Varonis Systems Inc. (VRNS)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$688.1M

Revenue growth

15.6%

Net income, last twelve months

-$141.4M

Earnings per share

-$1.23

Gross margin

77.1%

Operating margin

-22.0%

Net margin

-20.5%

Free cash flow

$121.9M

Return on equity

-31.8%

Market value

$5.6B

Cash

$233.6M

Debt

$453.3M

Debt to equity

1.02

Shares outstanding

114.9M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 28 July 2026.

• Total revenue reached $180.0 million. Total revenues were $180.0 million, compared with $152.2 million in Q2 2025. The lines that make up this total are covered below.
• SaaS ARR reached $726.0 million. Total SaaS ARR at June 30 was $726.0 million, up 52% year-over-year, compared with $683.2 million at March 31, 2026.
• GAAP operating loss was $40.6 million. GAAP operating loss was $40.6 million, against $36.6 million in Q2 2025.
• Non-GAAP operating income was $3.7 million. Non-GAAP operating income was $3.7 million, against a non-GAAP operating loss of $1.9 million in Q2 2025. Non-GAAP diluted EPS was $0.04, against $0.03.
• Term license revenue fell with conversions. Term license subscription revenue was $4.2 million, against $32.4 million a year earlier. Management attributed most of the decline to customers converting to the SaaS platform.
• Maintenance and services revenue also fell. Maintenance and services revenue was $4.1 million, against $13.9 million in Q2 2025, also mainly due to conversions to SaaS.
• SaaS revenue was $171.7 million. SaaS revenue was $171.7 million, against $105.9 million a year earlier, while term license and maintenance revenue declined.
• SaaS ARR excluding conversions grew 25%. SaaS ARR excluding conversions rose 25% year-over-year, compared with 29% in the first quarter. New-logo SaaS ARR was described as growing more than 20%.
• New logos drove demand, per CFO. The CFO said healthy new-logo momentum came from the need to secure AI and the data powering it.
• Newer products gained momentum. The CEO cited increasing momentum from newer products, naming Atlas, Interceptor and Database Activity Monitoring.
• Gross profit rose with revenue. Gross profit was $135.5 million, against $120.9 million. Cost of revenues was $44.5 million, against $31.2 million a year earlier.
• Research and development spend rose. Research and development expense was $73.3 million, against $56.2 million. Sales and marketing was $79.0 million, against $76.6 million.
• Acquisition amortization rose sharply. Amortization of acquired intangibles and acquisition-related expenses was $9.5 million, against $0.5 million, and is excluded from non-GAAP operating income.
• GAAP net loss was $46.8 million. GAAP net loss was $46.8 million, or $0.41 per share, against $35.8 million, or $0.32 per share, in Q2 2025.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2025

By region, FY2025

Company events

The newest 8-K filings of 83 held.

Every filing

The newest filings with the SEC of 218 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

394 funds held it at 30 Jun 2026: 210 added and 87 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Microsoft Corp. (MSFT): revenue $346.4B, market value $3.95T
• Palantir Technologies Inc. (PLTR): revenue $6.2B, market value $473.1B
• Oracle Corp. (ORCL): revenue $71.8B, market value $436.3B
• SAP SE (SAP): revenue $41.6B, market value $276.7B
• CrowdStrike Holdings, Inc. (CRWD): revenue $5.4B, market value $273.1B
• Shopify Inc. (SHOP): revenue $13.3B, market value $218.4B
• Salesforce, Inc. (CRM): revenue $43.9B, market value $199.5B
• ServiceNow, Inc. (NOW): revenue $15.4B, market value $155.6B
• Snowflake Inc. (SNOW): revenue $5.4B, market value $119.8B
• Cloudflare, Inc. (NET): revenue $2.5B, market value $113.0B

What the company does

Varonis Systems is a data security company that protects data held in cloud services, SaaS applications and on-premises environments. It was incorporated in Delaware on 3 November 2004, began operations on 1 January 2005, and has its principal offices in Miami, Florida. Its software maps who can reach sensitive data, reduces unnecessary access and detects threats such as compromised credentials, insider misuse, malware and ransomware. The company serves customers in more than 95 countries and had 2,658 employees and independent contractors at 31 December 2025. In 2025, SaaS made up 74.2% of total revenues.

