Varonis Announces Second Quarter 2025 Financial Results
Varonis Systems (Nasdaq: VRNS) reported strong Q2 2025 financial results, with total revenues reaching $152.2 million. The company's SaaS transformation continues to accelerate, with SaaS ARR now representing 69% of total ARR, expected to reach 82% by year-end. Total ARR grew 19% year-over-year to $693.2 million.
The company generated $89.3 million in operating cash flow and $82.7 million in free cash flow year-to-date. Varonis completed its share repurchase program, buying back 1.0 million shares for $38.7 million. For full-year 2025, Varonis raised guidance, expecting ARR of $748.0-$754.0 million and revenues of $616.0-$628.0 million.
Varonis Systems (Nasdaq: VRNS) ha comunicato solidi risultati finanziari per il secondo trimestre 2025, con ricavi totali pari a 152,2 milioni di dollari. La trasformazione SaaS dell'azienda continua ad accelerare, con il SaaS ARR che ora rappresenta il 69% del totale ARR, e si prevede che raggiunger脿 l'82% entro la fine dell'anno. Il totale ARR 猫 cresciuto del 19% su base annua, arrivando a 693,2 milioni di dollari.
L'azienda ha generato un flusso di cassa operativo di 89,3 milioni di dollari e un flusso di cassa libero di 82,7 milioni di dollari da inizio anno. Varonis ha completato il suo programma di riacquisto azionario, riacquistando 1,0 milioni di azioni per 38,7 milioni di dollari. Per l'intero anno 2025, Varonis ha alzato le previsioni, prevedendo un ARR tra 748,0 e 754,0 milioni di dollari e ricavi tra 616,0 e 628,0 milioni di dollari.
Varonis Systems (Nasdaq: VRNS) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025, con ingresos totales de 152,2 millones de d贸lares. La transformaci贸n hacia SaaS de la compa帽铆a contin煤a aceler谩ndose, con el SaaS ARR representando ahora el 69% del ARR total, y se espera que alcance el 82% para fin de a帽o. El ARR total creci贸 un 19% interanual, llegando a 693,2 millones de d贸lares.
La empresa gener贸 89,3 millones de d贸lares en flujo de caja operativo y 82,7 millones de d贸lares en flujo de caja libre en lo que va del a帽o. Varonis complet贸 su programa de recompra de acciones, adquiriendo 1,0 millones de acciones por 38,7 millones de d贸lares. Para todo el a帽o 2025, Varonis elev贸 sus previsiones, esperando un ARR de entre 748,0 y 754,0 millones de d贸lares y unos ingresos de entre 616,0 y 628,0 millones de d贸lares.
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須岇偓電� 鞐办磮攵�韯� 8,930毵� 雼煬鞚� 鞓侅梾 順勱笀 頋愲瓿� 8,270毵� 雼煬鞚� 鞛愳湢 順勱笀 頋愲鞚� 彀届稖頄堨姷雼堧嫟. Varonis電� 鞛愳偓欤� 毵れ瀰 頂勲攴鸽灗鞚� 鞕勲頃橃棳 100毵� 欤茧ゼ 3,870毵� 雼煬鞐� 鞛Г鞛呿枅鞀惦媹雼�. 2025雲� 鞝勳泊鞐� 雽�頃� Varonis電� 臧�鞚措崢鞀るゼ 靸來枼 臁办爼頃橃棳 ARR鞚� 7鞏� 4,800毵寏7鞏� 5,400毵� 雼煬, 毵れ稖鞚� 6鞏� 1,600毵寏6鞏� 2,800毵� 雼煬搿� 鞓堨儊頃橁碃 鞛堨姷雼堧嫟.
Varonis Systems (Nasdaq : VRNS) a annonc茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025, avec un chiffre d'affaires total de 152,2 millions de dollars. La transformation SaaS de l'entreprise continue de s'acc茅l茅rer, avec un SaaS ARR repr茅sentant d茅sormais 69 % du total ARR, et devrait atteindre 82 % d'ici la fin de l'ann茅e. L'ARR total a augment茅 de 19 % en glissement annuel pour atteindre 693,2 millions de dollars.
L'entreprise a g茅n茅r茅 89,3 millions de dollars de flux de tr茅sorerie op茅rationnel et 82,7 millions de dollars de flux de tr茅sorerie disponible depuis le d茅but de l'ann茅e. Varonis a achev茅 son programme de rachat d'actions, rachetant 1,0 million d'actions pour 38,7 millions de dollars. Pour l'ensemble de l'ann茅e 2025, Varonis a relev茅 ses pr茅visions, s'attendant 脿 un ARR compris entre 748,0 et 754,0 millions de dollars et 脿 un chiffre d'affaires entre 616,0 et 628,0 millions de dollars.
