VRNS earnings analysis
What we found in VRNS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Varonis Systems reported Q1 2026 results with revenues of $173.126 million, beating Wall Street estimates of $165.522 million. The company posted a GAAP EPS of $0.06, surpassing the forecasted loss of $0.11, reflecting improved operational efficiency and cash generation.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Expectations
- Q1 revenue of $173.126M surpassed estimates of $165.522M, representing a 10.7% increase from Q4 2025's $173M.
- Positive EPS Surprise
- Reported EPS of $0.06 beat the anticipated loss of $0.11, marking a significant turnaround from a prior loss of $(0.32) per share.
- SaaS Revenue Growth
- SaaS revenue reached $161.065M, contributing to a total ARR of $683.2M, indicating robust demand in a key segment.
- Operating Cash Flow Improvement
- Varonis generated $55M in operating cash flow, reflecting effective financial management during the quarter.
- Increased Free Cash Flow
- Free cash flow recorded at $49.023M, up from $30M in Q4 2025, highlighting enhanced cash generation capabilities.
- Raised SaaS ARR Growth Targets
- Management increased full-year ARR growth guidance to a range of 27%-32%, a positive outlook for sustaining revenue growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Ongoing GAAP Losses
- Despite improvements, Varonis reported an operating loss of $(44.481)M, which remains a significant area of concern.
- Acquisition-Related Costs
- Increased acquisition-related charges are anticipated as Varonis continues to integrate new businesses into its operations.
- Market Risks from Economic Uncertainty
- The potential for prolonged economic downturns could lead to reduced IT spending by customers, impacting revenue.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.06
- Segment
- SaaS
- Segment
- MDDR
What they said about what is next.
Management anticipates Q2 revenue between $175M-$178M and reaffirmed full-year revenue guidance.
The filing reads better than the one before it.
What came before.
- 10-Q · October 29, 2025
- Varonis Systems reported Q3 2025 revenues of $161.577 million, a decline from $148.068 million in Q3 2024, yet a growth from $152 million in the previous quarter. The gross margin decreased slightly to 78.3% while the…
- 10-Q · July 30, 2025
- Varonis reported Q2 revenue of $152.163M, up from $130.346M in Q2 2024, driven by strong SaaS growth, but GAAP results show a wider net loss of $35.824M (EPS -$0.32) and an operating loss of $36.552M. The balance sheet…
- 10-K · February 6, 2025
- Varonis reported full-year 2024 revenue of $550.95 million, up 10.4% year-over-year, driven by a 370% increase in SaaS revenue to $208.78 million and ARR growth to $641.9 million. The company is mid-transition to a SaaS…
- 10-Q · July 30, 2024
- Varonis reported strong results in Q2 2024, exceeding revenue and EPS expectations, driven by growth in SaaS and term license subscriptions. Despite an overall net loss, operational metrics showed improvement compared…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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