VARONIS SYSTEMS (VRNS) Company Report

Varonis's transition to a SaaS-first solution has outperformed initial expectations, shortening the projected completion time from five years to three. However, the on-prem subscription renewal rate underperformed in Q3, attributed to single-threaded customers, sales execution issues, and increased deal scrutiny.
Varonis plans to accelerate its full transition, aiming for zero non-SaaS ARR by December 31, 2026, and has announced the end of life for its on-prem subscription to focus entirely on its healthy SaaS business.
Demand for data security is increasing, significantly driven by the advent of generative AI, which necessitates robust data protection for the safe deployment of AI tools like Microsoft Copilot.
The company is expanding its product portfolio through acquisitions in database activity monitoring (DAM) and email security, aiming for comprehensive data coverage and a strong competitive advantage, despite underperformance in the US Federal business in Q3.

3 days ago

Transcript

Varonis Accelerates SaaS Transition, Reports Q3 On-Prem Renewal Underperformance

VRNS

Demand Weakening

New Projects/Investments

Guidance Update

Varonis's SaaS transition has outperformed expectations, leading to a shortened timeline from an initial five-year plan to three years since its announcement in early 2023, with the core SaaS business performing strongly.
In Q3, the company experienced underperformance in on-prem subscription renewal rates, attributed to single-threaded customers, sales execution issues, and increased deal scrutiny.
To provide clarity and accelerate the transition, Varonis announced the end-of-life for on-prem subscriptions, with the goal of becoming a 100% SaaS business by December 31, 2026.
Varonis has expanded its platform through acquisitions, including Cyril for database activity monitoring (DAM) and Slash Next for email security, and has seen strong adoption of its MDDR offering.
The U.S. federal business experienced a shortfall in Q3, partly due to sales execution issues and the timing of its moderate FedRAMP certification in early Q2.

3 days ago

Transcript

Varonis Discusses SaaS Transition, Q3 On-Prem Renewal Challenges, and Strategic Growth

VRNS

Demand Weakening

M&A

New Projects/Investments

Varonis's transition to a SaaS-first model has accelerated, but the company experienced underperformance in its Q3 on-prem subscription renewal rate due to factors including single-threaded customers, sales execution issues, and increased deal scrutiny.
To fully transition, Varonis announced the end-of-life for its on-prem subscription by December 31, 2026, aiming to be a 100% SaaS business and focus on SaaS-specific metrics for investors in 2026.
Despite on-prem challenges, Varonis's SaaS business is performing "really well" and "hitting on all cylinders," outperforming initial expectations, while demand for data security is strong, partly driven by generative AI.
Varonis is expanding its platform through acquisitions like Cyril (database activity monitoring) and Slash Next (email security) to enhance coverage and automation, though the US Federal business underperformed in Q3.

3 days ago

Transcript

Varonis Systems Under Securities Fraud Investigation

VRNS

Legal Proceedings

Earnings

Guidance Update

Glancy Prongay & Murray LLP is continuing its securities fraud investigation on behalf of investors in Varonis Systems, Inc. (VRNS).
The investigation follows Varonis's third quarter 2025 financial results, released on October 28, 2025, which reported revenue that missed consensus estimates and a 63.9% decline in term license subscription revenues year over year.
Varonis also reduced its full-year ARR guidance due to the underperformance of its on-prem subscription business, with management citing "sales process issues" as a contributing factor to lower renewal rates.
Following this news, Varonis's stock price fell $30.66, or 48.7%, to close at $32.34 per share on October 29, 2025.

Nov 19, 2025, 5:46 PM

Press Release

Varonis Systems Reports Q3 2025 Results, Updates Guidance, and Announces Self-Hosted Solution End-of-Life

VRNS

Earnings

Guidance Update

Demand Weakening

Varonis Systems reported Q3 2025 ARR of $718.6 million, an 18% year-over-year increase, with its SaaS business now comprising 76% of total ARR.
The company experienced weaker-than-expected renewals in its on-premises subscription business during Q3, leading to a 5% reduction in headcount and a more conservative outlook for Q4.
Varonis announced the end-of-life for its self-hosted solution as of December 31, 2026, aiming to accelerate its transition to a 100% SaaS business model.
Updated guidance for full-year 2025 includes expected ARR of $730 million to $738 million and total revenues of $615.2 million to $621.2 million.
The board authorized a $115 million share repurchase program, leveraging its strong balance sheet with $1.1 billion in cash and equivalents as of September 30, 2025.

