Highlights

Revenue was $252.4 million, an 11% increase year-over-year
Calculated current billings was $267.5 million, an 8% increase year-over-year
GAAP income from operations was $7.1 million, compared to a loss of $2.1 million in the third quarter of 2024
GAAP operating margin was 2.8%, compared to (0.9)% in the third quarter of 2024
Non-GAAP income from operations was $58.9 million, compared to $45.0 million in the third quarter of 2024
Non-GAAP operating margin was 23.3%, compared to 19.8% in the third quarter of 2024
GAAP net income was $2.3 million, compared to a loss of $9.2 million in the third quarter of 2024
GAAP net earnings per share was $0.02, compared to a net loss of $0.08 per share in the third quarter of 2024
Non-GAAP net income was $51.4 million, compared to $39.3 million in the third quarter of 2024
Non-GAAP diluted earnings per share was $0.42, compared to $0.32 in the third quarter of 2024
Net cash provided by operating activities was $53.9 million, compared to $54.6 million in the third quarter of 2024
Unlevered free cash flow was $58.5 million, compared to $60.8 million in the third quarter of 2024
Repurchased 2.0 million shares of our common stock for $60.0 million

Recent Business Highlights

Added 437 new enterprise platform customers and 38 net new six-figure customers
Appointed industry veteran Matthew Brown as Chief Financial Officer
Launched Tenable AI Exposure, a comprehensive solution to see, manage and control the risks introduced by generative AI
Released the next evolution of industry-leading Tenable Vulnerability Priority Rating (VPR), sharpening precision and enabling organizations to focus on risks that pose the greatest threat
Named a “Leader” in both Worldwide Exposure Management by IDC and Unified Vulnerability Management by Forrester
Ranked #1 in Device Vulnerability and Exposure Management market share by IDC for the seventh consecutive year

Financial Outlook

For the fourth quarter of 2025, we currently expect:

Revenue in the range of $249.1 million to $253.1 million
Non-GAAP income from operations in the range of $55.7 million to $59.7 million
Non-GAAP net income in the range of $47.9 million to $51.9 million, assuming interest expense of $7.0 million, interest income of $3.2 million and a provision for income taxes of $3.4 million
Non-GAAP diluted earnings per share in the range of $0.39 to $0.43
121.5 million diluted weighted average shares outstanding

For the year ending December 31, 2025, we currently expect:

Calculated current billings in the range of $1.040 billion to $1.048 billion
Revenue in the range of $988.0 million to $992.0 million
Non-GAAP income from operations in the range of $211.0 million to $215.0 million
Non-GAAP net income in the range of $185.0 million to $189.0 million, assuming interest expense of $28.4 million, interest income of $15.8 million and a provision for income taxes of $12.6 million
Non-GAAP diluted earnings per share in the range of $1.51 to $1.54
122.5 million diluted weighted average shares outstanding
Unlevered free cash flow in the range of $265.0 million to $275.0 million

Conference Call Information

Tenable will host a conference call on October 29, 2025 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable^® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com.

Contact Information

Investor Relations
investors@tenable.com

Media Relations
tenablepr@tenable.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform's ability to help organizations move to a more strategic and effective defense, manage and control risks introduced by generative AI and focus on risks that pose the greatest threat, and our business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” "believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net income (loss), excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.

TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share data)		2025			2024			2025			2024
Revenue	$	252,440		$	227,088		$	738,872		$	664,290
Cost of revenue⁽¹⁾		56,753			50,499			163,647			148,229
Gross profit		195,687			176,589			575,225			516,061
Operating expenses:
Sales and marketing⁽¹⁾		99,949			99,083			310,222			300,037
Research and development⁽¹⁾		56,265			48,020			168,724			136,896
General and administrative⁽¹⁾		32,337			31,569			114,302			92,889
Restructuring		—			—			—			6,070
Total operating expenses		188,551			178,672			593,248			535,892
Income (loss) from operations		7,136			(2,083	)		(18,023	)		(19,831	)
Interest income		3,590			5,989			12,597			17,587
Interest expense		(7,213	)		(8,148	)		(21,363	)		(24,333	)
Other (expense) income, net		(703	)		359			(204	)		(858	)
Income (loss) before income taxes		2,810			(3,883	)		(26,993	)		(27,435	)
Provision for income taxes		550			5,328			8,388			10,734
Net income (loss)	$	2,260		$	(9,211	)	$	(35,381	)	$	(38,169	)

