| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 161.58 | 6.2% | 9.1% |
| Total Income | 161.58 | 6.2% | 9.1% |
| Expenditure | 197.51 | 4.7% | 15.0% |
| PBT | -28.13 | 10.9% | 109.9% |
| Net Profit | -29.94 | 16.4% | 63.3% |
| OPM | -22.24% | 1.78pp | 6.27pp |
| NPM | -18.53% | 5.01pp | 6.15pp |
| EPS | -0.26 | 18.8% | 62.5% |
Varonis Announces Q3 2025 Financial Results; ARR Increased 18% Y-o-Y
04 May 2026 · 4 May, 8:43 am
Summary
Varonis Systems, Inc. announced its financial results for the third quarter ended September 30, 2025. Total revenues were $161.6 million, up from $148.1 million in the third quarter of 2024. SaaS revenues significantly increased to $125.8 million, compared to $57.8 million in the same quarter last year. The company's annual recurring revenue (ARR) grew by 18% year-over-year. Varonis has reduced its full-year ARR guidance due to underperformance in the on-prem subscription business.
Key Highlights
- 1
Varonis' annual recurring revenues increased 18% year-over-year.
- 2
SaaS ARR accounted for approximately 76% of the company's total ARR.
- 3
The company generated $122.7 million in cash from operations year-to-date, compared to $90.9 million last year.
- 4
Year-to-date free cash flow was $111.6 million, versus $88.6 million in the prior year.
- 5
Total revenues were $161.6 million, compared with $148.1 million in the third quarter of 2024.
- 6
SaaS revenues reached $125.8 million, compared with $57.8 million in the third quarter of 2024.
- 7
The company announced a $150.0 million share repurchase authorization.
Management Comments
Yaki Faitelson
We continued to see healthy demand for our SaaS platform, which now represents 76% of total company ARR. This adoption is driven by the automated outcomes that it provides as well as customer interest in deploying AI initiatives and securing data in the cloud. At the same time, in the final weeks of the quarter, we experienced lower renewals in the Federal vertical and in our non-Federal on-prem subscription business, which led to a shortfall relative to our expectations.
Informational and educational content only. Not investment advice.