S&P 500
7,332.20
-0.79%
Dow Jones
51,972.00
-0.42%
Nasdaq 100
29,073.90
-1.59%
Russell 2000
2,994.06
-0.72%
FTSE 100
10,479.50
-0.62%
Nikkei 225
69,236.30
-2.86%
Varonis Systems

VRNS Q3 2025 Earnings

Reported Oct 28, 2025 at 4:10 PM ET · SEC Source

Q3 25 EPS

$0.06

BEAT +12.36%

Est. $0.05

Q3 25 Revenue

$161.6M

MISS 2.79%

Est. $166.2M

vs S&P Since Q3 25

-18.0%

TRAILING MARKET

VRNS -11.1% vs S&P +6.8%

Market Reaction

Did VRNS Beat Earnings? Q3 2025 Results

Varonis Systems delivered a mixed third quarter for fiscal 2025, posting a narrow earnings beat against a revenue shortfall that reflected genuine business turbulence beneath the headline numbers. The cybersecurity firm earned $0.06 per share on a no… Read more Varonis Systems delivered a mixed third quarter for fiscal 2025, posting a narrow earnings beat against a revenue shortfall that reflected genuine business turbulence beneath the headline numbers. The cybersecurity firm earned $0.06 per share on a non-GAAP basis, edging past the $0.05 consensus estimate by 12.36%, but revenues of $161.58 million fell 2.79% short of the $166.21 million analysts had expected, even as the top line grew 9.1% year over year. CEO Yaki Faitelson pointed to a late-quarter softness in Federal and on-premises subscription renewals as the key culprit, a structural pressure compounded by the company's own decision to end-of-life its self-hosted platform. The SaaS transition is progressing rapidly, with SaaS revenues more than doubling to $125.82 million and SaaS ARR now comprising roughly 76% of total ARR of $718.60 million, up 18% year over year. Reflecting the on-prem headwinds, Varonis trimmed its full-year ARR guidance to $730.00 million to $738.00 million and guided Q4 revenues to $165.00 million to $171.00 million, even as Barclays recently lifted its price target on the stock to $70.

Key Takeaways

  • • Strong SaaS adoption driving SaaS revenue growth of over 100% year-over-year
  • • ARR grew 18% year-over-year to $718.6 million
  • • SaaS ARR reached approximately 76% of total ARR
  • • Customer interest in deploying AI initiatives and securing data in the cloud
24/7 Wall St

VRNS YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

VRNS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“We continued to see healthy demand for our SaaS platform, which now represents 76% of total company ARR. This adoption is driven by the automated outcomes that it provides as well as customer interest in deploying AI initiatives and securing data in the cloud. At the same time, in the final weeks of the quarter, we experienced lower renewals in the Federal vertical and in our non-Federal on-prem subscription business, which led to a shortfall relative to our expectations.”

— Yaki Faitelson, Q3 2025 Earnings Press Release

Back to VRNS Stock Page