Varonis Systems Inc

Latest Results (18.02.2026):

Varonis Systems Inc's third quarter 2025 results show continued SaaS migration and ARR growth but with near-term renewal weakness: total revenue for Q3 2025 was $161.6 million, ARR reached $718.6 million (up 18% year‑over‑year) while the company reported a GAAP operating loss of $35.9 million and GAAP net loss of $29.9 million for the quarter.

Revenue and ARR

Q3 2025 total revenues: $161.6M vs. $148.1M a year ago. SaaS revenue jumped to $125.8M (from $57.8M), while term license subscriptions ($24.8M) and maintenance & services ($10.9M) declined as customers convert to SaaS. ARR ended the quarter at $718.6M, +18% YoY; SaaS ARR represented ~76% of total ARR.

Profitability (GAAP vs. non‑GAAP)

GAAP operating loss: $(35.9)M in Q3 2025 (vs. $(23.6)M prior year). GAAP net loss: $(29.9)M, or $(0.26) per share. On a non‑GAAP basis the company reported non‑GAAP operating income of $0.2M and non‑GAAP net income of $8.4M for the quarter (reconciliations provided in the release).

Cash, liquidity and cash flow

Varonis held about $1.1B in cash, cash equivalents, short‑term deposits and marketable securities as of Sept. 30, 2025. Year‑to‑date cash from operations was $122.7M vs. $90.9M last year; nine‑month free cash flow was $111.6M vs. $88.6M last year.

Guidance and outlook

Q4 2025 guidance: revenues $165.0M–$171.0M (growth 4%–8%), non‑GAAP operating income $0–$3M, non‑GAAP diluted EPS $0.02–$0.04 (based on 133.4M diluted shares). Full‑year 2025 guidance was revised: ARR $730.0M–$738.0M (14%–15% YoY), revenues $615.2M–$621.2M (12%–13% YoY), free cash flow $120M–$125M, and non‑GAAP operating loss $(8.2)M to $(5.2)M.

Drivers of the shortfall

Management cited lower renewals late in the quarter in the Federal vertical and in non‑Federal on‑prem subscription business, and an end‑of‑life decision for the self‑hosted solution — prompting lower renewal assumptions and the ARR guidance adjustment.

Capital allocation and M&A

Board authorized up to $150.0M for share repurchases to be completed over the next 12 months. Varonis completed acquisitions (SlashNext and Cyral) and launched products including Varonis Interceptor (email security) and Next‑Gen Database Activity Monitoring, plus AI identity protection for Salesforce Agentforce.