VRNS VARONIS SYSTEMS INC

Overview and Growth

In fiscal 2025, VARONIS SYSTEMS INC recorded $623.53M of revenue, net loss of $129.32M, and an operating cash inflow of $147.43M. Revenue of $623.53M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $550.95M in fiscal 2024, revenue recorded a 13.2% year-over-year increase. On a per-share basis, diluted EPS was -$1.13, which connects the reported earnings outcome with the company’s diluted share count. Total assets stood at $1.79B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 0.35x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $491.56M as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 78.8% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced a $146.51M operating loss before non-operating and tax effects. An operating margin of -23.5% reflected costs exceeding revenue-level gross profit by 23.5% of sales. After all below-operating-line items, the company recorded a net loss of $129.32M for the fiscal year. Measured against revenue, the bottom-line deficit represented 20.7% after all recognized items. The pretax result was a loss of $116.32M, establishing the deficit before tax effects. Pretax margin was -18.7%, reflecting a pre-tax loss equal to 18.7% of revenue. The company recognized $13.00M of income tax for the period, completing the transition from pretax income to net income. The net loss equaled 21.6% of period-end equity, showing the deficit relative to book capital. The loss-to-assets relationship was 7.2%, placing the bottom-line deficit against the company’s resource base. The bottom-line deficit increased from $95.77M in fiscal 2024 to $129.32M.

Liquidity and Capital Structure

The company held $1.79B of assets against $1.19B of liabilities and $598.66M of equity, revealing how the asset base was financed. The near-term balance sheet paired $1.30B of current assets with $658.96M of current liabilities at the reporting date. At 1.97x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $202.48M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 30.7%, excluding receivables and other current assets. The equity-to-assets relationship was 33.4%, placing book capital against the total resource base. Liabilities represented 66.6% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 11.3%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 7.7% higher than fiscal 2024 assets of $1.66B, measuring the company’s own balance-sheet change. Reported equity changed 31.4% from $455.66M in fiscal 2024, placing the current capital base higher year over year. Compared with $185.59M in fiscal 2024, the current cash balance moved 9.1% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $147.43M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The cash-flow statement records $12.63M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 8.6%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $134.80M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 21.6%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 7.5%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.