# Varonis Systems, Inc. (VRNS)

> Source: Nexqual · https://nexqual.com/VRNS · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Varonis Systems, Inc. (VRNS), nexqual.com/VRNS" · informational, not investment advice.

**Price:** USD 48.89 (+0.41% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 48.69 · day 48.7–48.93 · 52w 19.7–63.8 · market cap $5.62B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $688M, net income -$141M (-20.5% margin), free cash flow $122M (SEC filings).
- Analysts: Hold (mean 2.82 on a 1–5 scale) (22 analysts), mean target USD 51.07 (range 48–58).
- Total return with dividends: 1Y -21.6% vs S&P 500 +14.9%; 5Y -22.7% vs S&P 500 +80.3%.
- Next earnings: 2026-11-03, EPS estimate USD 0.03, revenue estimate $187M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $390M | $474M | $499M | $551M | $624M | $688M |
| Gross profit | $331M | $404M | $427M | $457M | $492M | — |
| Operating income | -$98.7M | -$121M | -$117M | -$118M | -$147M | -$151M |
| Net income | -$117M | -$125M | -$101M | -$95.8M | -$129M | -$141M |
| EPS (diluted) | -$1.11 | -$1.14 | -$0.92 | -$0.86 | -$1.13 | — |
| Free cash flow | -$3.3M | $475K | $54.3M | $109M | $135M | $122M |
| Gross margin | 84.8% | 85.3% | 85.6% | 83.0% | 78.8% | — |
| Operating margin | -25.3% | -25.6% | -23.5% | -21.4% | -23.5% | -22.0% |
| Net margin | -30.0% | -26.3% | -20.2% | -17.4% | -20.7% | -20.5% |
| Revenue growth | +33.3% | +21.4% | +5.4% | +10.4% | +13.2% | — |
| Cash + short-term investments | $806M | $604M | $484M | $529M | $884M | — |
| Total debt | $225M | $249M | $250M | $701M | $452M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 8.2x · EV/Sales 7.9x · P/FCF 46.1x · P/B 12.6x · FCF yield 2.17% · Earnings yield -2.52% · Buyback yield (TTM) 2.67% · Net cash $207M · EV $5.41B

## Analysts
Consensus Hold (mean 2.82 on a 1–5 scale), 22 analysts; mean target USD 51.07 (low 48, high 58).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | Barclays | Downgrade | Overweight → Equal-Weight | $50 |
| 2026-10-16 | Citigroup | Target raised | Neutral | $45 → $49.75 |
| 2026-10-16 | Baird | Target raised | Neutral | $45 → $50 |
| 2026-10-16 | Piper Sandler | Downgrade | Overweight → Neutral | $58 → $49.75 |
| 2026-10-16 | RBC Capital | Downgrade | Outperform → Sector Perform | $52 → $49.75 |
| 2026-10-16 | TD Cowen | Downgrade | Buy → Hold | $56 → $49.75 |
| 2026-10-16 | Jefferies | Downgrade | Buy → Hold | $60 → $49.75 |
| 2026-10-16 | DA Davidson | Downgrade | Buy → Neutral | $55 → $49.75 |
| 2026-10-16 | Wells Fargo | Downgrade | Overweight → Equal-Weight | $53 → $49.75 |
| 2026-10-16 | Wedbush | Target raised | Neutral | $46 → $49.75 |
| 2026-10-16 | Rosenblatt | Downgrade | Buy → Neutral | $55 → $49.75 |
| 2026-10-16 | Needham | Downgrade | Buy → Hold |  |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -21.6% | -22.7% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -21.6% | -5.0% |
| Volatility (annualized) | 85.6% | 58.2% |
| Max drawdown | -68.0% (Oct 2025→Apr 2026) | -75.3% (Oct 2021→Oct 2022) |

## Peers (Software - Infrastructure)
ACIW (ACI Worldwide, Inc.) USD 56.19 +4.33% · MBGL (Mobility Global Inc.) USD 19.28 +4.10% · BOX (Box, Inc.) USD 42.78 +1.93% · RELY (Remitly Global, Inc.) USD 25.32 -0.39% · BB (BlackBerry Limited) USD 8.59 -8.71% · WIX (Wix.com Ltd.) USD 82.55 +4.84%

## More
Full page: https://nexqual.com/VRNS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in VRNS's own 10-K filed 2026-02-04 (https://www.sec.gov/Archives/edgar/data/1361113/000162828026005450/vrns-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Microsoft (MSFT) | "Customers can purchase add-on support for Exchange Online, Microsoft 365 Copilot and ChatGPT Enterprise." |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| SaaS | $171.7M | 95.4% | +62.2% |
| Term license subscriptions | $4.2M | 2.3% | -87.1% |
| Maintenance and services | $4.1M | 2.3% | -70.2% |
| Total revenue | $180.0M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $129.0M | 71.7% | +18.7% |
| EMEA | $36.4M | 20.2% | +14.5% |
| Rest of the World | $14.6M | 8.1% | +24.6% |
| Total revenue | $180.0M | 100% | — |

## Company outlook (8-K filed 2026-07-28)

- "For the third quarter of 2026, the Company expects: SaaS ARR year-over-year growth of 22% to 23%, excluding conversions."
- "For full year 2026, the Company now expects: SaaS ARR of $819.0 million to $850.0 million, or year-over-year growth of 28% to 33%."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.03 | $0.02 | +54.8% | $186.9M | 23 |
| Next quarter (ends 2026-12-31) | $0.03 | $0.04 | -27.2% | $197.8M | 23 |
| Current fiscal year (ends 2026-12-31) | $0.15 | $0.12 | +27.3% | $737.8M | 24 |
| Next fiscal year (ends 2027-12-31) | $0.41 | $0.38 | +6.3% | $875.3M | 24 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-03): ±2.4%; last 8 reports averaged ±14%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 11.1% | ±2.4% |
| 2026-12-18 | 56 | 8.7% | ±3.4% |
| 2027-01-15 | 84 | 6.0% | ±11.8% |
| 2027-03-19 | 147 | 4.5% | ±5.6% |
| 2027-06-17 | 237 | 10.5% | ±7.8% |