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Tenable Announces Fourth Quarter and Full Year 2025 Financial Results
Tenable exceeds all guided metrics for the fourth quarter and full year 2025, announces increase of $150 million to share repurchase authorization
•Fourth quarter revenue of $260.5 million, up 11% year-over-year; full year revenue of $999.4 million, up 11% year-over-year
•Fourth quarter calculated current billings of $327.8 million, up 8% year-over-year; full year calculated current billings of $1.049 billion, up 8% year-over-year
•Full year net cash provided by operating activities of $266.8 million; full year unlevered free cash flow of $277.0 million
COLUMBIA, Maryland, February 4, 2026 — Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter and year ended December 31, 2025.
"We are very pleased with the execution in the quarter and the full year as we delivered better-than-expected results across all of our guided metrics," said Steve Vintz, Co-CEO of Tenable. "Our focus on expanding Tenable One and ensuring AI remains central to every innovation is driving stronger platform adoption and deeper customer engagement."
"We are incredibly proud to be recognized as an industry leader in Exposure Management across all three major industry analyst firms," said Mark Thurmond, Co-CEO of Tenable. "Customers are investing in Tenable One as a long-term platform to turn fragmented security data into a unified, actionable roadmap for risk reduction."

Fourth Quarter 2025 Financial Highlights
•Revenue was $260.5 million, an 11% increase year-over-year
•Calculated current billings was $327.8 million, an 8% increase year-over-year
•GAAP income from operations was $8.9 million, compared to $13.0 million in the fourth quarter of 2024
•Non-GAAP income from operations was $63.7 million, compared to $59.4 million in the fourth quarter of 2024
•GAAP net loss was $0.7 million, compared to $1.9 million of net income in the fourth quarter of 2024
•GAAP net loss per share was $0.01, compared to earnings per share of $0.02 in the fourth quarter of 2024
•Non-GAAP net income was $57.3 million, compared to $50.7 million in the fourth quarter of 2024
•Non-GAAP diluted earnings per share was $0.48, compared to $0.41 in the fourth quarter of 2024
•Net cash provided by operating activities was $83.0 million, compared to $81.1 million in the fourth quarter of 2024
•Unlevered free cash flow was $87.5 million, compared to $85.7 million in the fourth quarter of 2024
•Repurchased 2.3 million shares of our common stock for $62.5 million
Full Year 2025 Financial Highlights
•Revenue was $999.4 million, an 11% increase year-over-year
•Calculated current billings was $1.049 billion, an 8% increase year-over-year
•GAAP loss from operations was $9.2 million, compared to $6.9 million in 2024
•Non-GAAP income from operations was $219.0 million, compared to $184.1 million in 2024
•GAAP net loss was $36.1 million, compared to $36.3 million in 2024
•GAAP net loss per share was $0.30, compared to $0.31 in 2024
•Non-GAAP net income was $194.4 million, compared to $158.6 million in 2024
•Non-GAAP diluted earnings per share was $1.59, compared to $1.29 in 2024
•Cash and cash equivalents and short-term investments were $402.2 million at December 31, 2025, compared to $577.2 million at December 31, 2024
•Net cash provided by operating activities was $266.8 million, compared to $217.5 million in 2024
•Unlevered free cash flow was $277.0 million, compared to $237.8 million in 2024
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•Repurchased 7.9 million shares of our common stock for $247.5 million
Recent Business Highlights
•Added 502 new enterprise platform customers and 5 net new six-figure customers
•Announced a $150 million expansion of our existing share repurchase program, increasing the total remaining authorization to $338 million
•Appointed Microsoft cloud and AI security veteran Vlad Korsunsky as Chief Technology Officer
•Named a Leader in the 2025 Gartner® Magic Quadrant™ for Exposure Assessment Platforms and named a Customers’ Choice in the 2025 Gartner® Peer Insights™ Voice of the Customer for Cloud-Native Application Protection Platforms
•Named as the company to beat for AI-Powered Exposure Assessment (EAP) in the 2025 Gartner® AI-Powered Exposure Assessment
•S&P Global upgraded our credit rating to BB from BB-
•Announced agreement with GSA OneGov to further invest in FedRAMP-authorized cloud security capabilities

Financial Outlook
For the first quarter of 2026, we currently expect:
•Revenue in the range of $257.0 million to $260.0 million
•Non-GAAP income from operations in the range of $53.0 million to $56.0 million
•Non-GAAP net income in the range of $46.0 million to $49.0 million, assuming interest income of $2.9 million, interest expense of $6.4 million and a provision for income taxes of $3.1 million
•Non-GAAP diluted earnings per share in the range of $0.39 to $0.42
•118.0 million diluted weighted average shares outstanding
For the year ending December 31, 2026, we currently expect:
•Revenue in the range of $1.065 billion to $1.075 billion
•Non-GAAP income from operations in the range of $245.0 million to $255.0 million
•Non-GAAP net income in the range of $214.0 million to $224.0 million, assuming interest income of $10.4 million, interest expense of $25.9 million and a provision for income taxes of $13.3 million
•Non-GAAP diluted earnings per share in the range of $1.81 to $1.90
•118.0 million diluted weighted average shares outstanding
•Unlevered free cash flow in the range of $285.0 million to $295.0 million
As discussed previously, changes in billing duration due to the shift to annual installment billing is creating negative distortion in calculated current billings that fails to accurately represent our growth rate, and we have transitioned away from relying on calculated current billings to monitor performance of our business. Consequently, we will no longer provide a specific guidance range for calculated current billings in 2026 and forward. However, while we will not provide a specific guidance range, we expect full year 2026 calculated current billings will be in line with current consensus expectations, despite the anticipated billings duration headwinds.
