| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 180.02 | 4.0% | 18.3% |
| Total Income | 180.02 | 4.0% | 18.3% |
| Expenditure | 220.65 | 1.4% | 16.9% |
| PBT | -41.39 | 3.4% | 31.0% |
| Net Profit | -46.81 | 27.0% | 30.7% |
| OPM | -22.57% | 3.12pp | 1.45pp |
| NPM | -26.00% | 4.71pp | 2.46pp |
| EPS | -0.41 | 28.1% | 28.1% |
Varonis Announces Second Quarter 2026 Financial Results
29 Jul 2026 · 29 Jul, 1:48 am
Summary
Varonis Systems, Inc. reported strong second quarter 2026 results, highlighted by a 52% year-over-year increase in Total SaaS ARR to $726.0 million and a 25% growth in SaaS ARR excluding conversions. Total revenues rose to $180.0 million from $152.2 million in the prior year. The company achieved a positive non-GAAP operating income of $3.7 million, a significant improvement from a loss in the previous year. Management is optimistic, raising the full-year outlook for SaaS ARR excluding conversions growth to 21% at the midpoint, driven by healthy demand for data and AI security solutions.
Key Highlights
- 1
Total SaaS ARR reached $726.0 million, marking a 52% increase year-over-year.
- 2
SaaS ARR, excluding conversions, grew 25% year-over-year, demonstrating strong core business expansion.
- 3
Total revenues for the second quarter were $180.0 million, an increase from $152.2 million in the prior year's second quarter.
- 4
Non-GAAP operating income turned positive at $3.7 million, compared to a non-GAAP operating loss of ($1.9) million in Q2 2025.
- 5
The company is raising its full-year outlook for SaaS ARR excluding conversions growth to 21% at the midpoint.
- 6
Varonis achieved GovRAMP Authorization, enabling public sector organizations to secure critical data and AI.
- 7
The company announced support for Cursor, an AI-native coding tool, enhancing visibility and control in the agentic development lifecycle.
Management Comments
Yaki Faitelson
Our Q2 results were highlighted by SaaS ARR excluding conversions growth of 25%, SaaS ARR from new logos growing more than 20% and increasing momentum from our newer products, including Atlas, Interceptor, and Database Activity Monitoring. Organizations are prioritizing data and AI security, and we are uniquely positioned to help customers secure sensitive data, govern AI and automate risk reduction.
Guy Melamed
Our performance this quarter was characterized by healthy new logo momentum driven by the need to secure AI and the data powering it. Given the strength we are seeing in the business, the underlying demand drivers and our strong start to July, we are raising our full-year outlook for SaaS ARR excluding conversions growth above the second quarter beat to 21% at the midpoint to $769 million to $775 million which is a $5 million raise over last quarter.
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