Varonis Systems (VRNS) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 17% YoY to $189.5M as SaaS revenue grew 47%; operating loss widened to $47.7M and net loss to $41.6M.

• SaaS ARR reached $774.6M, up 42% YoY; self-hosted products are scheduled to reach end of life Dec. 31, 2026, and a $49.75-per-share cash acquisition is pending.

Financial highlights

• Q3 revenue was $189.5M vs. $161.6M YoY; SaaS revenue was $185.1M vs. $125.8M.

• Q3 GAAP operating loss widened to $47.7M from $35.9M; non-GAAP operating income was $7.6M vs. $0.2M.

• Q3 GAAP net loss was $41.6M, or $0.36 per diluted share, vs. $29.9M, or $0.26; non-GAAP net income was $11.8M, or $0.09 per diluted share.

• 9M revenue rose to $542.6M from $450.2M; net loss widened to $125.3M from $101.5M.

• Q3 gross profit was $142.6M vs. $126.4M; operating expenses rose to $190.3M from $162.4M.

Outlook and guidance

• No forward guidance or updates to prior guidance; no Q3 earnings call or webcast, in light of the pending Proofpoint acquisition.

• SaaS revenue is expected to continue growing considerably, while term-license and maintenance/services revenue are expected to decline.

• SaaS ARR and SaaS ARR excluding conversions are expected to increase in absolute dollars; RPO is also expected to increase.

• The self-hosted end-of-life transition may increase variability in remaining customers and conversion timing; available funds and operating cash flow are expected to cover operations and capital expenditures for at least 12 months.