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VRNS

Varonis Systems, Inc.

VRNS

Varonis Systems, Inc. • NASDAQ
$33.07 ▲ 2.23% (+0.72)
Market Cap $3.74 B
52w High $63.90
52w Low $30.34
Dividend Yield 0%
P/E -32.42
Volume 709.25K
Outstanding Shares 113.07M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $161.577M ▲ $160.931M ▲ $-29.942M ▲ -18.531% ▲ $-0.26 ▲ $-25.152M ▲
Q2-2025 $152.163M ▲ $156.129M ▲ $-35.824M ▼ -23.543% ▲ $-0.32 $-29.016M ▲
Q1-2025 $136.423M ▼ $151.833M ▲ $-35.783M ▼ -26.229% ▼ $-0.32 ▼ $-29.396M ▼
Q4-2024 $158.514M ▲ $146.58M ▼ $-12.994M ▲ -8.197% ▲ $-0.12 ▲ $-7.364M ▲
Q3-2024 $148.068M $148.723M $-18.333M -12.381% $-0.16 $-10.619M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $707.921M ▼ $1.665B ▲ $1.06B ▼ $604.835M ▲
Q2-2025 $807.448M ▲ $1.615B ▲ $1.274B ▲ $341.499M ▼
Q1-2025 $609.219M ▲ $1.577B ▼ $1.209B ▲ $367.743M ▼
Q4-2024 $568.418M ▼ $1.664B ▲ $1.209B ▲ $455.656M ▲
Q3-2024 $878.96M $1.521B $1.093B $428.56M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-29.942M ▲ $33.398M ▲ $-81.693M ▼ $6.418M ▲ $-41.877M ▼ $30.427M ▲
Q2-2025 $-35.824M ▼ $21.349M ▼ $69.95M ▲ $-45.175M ▲ $46.124M ▲ $18.297M ▼
Q1-2025 $-35.783M ▼ $68M ▲ $-25.017M ▲ $-75.461M ▼ $-32.478M ▲ $65.336M ▲
Q4-2024 $-12.994M ▲ $24.274M ▲ $-119.412M ▲ $-1.495M ▼ $-96.633M ▼ $19.922M ▼
Q3-2024 $-18.333M $22.479M $-295.875M $400.211M $126.815M $21.253M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Maintenance
Maintenance
 $20.00M ▲$20.00M ▲$10.00M ▼$10.00M ▲
Software as a Service
Software as a Service
 $70.00M ▲$90.00M ▲$110.00M ▲$130.00M ▲
Subscription and Circulation
Subscription and Circulation
 $70.00M ▲$30.00M ▼$30.00M ▲$20.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Income statement Varonis shows a pattern of healthy, consistent revenue growth over the past several years, with sales rising each year at a solid pace. Its gross margin is strong, meaning the core software business is profitable before overhead and growth spending. However, the company still runs at an operating loss, mainly because it spends heavily on sales, marketing, and research to expand its platform and customer base. Net losses have been fairly steady, though per‑share losses have started to narrow recently, suggesting improving efficiency and scale. Overall, it’s a classic growth‑stage software profile: growing well, high gross margins, but not yet profitable at the bottom line.

Balance Sheet

Balance Sheet Balance sheet The balance sheet shows a sizeable asset base for a company of its size, and that base has expanded over time, reflecting continued investment in growth. Cash levels have moved around, with a period of very strong cash reserves that has since normalized as the company invested and the capital structure evolved. Debt has increased noticeably more recently, which adds financial leverage and some risk if conditions worsen, but equity remains positive and fairly stable. Overall, Varonis appears to have a reasonable financial foundation, but with a clearer tilt toward using debt and past cash reserves to fund growth rather than sitting on a very large cash cushion.

