Companies /Technology

Varonis Systems Inc

NASDAQ: VRNS Software - Infrastructure
$44.83
â–² $3.43 (+8.28%) today
Markets open · 2:56pm ET

Q3 2025 Earnings

Reported Oct 28, 2025, 4:10pm ET · SEC source
$0.06
Beat +12.36%
EPS · est. $0.05
$161.6M
Miss −2.79%
Revenue · est. $166.2M
+0.8%
Beating market
VRNS vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%0+20%Oct 28Oct 29report 4:10pm ETearnings−0.0%−32.1%
−20%0+20%Oct 28Oct 29earnings−0.0%−32.1%
VRNS −32.1%S&P 500 −0.0%
−20%0+20%Oct 28Oct 29report 4:10pm ETearnings+0.3%−32.1%
−20%0+20%Oct 28Oct 29earnings+0.3%−32.1%
VRNS −32.1%NASDAQ +0.3%
−30%0+30%Oct 27Nov 5report 4:10pm ETearnings−1.4%−20.2%
−30%0+30%Oct 27Nov 5earnings−1.4%−20.2%
VRNS −20.2%S&P 500 −1.4%
−30%0+30%Oct 27Nov 5report 4:10pm ETearnings−1.6%−20.2%
−30%0+30%Oct 27Nov 5earnings−1.6%−20.2%
VRNS −20.2%NASDAQ −1.6%
−48.67%
Day of report
+8.23%
Next session
+8.23%
One week
−0.25%
30 days

S&P 500 over the same 30 days: −1.04%.

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 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

“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.”

Varonis Systems CEO, on the earnings call

Forward Guidance & Outlook

Varonis reduced its full-year ARR guidance to $730.0–$738.0 million (14%–15% YoY growth) to account for underperformance in the on-prem subscription business and the decision to end-of-life its self-hosted solution, assuming even lower on-prem renewal rates in Q4. For Q4 2025, the company expects revenues of $165.0–$171.0 million (4%–8% YoY growth), non-GAAP operating income of $0.0–$3.0 million, and non-GAAP EPS of $0.02–$0.04. Full-year 2025 guidance calls for revenues of $615.2–$621.2 million (12%–13% growth), non-GAAP operating loss of $(8.2)–$(5.2) million, non-GAAP EPS of $0.12–$0.13, and free cash flow of $120.0–$125.0 million.

VRNS YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$-70,000,000$0$70.0M$140.0M$148.1M$161.6MRevenue$124.1M$126.4MGross Profit$-66,188,985$-35,934,000Operating Income$-81,630,316$-29,942,000Net Income
$-70,000,000$0$70.0M$140.0MRevenueGross ProfitOperating IncomeNet Income

VRNS Revenue by Segment

SaaS$125.8M
Term License Subscriptions$24.8M
Maintenance and Services$10.9M

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