Net earnings (loss) per share:
Basic	$	0.02		$	(0.08	)	$	(0.29	)	$	(0.32	)
Diluted	$	0.02		$	(0.08	)	$	(0.29	)	$	(0.32	)

Weighted-average shares used to compute net earnings (loss) per share:
Basic		120,483			119,169			120,516			118,466
Diluted		121,953			119,169			120,516			118,466

⁽¹⁾ Includes stock-based compensation as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
Cost of revenue	$	3,495	$	3,216	$	10,270	$	9,486
Sales and marketing		17,051		15,941		51,499		47,517
Research and development		14,174		12,435		42,441		35,395
General and administrative⁽²⁾		10,162		10,092		43,101		30,403
Total stock-based compensation	$	44,882	$	41,684	$	147,311	$	122,801

⁽²⁾Stock-based compensation in the nine months ended September 30, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards in Q1 for our late CEO.

TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS

	September 30, 2025			December 31, 2024
(in thousands, except per share data)	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	171,852		$	328,647
Short-term investments		211,719			248,547
Accounts receivable (net of allowance for doubtful accounts of $845 and $525 at September 30, 2025 and December 31, 2024, respectively)		200,993			258,734
Deferred commissions		50,582			51,791
Prepaid expenses and other current assets		44,186			53,026
Total current assets		679,332			940,745
Property and equipment, net		40,471			39,265
Deferred commissions (net of current portion)		64,518			67,914
Operating lease right-of-use assets		35,488			45,139
Acquired intangible assets, net		122,078			94,461
Goodwill		697,886			541,292
Other assets		12,849			13,303
Total assets	$	1,652,622		$	1,742,119

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	20,089		$	19,981
Accrued compensation		48,429			55,784
Deferred revenue		639,614			650,372
Operating lease liabilities		8,327			6,801
Other current liabilities		3,852			5,154
Total current liabilities		720,311			738,092
Deferred revenue (net of current portion)		170,889			182,815
Term loan, net of issuance costs (net of current portion)		354,820			356,705
Operating lease liabilities (net of current portion)		52,053			56,224
Other liabilities		10,173			8,329
Total liabilities		1,308,246			1,342,165

Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized; 128,348 and 122,371 shares issued at September 30, 2025 and December 31, 2024, respectively)		1,283			1,224
Additional paid-in capital		1,540,611			1,374,659
Treasury stock (at cost: 8,314 and 2,673 shares at September 30, 2025 and December 31, 2024, respectively)		(301,208	)		(114,911	)
Accumulated other comprehensive income		407			318
Accumulated deficit		(896,717	)		(861,336	)
Total stockholders’ equity		344,376			399,954
Total liabilities and stockholders’ equity	$	1,652,622		$	1,742,119

TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Nine Months Ended September 30,
(in thousands)		2025			2024
Cash flows from operating activities:
Net loss	$	(35,381	)	$	(38,169	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		31,817			24,434
Stock-based compensation		147,311			122,801
Net accretion of discounts and amortization of premiums on short-term investments		(2,568	)		(6,141	)
Amortization of debt issuance costs		1,071			1,003
Loss (gain) on other investments		18			(1,452	)
Restructuring		—			4,528
Other		2,791			4,128
Changes in operating assets and liabilities:
Accounts receivable		59,733			26,911
Prepaid expenses and other assets		16,877			29,868
Accounts payable, accrued expenses and accrued compensation		(9,795	)		(22,921	)
Deferred revenue		(30,413	)		(3,153	)
Other current and noncurrent liabilities		2,259			(5,480	)
Net cash provided by operating activities		183,720			136,357

