Varonis Systems, Inc.
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Range $37 – $58
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About the company
Varonis Systems, Inc. specializes in delivering software solutions and associated services designed to help large organizations oversee, analyze, identify threats in, and protect their critical digital information across North America, Europe, the Middle East, Africa, and other international markets. Their technology safeguards sensitive data, whether stored on-premises or in cloud environments, encompassing proprietary files and communications, private customer, patient, and employee information, financial documents, strategic plans, product roadmaps, and other intellectual assets.
- CEO
- Yakov Faitelson
- IPO
- 2014
- Employees
- 2,658
- HQ
- Miami, FL, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $4.69B
- P/E
- -33.48
- Fwd P/E
- 275.92
- PEG
- 1.25
- P/S
- 6.82
- P/B
- 10.60
- EV/EBITDA
- -43.36
- Div Yield
- 0.00%
- Gross Margin
- 77.07%
- Op Margin
- -21.99%
- Net Margin
- -20.55%
- ROE
- -26.91%
- ROIC
- -14.02%
Latest fiscal year · YoY change
- Revenue
- $623.53M+13.2%
- Gross Profit
- $493.44M+8.0%
- Op Income
- $-146,514,000
- Net Income
- $-129,324,000-35.0%
- EPS
- $-1.13-31.4%
- OCF Growth
- +28.0%
- FCF Growth
- +24.2%
- 52W High
- $63.90
- 52W Low
- $19.70
- 50D MA
- $41.62
- 200D MA
- $32.07
- Beta
- 0.81
- RSI (14)
- 44
- Avg Volume
- 2.01M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Varonis delivered a Q2 beat on revenue and SaaS ARR growth, cited strong new-logo and AI-security demand, and raised full-year SaaS ARR and free cash flow guidance despite some late-quarter deal slippage tied to media rumors.· July 28, 2026
- SaaS ARR excluding conversions rose 25% year over year to $598.1 million; total SaaS ARR was $726 million.
- Q2 revenue was $180 million, up 18% year over year, with non-GAAP EPS of $0.04 and gross margin of 77.7%.
- Management said several large deals slipped late in the quarter due to rumors in the news, but some closed in July, including a 7-figure deal.
- New logos grew more than 20% in SaaS ARR terms, and newer products like Atlas, Interceptor and DAM are contributing more pipeline and upsell opportunities.
- Full-year guidance was raised for SaaS ARR and free cash flow, with management pointing to strong Q3 momentum and a healthy pipeline.
Q2 2026 revenue was $180 million, up 18% year over year. Gross profit was $139.9 million, and gross margin was 77.7% versus 80.6% in Q2 2025. Non-GAAP operating income was $3.7 million, or 2.1% operating margin, versus an operating loss of $1.9 million a year ago. Net income was $5.3 million, or $0.04 per diluted share, compared with $3.8 million, or $0.03 per diluted share, in Q2 2025. SaaS ARR excluding conversions increased 25% year over year to $598.1 million; total SaaS ARR was $726 million. Q2 conversion ARR was $11.4 million, and non-SaaS ARR remaining was about $59.3 million. Year to date, free cash flow was $69.1 million versus $82.7 million last year, though management said adjusting for about $11.9 million of acquisition-related costs would put it at approximately $81 million. As of June 30, cash, cash equivalents, short-term deposits and marketable securities totaled $911.5 million. For Q3 2026, management expects SaaS ARR growth of 22% to 23% excluding conversions, revenue of $185 million to $188 million, non-GAAP operating income of $2.5 million to $3.5 million, and non-GAAP EPS of $0.02 to $0.03. For full-year 2026, guidance calls for total SaaS ARR of $819 million to $850 million, SaaS ARR growth of 20% to 21% excluding conversions, revenue of $735 million to $739 million, free cash flow of $105 million to $110 million, non-GAAP operating income of $11 million to $13 million, and non-GAAP EPS of $0.14 to $0.15.
Yakov Faitelson framed the quarter around a growing secular need to secure AI and the data behind it. He said AI and data security are effectively the same problem for customers, and emphasized that Varonis is positioned to help companies understand exposure, govern AI access, and automate remediation. He also pointed to more than 20% new-logo growth, stronger momentum in Atlas, Interceptor and DAM, and several customer wins where Varonis was used to protect AI deployments and replace point products.
