Varonis Systems, Inc. (VRNS) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 13, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 29, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the VRNS SEC filings page.
Varonis Systems, Inc. (VRNS) reported $688.1M in revenue over the twelve months to Jun 30, 2026, up 15.6% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Revenue is scaling, but margin compression and persistent operating losses mean cash generation has not yet become accounting profitability.
From FY2023 to FY2025, revenue rose to$623.5M while gross margin fell from85.6% to78.8% ; growth is arriving with a less favorable margin structure rather than clear fixed-cost absorption. In FY2025, operating cash flow was$147.4M despite a net loss of$129.3M , so the cash-conversion gap must be explained by non-cash charges and working-capital changes rather than operating profit.
FY2025 revenue reached
The balance sheet became more liability-funded, with liabilities of
Financial Health Signals
Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Varonis Systems, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Varonis Systems, Inc. held $1.1B in cash, cash equivalents and investments at the end of fiscal year 2025, and its operations generated $147.4M of cash that year. Cash Runway ranks emerging companies on the size of that balance against the outflow behind it, and Varonis Systems, Inc. scores 86/100 among other emerging companies.
Varonis Systems, Inc. had 117M shares outstanding at the end of fiscal year 2025, against 113M in fiscal year 2024. Dilution ranks emerging companies on how fast that count has grown over three years, where a slower rise is the better one, and Varonis Systems, Inc. scores 59/100 among other emerging companies.
Varonis Systems, Inc. spent $237.8M on research and development in fiscal year 2025, which was 30.9% of its operating costs that year. R&D Intensity ranks emerging companies on the share of operating costs that goes into research, and Varonis Systems, Inc. scores 63/100 among other emerging companies.
Varonis Systems, Inc. reported revenue of $623.5M in fiscal year 2025, against $551.0M in fiscal year 2024. Revenue Progress ranks emerging companies on the three-year path of that line, and Varonis Systems, Inc. scores 58/100 among other emerging companies.
Not available for Varonis Systems, Inc., and counted as zero in the overall score.
Varonis Systems, Inc.'s cash, cash equivalents and investments came to $1.1B at the end of fiscal year 2025, against $1.2B of total liabilities. Balance Sheet ranks emerging companies on that comparison, and Varonis Systems, Inc. scores 56/100 among other emerging companies.
Varonis Systems, Inc. scores 2.64, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($5.6B) relative to total liabilities ($1.2B). This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Varonis Systems, Inc. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
Varonis Systems, Inc. reported a net loss of $129.3M while generating $147.4M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Varonis Systems, Inc. reported an operating loss of $146.5M against $6.6M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Varonis Systems, Inc. generated $180.0M in revenue in Q2 2026. This represents an increase of 18.3% from the same quarter a year earlier. Against the prior quarter it is up 4.0%.
Varonis Systems, Inc.'s EBITDA was -$33.5M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.6% from the same quarter a year earlier. Against the prior quarter it is up 16.6%.
Varonis Systems, Inc. reported -$46.8M in net income in Q2 2026. This represents a decrease of 30.7% from the same quarter a year earlier. Against the prior quarter it is down 27.0%.
Varonis Systems, Inc. earned -$0.41 per diluted share (EPS) in Q2 2026. This represents a decrease of 28.1% from the same quarter a year earlier. Against the prior quarter it is down 28.1%.
Cash & Balance Sheet
Varonis Systems, Inc. generated $20.7M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 15.2% from the same quarter a year earlier. Against the prior quarter it is down 58.7%.
Varonis Systems, Inc. held $233.6M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Varonis Systems, Inc.'s gross margin was 75.3% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 4.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.7 percentage points.
Varonis Systems, Inc.'s operating margin was -22.6% in Q2 2026, reflecting core business profitability. This is up 1.4 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.1 percentage points.
Varonis Systems, Inc.'s net profit margin was -26.0% in Q2 2026, showing the share of revenue converted to profit. This is down 2.5 percentage points from the same quarter a year earlier. Against the prior quarter it is down 4.7 percentage points.
Varonis Systems, Inc.'s ROE was -10.5% in Q2 2026, measuring profit generated per dollar of shareholder equity. That is unchanged from the same quarter a year earlier. Against the prior quarter it is down 2.4 percentage points.
Capital Allocation
Varonis Systems, Inc. invested $73.3M in research and development in Q2 2026. This represents an increase of 30.4% from the same quarter a year earlier. Against the prior quarter it is up 5.1%.
Varonis Systems, Inc. repurchased no shares in Q2 2026. This represents a decrease of 100.0% from the same quarter a year earlier. Against the prior quarter it is down 100.0%.
Varonis Systems, Inc. invested $4.4M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 29.7% from the same quarter a year earlier. Against the prior quarter it is down 11.9%.
