Tenable Announces Second Quarter 2025 Financial Results

Revenue of $247.3 million, up 12% year-over-year.
Calculated current billings of $238.6 million, up 8% year-over-year.
GAAP operating margin of (3)%; Non-GAAP operating margin of 19%.
Net cash provided by operating activities of $42.5 million; Unlevered free cash flow of $44.3 million.
Announced a $250 million expansion of our existing stock repurchase program.

COLUMBIA, Md., July 30, 2025 (GLOBE NEWSWIRE) — Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended June 30, 2025.

“We beat all of our guided metrics during the quarter, delivering 12% revenue growth and 19% operating margin,” said Steve Vintz, Co-CEO of Tenable. “Our outperformance was driven by the adoption of our exposure management platform, as customers are becoming more strategic with their security investments, prioritizing preemptive measures and seeking a unified view of their attack surface to reduce risk.”

“This quarter showcased the exceptional value Tenable One delivers, as we saw major expansions across industries and secured strong wins against major players,” said Mark Thurmond, Co-CEO of Tenable. “Our leadership in exposure management uniquely positions us to help customers address their complex security challenges.”

Second Quarter 2025 Financial Highlights

Revenue was $247.3 million, a 12% increase year-over-year.
Calculated current billings was $238.6 million, an 8% increase year-over-year.
GAAP loss from operations was $7.4 million, compared to $8.8 million in the second quarter of 2024.
Non-GAAP income from operations was $47.7 million, compared to $42.8 million in the second quarter of 2024.
GAAP net loss was $14.7 million, compared to $14.6 million in the second quarter of 2024.
GAAP net loss per share was $0.12, consistent with the second quarter of 2024.
Non-GAAP net income was $41.4 million, compared to $38.2 million in the second quarter of 2024.
Non-GAAP diluted earnings per share was $0.34, compared to $0.31 in the second quarter of 2024.
Cash and cash equivalents and short-term investments were $386.5 million at June 30, 2025, compared to $577.2 million at December 31, 2024.
Net cash provided by operating activities was $42.5 million, compared to $31.4 million in the second quarter of 2024.
Unlevered free cash flow was $44.3 million, compared to $36.5 million in the second quarter of 2024.
Repurchased 2.0 million shares of our common stock for $65.0 million.

Recent Business Highlights

Added 367 new enterprise platform customers and 76 net new six-figure customers.
Announced a $250 million expansion of our existing stock repurchase program.
Completed our acquisition of Apex Security, which is expected to strengthen our industry-leading exposure management platform to help organizations secure both the AI they use and the AI they build.
Launched Tenable One connectors and advanced risk dashboards, which are designed to seamlessly combine data from third-party security tools with our native sensor data for a comprehensive and actionable view of organizational risk.
Named a “Major Player” in IDC’s inaugural MarketScape report for Cloud-Native Application Protection Platforms (CNAPP).
Published the 2025 Cloud Security Risk Report, delivering in-depth, real-world insights into the most pressing security challenges organizations face.
Awarded two AI-powered security awards from the 2025 Globee Awards and 2025 Cybersecurity Excellence Awards.

Financial Outlook

For the third quarter of 2025, we currently expect:

Revenue in the range of $246.0 million to $248.0 million.
Non-GAAP income from operations in the range of $52.0 million to $54.0 million.
Non-GAAP net income in the range of $44.0 million to $46.0 million, assuming interest expense of $7.2 million, interest income of $3.3 million and a provision for income taxes of $3.4 million.
Non-GAAP diluted earnings per share in the range of $0.36 to $0.37.
123.0 million diluted weighted average shares outstanding.

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

Calculated current billings in the range of $1.038 billion to $1.048 billion.
Revenue in the range of $981.0 million to $987.0 million.
Non-GAAP income from operations in the range of $205.0 million to $215.0 million.
Non-GAAP net income in the range of $179.0 million to $189.0 million, assuming interest expense of $28.5 million, interest income of $15.6 million and a provision for income taxes of $12.8 million.
Non-GAAP diluted earnings per share in the range of $1.45 to $1.53.
123.5 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 July 30, 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 protect enterprises from security exposure and streamline vulnerability analysis and response, 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 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 June 30,						Six Months Ended June 30,
(in thousands, except per share data)		2025			2024			2025			2024
Revenue	$	247,295		$	221,241		$	486,432		$	437,202
Cost of revenue⁽¹⁾		54,434			48,798			106,894			97,730
Gross profit		192,861			172,443			379,538			339,472
Operating expenses:
Sales and marketing⁽¹⁾		107,091			101,129			210,273			200,954
Research and development⁽¹⁾		59,236			45,149			112,459			88,876
General and administrative⁽¹⁾		33,982			30,302			81,965			61,320
Restructuring		—			4,681			—			6,070
Total operating expenses		200,309			181,261			404,697			357,220
Loss from operations		(7,448	)		(8,818	)		(25,159	)		(17,748	)
Interest income		4,080			5,974			9,007			11,598
Interest expense		(7,139	)		(8,073	)		(14,150	)		(16,185	)
Other income (expense), net		25			93			499			(1,217	)
Loss before income taxes		(10,482	)		(10,824	)		(29,803	)		(23,552	)
Provision for income taxes		4,224			3,748			7,838			5,406
Net loss	$	(14,706	)	$	(14,572	)	$	(37,641	)	$	(28,958	)