Varonis Systems (Nasdaq: VRNS) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit einem Gesamtumsatz von 152,2 Millionen US-Dollar. Die SaaS-Transformation des Unternehmens beschleunigt sich weiter, wobei SaaS ARR nun 69 % des Gesamt-ARR ausmacht und bis zum Jahresende voraussichtlich 82 % erreichen wird. Das gesamte ARR wuchs im Jahresvergleich um 19 % auf 693,2 Millionen US-Dollar.
Das Unternehmen generierte bisher im Jahr einen operativen Cashflow von 89,3 Millionen US-Dollar und einen freien Cashflow von 82,7 Millionen US-Dollar. Varonis schloss sein Aktienr眉ckkaufprogramm ab und kaufte 1,0 Million Aktien f眉r 38,7 Millionen US-Dollar zur眉ck. F眉r das Gesamtjahr 2025 hat Varonis seine Prognose angehoben und erwartet ein ARR von 748,0 bis 754,0 Millionen US-Dollar sowie Ums盲tze von 616,0 bis 628,0 Millionen US-Dollar.
- None.
- GAAP operating loss increased to ($36.6M) from ($28.8M) year-over-year
- Non-GAAP operating results declined to ($1.9M) loss from $2.1M income year-over-year
- Term license and maintenance revenues declined significantly due to SaaS transition
Insights
Varonis shows strong SaaS transition with 19% ARR growth, improving cash flow, but operating losses persist amid transformation.
Varonis delivered solid growth in Q2 with total revenues reaching
The annual recurring revenue (ARR) metric, which provides the clearest picture of Varonis' business momentum, grew 19% year-over-year to
Despite the revenue growth, Varonis reported a GAAP operating loss of
Cash flow metrics tell a more positive story about the business transformation. Year-to-date operating cash flow increased 30.6% to
Varonis completed its share repurchase program, buying back 1 million shares at an average price of
Looking ahead, Varonis expects Q3 revenues of
Annual recurring revenues grew
SaaS ARR as a percentage of total ARR was approximately
Year-to-date cash from operations generated
Year-to-date free cash flow generated
MIAMI, July 29, 2025 (GLOBE NEWSWIRE) -- 听(狈补蝉诲补辩: VRNS), the leader in data security, today announced financial results for the second quarter ended June 30, 2025.
Yaki Faitelson, Varonis CEO, said, "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.鈥�
Guy Melamed, Varonis CFO & COO, added, 鈥淥ur second quarter performance reflects the growing demand for Varonis SaaS with
Financial Summary for the Second Quarter Ended June 30, 2025
- Total revenues were
$152.2 million , compared with$130.3 million in the second quarter of 2024. - SaaS revenues were
$105.9 million , compared with$44.8 million in the second quarter of 2024. - Term license subscription revenues were
$32.4 million , compared with$62.7 million in the second quarter of 2024, with the vast majority of the decline driven by customers converting to our SaaS platform. - Maintenance and services revenues were
$13.9 million , compared with$22.8 million in the second quarter of 2024, with the vast majority of the decline driven by customers converting to our SaaS platform. - GAAP operating loss was (
$36.6) million , compared to GAAP operating loss of ($28.8) million in the second quarter of 2024. - Non-GAAP operating loss was (
$1.9) million , compared to non-GAAP operating income of$2.1 million in the second quarter of 2024.
The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three and six months ended June 30, 2025 and 2024. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures and Key Performance Indicators."
Key Performance Indicators and Recent Business Highlights
- Annual recurring revenues, or ARR, was
$693.2 million as of the end of the second quarter, up19% year-over-year. - As of June 30, 2025, the Company had
$1.2 billion in cash and cash equivalents, short-term deposits and short-term and long-term marketable securities. - During the six months ended June 30, 2025, the Company generated
$89.3 million of cash from operations, compared to$68.4 million generated in the prior year period. - During the six months ended June 30, 2025, the Company generated
$82.7 million of free cash flow, compared to$67.3 million generated in the prior year period. - Repurchased 1.0 million shares at an average price of
$38.59 for a total of$38.7 million , which completed the share repurchase authorization. - Announced a strategic partnership with Microsoft to help secure the next generation of workplace AI by deepening the engineering integration between the Varonis Data Security Platform and Microsoft鈥檚 security portfolio.
- Achieved FedRAMP Authorization, affirming that Varonis鈥� unified SaaS platform meets rigorous cloud security requirements mandated by U.S. federal agencies.
- Announced protection for OpenAI鈥檚 ChatGPT Enterprise to help customers automatically identify sensitive data uploads, monitor prompts and responses, and prevent breaches and compliance violations.
- Named a Gartner Peer Insights Customers鈥� Choice for Data Security Posture Management (DSPM).
- Secured health data hosting certification H茅bergeur de Donn茅es de Sant茅 (HDS), strengthening Varonis' commitment to health data protection in France.
An explanation of ARR is included below under the heading "Non-GAAP Financial Measures and Key Performance Indicators." In addition, the tables at the end of this press release include a reconciliation of net cash provided by operating activities to non-GAAP free cash flow. An explanation of this measure is also included below under the heading "Non-GAAP Financial Measures and Key Performance Indicators."
Financial Outlook
For the third quarter of 2025, the Company expects:
- Revenues of
$163.0 million to$168.0 million , or year-over-year growth of10% to13% . - Non-GAAP operating income of
$4.0 million to$7.0 million . - Non-GAAP net income per diluted share in the range of
$0.07 t o$0.08 , based on 134.0 million diluted shares outstanding.
For full year 2025, the Company now expects:
- ARR of
$748.0 million to$754.0 million , or year-over-year growth of17% . - Free cash flow of
$120.0 million to$125.0 million . - Revenues of
$616.0 million to$628.0 million , or year-over-year growth of12% to14% . - Non-GAAP operating income of
$0.0 million to$6.0 million . - Non-GAAP net income per diluted share in the range of
$0.16 t o$0.18 , based on 134.7 million diluted shares outstanding.
Actual results may differ materially from the Company鈥檚 Financial Outlook as a result of, among other things, the factors described below under 鈥淔orward-Looking Statements鈥�.
Conference Call and Webcast
Varonis will host a conference call today, Tuesday, July听29, 2025, at 4:30 p.m. Eastern Time, to discuss the Company's second quarter 2025 financial results.听To access this call, dial 877-425-9470 (domestic) or 201-389-0878 (international). The passcode is 13754774. A replay of this conference call will be available through August 6, 2025 at 844-512-2921 (domestic) or 412-317-6671 (international).听The replay passcode is 13754774.听A live webcast of this conference call will be available on the "Investors" page of the Company's website (), and a replay will be archived on the website as well.
Non-GAAP Financial Measures and Key Performance Indicators
Varonis believes that the use of non-GAAP operating income (loss) and non-GAAP net income (loss) is helpful to our investors. These measures, which the Company refers to as our non-GAAP financial measures, are not prepared in accordance with GAAP.
Non-GAAP operating income (loss) is calculated as operating income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, and (iii) amortization of acquired intangible assets and acquisition-related expenses.
Non-GAAP net income (loss) is calculated as net income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, (iii) amortization of acquired intangible assets and acquisition-related expenses, (iv) foreign exchange gains (losses) which include exchange rate differences on lease contracts as a result of the implementation of ASC 842, (v) amortization of debt issuance costs and (vi) acquisition-related taxes.
The Company believes that the exclusion of these expenses provides a more meaningful comparison of our operational performance from period to period and offers investors and management greater visibility to the underlying performance of our business. Specifically:
- Stock-based compensation expenses utilize varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company's non-cash expenses;
- Payroll taxes are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, factors which may vary from period to period;
- Acquired intangible assets are valued at the time of acquisition and are amortized over an estimated useful life after the acquisition, and acquisition-related expenses are unrelated to current operations and neither are comparable to the prior period nor predictive of future results;
- The Company incurs foreign exchange gains or losses from the revaluation of its significant operating lease liabilities in foreign currencies as well as other assets and liabilities denominated in non-U.S. dollars, which may vary from period to period;
- Amortization of debt issuance costs, which relate to the Company鈥檚 convertible senior notes issued in 2020 and 2024, are a non-cash item; and
- Acquisition-related taxes are unrelated to current operations and neither are comparable to the prior period nor predictive of future results.
Free cash flow is calculated as net cash provided by or used in operating activities less purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and equipment and capitalized internal-use software, can be used for strategic initiatives.
Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income (loss) or net income (loss) or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense and payroll tax expense related to stock-based compensation have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees. Also, the amortization of intangible assets are expected recurring expenses over the estimated useful life of the underlying intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future and acquisition-related taxes may be incurred to the extent acquisitions are made in the future. Additionally, foreign exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies. Finally, the amortization of debt issuance costs are expected recurring expenses until the maturity of the convertible senior notes in 2029.
The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Varonis urges investors to review the reconciliation of our historical non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate our business.