VRNS Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $180.0M+18.3% | $173.1M+26.9% | $173.4M+9.4% | $161.6M+9.1% | $152.2M+16.7% | $136.4M+19.6% | $158.5M+2.9% | $148.1M+21.1% |
| Cost of Revenue | $44.5M+42.4% | $41.6M+43.3% | $36.6M+40.3% | $35.1M+46.4% | $31.2M+39.3% | $29.0M+35.9% | $26.1M+34.7% | $24.0M+38.1% |
| Gross Profit | $135.5M+12.1% | $131.6M+22.5% | $136.8M+3.3% | $126.4M+1.9% | $120.9M+12.1% | $107.4M+15.9% | $132.5M-1.7% | $124.1M+18.2% |
| R&D Expenses | $73.3M+30.4% | $69.8M+28.7% | $64.6M+27.8% | $62.7M+17.4% | $56.2M+25.2% | $54.2M+13.3% | $50.5M+5.0% | $53.5M+19.3% |
| SG&A Expenses | $23.8M-3.3% | $25.9M+7.2% | $24.5M+4.9% | $25.6M+12.0% | $24.6M+13.2% | $24.2M+13.9% | $23.3M+9.7% | $22.9M+10.7% |
| Operating Income | -$40.6M-11.2% | -$44.5M-1.6% | -$30.3M-72.4% | -$35.9M-52.0% | -$36.6M-26.8% | -$43.8M+8.1% | -$17.6M-234.7% | -$23.6M+18.9% |
| EBITDA | -$33.5M+1.6% | -$40.1M+3.0% | -$25.9M-73.1% | -$33.0M-58.0% | -$34.0M-30.9% | -$41.3M+7.6% | -$15.0M-557.4% | -$20.9M+20.4% |
| Interest Expense | N/A | N/A | -$1.3M-292.9% | $2.2M+44.7% | $2.8M+140.3% | $2.8M+140.5% | $679K | $1.5M+31.9% |
| Income Tax | $5.4M+27.7% | -$3.2M-180.2% | $3.0M-2.1% | $1.8M-63.3% | $4.2M+25.7% | $4.0M+183.0% | $3.0M+180.3% | $4.9M+97.2% |
| Net Income | -$46.8M-30.7% | -$36.9M-3.0% | -$27.8M-113.8% | -$29.9M-63.3% | -$35.8M-49.6% | -$35.8M+11.6% | -$13.0M-1347.0% | -$18.3M+20.4% |
| EPS (Basic) | -$0.41-28.1% | -$0.320.0% | -$0.23-91.7% | -$0.26-62.5% | -$0.32-52.4% | -$0.32+13.5% | -$0.12 | -$0.16+23.8% |
| EPS (Diluted) | -$0.41-28.1% | -$0.320.0% | -$0.23-91.7% | -$0.26-62.5% | -$0.32-52.4% | -$0.32+13.5% | -$0.12 | -$0.16+23.8% |
| Diluted Shares (Avg) | 115M+2.5% | 116M+2.8% | N/A | 115M+2.4% | 112M+0.2% | 113M+2.4% | N/A | 112M+2.6% |
VRNS Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.7B+2.4% | $1.6B+3.6% | $1.8B+7.7% | $1.7B+9.5% | $1.6B+47.5% | $1.6B+49.7% | $1.7B+50.8% | $1.5B+49.0% |
| Current Assets | $997.0M-6.7% | $1.1B+32.1% | $1.3B+47.9% | $961.4M-10.5% | $1.1B+30.9% | $818.1M+15.6% | $878.1M+14.5% | $1.1B+56.6% |
| Cash & Equivalents | $233.6M+17.3% | $179.3M+17.1% | $202.5M+9.1% | $157.4M-44.2% | $199.2M+28.2% | $153.1M+4.1% | $185.6M-19.6% | $282.2M+153.8% |
| Short-Term Investments | $426.5M-25.4% | $568.2M+37.1% | $681.2M+98.4% | $513.9M-8.6% | $571.6M+33.9% | $414.5M+16.5% | $343.4M+35.6% | $562.6M+66.6% |
| Accounts Receivable | $150.9M+0.8% | $156.6M+26.7% | $242.8M+25.9% | $142.6M+19.7% | $149.7M+22.3% | $123.6M+23.0% | $192.8M+14.0% | $119.2M+7.3% |
| Long-Term Investments | $213.3M-41.4% | $113.6M-80.8% | $187.2M-71.6% | $395.7M+19.1% | $364.2M+123.5% | $591.7M+161.4% | $658.9M+212.2% | $332.3M+61.0% |
| Goodwill | $215.1M+441.1% | $216.8M+445.4% | $135.3M+484.7% | $135.2M+484.3% | $39.8M+71.8% | $39.8M+71.8% | $23.1M0.0% | $23.1M0.0% |
| Total Liabilities | $1.2B-5.0% | $1.2B-2.3% | $1.2B-1.3% | $1.1B-3.0% | $1.3B+100.2% | $1.2B+101.1% | $1.2B+96.8% | $1.1B+89.6% |
| Current Liabilities | $605.9M-21.4% | $638.6M-10.1% | $659.0M-7.2% | $531.9M-10.4% | $771.4M+130.6% | $710.1M+138.9% | $709.9M+131.4% | $594.0M+122.8% |
| Non-Current Liabilities | $604.0M+20.3% | $542.5M+8.7% | $534.0M+7.1% | $528.3M+5.9% | $502.1M+66.4% | $499.2M+64.2% | $498.7M+62.2% | $498.6M+61.1% |
| Total Equity | $444.5M+30.2% | $453.5M+23.3% | $598.7M+31.4% | $604.8M+41.1% | $341.5M-25.5% | $367.7M-18.7% | $455.7M-6.9% | $428.6M-3.6% |