Net loss per share, basic and diluted	$	(0.12	)	$	(0.12	)	$	(0.31	)	$	(0.25	)
Weighted-average shares used to compute net loss per share, basic and diluted		120,979			118,681			120,533			118,111

_______________

⁽¹⁾Includes stock-based compensation as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Cost of revenue	$	3,460	$	3,288	$	6,775	$	6,270
Sales and marketing		17,818		16,276		34,448		31,576
Research and development		15,300		11,799		28,267		22,960
General and administrative⁽²⁾		9,948		10,035		32,939		20,311
Total stock-based compensation	$	46,526	$	41,398	$	102,429	$	81,117

_______________

⁽²⁾ Stock-based compensation in the six months ended June 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

	June 30, 2025			December 31, 2024
(in thousands, except per share data)	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	175,025		$	328,647
Short-term investments		211,489			248,547
Accounts receivable (net of allowance for doubtful accounts of $691 and $525 at June 30, 2025 and December 31, 2024, respectively)		181,114			258,734
Deferred commissions		50,785			51,791
Prepaid expenses and other current assets		54,079			53,026
Total current assets		672,492			940,745
Property and equipment, net		42,577			39,265
Deferred commissions (net of current portion)		64,274			67,914
Operating lease right-of-use assets		36,880			45,139
Acquired intangible assets, net		128,860			94,461
Goodwill		697,769			541,292
Other assets		13,720			13,303
Total assets	$	1,656,572		$	1,742,119

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	18,828		$	19,981
Accrued compensation		55,574			55,784
Deferred revenue		624,548			650,372
Operating lease liabilities		7,138			6,801
Other current liabilities		7,179			5,154
Total current liabilities		713,267			738,092
Deferred revenue (net of current portion)		173,261			182,815
Term loan, net of issuance costs (net of current portion)		355,439			356,705
Operating lease liabilities (net of current portion)		54,059			56,224
Other liabilities		9,847			8,329
Total liabilities		1,305,873			1,342,165

Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized; 127,352 and 122,371 shares issued at June 30, 2025 and December 31, 2024, respectively)		1,274			1,224
Additional paid-in capital		1,489,379			1,374,659
Treasury stock (at cost: 6,365 and 2,673 shares at June 30, 2025 and December 31, 2024, respectively)		(241,239	)		(114,911	)
Accumulated other comprehensive income		262			318
Accumulated deficit		(898,977	)		(861,336	)
Total stockholders’ equity		350,699			399,954
Total liabilities and stockholders’ equity	$	1,656,572		$	1,742,119

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

	Six Months Ended June 30,
(in thousands)		2025			2024
Cash flows from operating activities:
Net loss	$	(37,641	)	$	(28,958	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		20,680			15,864
Stock-based compensation		102,429			81,117
Net accretion of discounts and amortization of premiums on short-term investments		(1,975	)		(4,378	)
Amortization of debt issuance costs		707			662
Restructuring		—			4,528
Other		1,496			2,184
Changes in operating assets and liabilities:
Accounts receivable		79,766			40,462
Prepaid expenses and other assets		5,092			18,105
Accounts payable, accrued expenses and accrued compensation		(4,120	)		(20,162	)
Deferred revenue		(43,107	)		(24,807	)
Other current and noncurrent liabilities		6,543			(2,867	)
Net cash provided by operating activities		129,870			81,750

Cash flows from investing activities:
Purchases of property and equipment		(10,901	)		(1,191	)
Capitalized software development costs		(1,323	)		(4,767	)
Purchases of short-term investments		(83,338	)		(160,405	)
Sales and maturities of short-term investments		122,314			147,778
Proceeds from other investments		664			3,512
Purchases of other investments		—			(250	)
Business combinations, net of cash acquired		(196,182	)		(29,162	)
Net cash used in investing activities		(168,766	)		(44,485	)

