S&P lifts Tenable credit rating to ’BB+’ before issuer-requested withdrawal

S&P Global Ratings raised Tenable Holdings Inc's credit rating to 'BB+' from 'BB', attributing the change to steady revenue growth and improved profit margins. The company reported $531 million in revenue for the first half of 2026, a 9% increase year-over-year, with plans to reach $1.1 billion in total revenue for the full year.

The rating upgrade reflects Tenable's strategic pivot towards balancing revenue expansion with operational efficiency. The unified Tenable One platform now accounts for half of all new business deals, driving platform-related revenue growth at a faster rate than stand-alone products. This shift has led to a significant 1,400 basis point expansion in S&P-adjusted EBITDA margins over three years, reaching nearly 25% for the trailing 12 months ending June 2026.

S&P expects margins to settle around 25% for the year 2026 as operating leverage offsets ongoing reinvestment in sales and product development. The company's balance sheet has also strengthened, with $135 million in unlevered free cash flow generated year-to-date and projected full-year cash flows between $289 million and $295 million.

A recent convertible senior note offering raised $715 million, enabling Tenable to retire a $358 million loan and repurchase $170 million in shares. This improved financial position allows the company to pursue strategic acquisitions and share repurchases while maintaining high-single-digit revenue growth through 2029.