Conference Call Information
Tenable will host a conference call today, February 4, 2026, 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.
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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 over 40,000 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 protect enterprises from security exposure, 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, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 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 are helpful to investors in comparing our financial results 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. Historically we have used
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calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. The timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort calculated current billings 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.


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TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
December 31,		Year Ended
 December 31,
(in thousands, except per share data)2025202420252024
Revenue$260,533 $235,731 $999,405 $900,021 
Cost of revenue(1)
55,290 51,439 218,937 199,668 
Gross profit205,243 184,292 780,468 700,353 
Operating expenses:
Sales and marketing(1)
106,727 95,348 416,949 395,385 
Research and development(1)
54,945 44,728 223,669 181,624 
General and administrative(1)
31,603 31,241 145,905 124,130 
Restructuring3,113 — 3,113 6,070 
Total operating expenses196,388 171,317 789,636 707,209 
Income (loss) from operations8,855 12,975 (9,168)(6,856)
Interest income3,395 5,738 15,992 23,325 
Interest expense(7,056)(7,587)(28,419)(31,920)
Other expense, net(1,134)(2,577)(1,338)(3,435)
Income (loss) before income taxes4,060 8,549 (22,933)(18,886)
Provision for income taxes4,797 6,681 13,185 17,415 
Net (loss) income$(737)$1,868 $(36,118)$(36,301)
Net (loss) earnings per share:
Basic$(0.01)$0.02 $(0.30)$(0.31)
Diluted$(0.01)$0.02 $(0.30)$(0.31)
Weighted-average shares used to compute net (loss) earnings per share:
Basic118,955 119,748 120,124 118,789 
Diluted118,955 123,853 120,124 118,789 
_______________
(1)    Includes stock-based compensation as follows:
Three Months Ended
December 31,		Year Ended
 December 31,
2025202420252024
Cost of revenue$3,444 $3,191 $13,714 $12,677 
Sales and marketing17,302 15,210 68,801 62,727 
Research and development14,101 12,261 56,542 47,656 
General and administrative(2)
9,655 10,052 52,756 40,455 
Total stock-based compensation$44,502 $40,714 $191,813 $163,515 
_______________
(2)    Stock-based compensation in the year ended December 31, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards in Q1 for our late CEO.
