Varonis Systems Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.15%.
Did VRNS Beat Earnings? Q4 2025 Results
Varonis Systems delivered a strong finish to fiscal 2025, posting Q4 non-GAAP diluted EPS of $0.08 against a consensus estimate of $0.03, a beat of 146.15%, while revenue of $173.37 million edged past the $168.66 million estimate by 2.79% and grew 9.4% year-over-year. The core driver was an accelerating shift to SaaS, with SaaS revenues nearly doubling to $142.32 million from $72.21 million a year ago and SaaS ARR reaching $638.50 million, representing approximately 86% of total ARR of $745.40 million. That transition, however, continues to compress near-term profitability; the company's GAAP operating loss widened to $30.26 million from $17.55 million, and the quarter unfolded against the backdrop of active securities litigation alleging prior misrepresentations around SaaS conversion prospects. Looking ahead, Varonis guided full-year 2026 revenue to $722.00 million to $730.00 million with breakeven to modest non-GAAP operating income, while management reaffirmed confidence in its 2027 targets, signaling that the transition pain is expected to be temporary.
- SaaS ARR grew 88% year-over-year (32% excluding conversions) to $638.5 million
- Total ARR increased 16% year-over-year to $745.4 million
- Successfully converted approximately one-third of remaining self-hosted customers to SaaS in Q4
- SaaS revenues nearly doubled to $142.3 million from $72.2 million year-over-year
“We are excited by the performance of our SaaS business, which saw ARR growth of 32%, excluding conversions, and is being driven by the automated value proposition we deliver to our customers. We look forward to continuing our momentum and ending 2026 as a fully SaaS company, which will unlock many more benefits as we capture our growing market opportunity. We continue to believe in the path to achieving our 2027 financial targets.”
Varonis Systems CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Varonis expects SaaS ARR year-over-year growth of 27% to 28% excluding conversions, revenues of $164.0 million to $166.0 million (20%-22% YoY growth), non-GAAP operating loss of ($11.0) million to ($10.0) million, and non-GAAP net loss per diluted share of ($0.06) to ($0.05). For full year 2026, the company expects SaaS ARR of $805.0 million to $840.0 million (26%-32% YoY growth, or 18%-20% excluding conversions), revenues of $722.0 million to $730.0 million (16%-17% YoY growth), non-GAAP operating income of $0.0 to $4.0 million, non-GAAP net income per diluted share of $0.06 to $0.10, and free cash flow of $100.0 million to $105.0 million. Management reaffirmed confidence in achieving 2027 financial targets.
VRNS YoY Financials
VRNS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.