10-Q · April 29, 2026
Varonis Systems reported Q1 2026 results with revenues of $173.126 million, beating Wall Street estimates of $165.522 million. The company posted a GAAP EPS of $0.06, surpassing the forecasted loss of $0.11, reflecting…
Earnings analysis · 10-Q
VRNS earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Varonis reported $181.5 million of revenue and $0.09 diluted EPS, representing approximately 12.0% year-over-year revenue growth and a substantial EPS improvement from $(0.26) in the prior-year quarter. Liquidity was…
Read full summary
Varonis reported $181.5 million of revenue and $0.09 diluted EPS, representing approximately 12.0% year-over-year revenue growth and a substantial EPS improvement from $(0.26) in the prior-year quarter. Liquidity was strong at $631.4 million of cash and short-term investments plus $306.3 million of long-term marketable securities, while SaaS renewal rates remained above 90%. The principal overhangs are the pending Merger, the December 31, 2026 self-hosted end-of-life, and $460.0 million of 2029 Notes outstanding; numeric guidance remains withdrawn.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.09
What stood out
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Revenue grew and EPS turned positive
Revenue was $181.5 million, up approximately 0.8% sequentially from $180.0 million and approximately 12.0% year over year from $162.0 million. Reported diluted EPS was $0.09 versus $(0.41) in the prior quarter and $(0.26) in the prior-year quarter.
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Strong liquidity position
Liquidity remains substantial: cash, cash equivalents, short-term marketable securities and short-term deposits totaled $631.4 million, with an additional $306.3 million invested in long-term marketable securities as of September 30, 2026.
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SaaS renewals remain above 90%
The company reported a SaaS renewal rate of over 90% for the nine months ended September 30, 2026 and September 30, 2025, supporting recurring-revenue visibility during the SaaS transition.
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Foreign-exchange exposure is hedged
Management disclosed that approximately one fifth of revenue in the three months ended September 30, 2026 was earned in non-U.S.-dollar currencies, while a hypothetical 10% foreign-exchange change after hedging would not have had a material impact on the financial statements.
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No material control deterioration
Disclosure controls and procedures were judged effective at the reasonable-assurance level, and the filing states there was no change in internal control over financial reporting that materially affected, or was reasonably likely to materially affect, those controls during the quarter.
What to watch
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Merger completion and execution risk
The proposed Merger with Parent and Merger Sub, entered into on October 15, 2026, remains subject to stockholder and regulatory approvals and other closing conditions. If terminated under specified circumstances, Varonis may owe a $211.7 million termination fee, while the reverse termination fee payable by Parent is $423.3 million.
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Self-hosted end-of-life transition risk
The company plans to end-of-life its self-hosted business as of December 31, 2026. The filing warns that remaining term-license customers may convert more slowly or not at all, increasing uncertainty around revenue and potentially requiring continued investment in legacy offerings.
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Convertible debt and liquidity risk
As of September 30, 2026, the company had $460.0 million of aggregate principal outstanding under its 2029 Notes. The filing warns that insufficient operating cash flow could require refinancing, restructuring, asset sales, delayed capital investment or additional capital raising.
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Israeli tax benefit expired
The Israeli subsidiary's tax benefit terminated as of September 30, 2026. Eligible income is expected to be taxed at 16% if applicable conditions are met, versus the standard Israeli corporate tax rate of 23% if those conditions are not met.
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Competition and dilution pressure
The company identifies intensifying competition in data security, AI security, cloud security and adjacent markets. It also has $9.0 million shares issuable from outstanding options, RSUs and PSUs, creating potential dilution if fully vested and exercised.
Management's outlook
Numeric guidance was not provided in the 10-Q. Forward guidance had been withdrawn in connection with the pending Merger; the filing states the transaction may close by July 15, 2027, subject to an automatic three-month extension in specified circumstances.
Earlier filings 4
10-Q · October 29, 2025
Varonis Systems reported Q3 2025 revenues of $161.577 million, a decline from $148.068 million in Q3 2024, yet a growth from $152 million in the previous quarter. The gross margin decreased slightly to 78.3% while the…
10-Q · July 30, 2025
Varonis reported Q2 revenue of $152.163M, up from $130.346M in Q2 2024, driven by strong SaaS growth, but GAAP results show a wider net loss of $35.824M (EPS -$0.32) and an operating loss of $36.552M. The balance sheet…
10-K · February 6, 2025
Varonis reported full-year 2024 revenue of $550.95 million, up 10.4% year-over-year, driven by a 370% increase in SaaS revenue to $208.78 million and ARR growth to $641.9 million. The company is mid-transition to a SaaS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.