What it sells

The company sells the Varonis Data Security Platform, now offered as SaaS. The platform continuously collects metadata, which is data about data, to learn what data exists, where it lives, who can access it and how it is used. It then automates work in three areas: data protection, threat detection and response, and privacy and compliance.

The SaaS licence combines five of the company's earlier licences into one. It includes data security posture management, data access intelligence, data discovery and classification, a discovery policy library for GDPR, CCPA and US federal controlled unclassified information, least privilege automation, data activity monitoring, data detection and response, and user and entity behavior analytics.

Customers choose what to protect through "Protection Packages": Microsoft 365, Windows & NAS, Hybrid, and Cloud Environments. The Cloud Environments package covers resources such as Salesforce, AWS, Azure, Google Cloud, Snowflake and Okta.

- Managed Data Detection and Response (MDDR), which provides 24x7x365 monitoring and response under service-level commitments and is available only on the SaaS platform. - Athena AI, a generative AI layer that helps security teams with investigation, response and reporting. - Varonis Database Activity Monitoring, which came from the acquisition of Cyral on 17 March 2025. - Varonis Interceptor, an email security product that came from the acquisition of SlashNext on 28 August 2025.

How it makes money

Revenue comes in three lines. SaaS revenue is recognised ratably over the contract period. Term license subscriptions are sold on-premises and recognised when the software licence is delivered. Maintenance and services covers maintenance on past perpetual licences and some professional services, and is recognised ratably. In 2025 these were 74.2%, 17.6% and 8.2% of total revenues.

The company has announced the end-of-life of its self-hosted products as of 31 December 2026. It says it does not expect perpetual licence revenues in the future. The renewal rate has been over 90%, measured on a dollar basis over 12 months.

Historically, sales have been highest in the fourth quarter and slowest in the first. The company says this pattern has weakened as SaaS revenue is recognised ratably.

Who buys from it

Customers range from small and mid-sized businesses to large multinational enterprises. The company says a significant portion of its customer base is larger enterprises, and that its marketing and most of its sales effort target larger organisations. Customers come from financial services, public sector, healthcare, industrial, insurance, energy and utilities, technology, construction and engineering, education, and consumer and retail.

Substantially all sales go through channel partners, meaning distributors and resellers. The partner agreements are non-exclusive and generally renewed annually. A direct sales organisation works with partners on risk assessments and platform demonstrations.

Where it operates

In 2025, about 71% of revenues came from the United States, 21% from EMEA and 8% from the rest of the world. Most research and development takes place in Israel. Of the 2,658 employees and contractors, 1,139 were in the United States, 916 in Israel and 603 in other countries.

How it competes

The company competes with vendors of data security posture management, data discovery and classification, data privacy, directory and identity security, and threat detection and response. It also faces broader security platforms and cloud and SaaS providers that are adding native security features. It lists effectiveness, breadth of supported environments, scalability, ease of deployment and measurable risk reduction as the factors that matter. It acknowledges that some competitors have greater resources, longer operating histories, broader brand recognition or deeper relationships with certain customers and partners.

Intellectual property

At 31 December 2025, the company held 116 issued US patents and 63 pending US applications. It also held 95 issued patents and 79 pending applications outside the United States, plus 31 pending Patent Cooperation Treaty applications. It has registered the "Varonis" name and logo, along with "DatAdvantage," "DataPrivilege" and "DatAlert," in the United States and, for some of these names, certain other countries. It also licenses third-party software, including open-source software, for use in its products.

*From Varonis's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1361113/000162828026005450/vrns-20251231.htm)*

From the company's 10-K.