📊 VRNS Key Takeaways
Is Varonis Systems Inc. (VRNS) a Good Investment?
Varonis demonstrates strong revenue growth and exceptional free cash flow generation, supported by excellent 78.8% gross margins typical of SaaS. However, the company is deeply unprofitable with a -23.5% operating margin and -129.3M net loss, and profitability is deteriorating year-over-year (EPS down 31.4%). Without clear visibility to profitability despite revenue growth, fundamental value remains at risk.
Why Buy Varonis Systems Inc. Stock? VRNS Key Strengths
- Strong FCF generation of $134.8M (21.6% FCF margin) despite net losses, indicating underlying operational efficiency
- Healthy balance sheet with $202.5M cash, zero debt (0.00x D/E), and 1.97x current ratio providing financial flexibility
- Solid revenue growth of 13.2% YoY with excellent 78.8% gross margin demonstrating SaaS business model viability
VRNS Stock Risks: Varonis Systems Inc. Investment Risks
- Severe and worsening unprofitability: -$146.5M operating loss, -$129.3M net loss, with EPS deteriorating 31.4% YoY
- Operating margin of -23.5% and negative ROE (-21.6%), ROA (-7.2%) indicate business is destroying shareholder value at scale
- Gap between negative operating income and positive FCF suggests unsustainable profitability structure reliant on non-cash charges or working capital benefits rather than operational efficiency
Key Metrics to Watch
- Operating margin trend and path to profitability—critical to monitor if company can achieve positive operating income as revenue scales
- Free cash flow sustainability—watch whether FCF deteriorates if operating losses continue to increase
- Gross margin stability—ensure SaaS efficiency isn't eroding while company pursues growth-at-all-costs strategy
Varonis Systems Inc. (VRNS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
VRNS Profit Margin, ROE & Profitability Analysis
VRNS vs Technology Sector: How Varonis Systems Inc. Compares
How Varonis Systems Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Varonis Systems Inc. Stock Overvalued? VRNS Valuation Analysis 2026
Based on fundamental analysis, Varonis Systems Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Varonis Systems Inc. Balance Sheet: VRNS Debt, Cash & Liquidity
VRNS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Varonis Systems Inc.'s revenue has grown significantly by 60% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.92 indicates the company is currently unprofitable.
VRNS Revenue Growth, EPS Growth & YoY Performance
VRNS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $148.1M | -$18.3M | $-0.16 |
| Q2 2025 | $130.3M | -$23.9M | $-0.21 |
| Q1 2025 | $114.0M | -$35.8M | $-0.32 |
| Q3 2024 | $122.3M | -$18.3M | $-0.16 |
| Q2 2024 | $115.4M | -$23.9M | $-0.21 |
| Q1 2024 | $107.3M | -$38.3M | $-0.35 |
| Q3 2023 | $122.3M | -$23.0M | $-0.21 |
| Q2 2023 | $111.4M | -$36.3M | $-0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Varonis Systems Inc. Dividends, Buybacks & Capital Allocation
VRNS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Varonis Systems Inc. (CIK: 0001361113)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 17, 2026 | DEF 14A | ny20065926x1_def14a.htm | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772583104.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772583077.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772583044.xml | View → |
| Feb 10, 2026 | 4 | xslF345X05/wk-form4_1770770148.xml | View → |
❓ Frequently Asked Questions about VRNS
What is the AI rating for VRNS?
Varonis Systems Inc. (VRNS) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VRNS's key strengths?
Claude: Strong FCF generation of $134.8M (21.6% FCF margin) despite net losses, indicating underlying operational efficiency. Healthy balance sheet with $202.5M cash, zero debt (0.00x D/E), and 1.97x current ratio providing financial flexibility.
What are the risks of investing in VRNS?
Claude: Severe and worsening unprofitability: -$146.5M operating loss, -$129.3M net loss, with EPS deteriorating 31.4% YoY. Operating margin of -23.5% and negative ROE (-21.6%), ROA (-7.2%) indicate business is destroying shareholder value at scale.
What is VRNS's revenue and growth?
Varonis Systems Inc. reported revenue of $623.5M.
Does VRNS pay dividends?
Varonis Systems Inc. does not currently pay dividends.
Where can I find VRNS SEC filings?
Official SEC filings for Varonis Systems Inc. (CIK: 0001361113) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VRNS's EPS?
Varonis Systems Inc. has a diluted EPS of $-1.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is VRNS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Varonis Systems Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VRNS stock overvalued or undervalued?
Valuation metrics for VRNS: ROE of -21.6% (sector avg: 22%), net margin of -20.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy VRNS stock in 2026?
Our dual AI analysis gives Varonis Systems Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VRNS's free cash flow?
Varonis Systems Inc.'s operating cash flow is $147.4M, with capital expenditures of $12.6M. FCF margin is 21.6%.
How does VRNS compare to other Technology stocks?
Vs Technology sector averages: Net margin -20.7% (avg: 18%), ROE -21.6% (avg: 22%), current ratio 1.97 (avg: 2.5).