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TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31,
(in thousands, except per share data)20252024
Assets
Current assets:
Cash and cash equivalents$187,762 $328,647 
Short-term investments
214,419 248,547 
Accounts receivable (net of allowance for doubtful accounts of $656 and $525 at December 31, 2025 and 2024, respectively)
279,150 258,734 
Deferred commissions52,914 51,791 
Prepaid expenses and other current assets39,339 53,026 
Total current assets 773,584 940,745 
Property and equipment, net 40,062 39,265 
Deferred commissions (net of current portion)71,715 67,914 
Operating lease right-of-use assets35,558 45,139 
Acquired intangible assets, net115,296 94,461 
Goodwill697,886 541,292 
Other assets 13,566 13,303 
Total assets $1,747,667 $1,742,119 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses$21,889 $19,981 
Accrued compensation69,166 55,784 
Deferred revenue706,866 650,372 
Operating lease liabilities9,596 6,801 
Other current liabilities5,432 5,154 
Total current liabilities 812,949 738,092 
Deferred revenue (net of current portion)192,410 182,815 
Term loan, net of issuance costs (net of current portion)354,209 356,705 
Operating lease liabilities (net of current portion)50,877 56,224 
Other liabilities 10,846 8,329 
Total liabilities 1,421,291 1,342,165 
Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized, 129,046 and 122,371 shares issued at December 31, 2025 and 2024, respectively)
1,290 1,224 
Additional paid-in capital1,586,727 1,374,659 
Treasury stock (at cost: 10,596 and 2,673 shares at December 31, 2025 and 2024, respectively)
(364,574)(114,911)
Accumulated other comprehensive income387 318 
Accumulated deficit(897,454)(861,336)
Total stockholders’ equity326,376 399,954 
Total liabilities and stockholders' equity$1,747,667 $1,742,119 
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TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Year Ended December 31,
(in thousands)20252024
Cash flows from operating activities:
Net loss$(36,118)$(36,301)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization41,955 33,209 
Stock-based compensation191,813 163,515 
Net accretion of discounts and amortization of premiums on short-term investments(3,131)(7,595)
Amortization of debt issuance costs1,442 1,353 
Loss (gain) on other investments18 (1,452)
Restructuring— 4,528 
Other3,856 6,507 
Changes in operating assets and liabilities:
Accounts receivable(18,236)(38,730)
Prepaid expenses and other assets12,767 26,170 
Accounts payable, accrued expenses and accrued compensation12,147 (8,257)
Deferred revenue58,361 82,581 
Other current and noncurrent liabilities1,876 (8,052)
Net cash provided by operating activities266,750 217,476 
Cash flows from investing activities:
Purchases of property and equipment
(12,102)(4,247)
Capitalized software development costs(4,474)(6,451)
Purchases of short-term investments(145,342)(287,797)
Sales and maturities of short-term investments182,670 283,964 
Proceeds from other investments852 3,512 
Purchases of other investments— (1,250)
Business combinations, net of cash acquired(196,182)(29,162)
Net cash used in investing activities(174,578)(41,431)
Cash flows from financing activities:
Payments on term loan(3,750)(3,750)
Proceeds from stock issued in connection with the employee stock purchase plan15,482 16,262 
Proceeds from the exercise of stock options3,619 8,064 
Purchase of treasury stock(247,468)(99,977)
Payments for taxes related to net share settlement of equity awards(1,978)— 
Net cash used in financing activities(234,095)(79,401)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
1,038 (5,129)
Net (decrease) increase in cash and cash equivalents and restricted cash
(140,885)91,515 
Cash and cash equivalents and restricted cash at beginning of year
328,647 237,132 
Cash and cash equivalents and restricted cash at end of year
$187,762 $328,647 

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TENABLE HOLDINGS, INC.
REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
RevenueThree Months Ended
December 31,		Year Ended
 December 31,
(in thousands)2025202420252024
Subscription revenue$238,888 $215,932 $919,573 $824,659 
Perpetual license and maintenance revenue10,610 11,833 44,661 47,774 
Professional services and other revenue11,035 7,966 35,171 27,588 
Revenue(1)
$260,533 $235,731 $999,405 $900,021 
_______________
(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% of revenue, respectively, in the three months and year ended December 31, 2025 and 95% and 96% of revenue in the three months and year ended December 31, 2024.
Calculated Current BillingsThree Months Ended
December 31,		Year Ended
 December 31,
(in thousands)2025202420252024
Revenue$260,533 $235,731 $999,405 $900,021 
Deferred revenue (current), end of period706,866 650,372 706,866 650,372 
Deferred revenue (current), beginning of period(1)
(639,614)(583,940)(657,035)(580,887)
Calculated current billings$327,785 $302,163 $1,049,236 $969,506 
_______________
(1)    Deferred revenue (current), beginning of period for the years ended December 31, 2025 and 2024 includes $6.7 million and $0.1 million, respectively, related to acquired deferred revenue.