Cash Flow

Cash Flow Cash flow Varonis’s cash flow trend is a key bright spot. Operating cash flow has moved from slightly negative to clearly positive over the five‑year period, and free cash flow has followed a similar path. This means that, despite accounting losses, the business is increasingly capable of funding itself from the cash it generates. Capital spending is modest, which is typical for a software business, so most of the cash generated can support operations and growth initiatives rather than heavy physical investments. The improving cash profile reduces reliance on external funding over time and suggests the underlying business model is maturing in a healthy way.

Competitive Edge

Competitive Edge Competitive position Varonis occupies a well‑defined niche within cybersecurity: it focuses on protecting unstructured data such as files, documents, and emails, rather than just networks or endpoints. This specialization gives it depth where many broader security platforms are thinner. Its data security platform is integrated and sticky: once deployed, it becomes embedded in customer workflows, which raises switching costs and supports recurring revenue. The ability to discover sensitive data, monitor access, and automatically remediate risks across both on‑premises and cloud systems gives Varonis a strong competitive story. That said, cybersecurity is crowded and fast‑moving. Large, well‑funded competitors can expand into adjacent areas, and customers may prefer broader platforms from incumbents. Varonis’s edge rests on continuing to out‑innovate in unstructured data security and automation while defending its niche against encroaching rivals.

Innovation and R&D

Innovation and R&D Innovation & R&D Varonis is clearly an R&D‑driven company. Its core platform is built around proprietary metadata analysis, advanced analytics, and automation – all of which require sustained investment in engineering and data science. The ongoing operating losses suggest it continues to invest heavily in product development and go‑to‑market capabilities rather than prioritizing short‑term profitability. The company is leaning hard into AI and machine learning, both for classifying sensitive data and for detecting threats in user behavior. Newer capabilities like natural‑language investigation tools, automated remediation at scale, identity‑aware data protection, and support for securing AI tools and cloud services show a roadmap focused on staying ahead of emerging risks. Varonis is also in the midst of a shift toward a subscription and SaaS model, which is both a commercial and product transformation. Done well, this can deepen customer relationships and make revenue more predictable, but it requires careful execution and sustained R&D to keep the platform competitive and easy to adopt.

Summary

Summary Varonis combines a growing, high‑margin software business with a specialized position in data‑centric security. Revenue and gross profit have trended upward at a healthy rate, while operating and net losses remain but are gradually improving. The company has moved from consuming cash to generating it, which is a meaningful sign of underlying business strength. Financially, the balance sheet is sound but shows greater use of debt and past cash reserves to support growth. The company’s value proposition rests on its deep expertise in unstructured data, integrated platform, automation, and increasing use of AI, all of which create customer stickiness and a defensible niche. Key positives are strong revenue growth, high gross margins, improving cash flow, and clear technological differentiation. Key risks include ongoing lack of accounting profitability, higher leverage than in the past, intense competition in cybersecurity, and execution risk around the SaaS and AI roadmap. Overall, Varonis looks like a maturing growth story in a strategically important corner of the cybersecurity market, with a balance of solid opportunities and meaningful execution and competitive risks.

NEWS

November 28, 2025 · 12:02 PM UTC

VRNS Investigation Alert: Kessler Topaz Meltzer & Check, LLP Encourages Varonis Systems, Inc. (NASDAQ: VRNS) Investors with Significant Losses to Contact the Firm

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November 24, 2025 · 5:32 PM UTC

VRNS Investigation: Kessler Topaz Meltzer & Check, LLP Encourages Varonis Systems, Inc. (NASDAQ: VRNS) Investors with Significant Losses to Contact the Firm

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November 22, 2025 · 12:33 PM UTC

VRNS Investigation: Kessler Topaz Meltzer & Check, LLP Encourages Varonis Systems, Inc. (NASDAQ: VRNS) Investors with Significant Losses to Contact the Firm

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November 20, 2025 · 10:15 AM UTC

NASDAQ: VRNS Investigation Reminder: Kessler Topaz Meltzer & Check, LLP Encourages Varonis Systems, Inc. (NASDAQ: VRNS) Investors with Significant Losses to Contact the Firm

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November 20, 2025 · 10:00 AM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Varonis Systems, Inc. - VRNS

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