Cash flows from investing activities:
Purchases of property and equipment		(11,768	)		(1,924	)
Capitalized software development costs		(2,676	)		(5,930	)
Purchases of short-term investments		(116,687	)		(227,210	)
Sales and maturities of short-term investments		156,171			234,865
Proceeds from other investments		852			3,512
Purchases of other investments		—			(1,250	)
Business combinations, net of cash acquired		(196,182	)		(29,162	)
Net cash used in investing activities		(170,290	)		(27,099	)

Cash flows from financing activities:
Payments on term loan		(2,813	)		(2,813	)
Proceeds from stock issued in connection with the employee stock purchase plan		15,482			16,262
Proceeds from the exercise of stock options		2,420			4,798
Payments for taxes related to net share settlement of equity awards		(1,329	)		—
Purchase of treasury stock		(184,968	)		(49,991	)
Net cash used in financing activities		(171,208	)		(31,744	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		983			(2,439	)
Net (decrease) increase in cash and cash equivalents and restricted cash		(156,795	)		75,075
Cash and cash equivalents and restricted cash at beginning of period		328,647			237,132
Cash and cash equivalents and restricted cash at end of period	$	171,852		$	312,207

TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

Revenue	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)		2025		2024		2025		2024
Subscription revenue	$	232,211	$	208,554	$	680,685	$	608,727
Perpetual license and maintenance revenue		11,088		11,769		34,051		35,941
Professional services and other revenue		9,141		6,765		24,136		19,622
Revenue⁽¹⁾	$	252,440	$	227,088	$	738,872	$	664,290

⁽¹⁾ Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 95% and 96%, respectively of revenue in the three and nine months ended September 30, 2025 and 96% in the three and nine months ended September 30, 2024.

Calculated Current Billings	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)		2025			2024			2025			2024
Revenue	$	252,440		$	227,088		$	738,872		$	664,290
Deferred revenue (current), end of period		639,614			583,940			639,614			583,940
Deferred revenue (current), beginning of period⁽¹⁾		(624,548	)		(562,587	)		(657,035	)		(580,887	)
Calculated current billings	$	267,506		$	248,441		$	721,451		$	667,343

⁽¹⁾ Deferred revenue (current), beginning of period for the nine months ended September 30, 2025 and 2024 includes, $6.7 million and $0.1 million, respectively, related to acquired deferred revenue.

Remaining Performance Obligations	September 30,				Change
(in thousands)		2025		2024	%
Remaining performance obligations, short-term	$	669,015	$	592,351	12.9	%
Remaining performance obligations, long-term		259,849		179,210	45.0	%
Remaining performance obligations	$	928,864	$	771,561	20.4	%

Free Cash Flow and Unlevered Free Cash Flow	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)		2025			2024			2025			2024
Net cash provided by operating activities	$	53,850		$	54,607		$	183,720		$	136,357
Purchases of property and equipment		(867	)		(733	)		(11,768	)		(1,924	)
Capitalized software development costs		(1,353	)		(1,163	)		(2,676	)		(5,930	)
Free cash flow		51,630			52,711			169,276			128,503
Cash paid for interest and other financing costs		6,854			8,055			20,287			23,505
Unlevered free cash flow	$	58,484		$	60,766		$	189,563		$	152,008

Free cash flow and unlevered free cash flow for the periods presented were impacted by:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)		2025			2024			2025			2024
Employee stock purchase plan activity	$	(4,824	)	$	(3,653	)	$	(5,314	)	$	(6,283	)
Acquisition-related expenses		(311	)		(663	)		(5,130	)		(1,326	)
Restructuring		—			(492	)		—			(5,911	)