Guy Melamed focused on the numbers, saying Q2 revenue of $180 million grew 18% year over year and gross margin was 77.7%, which he said remains healthy and in line with long-term targets. He highlighted $69.1 million of year-to-date free cash flow, the $11.9 million of acquisition-related costs affecting that figure, and $911.5 million of cash and investments at quarter-end. He also said the company raised full-year free cash flow guidance by $5 million and lifted full-year SaaS ARR guidance, while noting some late-quarter slip from news-related rumors and that July started strongly.
Analysts focused on the late-quarter deal slippage, whether the rumors affected customer confidence, and how much of the delayed business could still close this year; management said some of those deals already closed in July and more are expected in Q3. Questions also centered on whether AI-related demand is bringing in new buyers or changing the sales motion; management said the main buyer is still the CISO, with some involvement from Chief AI Officers, and that the company is generally selling larger platforms upfront. On conversions and federal exposure, management said the focus should remain on SaaS ARR excluding conversions, and that they did not assume upside from federal in Q3, effectively de-risking that vertical in guidance.
The quarter showed continued 25% SaaS ARR growth excluding conversions, more than 20% new-logo growth, and early traction in newer products that management says are coming up frequently in customer conversations. Management sounded confident that AI adoption is expanding the need for Varonis and that the platform is increasingly being used to secure AI, data, and runtime activity across a broader stack.
Management acknowledged that some large deals slipped late in Q2 because of rumors in the news, and Q3 guidance still embeds only part of that delayed business. Conversion dynamics remain a moving piece for the year, and management said the first half ran at roughly 50% of expected conversions, implying pressure if the second half does not accelerate. They also said federal has not historically been a strong area and that Q3 guidance does not assume positivity from that vertical.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 96.9%
- Shares Outstanding
- 114.86M
- Float Shares
- 111.36M
of shares held by institutions
315 13F filers
Buy/sell ratio 5.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for VRNS, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Donna ShalalaHouse · FL27 | Sell | Jun 24, 19 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 13.42M | ▲ 822.92K |
| Blackrock, Inc. | 12.79M | ▲ 1.48M |
| Vanguard Capital Management LLC | 4.99M | ▼ 114.09K |
| Tremblant Capital Group | 3.75M | ▲ 170.17K |
| Voya Investment Management LLC | 3.72M | ▲ 1.31M |
| Jacobs Levy Equity Management, Inc | 3.33M | ▲ 749.48K |
| First Trust Advisors LP | 3.20M | ▲ 394.59K |
| Rgm Capital, LLC | 3.16M | ▲ 460.58K |
| Neuberger Berman Group LLC | 3.11M | ▲ 946.00K |
| State Street Corp | 3.06M | ▲ 154.19K |
| Geode Capital Management, LLC | 3.00M | ▲ 111.22K |
| Arrowstreet Capital, Limited Partnership | 2.95M | ▲ 1.54M |
Held by 327 ETFs
Biggest fund positions in VRNS by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| May 31, 26 | Gottlieb Dov | other | 9,264 |
| May 22, 26 | Melamed Guy | other | 104,440 |
| Apr 30, 26 | Aued Carlos | other | 7,224 |
| Apr 30, 26 | COMOLLI KEVIN E | other | 7,224 |
| Apr 30, 26 | GAVIN JOHN J JR | other | 7,224 |
| Apr 30, 26 | Iohan Gili | other | 7,224 |
| Apr 30, 26 | Kess Avrohom J. | other | 7,224 |
| Apr 30, 26 | Korkus Ohad | other | 7,224 |
| Apr 30, 26 | MENDOZA THOMAS F | other | 7,224 |
| Apr 30, 26 | Prishkolnik Rachel | other | 7,224 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our VRNS coverage
Recent articles, reports, and earnings notes.
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Generate VRNS report →Varonis Systems: Better Growth In Q2, But Q4 2026 Still Needs To Deliver
seekingalpha.com · Aug 3
Varonis Introduces Agent Intent-Based Access Control
globenewswire.com · Aug 3
Arrowstreet Capital Limited Partnership Purchases 966,817 Shares of Varonis Systems, Inc. $VRNS
defenseworld.net · Jul 30
Varonis Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
zacks.com · Jul 29
These Analysts Revise Their Forecasts On Varonis Following Q2 Earnings
benzinga.com · Jul 29
Varonis Systems, Inc. (VRNS) Q2 2026 Earnings Call Transcript
seekingalpha.com · Jul 28
Varonis Systems (VRNS) Q2 Earnings and Revenues Top Estimates
zacks.com · Jul 28
Varonis (VRNS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
zacks.com · Jul 28
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