Remaining Performance ObligationsAt December 31,Change
(in thousands)20252024%
Remaining performance obligations, short-term$748,616 $660,647 13.3 %
Remaining performance obligations, long-term312,449 206,879 51.0 %
Remaining performance obligations$1,061,065 $867,526 22.3 %
Free Cash Flow and Unlevered Free Cash FlowThree Months Ended
December 31,		Year Ended
 December 31,
(in thousands)2025202420252024
Net cash provided by operating activities$83,030 $81,119 $266,750 $217,476 
Purchases of property and equipment(334)(2,323)(12,102)(4,247)
Capitalized software development costs(1,798)(521)(4,474)(6,451)
Free cash flow80,898 78,275 250,174 206,778 
Cash paid for interest and other financing costs6,554 7,472 26,841 30,977 
Unlevered free cash flow$87,452 $85,747 $277,015 $237,755 
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Free cash flow and unlevered free cash flow for the periods presented were impacted by:
Three Months Ended
December 31,		Year Ended
 December 31,
(in thousands)2025202420252024
Employee stock purchase plan activity$5,550 $5,267 $236 $(1,016)
Acquisition-related expenses(672)(170)(5,802)(1,496)
Restructuring(125)— (125)(5,911)
Tax payment on intra-entity asset transfer(1)
— (1,232)— (1,232)
________________
(1)    The tax payment on intra-entity asset transfer in 2024 includes $0.3 million of interest that is included in cash paid for interest and other financing costs.
Non-GAAP Income from Operations and Non-GAAP Operating MarginThree Months Ended
December 31,		Year Ended
 December 31,
(dollars in thousands)2025202420252024
Income (loss) from operations$8,855 $12,975 $(9,168)$(6,856)
Stock-based compensation44,502 40,714 191,813 163,515 
Acquisition-related expenses441 648 7,256 1,932 
Restructuring3,113 — 3,113 6,070 
Amortization of acquired intangible assets6,782 5,014 25,965 19,457 
Non-GAAP income from operations$63,693 $59,351 $218,979 $184,118 
Operating margin3.4 %5.5 %(0.9)%(0.8)%
Non-GAAP operating margin24.4 %25.2 %21.9 %20.5 %
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Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ended
December 31,		Year Ended
 December 31,
(in thousands, except per share data)2025202420252024
Net (loss) income
$(737)$1,868 $(36,118)$(36,301)
Stock-based compensation44,502 40,714 191,813 163,515 
Tax impact of stock-based compensation(1)
3,363 1,219 2,707 2,845 
Acquisition-related expenses(2)
441 648 7,256 1,932 
Restructuring(2)
3,113 — 3,113 6,070 
Amortization of acquired intangible assets(3)
6,782 5,014 25,965 19,457 
Tax impact of acquisitions(159)(31)(306)(161)
Tax impact of intra-entity asset transfer(4)
— 1,232 — 1,232 
Non-GAAP net income$57,305 $50,664 $194,430 $158,589 
Net (loss) earnings per share, diluted
$(0.01)$0.02 $(0.30)$(0.31)
Stock-based compensation0.37 0.33 1.60 1.38 
Tax impact of stock-based compensation(1)
0.03 0.01 0.02 0.03 
Acquisition-related expenses(2)
— — 0.06 0.02 
Restructuring(2)
0.03 — 0.03 0.05 
Amortization of acquired intangible assets(3)
0.06 0.04 0.22 0.16 
Tax impact of acquisitions— — — — 
Tax impact of intra-entity asset transfer(4)
— 0.01 — 0.01 
Adjustment to diluted earnings per share(5)
— — (0.04)(0.05)
Non-GAAP earnings per share, diluted$0.48 $0.41 $1.59 $1.29 
Weighted-average shares used to compute GAAP net (loss) earnings per share, diluted
118,955123,853120,124118,789
Weighted-average shares used to compute non-GAAP earnings per share, diluted120,259123,853122,308123,370
________________
(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 and restructuring charges are not material.
(3)    The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions.
(4)    The tax impact of the intra-entity asset transfer is additional tax incurred related to the 2021 internal restructuring of Indegy.
(5)    An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares, when applicable.
