Varonis Sys Inc Financials
This page shows Varonis Sys Inc (VRNS) financial statements, including the 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).
Cash generation has outgrown accounting losses, showing a business that now self-funds operations despite negative reported margins.
Over the last three fiscal years, free cash flow rose from$54.3M to$134.8M even though net losses persisted, so the income statement is still carrying the investment burden while the cash flow statement shows an operation that already funds itself. That showed up most recently, when internal cash generation was enough to fund$115M of buybacks and still leave cash at$202.5M , a very different operating reality from a business whose losses automatically mean cash burn.
Revenue growth is not translating into better profitability because gross margin fell from
Liquidity improved markedly after FY2024, with the current ratio rising from 1.2x to 2.0x. Debt-to-equity also eased from 2.7x to 2.0x, so the balance sheet ended the latest year less stretched; paired with negative financing cash flow, that suggests the business was relying less on outside capital to maintain flexibility.
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 Sys 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 Sys Inc scores 2.47, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($5.3B) 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 Sys 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.
For every $1 of reported earnings, Varonis Sys Inc generates $-1.14 in operating cash flow ($147.4M OCF vs -$129.3M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
Varonis Sys Inc generated $623.5M in revenue in fiscal year 2025. This represents an increase of 13.2% from the prior year.
Varonis Sys Inc's EBITDA was -$134.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 26.0% from the prior year.
Varonis Sys Inc reported -$129.3M in net income in fiscal year 2025. This represents a decrease of 35.0% from the prior year.
Varonis Sys Inc earned $-1.13 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 31.4% from the prior year.
Cash & Balance Sheet
Varonis Sys Inc generated $134.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 24.2% from the prior year.
Varonis Sys Inc held $202.5M in cash against $0 in long-term debt as of fiscal year 2025.
Varonis Sys Inc had 117M shares outstanding in fiscal year 2025. This represents an increase of 4.4% from the prior year.
Margins & Returns
Varonis Sys Inc's gross margin was 78.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 4.1 percentage points from the prior year.
Varonis Sys Inc's operating margin was -23.5% in fiscal year 2025, reflecting core business profitability. This is down 2.1 percentage points from the prior year.
Varonis Sys Inc's net profit margin was -20.7% in fiscal year 2025, showing the share of revenue converted to profit. This is down 3.4 percentage points from the prior year.
Varonis Sys Inc's ROE was -21.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.6 percentage points from the prior year.
Capital Allocation
Varonis Sys Inc invested $237.8M in research and development in fiscal year 2025. This represents an increase of 20.9% from the prior year.
Varonis Sys Inc spent $115.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Varonis Sys Inc invested $12.6M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 88.6% from the prior year.
