Companies /Technology

Varonis Systems Inc

NASDAQ: VRNS Software - Infrastructure
$44.78
â–² $3.38 (+8.16%) today
Markets closed · 7:51pm ET

Q2 2025 Earnings

Reported Jul 29, 2025, 4:10pm ET · SEC source
$0.03
Beat +270.37%
EPS · est. $0.01
$152.2M
Beat +2.93%
Revenue · est. $147.8M
+1.7%
Beating market
VRNS vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%+6%Jul 29Jul 30report 4:10pm ETearnings−0.1%+5.3%
−3%0+3%+6%Jul 29Jul 30earnings−0.1%+5.3%
VRNS +5.3%S&P 500 −0.1%
−3%0+3%+6%Jul 29Jul 30report 4:10pm ETearnings+0.1%+5.3%
−3%0+3%+6%Jul 29Jul 30earnings+0.1%+5.3%
VRNS +5.3%NASDAQ +0.1%
−3%0+3%+6%Jul 28Aug 6report 4:10pm ETearnings−0.4%+3.2%
−3%0+3%+6%Jul 28Aug 6earnings−0.4%+3.2%
VRNS +3.2%S&P 500 −0.4%
0+4%+8%Jul 28Aug 6report 4:10pm ETearnings+0.0%+3.2%
0+4%+8%Jul 28Aug 6earnings+0.0%+3.2%
VRNS +3.2%NASDAQ +0.0%
+5.31%
Day of report
−2.24%
Next session
−2.43%
One week
+3.34%
30 days

S&P 500 over the same 30 days: +1.67%.

Did VRNS Beat Earnings? Q2 2025 Results

Varonis Systems delivered a strong second-quarter beat on both the top and bottom lines, with the data security firm's accelerating shift to SaaS emerging as the central force behind the results. Revenue climbed 16.7% year-over-year to $152.16 million, ahead of the $147.83 million consensus estimate, while non-GAAP EPS of $0.03 cleared the $0.01 consensus by 270.37%, a margin that reflected operational leverage even as the transition continues to reshape the revenue mix. SaaS revenue more than doubled to $105.89 million from $44.78 million a year ago, driving ARR 19% higher to $693.20 million, with SaaS now representing roughly 69% of total ARR. The conversion momentum was strong enough that Varonis raised its full-year SaaS mix target to 82% from 80%. Free cash flow improved to $82.66 million year-to-date, reinforcing the company's financial footing. Looking ahead, management raised full-year revenue guidance to $616 million to $628 million and expects Q3 revenues between $163 million and $168 million, with non-GAAP EPS of $0.07 to $0.08.

Key Takeaways
  • SaaS platform adoption driving ARR growth of 19% year-over-year
  • SaaS revenues grew from $44.8M to $105.9M year-over-year
  • SaaS ARR reached approximately 69% of total ARR
  • Year-to-date operating cash flow improved to $89.3M from $68.4M
  • Year-to-date free cash flow improved to $82.7M from $67.3M

“We are excited by the many tailwinds we are seeing in our business. The simplicity and automated outcomes of our SaaS platform and MDDR, the adoption of AI and the growing awareness for data-centric cloud and SaaS security are continuing to drive momentum in our business, and we look forward to executing on this massive and growing market opportunity.”

Varonis Systems CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Varonis expects revenues of $163.0M to $168.0M (10%-13% YoY growth), non-GAAP operating income of $4.0M to $7.0M, and non-GAAP EPS of $0.07 to $0.08 on 134.0M diluted shares. For full year 2025, the company raised guidance: ARR of $748.0M to $754.0M (17% YoY growth), revenues of $616.0M to $628.0M (12%-14% growth), non-GAAP operating income of $0.0M to $6.0M, non-GAAP EPS of $0.16 to $0.18, and free cash flow of $120.0M to $125.0M. The SaaS ARR mix target was increased to 82% from the prior 80% expectation.

VRNS YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$-70,000,000$0$70.0M$140.0M$130.3M$152.2MRevenue$107.9M$120.9MGross Profit$-42,666,044$-36,552,000Operating Income$-71,065,265$-35,824,000Net Income
$-70,000,000$0$70.0M$140.0MRevenueGross ProfitOperating IncomeNet Income

VRNS Revenue by Segment

SaaS$105.9M
Term License Subscriptions$32.4M
Maintenance and Services$13.9M

Figures from SEC filings and company reports. Not investment advice.