Non-GAAP Income from Operations and Non-GAAP Operating Margin	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)		2025			2024			2025			2024
Income (loss) from operations	$	7,136		$	(2,083	)	$	(18,023	)	$	(19,831	)
Stock-based compensation		44,882			41,684			147,311			122,801
Acquisition-related expenses		113			360			6,815			1,284
Restructuring		—			—			—			6,070
Amortization of acquired intangible assets		6,782			5,014			19,183			14,443
Non-GAAP income from operations	$	58,913		$	44,975		$	155,286		$	124,767
Operating margin		2.8	%	(0.9		)%	(2.4		)%	(3.0		)%
Non-GAAP operating margin		23.3	%		19.8	%		21.0	%		18.8	%

Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share data)		2025			2024			2025			2024
Net income (loss)	$	2,260		$	(9,211	)	$	(35,381	)	$	(38,169	)
Stock-based compensation		44,882			41,684			147,311			122,801
Tax impact of stock-based compensation⁽¹⁾		(2,552	)		1,528			(656	)		1,626
Acquisition-related expenses⁽²⁾		113			360			6,815			1,284
Restructuring⁽²⁾		—			—			—			6,070
Amortization of acquired intangible assets⁽²⁾		6,782			5,014			19,183			14,443
Tax impact of acquisitions		(47	)		(52	)		(147	)		(130	)
Non-GAAP net income	$	51,438		$	39,323		$	137,125		$	107,925

Net earnings (loss) per share, diluted	$	0.02		$	(0.08	)	$	(0.29	)	$	(0.32	)
Stock-based compensation		0.37			0.35			1.22			1.04
Tax impact of stock-based compensation⁽¹⁾		(0.02	)		0.01			(0.01	)		0.01
Acquisition-related expenses⁽²⁾		—			0.01			0.06			0.01
Restructuring⁽²⁾		—			—			—			0.05
Amortization of acquired intangible assets⁽²⁾		0.05			0.04			0.16			0.12
Tax impact of acquisitions		—			—			—			—
Adjustment to diluted earnings per share⁽³⁾		—			(0.01	)		(0.03	)		(0.03	)
Non-GAAP earnings per share, diluted	$	0.42		$	0.32		$	1.11		$	0.88

Weighted-average shares used to compute GAAP net earnings (loss) per share, diluted		121,953			119,169			120,516			118,466

Weighted-average shares used to compute non-GAAP earnings per share, diluted		121,953			123,288			122,995			123,206

⁽¹⁾ The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
⁽²⁾ The tax impact of acquisition-related expenses, restructuring and the amortization of acquired intangible assets are not material.
⁽³⁾ An adjustment to reconcile GAAP net earnings (loss) per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Non-GAAP Gross Profit and Non-GAAP Gross Margin	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)		2025			2024			2025			2024
Gross profit	$	195,687		$	176,589		$	575,225		$	516,061
Stock-based compensation		3,495			3,216			10,270			9,486
Amortization of acquired intangible assets		6,782			5,014			19,183			14,443
Non-GAAP gross profit	$	205,964		$	184,819		$	604,678		$	539,990
Gross margin		77.5	%		77.8	%		77.9	%		77.7	%
Non-GAAP gross margin		81.6	%		81.4	%		81.8	%		81.3	%

Non-GAAP Sales and Marketing Expense	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)		2025			2024			2025			2024
Sales and marketing expense	$	99,949		$	99,083		$	310,222		$	300,037
Less: Stock-based compensation		17,051			15,941			51,499			47,517
Less: Acquisition-related expenses		8			3			1,320			52
Non-GAAP sales and marketing expense	$	82,890		$	83,139		$	257,403		$	252,468
Non-GAAP sales and marketing expense % of revenue		32.8	%		36.6	%		34.8	%		38.0	%

