We feel now is a pretty good time to analyse Tenable Holdings, Inc.'s (NASDAQ:TENB) business as it appears the company may be on the cusp of a considerable accomplishment. Tenable Holdings, Inc. provides cyber exposure management solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. On 31 December 2024, the US$4.5b market-cap company posted a loss of US$36m for its most recent financial year. Many investors are wondering about the rate at which Tenable Holdings will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 21 of the American Software analysts is that Tenable Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$35m in 2026. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 55% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of Tenable Holdings' upcoming projects, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Tenable Holdings is its relatively high level of debt. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in Tenable Holdings' case is 90%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Tenable Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tenable Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is Tenable Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Tenable Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tenable Holdings's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.