VRNS Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $173.1M-0.1% | $173.4M+7.3% | $161.6M+6.2% | $152.2M+11.5% | $136.4M-13.9% | $158.5M+7.1% | $148.1M+13.6% | $130.3M |
| Cost of Revenue | $41.6M+13.7% | $36.6M+4.0% | $35.1M+12.5% | $31.2M+7.7% | $29.0M+11.4% | $26.1M+8.5% | $24.0M+7.0% | $22.4M |
| Gross Profit | $131.6M-3.8% | $136.8M+8.2% | $126.4M+4.6% | $120.9M+12.6% | $107.4M-18.9% | $132.5M+6.8% | $124.1M+15.0% | $107.9M |
| R&D Expenses | $69.8M+8.0% | $64.6M+3.0% | $62.7M+11.5% | $56.2M+3.8% | $54.2M+7.2% | $50.5M-5.4% | $53.5M+19.0% | $44.9M |
| SG&A Expenses | $25.9M+6.0% | $24.5M-4.4% | $25.6M+3.9% | $24.6M+1.8% | $24.2M+3.7% | $23.3M+2.1% | $22.9M+5.1% | $21.8M |
| Operating Income | -$44.5M-47.0% | -$30.3M+15.8% | -$35.9M+1.7% | -$36.6M+16.5% | -$43.8M-149.4% | -$17.6M+25.8% | -$23.6M+18.0% | -$28.8M |
| Interest Expense | N/A | N/A | $2.2M-20.9% | $2.8M0.0% | $2.8M | N/A | $1.5M+31.3% | $1.2M |
| Income Tax | -$3.2M-206.6% | $3.0M+64.4% | $1.8M-57.2% | $4.2M+6.8% | $4.0M+30.2% | $3.0M-38.3% | $4.9M+46.5% | $3.4M |
| Net Income | -$36.9M-32.7% | -$27.8M+7.2% | -$29.9M+16.4% | -$35.8M-0.1% | -$35.8M-175.4% | -$13.0M+29.1% | -$18.3M+23.4% | -$23.9M |
| EPS (Diluted) | $-0.32 | N/A | $-0.26+18.8% | $-0.320.0% | $-0.32 | N/A | $-0.16+23.8% | $-0.21 |
VRNS Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.6B-8.8% | $1.8B+7.6% | $1.7B+3.1% | $1.6B+2.4% | $1.6B-5.2% | $1.7B+9.4% | $1.5B+38.9% | $1.1B |
| Current Assets | $1.1B-16.8% | $1.3B+35.1% | $961.4M-10.0% | $1.1B+30.6% | $818.1M-6.8% | $878.1M-18.3% | $1.1B+31.6% | $816.1M |
| Cash & Equivalents | $179.3M-11.4% | $202.5M+28.7% | $157.4M-21.0% | $199.2M+30.1% | $153.1M-17.5% | $185.6M-34.2% | $282.2M+81.6% | $155.4M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $156.6M-35.5% | $242.8M+70.2% | $142.6M-4.7% | $149.7M+21.1% | $123.6M-35.9% | $192.8M+61.8% | $119.2M-2.6% | $122.4M |
| Goodwill | $216.8M+60.3% | $135.3M+0.1% | $135.2M+240.1% | $39.8M0.0% | $39.8M+71.8% | $23.1M0.0% | $23.1M0.0% | $23.1M |
| Total Liabilities | $1.2B-1.0% | $1.2B+12.5% | $1.1B-16.8% | $1.3B+5.3% | $1.2B+0.1% | $1.2B+10.6% | $1.1B+71.7% | $636.2M |
| Current Liabilities | $638.6M-3.1% | $659.0M+23.9% | $531.9M-31.0% | $771.4M+8.6% | $710.1M0.0% | $709.9M+19.5% | $594.0M+77.6% | $334.5M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $453.5M-24.2% | $598.7M-1.0% | $604.8M+77.1% | $341.5M-7.1% | $367.7M-19.3% | $455.7M+6.3% | $428.6M-6.6% | $458.6M |
| Retained Earnings | -$906.3M-4.2% | -$869.5M-3.3% | -$841.7M-3.7% | -$811.8M-4.6% | -$775.9M-4.8% | -$740.2M-1.8% | -$727.2M-2.6% | -$708.8M |
VRNS Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $55.0M+123.0% | $24.7M-26.1% | $33.4M+56.4% | $21.3M-68.6% | $68.0M+180.1% | $24.3M+8.0% | $22.5M+91.7% | $11.7M |
| Capital Expenditures | $5.0M+26.1% | $3.9M+32.6% | $3.0M-12.0% | $3.4M+44.4% | $2.3M-46.3% | $4.4M+255.0% | $1.2M+49.7% | $819K |
| Free Cash Flow | $50.1M+141.4% | $20.7M-31.8% | $30.4M+69.3% | $18.0M-72.6% | $65.7M+229.6% | $19.9M-6.3% | $21.3M+94.9% | $10.9M |
| Investing Cash Flow | $63.3M+76.3% | $35.9M+144.0% | -$81.7M-216.8% | $70.0M+379.6% | -$25.0M+79.0% | -$119.4M+59.6% | -$295.9M-5815.1% | -$5.0M |
| Financing Cash Flow | -$141.5M-814.2% | -$15.5M-341.2% | $6.4M+114.2% | -$45.2M+40.1% | -$75.5M-4947.6% | -$1.5M-100.4% | $400.2M+24452.8% | $1.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $135.0M+800.0% | $15.0M | $0-100.0% | $38.7M-36.8% | $61.3M | $0 | $0 | $0 |