| Retained Earnings | -$953.1M-17.4% | -$906.3M-16.8% | -$869.5M-17.5% | -$841.7M-15.8% | -$811.8M-14.5% | -$775.9M-13.3% | -$740.2M-14.9% | -$727.2M-13.0% |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
VRNS Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $25.1M+17.5% | $55.0M-19.1% | $24.7M+1.7% | $33.4M+48.6% | $21.3M+82.1% | $68.0M+19.9% | $24.3M+132.4% | $22.5M+255.0% |
| Depreciation & Amortization | $7.2M+179.5% | $4.4M+80.0% | $4.3M+68.2% | $3.0M+7.2% | $2.6M-10.1% | $2.4M-16.8% | $2.6M-12.9% | $2.8M-5.2% |
| Stock-Based Compensation | $34.6M+2.2% | $33.7M+4.6% | N/A | $31.6M-1.2% | $33.9M+12.5% | $32.3M+0.5% | N/A | $31.9M-3.2% |
| Capital Expenditures | $4.4M+29.7% | $5.0M+112.5% | $3.9M-9.4% | $3.0M+142.3% | $3.4M+312.3% | $2.3M+687.5% | $4.4M+102.0% | $1.2M+258.5% |
| Free Cash Flow | $20.7M+15.2% | $50.1M-23.7% | $20.7M+4.1% | $30.4M+43.2% | $18.0M+64.8% | $65.7M+16.4% | $19.9M+140.2% | $21.3M+254.7% |
| Investing Cash Flow | $36.2M-48.3% | $63.3M+353.2% | $35.9M+130.1% | -$81.7M+72.4% | $70.0M+1498.4% | -$25.0M+77.7% | -$119.4M-208.2% | -$295.9M-12.4% |
| Financing Cash Flow | -$7.0M+84.6% | -$141.5M-87.5% | -$15.5M-935.4% | $6.4M-98.4% | -$45.2M-2871.5% | -$75.5M-165.3% | -$1.5M-19.3% | $400.2M+1391.1% |
| Share Buybacks | $0-100.0% | $135.0M+120.4% | $15.0M | $0 | $38.7M | $61.3M | $0 | $0-100.0% |
Not reported in any period shown, so not listed: Dividends Paid.
VRNS Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.3%-4.2pp | 76.0%-2.7pp | 78.9%-4.6pp | 78.3%-5.5pp | 79.5%-3.3pp | 78.7%-2.5pp | 83.6%-3.9pp | 83.8%-2.0pp |
| Operating Margin | -22.6%+1.4pp | -25.7%+6.4pp | -17.5%-6.4pp | -22.2%-6.3pp | -24.0%-1.9pp | -32.1%+9.7pp | -11.1%-7.7pp | -16.0%+7.9pp |
| Net Margin | -26.0%-2.5pp | -21.3%+4.9pp | -16.0%-7.8pp | -18.5%-6.2pp | -23.5%-5.2pp | -26.2%+9.3pp | -8.2%-7.6pp | -12.4%+6.4pp |
| Return on Equity | -10.5%0.0pp | -8.1%+1.6pp | -4.6%-1.8pp | -5.0%-0.7pp | -10.5%-5.3pp | -9.7%-0.8pp | -2.9%-2.7pp | -4.3%+0.9pp |
| Return on Assets | -2.8%-0.6pp | -2.3%0.0pp | -1.6%-0.8pp | -1.8%-0.6pp | -2.2%0.0pp | -2.3%+1.6pp | -0.8%-0.7pp | -1.2%+1.0pp |
| Current Ratio | 1.65+0.3x | 1.69+0.5x | 1.97+0.7x | 1.810.0x | 1.39-1.1x | 1.15-1.2x | 1.24-1.3x | 1.81-0.8x |
| Debt-to-Equity | 2.72-1.0x | 2.60-0.7x | 1.99-0.7x | 1.75-0.8x | 3.73+2.3x | 3.29+2.0x | 2.65+1.4x | 2.55+1.3x |
| Asset Turnover | 0.110.0x | 0.110.0x | 0.100.0x | 0.100.0x | 0.090.0x | 0.090.0x | 0.100.0x | 0.100.0x |
| FCF Margin | 11.5%-0.3pp | 28.9%-19.2pp | 12.0%-0.6pp | 18.8%+4.5pp | 11.8%+3.4pp | 48.1%-1.4pp | 12.6%+7.2pp | 14.3%+9.4pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Varonis Systems, Inc. VRNS | FY2025 | $623.5M | -$129.3M | -20.7% | $5.6B | 54/100 |
| SentinelOne, Inc. S | FY2026 | $1.0B | -$450.7M | -45.0% | $8.9B | 45/100 |
| Confluent, Inc. CFLT | FY2025 | $1.2B | -$295.3M | -25.3% | $11.1B | 51/100 |
| UiPath, Inc. PATH | FY2026 | $1.6B | $282.3M | 17.5% | $6.9B | 57/100 |
| WEX Inc. WEX | FY2025 | $2.7B | $304.1M | 11.4% | $5.9B | 55/100 |
| Qualys, Inc. QLYS | FY2025 | $669.1M | $198.3M | 29.6% | $6.8B | 72/100 |
Where Varonis Systems, Inc. Ranks
Frequently Asked Questions
What is Varonis Systems, Inc.'s annual revenue?
Varonis Systems, Inc. (VRNS) reported $623.5M in total revenue for fiscal year 2025. This represents a 13.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Varonis Systems, Inc.'s revenue growing?
Varonis Systems, Inc. (VRNS) revenue grew by 13.2% year-over-year, from $551.0M to $623.5M in fiscal year 2025.