A reconciliation for non-GAAP operating income (loss), non-GAAP net income (loss) and free cash flow referred to in our 鈥淔inancial Outlook鈥� is not provided because we do not guide on their most directly comparable GAAP financial measures. As these are forward-looking statements, such reconciliation is not available without unreasonable effort due to the high variability, complexity, uncertainty and difficulty of estimating certain items such as stock-based compensation and currency fluctuations, which have an impact on our consolidated results. The actual amounts of such reconciling items will have a significant impact on the Company鈥檚 most directly comparable GAAP financial measures. The Company believes the information provided is useful to investors because it can be considered in the context of the Company鈥檚 historical disclosures of this measure.
ARR is a key performance indicator defined as the annualized value of active SaaS contracts, term-based subscription license contracts, and maintenance contracts in effect at the end of that period. SaaS contracts, term-based subscription license contracts, and maintenance contracts are annualized by dividing the total contract value by the number of days in the term and multiplying the result by 365. The annualized value of contracts is a legal and contractual determination made by assessing the contractual terms with our customers. The annualized value of these contracts is not determined by reference to historical revenues, deferred revenues or any other GAAP financial measure over any period. ARR is not a forecast of future revenues, which can be impacted by contract start and end dates and renewal rates.
Forward-Looking Statements
This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company's growth rate and its expectations regarding future revenues, operating income or loss or earnings or loss per share. These statements are not guarantees of future performance but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the impact of potential information technology, cybersecurity or data security breaches; risks associated with anticipated growth in Varonis鈥� addressable market; general economic and industry conditions, such as foreign currency exchange rate fluctuations and expenditure trends for data and cybersecurity solutions; Varonis鈥� ability to predict the timing and rate of subscription renewals and their impact on the Company鈥檚 future revenues and operating results; risks associated with international operations; the impact of global conflicts on the budgets of our clients and on economic conditions generally; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including sales personnel and engineers; Varonis鈥� ability to build and expand its direct sales efforts and reseller distribution channels; risks associated with the closing of large transactions, including Varonis鈥� ability to close large transactions consistently on a quarterly basis; new product introductions and Varonis鈥� ability to develop and deliver innovative products; Varonis鈥� ability to provide high-quality service and support offerings; the expansion of cloud-delivered services; and risks associated with our convertible notes and capped-call transactions. These and other important risk factors are described more fully in Varonis鈥� reports and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.
About Varonis
Varonis (Nasdaq: VRNS) is the leader in data security, fighting a different battle than conventional cybersecurity companies. Our cloud-native Data Security Platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.
Thousands of organizations worldwide trust Varonis to defend their data wherever it lives 鈥� across SaaS, IaaS, and hybrid cloud environments. Customers use Varonis to automate a wide range of security outcomes, including data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), database activity monitoring (DAM), identity protection, and AI security.
Varonis protects data first, not last. Learn more at .
Investor Relations Contact:
Tim Perz
Varonis Systems, Inc.
646-640-2112
[email protected]
News Media Contact:
Rachel Hunt
Varonis Systems, Inc.
877-292-8767 (ext. 1598)
[email protected]
| 听 | |||||||||||||||
| Varonis Systems, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except for share and per share data) | |||||||||||||||
| 听 | |||||||||||||||
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| 听 | Unaudited | 听 | Unaudited | ||||||||||||
| Revenues: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| SaaS | $ | 105,895 | 听 | 听 | $ | 44,785 | 听 | 听 | $ | 194,455 | 听 | 听 | $ | 78,770 | 听 |
| Term license subscriptions | 听 | 32,374 | 听 | 听 | 听 | 62,729 | 听 | 听 | 听 | 63,862 | 听 | 听 | 听 | 118,709 | 听 |
| Maintenance and services | 听 | 13,894 | 听 | 听 | 听 | 22,832 | 听 | 听 | 听 | 30,269 | 听 | 听 | 听 | 46,889 | 听 |
| Total revenues | 听 | 152,163 | 听 | 听 | 听 | 130,346 | 听 | 听 | 听 | 288,586 | 听 | 听 | 听 | 244,368 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Cost of revenues | 听 | 31,249 | 听 | 听 | 听 | 22,436 | 听 | 听 | 听 | 60,267 | 听 | 听 | 听 | 43,785 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Gross profit | 听 | 120,914 | 听 | 听 | 听 | 107,910 | 听 | 听 | 听 | 228,319 | 听 | 听 | 听 | 200,583 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Operating expenses: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Research and development | 听 | 56,247 | 听 | 听 | 听 | 44,933 | 听 | 听 | 听 | 110,457 | 听 | 听 | 听 | 92,760 | 听 |
| Sales and marketing | 听 | 76,578 | 听 | 听 | 听 | 70,041 | 听 | 听 | 听 | 149,341 | 听 | 听 | 听 | 141,268 | 听 |
| General and administrative | 听 | 24,641 | 听 | 听 | 听 | 21,762 | 听 | 听 | 听 | 48,839 | 听 | 听 | 听 | 43,014 | 听 |
| Total operating expenses | 听 | 157,466 | 听 | 听 | 听 | 136,736 | 听 | 听 | 听 | 308,637 | 听 | 听 | 听 | 277,042 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Operating loss | 听 | (36,552 | ) | 听 | 听 | (28,826 | ) | 听 | 听 | (80,318 | ) | 听 | 听 | (76,459 | ) |
| Financial income, net | 听 | 4,967 | 听 | 听 | 听 | 8,249 | 听 | 听 | 听 | 16,918 | 听 | 听 | 听 | 16,794 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Loss before income taxes | 听 | (31,585 | ) | 听 | 听 | (20,577 | ) | 听 | 听 | (63,400 | ) | 听 | 听 | (59,665 | ) |
| Income taxes | 听 | (4,239 | ) | 听 | 听 | (3,371 | ) | 听 | 听 | (8,207 | ) | 听 | 听 | (4,773 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Net loss | $ | (35,824 | ) | 听 | $ | (23,948 | ) | 听 | $ | (71,607 | ) | 听 | $ | (64,438 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Net loss per share of common stock, basic and diluted | $ | (0.32 | ) | 听 | $ | (0.21 | ) | 听 | $ | (0.64 | ) | 听 | $ | (0.58 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Weighted average number of shares used in computing net loss per share of common stock, basic and diluted | 听 | 112,054,715 | 听 | 听 | 听 | 111,885,305 | 听 | 听 | 听 | 112,347,961 | 听 | 听 | 听 | 110,934,149 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Stock-based compensation expense for the three and six months ended June 30, 2025 and 2024 is included in the Condensed Consolidated Statements of Operations as follows (in thousands): | |||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||
| 听 | 2025 | 听 | 听 | 2024 | 听 | 2025 | 听 | 2024 | |||
| 听 | Unaudited | 听 | Unaudited | ||||||||
| Cost of revenues | $ | 1,475 | 听 | $ | 1,298 | 听 | $ | 2,979 | 听 | $ | 2,660 |
| Research and development | 听 | 10,885 | 听 | 听 | 8,856 | 听 | 听 | 21,461 | 听 | 听 | 20,615 |
| Sales and marketing | 听 | 10,652 | 听 | 听 | 10,655 | 听 | 听 | 21,128 | 听 | 听 | 21,125 |
| General and administrative | 听 | 10,847 | 听 | 听 | 9,280 | 听 | 听 | 20,546 | 听 | 听 | 17,782 |
| 听 | $ | 33,859 | 听 | $ | 30,089 | 听 | $ | 66,114 | 听 | $ | 62,182 |
| Payroll tax expense related to stock-based compensation for the three and six months ended June 30, 2025 and 2024 is included in the Condensed Consolidated Statements of Operations as follows (in thousands): | |||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||
| 听 | 2025 | 听 | 2024 | 听 | 2025 | 听 | 2024 | ||||
| 听 | Unaudited | 听 | Unaudited | ||||||||
| Cost of revenues | $ | 18 | 听 | $ | 9 | 听 | $ | 508 | 听 | $ | 616 |
| Research and development | 听 | 111 | 听 | 听 | 66 | 听 | 听 | 348 | 听 | 听 | 379 |
| Sales and marketing | 听 | 62 | 听 | 听 | 46 | 听 | 听 | 1,979 | 听 | 听 | 2,900 |
| General and administrative | 听 | 68 | 听 | 听 | 303 | 听 | 听 | 491 | 听 | 听 | 1,116 |
| 听 | $ | 259 | 听 | $ | 424 | 听 | $ | 3,326 | 听 | $ | 5,011 |
| Amortization of acquired intangibles and acquisition-related expenses for the three and six months ended June 30, 2025 and 2024 is included in the Condensed Consolidated Statements of Operations as follows (in thousands): | |||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||
| 听 | 2025 | 听 | 2024 | 听 | 2025 | 听 | 2024 | ||||
| 听 | Unaudited | 听 | Unaudited | ||||||||
| Cost of revenues | $ | 170 | 听 | $ | 381 | 听 | $ | 196 | 听 | $ | 762 |
| Research and development | 听 | 338 | 听 | 听 | 鈥� | 听 | 听 | 1,695 | 听 | 听 | 鈥� |
| Sales and marketing | 听 | 鈥� | 听 | 听 | 鈥� | 听 | 听 | 鈥� | 听 | 听 | 鈥� |
| General and administrative | 听 | 24 | 听 | 听 | 鈥� | 听 | 听 | 627 | 听 | 听 | 鈥� |
| 听 | $ | 532 | 听 | $ | 381 | 听 | $ | 2,518 | 听 | $ | 762 |
| 听 | |||||||
| Varonis Systems, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| 听 | |||||||
| 听 | June 30, 2025 | 听 | December 31, 2024 | ||||
| 听 | Unaudited | 听 | 听 | ||||
| Assets | 听 | 听 | 听 | ||||
| Current assets: | 听 | 听 | 听 | ||||
| Cash and cash equivalents | $ | 199,231 | 听 | 听 | $ | 185,585 | 听 |
| Marketable securities | 听 | 571,630 | 听 | 听 | 听 | 343,383 | 听 |
| Short-term deposits | 听 | 36,587 | 听 | 听 | 听 | 39,450 | 听 |
| Trade receivables, net | 听 | 149,703 | 听 | 听 | 听 | 192,832 | 听 |
| Prepaid expenses and other short-term assets | 听 | 111,212 | 听 | 听 | 听 | 116,824 | 听 |
| Total current assets | 听 | 1,068,363 | 听 | 听 | 听 | 878,074 | 听 |
| Long-term assets: | 听 | 听 | 听 | ||||
| Long-term marketable securities | 听 | 364,203 | 听 | 听 | 听 | 658,896 | 听 |
| Operating lease right-of-use assets | 听 | 41,743 | 听 | 听 | 听 | 45,593 | 听 |
| Property and equipment, net | 听 | 33,088 | 听 | 听 | 听 | 30,795 | 听 |
| Intangible assets, net | 听 | 5,844 | 听 | 听 | 听 | 鈥� | 听 |
| Goodwill | 听 | 39,750 | 听 | 听 | 听 | 23,135 | 听 |
| Other assets | 听 | 62,021 | 听 | 听 | 听 | 27,782 | 听 |
| Total long-term assets | 听 | 546,649 | 听 | 听 | 听 | 786,201 | 听 |
| Total assets | $ | 1,615,012 | 听 | 听 | $ | 1,664,275 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Liabilities and stockholders鈥� equity | 听 | 听 | 听 | ||||
| Current liabilities: | 听 | 听 | 听 | ||||
| Trade payables | $ | 7,115 | 听 | 听 | $ | 4,313 | 听 |
| Accrued expenses and other short-term liabilities | 听 | 190,344 | 听 | 听 | 听 | 164,930 | 听 |
| Convertible senior notes, net | 听 | 251,148 | 听 | 听 | 听 | 250,529 | 听 |
| Deferred revenues | 听 | 322,791 | 听 | 听 | 听 | 290,113 | 听 |
| Total current liabilities | 听 | 771,398 | 听 | 听 | 听 | 709,885 | 听 |
| Long-term liabilities: | 听 | 听 | 听 | ||||
| Convertible senior notes, net | 听 | 451,247 | 听 | 听 | 听 | 450,243 | 听 |
| Operating lease liabilities | 听 | 39,865 | 听 | 听 | 听 | 42,789 | 听 |
| Deferred revenues | 听 | 108 | 听 | 听 | 听 | 2,211 | 听 |
| Other liabilities | 听 | 10,895 | 听 | 听 | 听 | 3,491 | 听 |
| Total long-term liabilities | 听 | 502,115 | 听 | 听 | 听 | 498,734 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Stockholders鈥� equity: | 听 | 听 | 听 | ||||
| Share capital | 听 | 听 | 听 | ||||
| Common stock | 听 | 112 | 听 | 听 | 听 | 113 | 听 |
| Accumulated other comprehensive income | 听 | 14,497 | 听 | 听 | 听 | 2,676 | 听 |