Cash flows from financing activities:
Payments on term loan		(1,875	)		(1,875	)
Proceeds from stock issued in connection with the employee stock purchase plan		9,712			9,878
Proceeds from the exercise of stock options		2,187			4,135
Payments for taxes related to net share settlement of equity awards		(1,329	)		—
Purchase of treasury stock		(124,999	)		(49,991	)
Net cash used in financing activities		(116,304	)		(37,853	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		1,578			(3,077	)
Net decrease in cash and cash equivalents and restricted cash		(153,622	)		(3,665	)
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	$	175,025		$	233,467

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

Revenue	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)		2025		2024		2025		2024
Subscription revenue	$	228,031	$	202,538	$	448,474	$	400,173
Perpetual license and maintenance revenue		11,411		12,016		22,963		24,172
Professional services and other revenue		7,853		6,687		14,995		12,857
Revenue⁽¹⁾	$	247,295	$	221,241	$	486,432	$	437,202

_______________

⁽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 96% of revenue in the three and six months ended June 30, 2025 and 2024.

Calculated Current Billings	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)		2025			2024			2025			2024
Revenue	$	247,295		$	221,241		$	486,432		$	437,202
Deferred revenue (current), end of period		624,548			562,587			624,548			562,587
Deferred revenue (current), beginning of period⁽¹⁾		(633,258	)		(562,683	)		(657,035	)		(580,887	)
Calculated current billings	$	238,585		$	221,145		$	453,945		$	418,902

^{________________}
⁽¹⁾ Deferred revenue (current), beginning of period for the three months ended June 30, 2025 and 2024, and the six months ended June 30, 2025 and 2024 includes $0.1 million, $0.1 million, $6.7 million and $0.1 million, respectively, related to acquired deferred revenue.

Remaining Performance Obligations	June 30,				Change
(in thousands)		2025		2024	%
Remaining performance obligations, short-term	$	641,918	$	572,015		12	%
Remaining performance obligations, long-term		247,225		175,526		41	%
Remaining performance obligations	$	889,143	$	747,541		19	%

Free Cash Flow and Unlevered Free Cash Flow	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)		2025			2024			2025			2024
Net 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		37,416			28,663			117,646			75,792
Cash paid for interest and other financing costs		6,859			7,839			13,433			15,450
Unlevered free cash flow	$	44,275		$	36,502		$	131,079		$	91,242

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

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)		2025			2024			2025			2024
Employee stock purchase plan activity	$	4,923		$	3,702		$	(490	)	$	(2,630	)
Acquisition-related expenses		(1,630	)		(197	)		(4,819	)		(663	)
Restructuring		—			(1,597	)		—			(5,419	)

Non-GAAP Income from Operations and Non-GAAP Operating Margin	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)		2025			2024			2025			2024
Loss from operations	$	(7,448	)	$	(8,818	)	$	(25,159	)	$	(17,748	)
Stock-based compensation		46,526			41,398			102,429			81,117
Acquisition-related expenses		2,081			763			6,702			924
Restructuring		—			4,681			—			6,070
Amortization of acquired intangible assets		6,537			4,760			12,401			9,429
Non-GAAP income from operations	$	47,696		$	42,784		$	96,373		$	79,792
Operating margin		(3	)%		(4	)%		(5	)%		(4	)%
Non-GAAP operating margin		19	%		19	%		20	%		18	%

Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share data)		2025			2024			2025			2024
Net loss	$	(14,706	)	$	(14,572	)	$	(37,641	)	$	(28,958	)
Stock-based compensation		46,526			41,398			102,429			81,117
Tax impact of stock-based compensation⁽¹⁾		1,041			1,175			1,896			98
Acquisition-related expenses⁽²⁾		2,081			763			6,702			924
Restructuring⁽²⁾		—			4,681			—			6,070
Amortization of acquired intangible assets⁽²⁾		6,537			4,760			12,401			9,429
Tax impact of acquisitions		(42	)		(43	)		(100	)		(78	)
Non-GAAP net income	$	41,437		$	38,162		$	85,687		$	68,602

Net loss per share, diluted	$	(0.12	)	$	(0.12	)	$	(0.31	)	$	(0.25	)
Stock-based compensation		0.38			0.35			0.85			0.69
Tax impact of stock-based compensation⁽¹⁾		0.01			0.01			0.02			—
Acquisition-related expenses⁽²⁾		0.02			—			0.05			0.01
Restructuring⁽²⁾		—			0.04			—			0.05
Amortization of acquired intangible assets⁽²⁾		0.05			0.04			0.10			0.08
Tax impact of acquisitions		—			—			—			—
Adjustment to diluted earnings per share⁽³⁾		—			(0.01	)		(0.02	)		(0.02	)
Non-GAAP earnings per share, diluted	$	0.34		$	0.31		$	0.69		$	0.56

Weighted-average shares used to compute GAAP net loss per share, diluted		120,979			118,681			120,533			118,111