Is Varonis Systems, Inc. profitable?
No, Varonis Systems, Inc. (VRNS) reported a net income of -$129.3M in fiscal year 2025, with a net profit margin of -20.7%.
What is Varonis Systems, Inc.'s EBITDA?
Varonis Systems, Inc. (VRNS) had EBITDA of -$134.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Varonis Systems, Inc.'s gross margin?
Varonis Systems, Inc. (VRNS) had a gross margin of 78.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Varonis Systems, Inc.'s operating margin?
Varonis Systems, Inc. (VRNS) had an operating margin of -23.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Varonis Systems, Inc.'s net profit margin?
Varonis Systems, Inc. (VRNS) had a net profit margin of -20.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Varonis Systems, Inc.'s return on equity (ROE)?
Varonis Systems, Inc. (VRNS) has a return on equity of -21.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Varonis Systems, Inc.'s free cash flow?
Varonis Systems, Inc. (VRNS) generated $134.8M in free cash flow during fiscal year 2025. This represents a 24.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Varonis Systems, Inc.'s operating cash flow?
Varonis Systems, Inc. (VRNS) generated $147.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Varonis Systems, Inc.'s total assets?
Varonis Systems, Inc. (VRNS) had $1.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Varonis Systems, Inc.'s capital expenditures?
Varonis Systems, Inc. (VRNS) invested $12.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Varonis Systems, Inc. spend on research and development?
Varonis Systems, Inc. (VRNS) invested $237.8M in research and development during fiscal year 2025.
What is Varonis Systems, Inc.'s current ratio?
Varonis Systems, Inc. (VRNS) had a current ratio of 1.97 as of fiscal year 2025, which is generally considered healthy.
What is Varonis Systems, Inc.'s debt-to-equity ratio?
Varonis Systems, Inc. (VRNS) had a debt-to-equity ratio of 1.99 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Varonis Systems, Inc.'s return on assets (ROA)?
Varonis Systems, Inc. (VRNS) had a return on assets of -7.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Varonis Systems, Inc.'s P/E ratio?
Varonis Systems, Inc. (VRNS) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $5.6B as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Varonis Systems, Inc.'s price-to-sales ratio?
Varonis Systems, Inc. (VRNS) trades at 8.1x sales, its market capitalization divided by revenue of $688.1M revenue, trailing 12 months to June 30, 2026. The market capitalization is $5.6B as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Varonis Systems, Inc.'s Altman Z-Score?
Varonis Systems, Inc. (VRNS) has an Altman Z-Score of 2.64, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Varonis Systems, Inc.'s Piotroski F-Score?
Varonis Systems, Inc. (VRNS) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Varonis Systems, Inc.'s earnings high quality?
Varonis Systems, Inc. (VRNS) reported a net loss of $129.3M while generating $147.4M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Varonis Systems, Inc. cover its interest payments?
Varonis Systems, Inc. (VRNS) reported an operating loss of $146.5M against $6.6M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Varonis Systems, Inc.?
Varonis Systems, Inc. (VRNS) scores 54 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.