| Additional paid-in capital | 听 | 1,138,652 | 听 | 听 | 听 | 1,193,022 | 听 |
| Accumulated deficit | 听 | (811,762 | ) | 听 | 听 | (740,155 | ) |
| Total stockholders鈥� equity | 听 | 341,499 | 听 | 听 | 听 | 455,656 | 听 |
| Total liabilities and stockholders鈥� equity | $ | 1,615,012 | 听 | 听 | $ | 1,664,275 | 听 |
| 听 | |||||||
| Varonis Systems, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| 听 | |||||||
| 听 | Six Months Ended June 30, | ||||||
| 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| 听 | Unaudited | ||||||
| Cash flows from operating activities: | 听 | 听 | 听 | ||||
| Net loss | $ | (71,607 | ) | 听 | $ | (64,438 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | 听 | 听 | 听 | ||||
| Depreciation and amortization | 听 | 4,988 | 听 | 听 | 听 | 5,767 | 听 |
| Stock-based compensation | 听 | 66,114 | 听 | 听 | 听 | 62,182 | 听 |
| Amortization of deferred commissions | 听 | 25,141 | 听 | 听 | 听 | 23,619 | 听 |
| Non-cash operating lease costs | 听 | 4,952 | 听 | 听 | 听 | 4,722 | 听 |
| Amortization of debt issuance costs | 听 | 1,774 | 听 | 听 | 听 | 768 | 听 |
| Amortization of premium and accretion of discount on marketable securities, net | 听 | 414 | 听 | 听 | 听 | (7,611 | ) |
| 听 | 听 | 听 | 听 | ||||
| Changes in assets and liabilities: | 听 | 听 | 听 | ||||
| Trade receivables | 听 | 39,004 | 听 | 听 | 听 | 46,704 | 听 |
| Prepaid expenses and other short-term assets | 听 | 1,427 | 听 | 听 | 听 | (3,399 | ) |
| Deferred commissions | 听 | (35,592 | ) | 听 | 听 | (24,418 | ) |
| Other long-term assets | 听 | (1,120 | ) | 听 | 听 | (58 | ) |
| Trade payables | 听 | 2,802 | 听 | 听 | 听 | 1,860 | 听 |
| Accrued expenses and other short-term liabilities | 听 | 15,953 | 听 | 听 | 听 | (4,374 | ) |
| Deferred revenues | 听 | 34,070 | 听 | 听 | 听 | 26,995 | 听 |
| Other long-term liabilities | 听 | 1,029 | 听 | 听 | 听 | 128 | 听 |
| Net cash provided by operating activities | 听 | 89,349 | 听 | 听 | 听 | 68,447 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Cash flows from investing activities: | 听 | 听 | 听 | ||||
| Proceeds from maturities of marketable securities | 听 | 126,000 | 听 | 听 | 听 | 45,101 | 听 |
| Investment in marketable securities | 听 | (57,654 | ) | 听 | 听 | (166,099 | ) |
| Proceeds from short-term and long-term deposits | 听 | 99,750 | 听 | 听 | 听 | 14,338 | 听 |
| Investment in short-term and long-term deposits | 听 | (96,388 | ) | 听 | 听 | (9,192 | ) |
| Acquisition, net of cash acquired | 听 | (18,584 | ) | 听 | 听 | 鈥� | 听 |
| Purchases of property and equipment | 听 | (5,716 | ) | 听 | 听 | (1,116 | ) |
| Capitalized internal-use software | 听 | (975 | ) | 听 | 听 | 鈥� | 听 |
| Other investing activities | 听 | (1,500 | ) | 听 | 听 | 鈥� | 听 |
| Net cash provided by (used in) investing activities | 听 | 44,933 | 听 | 听 | 听 | (116,968 | ) |
| 听 | 听 | 听 | 听 | ||||
| Cash flows from financing activities: | 听 | 听 | 听 | ||||
| Proceeds from employee stock plans | 听 | 7,163 | 听 | 听 | 听 | 9,792 | 听 |
| Taxes paid related to net share settlement of equity awards | 听 | (27,799 | ) | 听 | 听 | (36,608 | ) |
| Repurchase of common stock | 听 | (100,000 | ) | 听 | 听 | 鈥� | 听 |
| Net cash used in financing activities | 听 | (120,636 | ) | 听 | 听 | (26,816 | ) |
| Increase (decrease) in cash and cash equivalents | 听 | 13,646 | 听 | 听 | 听 | (75,337 | ) |
| Cash and cash equivalents at beginning of period | 听 | 185,585 | 听 | 听 | 听 | 230,740 | 听 |
| Cash and cash equivalents at end of period | $ | 199,231 | 听 | 听 | $ | 155,403 | 听 |
| 听 | |||||||||||||||
| Varonis Systems, Inc. | |||||||||||||||
| Reconciliation of GAAP Measures to non-GAAP | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| 听 | |||||||||||||||
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| 听 | Unaudited | 听 | Unaudited | ||||||||||||
