Varonis Systems(NASDAQ) VRNS

Varonis helps companies keep their private files and emails safe. It watches who opens data to stop cyberattacks and leaks. The software protects information on office computers and cloud systems.

How Varonis Protects Information

• SaaS: Cloud-delivered software for data and artificial intelligence security; accounted for 93% of revenue in the first quarter of 2026.
• Term Licenses: On-premises software sold for fixed periods; provided 4% of revenue in early 2026.
• Maintenance: Support and updates for older licenses; made up 3% of revenue in the first quarter of 2026.
• Managed Data Response: Continuous monitoring service that uses automated tools to stop cyber threats.

Buying for Better Security

• Bought Cyral, Inc. in March 2025 to improve database security.
• Acquired SlashNext, Inc. in August 2025 to block phishing attacks.
• Purchased AllTrue.ai, Inc. in February 2026 to secure artificial intelligence systems.
• Transitioned business to a subscription model and will end self-hosted sales by late 2026.

What Makes the Software Different

Varonis uses automated tools to find and lock down sensitive data before breaches occur. It offers specialized visibility into how artificial intelligence systems and agents access company information.

Checking the Recent Scorecard

• Total revenue reached $173.1 million in Q1 2026, up 26.9% year-over-year.
• SaaS annual recurring revenue hit $683.2 million by March 31, 2026, up 69% from 2025.
• Operating loss deepened to $44.5 million in Q1 2026, worsening 1.6% from the previous year.
• Net loss worsened 3% to reach $36.9 million during the first quarter of 2026.
• Free cash flow fell to $50.1 million in Q1 2026, a 23.4% decrease year-over-year.

Bottom Line

Varonis has shifted from selling software licenses to a cloud-based subscription model. Its focus on artificial intelligence security allows it to address new risks in modern computing.