Non-GAAP Research and Development Expense	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)		2025			2024			2025			2024
Research and development expense	$	56,265		$	48,020		$	168,724		$	136,896
Less: Stock-based compensation		14,174			12,435			42,441			35,395
Less: Acquisition-related expenses		3			—			1,774			(20	)
Non-GAAP research and development expense	$	42,088		$	35,585		$	124,509		$	101,521
Non-GAAP research and development expense % of revenue		16.7	%		15.7	%		16.9	%		15.3	%

Non-GAAP General and Administrative Expense	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)		2025			2024			2025			2024
General and administrative expense	$	32,337		$	31,569		$	114,302		$	92,889
Less: Stock-based compensation		10,162			10,092			43,101			30,403
Less: Acquisition-related expenses		102			357			3,721			1,252
Non-GAAP general and administrative expense	$	22,073		$	21,120		$	67,480		$	61,234
Non-GAAP general and administrative expense % of revenue		8.7	%		9.3	%		9.1	%		9.2	%

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

Forecasted Non-GAAP Income from Operations	Three Months Ending December 31, 2025				Year Ending December 31, 2025
(in millions)	Low		High		Low			High
Forecasted income (loss) from operations	$	4.0	$	8.0	$	(13.9	)	$	(9.9	)
Forecasted stock-based compensation		44.6		44.6		191.9			191.9
Forecasted acquisition-related expenses		0.3		0.3		7.0			7.0
Forecasted amortization of acquired intangible assets		6.8		6.8		26.0			26.0
Forecasted non-GAAP income from operations	$	55.7	$	59.7	$	211.0		$	215.0

Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ending December 31, 2025						Year Ending December 31, 2025
(in millions, except per share data)	Low			High			Low			High
Forecasted net loss⁽¹⁾	$	(6.0	)	$	(2.0	)	$	(41.3	)	$	(37.3	)
Forecasted stock-based compensation		44.6			44.6			191.9			191.9
Forecasted tax impact of stock-based compensation		2.3			2.3			1.6			1.6
Forecasted acquisition-related expenses		0.3			0.3			7.0			7.0
Forecasted amortization of acquired intangible assets		6.8			6.8			26.0			26.0
Forecasted tax impact of acquisitions		(0.1	)		(0.1	)		(0.2	)		(0.2	)
Forecasted non-GAAP net income	$	47.9		$	51.9		$	185.0		$	189.0

Forecasted net loss per share, diluted⁽¹⁾	$	(0.05	)	$	(0.02	)	$	(0.34	)	$	(0.31	)
Forecasted stock-based compensation		0.37			0.37			1.60			1.60
Forecasted tax impact of stock-based compensation		0.02			0.02			0.01			0.01
Forecasted acquisition-related expenses		—			—			0.06			0.06
Forecasted amortization of acquired intangible assets		0.06			0.06			0.22			0.22
Forecasted tax impact of acquisitions		—			—			—			—
Adjustment to diluted earnings per share⁽²⁾		(0.01	)		—			(0.04	)		(0.04	)
Forecasted non-GAAP earnings per share, diluted	$	0.39		$	0.43		$	1.51		$	1.54

Forecasted weighted-average shares used to compute GAAP net loss per share, diluted		119.1			119.1			120.2			120.2
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted		121.5			121.5			122.5			122.5

⁽¹⁾ The forecasted GAAP net loss assumes income tax expense of $5.6 million and $14.0 million in the three months and year ending December 31, 2025, respectively.

⁽²⁾ Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Forecasted Free Cash Flow and Unlevered Free Cash Flow	Year Ending December 31, 2025
(in millions)	Low			High
Forecasted net cash provided by operating activities	$	255.6		$	265.6
Forecasted purchases of property and equipment		(13.0	)		(13.0	)
Forecasted capitalized software development costs		(4.4	)		(4.4	)
Forecasted free cash flow		238.2			248.2
Forecasted cash paid for interest and other financing costs		26.8			26.8
Forecasted unlevered free cash flow	$	265.0		$	275.0

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