Varonis Reports Q3 Adjusted Earnings Per Share of 6 Cents, Exceeding Consensus of 5 Cents
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy VRNS?
Q3 Financial Performance: Varonis reported Q3 revenue of $161.6 million, falling short of the consensus estimate of $166.2 million, while annual recurring revenue (ARR) reached $718.6 million, marking an 18% year-over-year increase.
Cash Reserves: As of September 30, 2025, the company held $1.1 billion in cash and cash equivalents, short-term deposits, and marketable securities.
SaaS Platform Demand: CEO Yaki Faitelson noted strong demand for their SaaS platform, which now constitutes 76% of total company ARR, driven by automated outcomes and customer interest in AI and cloud security.
Challenges in Renewals: The company faced lower renewals in the Federal sector and its non-Federal on-prem subscription business towards the end of the quarter, contributing to the revenue shortfall.
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Analyst Views on VRNS
Wall Street analysts forecast VRNS stock price to rise
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 21.740
Low
37.00
Averages
52.18
High
80.00
Current: 21.740
Low
37.00
Averages
52.18
High
80.00
About VRNS
Varonis Systems, Inc. is a data security company. The Company’s cloud-native data security platform discovers and classifies critical data, removes exposures, and detects advanced threats with artificial intelligence (AI)-powered automation. Varonis software enables enterprises of all sizes and industries to protect data stored in the cloud and on-premises, including sensitive files, emails and databases; confidential personal data belonging to customers, patients and employees; financial records; source code, strategic and product plans; and other intellectual property. Its SaaS product portfolio includes two product lines: its flagship Varonis Data Security Platform, which protects Microsoft 365, Windows file shares, Active Directory, Edge devices (VPN, DNS, proxy), UNIX/Linux and hybrid NAS storage, and DatAdvantage Cloud, which protects IaaS environments and SaaS applications, such as Salesforce, AWS, Azure, Google Cloud, Google Workspace, Databricks, ServiceNow, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Varonis CEO to Keynote at RSA Conference 2026
- Keynote Highlights: Varonis CEO and co-founder Yaki Faitelson will deliver a keynote at the 2026 RSA Conference, sharing three key ways AI is reshaping enterprise security, which is expected to draw significant industry attention and enhance the company's influence in the security sector.
- Framework Insights: The presentation will delve into techniques and frameworks for future-proofing AI and data security, helping organizations address evolving security threats, thereby increasing customer trust and reliance on Varonis solutions.
- Product Showcase: Varonis will showcase its new Atlas AI security platform at booth #5457 in the North Hall, aimed at helping organizations secure AI and data at scale, further solidifying its market leadership position.
- Real-Time Engagement: By offering free expo passes and real-time updates, Varonis encourages attendee engagement, enhancing brand visibility and attracting potential customers to drive future business growth.
See More
Varonis CEO to Keynote at RSA Conference 2026
- Keynote Presentation: Varonis Systems, Inc. CEO and co-founder Yaki Faitelson will deliver a keynote at the RSA Conference on March 25, 2026, discussing three major ways AI is reshaping enterprise security, which is expected to draw significant industry attention and enhance the company's influence in the security sector.
- New Product Showcase: During the expo, Varonis will showcase its new Atlas AI security platform at booth #5457 in the North Hall, aimed at helping organizations secure AI and data at scale, further solidifying its market position.
- Real-Time Updates and Engagement: Varonis encourages attendees to follow them on LinkedIn for real-time updates and live coverage from the RSA Conference, enhancing interaction with customers and industry experts while boosting brand visibility.
- Free Expo Pass Offer: Varonis is offering complimentary expo passes using invitation code 52E1320XP to attract more potential customers and partners, thereby expanding its market influence.
See More
Microsoft Stock Resilient Amid AI Concerns Leading to Downgrades for Dropbox and 8 Others
- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
Microsoft Stock Resilient Amid AI Concerns Leading to Downgrades for Dropbox and 8 Others
- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
Greenvale Capital Fully Liquidates Varonis Position
- Liquidation Trade: On February 17, 2026, Greenvale Capital disclosed to the SEC that it fully liquidated its position in Varonis Systems, amounting to approximately $99.14 million, indicating a pessimistic outlook on the company's future prospects.
- Holding Change: This transaction reduced Greenvale's Varonis holdings from 1.725 million shares to zero, previously constituting 7.8% of its assets under management, reflecting a significant decline in confidence regarding the company's performance.
- Performance Decline: Varonis's stock price fell 40% over the past year, closing at $25.36 on February 13, 2026, significantly underperforming the S&P 500's roughly 20% gain during the same period, indicating a lack of competitiveness in the market.
- Portfolio Repositioning: Greenvale's current top holdings include high-growth companies like Sunrun, Zeta Global, and Okta, suggesting a strategic shift towards investments with greater growth potential to counter Varonis's poor performance.
