Varonis Systems, Inc. (VRNS) Stock

Varonis Systems, Inc. (VRNS) is a Technology stock trading at $40.82 (as of 2026-08-20), with a market capitalization of $4.69B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Varonis Systems, Inc. provides software for enterprises to manage, analyze, monitor, and secure enterprise data. Its offerings include platforms that capture and analyze data access activity, profile user/device behavior to detect anomalies and send alerts, and classify and tag data, supporting protection of on-premises and cloud information.

Understand Varonis Systems, Inc.: how it makes money

Varonis sells software that helps enterprises manage, analyze, alert on, and secure enterprise data, and it makes money mainly through SaaS and other subscription offerings (plus term license subscriptions and maintenance and services).

Because the company monetizes enterprise data security software through recurring SaaS and subscription revenue (with high gross margin), the key driver of profitability is whether SaaS and ARR growth can translate into operating expense leverage, since operating margin is currently negative.

Revenue by segment (latest quarter)
SaaS$0.1B
Term Lic-Sub$0.1B
Maint-Serv$0.0B

Business quality (Weak): Strong indication of software economics from high gross margin, but profitability is constrained by operating losses, so investors should focus on SaaS ARR momentum and cost discipline.

Bull case

  • High gross margin (76.0%) suggests favorable software unit economics: If revenue growth continues, gross profit can support investment and long-term profitability.
  • Recurring revenue indicators are prominent, with SaaS annual recurring revenues shown as 0.64 USD_B, and starting versus ending SaaS ARR of 0.55 USD_B to 0.64 USD_B: This supports the idea that the business is driven by renewal and ongoing subscription activity rather than only one-time deals.

Bear case

  • Operating margin is negative (operating margin -25.7%): Even with strong gross margin, operating costs are currently not translating into profitability, so expense growth or slower revenue growth could keep losses elevated.
  • Revenue mix includes multiple monetization streams, including term license subscription revenue (0.07 USD_B) and maintenance and services revenue (0.03 USD_B): If non-SaaS streams soften while costs remain, the company may struggle to maintain operating leverage.
Valuation — source: SEC EDGAR (first-party)
Price$40.82
Market Cap$4.69B
Price / Book10.54
Price / Sales6.81
FCF Yield6.1%
DCF Value (model)$28.35
DCF Upside vs Price-30.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$623.53M
Net Margin-20.7%
Revenue Growth (YoY)13.2%
EPS Growth (YoY)31.4%
FCF Growth (YoY)24.2%
Financial Health — source: SEC EDGAR
Altman Z-Score2.24 (grey)
Valuation vs Sector & Industry
Sector P/E (Technology)33.9
Industry P/E (Business Services)30.0
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($440.12M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryBusiness Services
CEOYakov Faitelson
Employees2,406
CountryUS
IPO Date2014-02-28

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VRNS earnings history · VRNS institutional & insider holders · VRNS KPIs & operating metrics · VRNS financials · VRNS investor presentations & press releases · VRNS SEC filings · VRNS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.