Varonis Systems ( (VRNS) ) has released its Q3 earnings. Here is a breakdown of the information Varonis Systems presented to its investors.
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Varonis Systems, Inc. is a leading data security company specializing in protecting critical data across various environments with its cloud-native Data Security Platform. The company focuses on automating security outcomes and defending against advanced threats using AI-powered automation.
In its latest earnings report for the third quarter of 2025, Varonis Systems reported an 18% year-over-year increase in annual recurring revenues (ARR), with SaaS ARR comprising 76% of the total. The company also announced a $150 million share repurchase authorization, reflecting confidence in its long-term growth prospects.
Key financial highlights include total revenues of $161.6 million, a significant increase from $148.1 million in the same quarter last year, driven primarily by the growth in SaaS revenues. However, the company experienced a decline in term license subscription and maintenance revenues as customers transitioned to its SaaS platform. Despite a GAAP operating loss of $35.9 million, Varonis achieved a non-GAAP operating income of $0.2 million. The company also generated $122.7 million in cash from operations year-to-date, up from $90.9 million the previous year.
Strategically, Varonis made notable acquisitions, including SlashNext, to enhance its email security capabilities, and launched new products like Varonis Interceptor and Next-Gen Database Activity Monitoring. These initiatives aim to strengthen its position in the data security market by leveraging AI and expanding its product offerings.
Looking ahead, Varonis has adjusted its full-year ARR guidance due to underperformance in its on-prem subscription business. The company expects fourth-quarter revenues between $165 million and $171 million, with a focus on growing its SaaS platform and enhancing its data security solutions to meet evolving customer needs.