Varonis Systems Inc

Latest Results (06.01.2026):

Varonis Systems Inc — Third quarter of 2025: Varonis reported solid SaaS-driven revenue growth but a wider GAAP loss as the business shifts customers from on‑prem to cloud. Total revenue rose to $161.6M, ARR grew 18% to $718.6M and SaaS now represents ~76% of ARR, while the company trimmed guidance after weaker on‑prem renewals late in the quarter.

Revenue and product mix

Total revenues were $161.6M (Q3 2025) vs. $148.1M a year earlier. SaaS revenue rose sharply to $125.8M (from $57.8M), while term license subscriptions fell to $24.8M (from $68.8M) and maintenance/services to $10.9M (from $21.5M) as customers convert to SaaS.

Profitability (GAAP vs. non‑GAAP)

GAAP operating loss was ($35.9M) and GAAP net loss was ($29.9M), EPS (GAAP) (‑$0.26). On a non‑GAAP basis Varonis reported ~$0.2M of operating income and non‑GAAP net income of $8.4M (non‑GAAP diluted EPS ~$0.06) for the quarter.

ARR and key metrics

ARR was $718.6M at quarter end, up 18% year‑over‑year; SaaS ARR was ~76% of total ARR. Management highlighted healthy SaaS demand driven by cloud and AI initiatives.

Cash, liquidity and cash flow

Varonis held about $1.1B of 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 a year ago, and free cash flow was $111.6M vs. $88.6M a year ago.

Balance sheet and capital returns

The company announced a new $150.0M share repurchase authorization (expected over 12 months). The nine‑month cash flow statement also shows a $100.0M repurchase completed earlier in the period.

M&A and product launches

Varonis acquired SlashNext (AI‑native email security) and Cyral (database security) and launched Varonis Interceptor (email security), Next‑Gen Database Activity Monitoring (DAM) and AI identity protection for Salesforce Agentforce.

Headwinds and strategy change

Management cited lower renewals in the Federal vertical and in non‑Federal on‑prem subscriptions during the final weeks of Q3, and said it will end‑of‑life its self‑hosted solution—leading to reduced on‑prem renewal assumptions and the guidance cut.

Updated 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. Full‑year 2025 updated guidance: ARR $730M–$738M (14%–15% growth), revenues $615.2M–$621.2M (12%–13% growth), free cash flow $120M–$125M, and non‑GAAP operating loss ($8.2M)–($5.2M) with non‑GAAP diluted EPS $0.12–$0.13.