VRNS Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.0%-2.9pp | 78.9%+0.7pp | 78.3%-1.2pp | 79.5%+0.7pp | 78.7%-4.8pp | 83.6%-0.2pp | 83.8%+1.0pp | 82.8% |
| Operating Margin | -25.7%-8.2pp | -17.5%+4.8pp | -22.2%+1.8pp | -24.0%+8.1pp | -32.1%-21.0pp | -11.1%+4.9pp | -16.0%+6.1pp | -22.1% |
| Net Margin | -21.3%-5.3pp | -16.0%+2.5pp | -18.5%+5.0pp | -23.5%+2.7pp | -26.2%-18.0pp | -8.2%+4.2pp | -12.4%+6.0pp | -18.4% |
| Return on Equity | -8.1%-3.5pp | -4.6%+0.3pp | -5.0%+5.5pp | -10.5%-0.8pp | -9.7%-6.9pp | -2.9%+1.4pp | -4.3%+0.9pp | -5.2% |
| Return on Assets | -2.3%-0.7pp | -1.6%+0.2pp | -1.8%+0.4pp | -2.2%+0.1pp | -2.3%-1.5pp | -0.8%+0.4pp | -1.2%+1.0pp | -2.2% |
| Current Ratio | 1.69-0.3 | 1.97+0.2 | 1.81+0.4 | 1.39+0.2 | 1.15-0.1 | 1.24-0.6 | 1.81-0.6 | 2.44 |
| Debt-to-Equity | 2.60+0.6 | 1.99+0.2 | 1.75-2.0 | 3.73+0.4 | 3.29+0.6 | 2.65+0.1 | 2.55+1.2 | 1.39 |
| FCF Margin | 28.9%+17.0pp | 12.0%-6.9pp | 18.8%+7.0pp | 11.8%-36.3pp | 48.1%+35.6pp | 12.6%-1.8pp | 14.3%+6.0pp | 8.4% |
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Frequently Asked Questions
What is Varonis Sys Inc's annual revenue?
Varonis Sys 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 Sys Inc's revenue growing?
Varonis Sys Inc (VRNS) revenue grew by 13.2% year-over-year, from $551.0M to $623.5M in fiscal year 2025.
Is Varonis Sys Inc profitable?
No, Varonis Sys Inc (VRNS) reported a net income of -$129.3M in fiscal year 2025, with a net profit margin of -20.7%.
What is Varonis Sys Inc's EBITDA?
Varonis Sys Inc (VRNS) had EBITDA of -$134.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Varonis Sys Inc's gross margin?
Varonis Sys 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 Sys Inc's operating margin?
Varonis Sys 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 Sys Inc's net profit margin?
Varonis Sys 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 Sys Inc's return on equity (ROE)?
Varonis Sys 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 Sys Inc's free cash flow?
Varonis Sys 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 Sys Inc's operating cash flow?
Varonis Sys Inc (VRNS) generated $147.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Varonis Sys Inc's total assets?
Varonis Sys Inc (VRNS) had $1.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Varonis Sys Inc's capital expenditures?
Varonis Sys Inc (VRNS) invested $12.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Varonis Sys Inc spend on research and development?
Varonis Sys Inc (VRNS) invested $237.8M in research and development during fiscal year 2025.
What is Varonis Sys Inc's current ratio?
Varonis Sys Inc (VRNS) had a current ratio of 1.97 as of fiscal year 2025, which is generally considered healthy.
What is Varonis Sys Inc's debt-to-equity ratio?
Varonis Sys 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 Sys Inc's return on assets (ROA)?
Varonis Sys 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 Sys Inc's Altman Z-Score?
Varonis Sys Inc (VRNS) has an Altman Z-Score of 2.47, 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 Sys Inc's Piotroski F-Score?
Varonis Sys 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 Sys Inc's earnings high quality?
Varonis Sys Inc (VRNS) has an earnings quality ratio of -1.14x, considered mixed quality. 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.
How financially healthy is Varonis Sys Inc?
Varonis Sys Inc (VRNS) scores 51 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.