| Reconciliation to non-GAAP operating income (loss): | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP operating loss | $ | (36,552 | ) | 听 | $ | (28,826 | ) | 听 | $ | (80,318 | ) | 听 | $ | (76,459 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Add back: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Stock-based compensation expense | 听 | 33,859 | 听 | 听 | 听 | 30,089 | 听 | 听 | 听 | 66,114 | 听 | 听 | 听 | 62,182 | 听 |
| Payroll tax expenses related to stock-based compensation | 听 | 259 | 听 | 听 | 听 | 424 | 听 | 听 | 听 | 3,326 | 听 | 听 | 听 | 5,011 | 听 |
| Amortization of acquired intangible assets and acquisition-related expenses | 听 | 532 | 听 | 听 | 听 | 381 | 听 | 听 | 听 | 2,518 | 听 | 听 | 听 | 762 | 听 |
| Non-GAAP operating income (loss) | $ | (1,902 | ) | 听 | $ | 2,068 | 听 | 听 | $ | (8,360 | ) | 听 | $ | (8,504 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Reconciliation to non-GAAP net income: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP net loss | $ | (35,824 | ) | 听 | $ | (23,948 | ) | 听 | $ | (71,607 | ) | 听 | $ | (64,438 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Add back: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Stock-based compensation expense | 听 | 33,859 | 听 | 听 | 听 | 30,089 | 听 | 听 | 听 | 66,114 | 听 | 听 | 听 | 62,182 | 听 |
| Payroll tax expenses related to stock-based compensation | 听 | 259 | 听 | 听 | 听 | 424 | 听 | 听 | 听 | 3,326 | 听 | 听 | 听 | 5,011 | 听 |
| Amortization of acquired intangible assets and acquisition-related expenses | 听 | 532 | 听 | 听 | 听 | 381 | 听 | 听 | 听 | 2,518 | 听 | 听 | 听 | 762 | 听 |
| Foreign exchange rate differences, net | 听 | 4,116 | 听 | 听 | 听 | (569 | ) | 听 | 听 | 1,981 | 听 | 听 | 听 | (1,250 | ) |
| Amortization of debt issuance costs | 听 | 887 | 听 | 听 | 听 | 385 | 听 | 听 | 听 | 1,774 | 听 | 听 | 听 | 768 | 听 |
| Acquisition-related taxes | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 391 | 听 | 听 | 听 | 鈥� | 听 |
| Non-GAAP net income | $ | 3,829 | 听 | 听 | $ | 6,762 | 听 | 听 | $ | 4,497 | 听 | 听 | $ | 3,035 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP weighted average number of shares used in computing net loss per share of common stock - basic and diluted | 听 | 112,054,715 | 听 | 听 | 听 | 111,885,305 | 听 | 听 | 听 | 112,347,961 | 听 | 听 | 听 | 110,934,149 | 听 |
| Non-GAAP weighted average number of shares used in computing net income per share of common stock - basic | 听 | 112,054,715 | 听 | 听 | 听 | 111,885,305 | 听 | 听 | 听 | 112,347,961 | 听 | 听 | 听 | 110,934,149 | 听 |
| Non-GAAP weighted average number of shares used in computing net income per share of common stock - diluted | 听 | 135,158,214 | 听 | 听 | 听 | 128,023,643 | 听 | 听 | 听 | 135,929,738 | 听 | 听 | 听 | 128,045,793 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP net loss per share of common stock - basic and diluted | $ | (0.32 | ) | 听 | $ | (0.21 | ) | 听 | $ | (0.64 | ) | 听 | $ | (0.58 | ) |
| Non-GAAP net income per share of common stock - basic | $ | 0.03 | 听 | 听 | $ | 0.06 | 听 | 听 | $ | 0.04 | 听 | 听 | $ | 0.03 | 听 |
| Non-GAAP net income per share of common stock - diluted | $ | 0.03 | 听 | 听 | $ | 0.05 | 听 | 听 | $ | 0.03 | 听 | 听 | $ | 0.02 | 听 |
| 听 | |||||||
| Varonis Systems, Inc. | |||||||
| Reconciliation of GAAP Measures to non-GAAP | |||||||
| (in thousands) | |||||||
| 听 | 听 | 听 | 听 | ||||
| 听 | Six Months Ended June 30, | ||||||
| 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 |
| 听 | Unaudited | ||||||
| Reconciliation to non-GAAP free cash flow: | 听 | 听 | 听 | ||||
| Net cash provided by operating activities | $ | 89,349 | 听 | 听 | $ | 68,447 | 听 |
| Purchases of property and equipment | 听 | (5,716 | ) | 听 | 听 | (1,116 | ) |
| Capitalized internal-use software | 听 | (975 | ) | 听 | 听 | 鈥� | 听 |
| Free cash flow | $ | 82,658 | 听 | 听 | $ | 67,331 | 听 |
FAQ
What were Varonis (VRNS) key financial results for Q2 2025?
How much cash does Varonis (VRNS) have as of Q2 2025?
What is Varonis (VRNS) guidance for full year 2025?
How much did Varonis (VRNS) spend on share repurchases in Q2 2025?
What is Varonis (VRNS) SaaS transition progress?