See More
Greenvale Capital Exits Entire Varonis Holdings
- Complete Liquidation: Greenvale Capital exited its entire position in Varonis Systems by selling 1,725,000 shares in Q4, resulting in a $99.14 million decline in position value, marking a significant shift as the stake dropped from 7.8% to 0% of fund AUM.
- Severe Market Reaction: Varonis's stock plummeted nearly 50% in a single day after management revealed that the transition to a subscription and SaaS model would take longer than expected, effectively erasing two years of stock gains and highlighting market sensitivity to growth expectations.
- Weak Revenue Growth: Despite reporting a 16% increase in annual recurring revenues and full-year revenue rising from $551 million to $623.5 million, Varonis's performance has not met investor expectations for robust growth, leading to a decline in investor confidence.
- Portfolio Restructuring: Greenvale Capital is shifting its focus towards other high-growth software and energy transition companies like Zeta Global and Okta, which have shown relatively stable market performance, indicating a reassessment of future growth potential within the fund's investment strategy.
See More
Varonis CEO to Keynote at RSA Conference 2026
- Keynote Highlights: Varonis CEO and co-founder Yaki Faitelson will deliver a keynote at the 2026 RSA Conference, sharing three key ways AI is reshaping enterprise security, which is expected to draw significant industry attention and enhance the company's influence in the security sector.
- Framework Insights: The presentation will delve into techniques and frameworks for future-proofing AI and data security, helping organizations address evolving security threats, thereby increasing customer trust and reliance on Varonis solutions.
- Product Showcase: Varonis will showcase its new Atlas AI security platform at booth #5457 in the North Hall, aimed at helping organizations secure AI and data at scale, further solidifying its market leadership position.
- Real-Time Engagement: By offering free expo passes and real-time updates, Varonis encourages attendee engagement, enhancing brand visibility and attracting potential customers to drive future business growth.
See More
Varonis CEO to Keynote at RSA Conference 2026
- Keynote Presentation: Varonis Systems, Inc. CEO and co-founder Yaki Faitelson will deliver a keynote at the RSA Conference on March 25, 2026, discussing three major ways AI is reshaping enterprise security, which is expected to draw significant industry attention and enhance the company's influence in the security sector.
- New Product Showcase: During the expo, Varonis will showcase its new Atlas AI security platform at booth #5457 in the North Hall, aimed at helping organizations secure AI and data at scale, further solidifying its market position.
- Real-Time Updates and Engagement: Varonis encourages attendees to follow them on LinkedIn for real-time updates and live coverage from the RSA Conference, enhancing interaction with customers and industry experts while boosting brand visibility.
- Free Expo Pass Offer: Varonis is offering complimentary expo passes using invitation code 52E1320XP to attract more potential customers and partners, thereby expanding its market influence.
See More
Microsoft Stock Resilient Amid AI Concerns Leading to Downgrades for Dropbox and 8 Others
- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
Microsoft Stock Resilient Amid AI Concerns Leading to Downgrades for Dropbox and 8 Others
- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
Greenvale Capital Fully Liquidates Varonis Position
- Liquidation Trade: On February 17, 2026, Greenvale Capital disclosed to the SEC that it fully liquidated its position in Varonis Systems, amounting to approximately $99.14 million, indicating a pessimistic outlook on the company's future prospects.
- Holding Change: This transaction reduced Greenvale's Varonis holdings from 1.725 million shares to zero, previously constituting 7.8% of its assets under management, reflecting a significant decline in confidence regarding the company's performance.
- Performance Decline: Varonis's stock price fell 40% over the past year, closing at $25.36 on February 13, 2026, significantly underperforming the S&P 500's roughly 20% gain during the same period, indicating a lack of competitiveness in the market.
- Portfolio Repositioning: Greenvale's current top holdings include high-growth companies like Sunrun, Zeta Global, and Okta, suggesting a strategic shift towards investments with greater growth potential to counter Varonis's poor performance.
See More
Greenvale Capital Exits Entire Varonis Holdings
- Complete Liquidation: Greenvale Capital exited its entire position in Varonis Systems by selling 1,725,000 shares in Q4, resulting in a $99.14 million decline in position value, marking a significant shift as the stake dropped from 7.8% to 0% of fund AUM.
- Severe Market Reaction: Varonis's stock plummeted nearly 50% in a single day after management revealed that the transition to a subscription and SaaS model would take longer than expected, effectively erasing two years of stock gains and highlighting market sensitivity to growth expectations.
- Weak Revenue Growth: Despite reporting a 16% increase in annual recurring revenues and full-year revenue rising from $551 million to $623.5 million, Varonis's performance has not met investor expectations for robust growth, leading to a decline in investor confidence.
- Portfolio Restructuring: Greenvale Capital is shifting its focus towards other high-growth software and energy transition companies like Zeta Global and Okta, which have shown relatively stable market performance, indicating a reassessment of future growth potential within the fund's investment strategy.
See More