Non-GAAP Gross Profit and Non-GAAP Gross MarginThree Months Ended
December 31,		Year Ended
 December 31,
(dollars in thousands)2025202420252024
Gross profit$205,243 $184,292 $780,468 $700,353 
Stock-based compensation3,444 3,191 13,714 12,677 
Amortization of acquired intangible assets6,782 5,014 25,965 19,457 
Non-GAAP gross profit$215,469 $192,497 $820,147 $732,487 
Gross margin78.8 %78.2 %78.1 %77.8 %
Non-GAAP gross margin82.7 %81.7 %82.1 %81.4 %
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Non-GAAP Sales and Marketing ExpenseThree Months Ended
December 31,		Year Ended
 December 31,
(dollars in thousands)2025202420252024
Sales and marketing expense$106,727 $95,348 $416,949 $395,385 
Less: Stock-based compensation17,302 15,210 68,801 62,727 
Less: Acquisition-related expenses— — 1,320 52 
Non-GAAP sales and marketing expense$89,425 $80,138 $346,828 $332,606 
Non-GAAP sales and marketing expense % of revenue34.3 %34.0 %34.7 %37.0 %
Non-GAAP Research and Development ExpenseThree Months Ended
December 31,		Year Ended
 December 31,
(dollars in thousands)2025202420252024
Research and development expense$54,945 $44,728 $223,669 $181,624 
Less: Stock-based compensation14,101 12,261 56,542 47,656 
Less: Acquisition-related expenses4 — 1,778 (20)
Non-GAAP research and development expense$40,840 $32,467 $165,349 $133,988 
Non-GAAP research and development expense % of revenue15.7 %13.8 %16.5 %14.9 %
Non-GAAP General and Administrative ExpenseThree Months Ended
December 31,		Year Ended
 December 31,
(dollars in thousands)2025202420252024
General and administrative expense$31,603 $31,241 $145,905 $124,130 
Less: Stock-based compensation9,655 10,052 52,756 40,455 
Less: Acquisition-related expenses437 648 4,158 1,900 
Non-GAAP general and administrative expense$21,511 $20,541 $88,991 $81,775 
Non-GAAP general and administrative expense % of revenue8.3 %8.7 %8.9 %9.1 %
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The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.
Forecasted Non-GAAP Income from OperationsThree Months Ending
March 31, 2026		Year Ending
 December 31, 2026
(in millions)LowHighLowHigh
Forecasted (loss) income from operations$(3.4)$(0.4)$28.7 $38.7 
Forecasted stock-based compensation45.1 45.1 184.9 184.9 
Forecasted restructuring expense4.5 4.5 4.5 4.5 
Forecasted amortization of acquired intangible assets6.8 6.8 26.9 26.9 
Forecasted non-GAAP income from operations$53.0 $56.0 $245.0 $255.0 

Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ending
March 31, 2026		Year Ending
 December 31, 2026
(in millions, except per share data)LowHighLowHigh
Forecasted net (loss) income(1)
$(11.5)$(8.5)$(7.0)$3.0 
Forecasted stock-based compensation45.1 45.1 184.9 184.9 
Forecasted tax impact of stock-based compensation1.1 1.1 4.8 4.8 
Forecasted tax impact of acquisitions— — (0.1)(0.1)
Forecasted restructuring expense4.5 4.5 4.5 4.5 
Forecasted amortization of acquired intangible assets6.8 6.8 26.9 26.9 
Forecasted non-GAAP net income$46.0 $49.0 $214.0 $224.0 
Forecasted net (loss) earnings per share, diluted(1)
$(0.10)$(0.07)$(0.06)$0.03 
Forecasted stock-based compensation0.39 0.39 1.58 1.58 
Forecasted tax impact of stock-based compensation0.01 0.01 0.04 0.04 
Forecasted tax impact of acquisitions— — — — 
Forecasted restructuring expense0.04 0.04 0.04 0.04 
Forecasted amortization of acquired intangible assets0.06 0.06 0.23 0.23 
Adjustment to diluted earnings per share(2)
(0.01)(0.01)(0.02)(0.02)
Forecasted non-GAAP earnings per share, diluted$0.39 $0.42 $1.81 $1.90 
Forecasted weighted-average shares used to compute GAAP net loss per share, diluted117.0117.0117.0117.0
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted118.0118.0118.0118.0
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(1)    The forecasted GAAP net loss assumes income tax expense of $4.2 million and $18.0 million in the three months ending March 31, 2026 and year ending December 31, 2026, 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.
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Forecasted Free Cash Flow and Unlevered Free Cash FlowYear Ending
 December 31, 2026
(in millions)LowHigh
Forecasted net cash provided by operating activities$275.7 $285.7 
Forecasted purchases of property and equipment(10.9)(10.9)
Forecasted capitalized software development costs(4.0)(4.0)
Forecasted free cash flow260.8 270.8 
Forecasted cash paid for interest and other financing costs24.2 24.2 
Forecasted unlevered free cash flow$285.0 $295.0 
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