Weighted-average shares used to compute non-GAAP earnings per share, diluted		122,875			123,056			123,516			123,161

________________

⁽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 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 June 30,						Six Months Ended June 30,
(dollars in thousands)		2025			2024			2025			2024
Gross profit	$	192,861		$	172,443		$	379,538		$	339,472
Stock-based compensation		3,460			3,288			6,775			6,270
Amortization of acquired intangible assets		6,537			4,760			12,401			9,429
Non-GAAP gross profit	$	202,858		$	180,491		$	398,714		$	355,171
Gross margin		78	%		78	%		78	%		78	%
Non-GAAP gross margin		82	%		82	%		82	%		81	%

Non-GAAP Sales and Marketing Expense	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)		2025			2024			2025			2024
Sales and marketing expense	$	107,091		$	101,129		$	210,273		$	200,954
Less: Stock-based compensation		17,818			16,276			34,448			31,576
Less: Acquisition-related expenses		258			49			1,312			49
Non-GAAP sales and marketing expense	$	89,015		$	84,804		$	174,513		$	169,329
Non-GAAP sales and marketing expense % of revenue		36	%		38	%		36	%		39	%

Non-GAAP Research and Development Expense	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)		2025			2024			2025			2024
Research and development expense	$	59,236		$	45,149		$	112,459		$	88,876
Less: Stock-based compensation		15,300			11,799			28,267			22,960
Less: Acquisition-related expenses		532			—			1,771			(20	)
Non-GAAP research and development expense	$	43,404		$	33,350		$	82,421		$	65,936
Non-GAAP research and development expense % of revenue		18	%		15	%		17	%		15	%

Non-GAAP General and Administrative Expense	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)		2025			2024			2025			2024
General and administrative expense	$	33,982		$	30,302		$	81,965		$	61,320
Less: Stock-based compensation		9,948			10,035			32,939			20,311
Less: Acquisition-related expenses		1,291			714			3,619			895
Non-GAAP general and administrative expense	$	22,743		$	19,553		$	45,407		$	40,114
Non-GAAP general and administrative expense % of revenue		9	%		9	%		9	%		9	%

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 September 30, 2025						Year Ending December 31, 2025
(in millions)	Low			High			Low			High
Forecasted loss from operations	$	(3.1	)	$	(1.1	)	$	(25.8	)	$	(15.8	)
Forecasted stock-based compensation		47.6			47.6			197.5			197.5
Forecasted acquisition-related expenses		0.7			0.7			7.3			7.3
Forecasted amortization of acquired intangible assets		6.8			6.8			26.0			26.0
Forecasted non-GAAP income from operations	$	52.0		$	54.0		$	205.0		$	215.0

Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ending September 30, 2025						Year Ending December 31, 2025
(in millions, except per share data)	Low			High			Low			High
Forecasted net loss⁽¹⁾	$	(12.0	)	$	(10.0	)	$	(55.4	)	$	(45.4	)
Forecasted stock-based compensation		47.6			47.6			197.5			197.5
Forecasted tax impact of stock-based compensation		1.0			1.0			3.8			3.8
Forecasted acquisition-related expenses		0.7			0.7			7.3			7.3
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	$	44.0		$	46.0		$	179.0		$	189.0

Forecasted net loss per share, diluted⁽¹⁾	$	(0.10	)	$	(0.08	)	$	(0.46	)	$	(0.38	)
Forecasted stock-based compensation		0.39			0.39			1.63			1.63
Forecasted tax impact of stock-based compensation		0.01			0.01			0.03			0.03
Forecasted acquisition-related expenses		0.01			0.01			0.06			0.06
Forecasted amortization of acquired intangible assets		0.06			0.06			0.21			0.21
Forecasted tax impact of acquisitions		—			—			—			—
Adjustment to diluted earnings per share⁽²⁾		(0.01	)		(0.02	)		(0.02	)		(0.02	)
Forecasted non-GAAP earnings per share, diluted	$	0.36		$	0.37		$	1.45		$	1.53

Forecasted weighted-average shares used to compute GAAP net loss per share, diluted		121.0			121.0			121.0			121.0
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted		123.0			123.0			123.5			123.5

________________
⁽¹⁾The forecasted GAAP net loss assumes income tax expense of $4.3 million and $16.4 million in the three months ending September 30, 2025 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	$	254.0		$	264.0
Forecasted purchases of property and equipment		(13.0	)		(13.0	)
Forecasted capitalized software development costs		(3.0	)		(3.0	)
Forecasted free cash flow		238.0			248.0
Forecasted cash paid for interest and other financing costs		27.0			27.0
Forecasted unlevered free cash flow	$	265.0		$	275.0