Start here if you're new
what it is
Varonis sells software that helps companies find, protect, and monitor their data.
how it gets paid
Last year Varonis Systems made $624M in revenue.
why it's growing
Revenue grew 13.2% last year. Revenue topped the $168.2M estimate by $5.2M. EPS beat the $0.03 estimate by $0.05.
what just happened
Varonis beat with $173.4M in quarterly revenue and $0.08 EPS.
At a glance
B balance sheet — gets the job done, barely
65/100 earnings predictability — reasonably predictable
5.5% return on capital — nothing to write home about
xvary composite: 34/100 — weak
-$0.60 fy2026 eps est
What they do
Varonis sells software that helps companies find, protect, and monitor their data.
Varonis sells to companies with 1,000 users or more. That means more files, more access rules, and more mess if you leave. When your data and alerts already live there, ripping it out is a painful project. It also spent 36% of 2024 revenue on R&D (research and development, the product-improvement budget).
How they make money
$624M
annual revenue · their business grew +13.2% last year
total revenue
$624M
+13.2%
The products that matter
protects and monitors enterprise data
Data Security Platform
$624M revenue · +13.2%
it's the whole business: $624M of revenue last year, with growth of 13.2%. when investors debate Varonis, they are debating this platform and nothing else.
100% of revenue
cloud-delivered subscription mix
SaaS revenue
nearly $126M last quarter
SaaS revenue more than doubled to nearly $126M in the recent quarter. that's the growth engine management needs the market to believe again.
mix shift
ai-led sales narrative
alltrue.ai momentum
mentioned in the current bull case
this matters because the stock is not being asked to prove the software exists. it's being asked to prove new demand and better monetization can accelerate from here. the page is thin on hard numbers, so treat this as narrative until it shows up in results.
prove it
Key numbers
$624M
annual revenue
That is the size of the business you are underwriting. Bigger revenue does not help much if margins stay negative.
23.5%
operating margin
Operating margin means profit after running the business. At -23.5%, the core business still loses money.
$44
VL target
That is 32% above the $33.34 price. You are not buying a lottery ticket, just a stock with room to move.
1.45
beta
Beta means market swing sensitivity. At 1.45, a 10% market move can hit this name like 14.5%.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $451M (10% of capital)
- net profit margin 7.8% — keeps 8 cents of every dollar in revenue
- return on equity 7% — $0.07 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in VRNS 3 years ago → it's now worth $14,010.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Varonis beat with $173.4M in quarterly revenue and $0.08 EPS.
Revenue topped the $168.2M estimate by $5.2M. EPS beat the $0.03 estimate by $0.05, and gross margin held at 78.9%.
$173.4M
revenue
$0.08
eps
78.9%
gross margin
gross margin
Gross margin was 78.9%, which kept the quarter from looking worse than the loss line did.
-
varonis systems took a big hit after its recent earnings release.
-
shares of the security software concern plunged more than 45% after the company released third-quarter financial results and an outlook that fell short of wall street’s expectations.
-
revenues for the period were up 9% vs. prior year, to about $162 million, which was $1 million short of the low end of management’s provided range of $163 million to $168 million, and about $3 million shy of our estimates.highlights for the period included a more-than-doubling of SaaS (software as a service) revenues, to nearly $126 million. however, the net loss widened to $0.26 a share, versus $0.16 in the prior-year period and our call for a $0.20-a-share deficit.
-
we have trimmed our revenue estimate for 2025.for the full year, the company reduced its revenue target to $615 million to $622 million (previously $616 million to $628 million). additionally, it now expects a non-gaap operating loss of $5.2 million to $8.2 million, compared to its earlier target of non-gaap operating income of nil to $6 million. the results from the third quarter and full-year view have prompted us to reduce our 2025 revenue estimate by $5 million, to $625 million.
-
meanwhile, our loss estimate is unchanged, at $1.00 a share.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the SaaS transition failing to outrun slowing growth.
med
cloud transition execution
recent quarter SaaS revenue nearly doubled to $126M, but the company still cut its 2025 revenue outlook to $615M–$622M. if the cloud mix improves while total growth disappoints, investors won't give credit for the transition.
the stock already fell more than 45% after one disappointing report. that tells you how little room management has for another stumble.
med
single-platform concentration
Varonis generated $624M of annual revenue from essentially one platform. there is no second engine here to offset a product slowdown, pricing issue, or sales execution miss.
that exposes effectively the whole revenue base to one operating story. diversification is not the safety net.
med
profitability still has not arrived
the recent quarter posted a -18.5% net margin, and fy2026 eps is still estimated at -$0.60. growth can buy patience for a while. it does not buy infinite patience.
if revenue reaches the $730M analyst estimate but losses stay stubborn, the re-rating case weakens fast because the market is already looking past current earnings.
these risks touch essentially all $624M of current revenue, because VRNS is still a one-platform business with negative earnings and a market waiting for cleaner proof.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings date
the next estimated earnings publication date is tuesday, april 29, 2026. for this stock, guidance may matter more than the quarter itself.
metric
total revenue against $615M–$622M
management lowered the 2025 revenue range to $615M–$622M. the next report needs to show that cut was a reset, not the start of a pattern.
trend
SaaS mix after the nearly $126M quarter
SaaS revenue more than doubled to nearly $126M last quarter. if that pace cools before margins improve, the transition story loses force.
risk
losses versus the -$0.60 fy2026 eps view
analysts still expect a loss in fy2026. you want to see the loss narrow as revenue scales, not stay stuck while the stock asks for software-style valuation.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 — the lowest rating. in human-speak, analysts think this stock is still in the penalty box.
risk profile
below average
stability score 4. translation: expect bigger swings than you get from most stocks.
chart momentum
below average
technical score 4. the tape still looks guilty until proven innocent.
earnings predictability
65 / 100
results are somewhat predictable, not cleanly predictable. you should expect surprises on the way to any turnaround.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 185 buyers vs. 148 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$24
$63
$33
current price
$44
target midpoint · +32% from current · 3-5yr high: $115 (+245% · 36% ann'l return)
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