Oct 28, 2025, 8:30 PM

Transcript

Varonis Announces Q3 2025 Financial Results and FY 2025 Guidance

VRNS

Earnings

Guidance Update

Varonis reported Annual Recurring Revenues (ARR) of $718.6 million for Q3 2025, representing an 18% year-over-year growth, with SaaS ARR comprising approximately 76% of the total ARR.
The company generated $111.6 million in Free Cash Flow for the nine months ended September 30, 2025.
Non-GAAP net income per share for Q3 2025 was $0.07.
Varonis issued FY 2025 guidance, projecting Annual Recurring Revenues between $730.0 million and $738.0 million, indicating a 14%-15% year-over-year growth, and Free Cash Flow between $120.0 million and $125.0 million.

Oct 28, 2025, 8:30 PM

Presentation

Varonis Systems Reports Q3 2025 Results, Updates Guidance, and Announces Strategic Changes

VRNS

Earnings

Guidance Update

Demand Weakening

Varonis Systems reported Q3 2025 ARR of $718.6 million, an 18% year-over-year increase, with its SaaS business comprising 76% of total ARR.
The company experienced weaker than expected renewals in its federal and non-federal on-premises subscription business during Q3, leading to results below expectations.
Varonis announced the end-of-life for its self-hosted solution as of December 31, 2026, and will implement a 5% reduction in headcount to manage expenses.
For full year 2025, the company now expects ARR between $730 million and $738 million and total revenues between $615.2 million and $621.2 million.
The board authorized a $115 million share repurchase program.

Oct 28, 2025, 8:30 PM

Transcript

Varonis Systems Completes SaaS Transition, Updates Guidance, and Authorizes Share Repurchase

VRNS

Earnings

Guidance Update

Share Buyback

Varonis Systems completed its SaaS transition, with 76% of total company ARR coming from SaaS in Q3 2025, two years ahead of plan. The SaaS business remains healthy and is expected to grow 20%+.
Annual Recurring Revenue (ARR) increased 18% year over year to $718.6 million in Q3 2025, but overall results were below expectations due to weaker than anticipated renewals in the federal and non-federal on-premises subscription businesses. Total revenues for Q3 were $161.6 million, and net income was $8.4 million or $0.06 per diluted share.
The company announced the end-of-life for its self-hosted solution as of December 31, 2026, expecting increased uncertainty with the remaining on-premises business. A 5% reduction in headcount is also planned to manage expenses.
For full-year 2025, Varonis updated its guidance, now expecting ARR of $730 million to $738 million and total revenues of $615.2 million to $621.2 million. Non-GAAP net income per diluted share is projected to be $0.12 to $0.13.
The board authorized a $115 million share repurchase program, supported by over $1 billion in liquidity and healthy free cash flow generation.

Oct 28, 2025, 8:30 PM

Transcript

Varonis Systems, Inc. Announces Third Quarter 2025 Financial Results

VRNS

Earnings

Guidance Update

Share Buyback

Varonis Systems, Inc. reported total revenues of $161.6 million for the third quarter ended September 30, 2025, and Annual Recurring Revenue (ARR) of $718.6 million, an 18% year-over-year increase. The CEO noted lower renewals in the Federal vertical and non-Federal on-prem subscription business in the final weeks of the quarter.
SaaS ARR accounted for approximately 76% of total ARR as of September 30, 2025, with SaaS revenues reaching $125.8 million in Q3 2025.
Year-to-date, the company generated $122.7 million in cash from operations and $111.6 million in free cash flow.
Varonis announced a $150.0 million share repurchase authorization and introduced new products, including Varonis Interceptor and Next-Gen Database Activity Monitoring.
For full year 2025, the company expects ARR between $730.0 million and $738.0 million and revenues between $615.2 million and $621.2 million.

Oct 28, 2025, 8:10 PM

8-K

Varonis Systems Discusses SaaS Transition Progress and Strategic Acquisitions at Citi TMT Conference

VRNS

M&A

Guidance Update

New Projects/Investments

Varonis is in the late stages of its SaaS transition, expecting to achieve an 82% SaaS mix by the end of 2025, two years ahead of initial plans.
The company announced the acquisition of SlashNext, an email security firm, to enhance its ability to stop phishing attacks, which are a primary starting point for data breaches.
Varonis's Managed Data Detection and Response (MDDR) offering has been its fastest-adopted platform, contributing to SaaS net retention rates significantly higher than the reported 105% for 2024.
Varonis is focused on returning to 20%+ ARR growth from its current 19%, supported by increased investments in R&D, sales, and new international territories.

Sep 3, 2025, 2:40 PM

Earnings Transcripts

Quarterly earnings call transcripts for VARONIS SYSTEMS.

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