📊 VRNS Key Takeaways
Is Varonis Systems Inc. (VRNS) a Good Investment?
Varonis demonstrates a viable software business model with exceptional 76% gross margins, positive free cash flow ($50.1M), and solid 13.2% revenue growth, but is unprofitable at the operating level (-25.7% margin) with negative ROE/ROA, requiring significant operational improvement or revenue acceleration to justify investment. The debt-free balance sheet and $179.3M cash provide runway, but the company must prove it can achieve profitability at current growth rates.
Varonis Systems Inc. Key Strengths (VRNS)
- Exceptional gross margin (76%) indicates strong pricing power and product-market fit
- Positive free cash flow ($50.1M) with 28.9% FCF margin despite net losses demonstrates cash generation capability
- Zero debt with $179.3M cash balance provides financial flexibility and runway without leverage risk
- Solid revenue growth (+13.2% YoY) and healthy liquidity ratios (1.69x current ratio)
VRNS Stock Risks: Varonis Systems Inc. Investment Risks
- Significant operating losses (-$44.5M) and negative operating margin (-25.7%) indicate inability to convert gross profit into operating profit
- Negative net income (-$36.9M) with negative ROE (-8.1%) and ROA (-2.3%) show current destruction of shareholder value
- Large gap between gross profit ($131.6M) and operating income (-$44.5M) suggests unsustainably high R&D, sales, and marketing expenses
- Path to profitability unclear: would require ~50% revenue growth or ~34% OpEx reduction to reach operating breakeven at current run rate
Key Metrics to Watch
- Operating margin trend - must show improvement toward positive territory
- Revenue growth sustainability - critical whether 13.2% can continue and accelerate
- Operating cash flow to net income reconciliation - watch for sustainability and stock-based compensation levels
Varonis Systems Inc. (VRNS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 28.9% 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 |
|---|---|---|---|
| Q1 2026 | $136.4M | -$35.8M | $-0.32 |
| 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 |
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 |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779490937.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777676561.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777676480.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777676314.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777676136.xml | View → |
❓ Frequently Asked Questions about VRNS
What is the AI rating for VRNS?
Varonis Systems Inc. (VRNS) has an AI grade of B with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VRNS's key strengths?
Claude: Exceptional gross margin (76%) indicates strong pricing power and product-market fit. Positive free cash flow ($50.1M) with 28.9% FCF margin despite net losses demonstrates cash generation capability.
What are the risks of investing in VRNS?
Claude: Significant operating losses (-$44.5M) and negative operating margin (-25.7%) indicate inability to convert gross profit into operating profit. Negative net income (-$36.9M) with negative ROE (-8.1%) and ROA (-2.3%) show current destruction of shareholder value.
What is VRNS's revenue and growth?
Varonis Systems Inc. reported revenue of $173.1M.
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 $-0.32.
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 grade reflects both perspectives for balanced insights.
What is VRNS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Varonis Systems Inc. has a B grade with 62% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VRNS stock overvalued or undervalued?
Valuation metrics for VRNS: ROE of -8.1% (sector avg: 22%), net margin of -21.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is VRNS's AI grade for 2026?
Our dual AI analysis gives Varonis Systems Inc. a combined B grade 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 $55.0M, with capital expenditures of $5.0M. FCF margin is 28.9%.
How does VRNS compare to other Technology stocks?
Vs Technology sector averages: Net margin -21.3% (avg: 18%), ROE -8.1% (avg: 22%), current ratio 1.69 (avg: 2.5).