Varonis Systems, Inc.(VRNS)

$42.86▲0.97 (2.32%)

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Varonis Systems, Inc.(VRNS)

NASDAQ

$42.86▲0.97 (2.32%)

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VRNS(VRNS)

VRNS

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7/5/26

VARONIS SYSTEMS (VRNS)

Sunday

2:57 AM

Thesis: Varonis Systems: the story is balanced — Annual Recurring Revenue (ARR) growth rate and quarterly net new ARR additions, indicating subscription momentum

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$624M	$734M	$869M
Rev. Growth	+13.2%	+17.8%	+18.3%
EPS	$-1.13	$0.12	$0.38
EPS Growth	-31.4%	+111%	+222%
P/E (fwd)	—	360.3×	111.9×

★ Analysts see FY2027 revenue reaching $869M — +18.3% growth in a single year.

What Moves the Stock

1Annual Recurring Revenue (ARR) growth rate and quarterly net new ARR additions, indicating subscription momentum
2SaaS transition progress measured by subscription revenue mix and deferred revenue balance growth
3Customer acquisition metrics including new customer count, average contract value, and expansion within existing accounts
4Operating margin trajectory and path to profitability guidance, particularly free cash flow inflection timing
5Competitive win rates against Microsoft Purview, Rubrik, and other data security platforms in enterprise deals
6Subscription licenses (SaaS and term-based) representing estimated 75-80% of revenue, driven by transition from perpetual to recurring model
7Maintenance and services (support, professional services, training) representing estimated 20-25% of revenue
8Legacy perpetual licenses representing declining portion as company completes SaaS transition

FY2025 Snapshot

Revenue: $624M
Rev. Growth: +13.2%
Gross Margin: 79.1%
Op. Margin: -23.5%
Net Margin: -20.7%
Net Income: $-129M
NI Growth: -35.0%
EPS: $-1.13
1Y Return: -14.3%

My Notes

growth - Varonis attracts growth-oriented investors focused on secular data security tailwinds and SaaS business model transition…
Rising interest rates create multiple headwinds: (1) Higher discount rates compress valuation multiples for unprofitable growth software…
Watch on earnings: Federal Funds Rate and 10-year Treasury yield trajectory impacting SaaS valuation multiples and customer financing costs, Cybersecurity industry M&A activity and private market valuations indicating potential takeout premium or competitive consolidation, Microsoft 365 and Azure adoption rates as proxy for addressable market expansion in cloud data security.

One Sentence Summary:

Varonis Systems: the story is balanced — annual recurring revenue (arr) growth rate and quarterly net new arr additions, indicating subscription momentum.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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Metric

FY2025

FY2026E

FY2027E

P/E (fwd)

—

360.3×

111.9×

What Moves the Stock

1Annual Recurring Revenue (ARR) growth rate and quarterly net new ARR additions, indicating subscription momentum

2SaaS transition progress measured by subscription revenue mix and deferred revenue balance growth

3Customer acquisition metrics including new customer count, average contract value, and expansion within existing accounts

4Operating margin trajectory and path to profitability guidance, particularly free cash flow inflection timing

5Competitive win rates against Microsoft Purview, Rubrik, and other data security platforms in enterprise deals

6Subscription licenses (SaaS and term-based) representing estimated 75-80% of revenue, driven by transition from perpetual to recurring model

7Maintenance and services (support, professional services, training) representing estimated 20-25% of revenue

8Legacy perpetual licenses representing declining portion as company completes SaaS transition

My Notes

growth - Varonis attracts growth-oriented investors focused on secular data security tailwinds and SaaS business model transition…

Rising interest rates create multiple headwinds: (1) Higher discount rates compress valuation multiples for unprofitable growth software…

Watch on earnings: Federal Funds Rate and 10-year Treasury yield trajectory impacting SaaS valuation multiples and customer financing costs, Cybersecurity industry M&A activity and private market valuations indicating potential takeout premium or competitive consolidation, Microsoft 365 and Azure adoption rates as proxy for addressable market expansion in cloud data security.

VARONIS SYSTEMS (VRNS)

Revenue Outlook

What Moves the Stock

VRNS Chart

My Notes

One Sentence Summary:

Explore More

VARONIS SYSTEMS (VRNS)

Revenue Outlook

What Moves the Stock

VRNS Chart

My Notes

One Sentence Summary: