Varonis Systems Reports 17% Revenue Growth to $152.2 Million in Q2 2025

Varonis Systems, Inc. reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $152.2 million for the three months ended June 30, 2025, a 17% increase from $130.3 million in the same period last year. For the first half of 2025, total revenues reached $288.6 million, up 18% from $244.4 million in the first half of 2024. The company's SaaS revenue was a significant contributor, soaring 137% year-over-year to $105.9 million for the second quarter and 146.9% to $194.5 million for the first half, reflecting the ongoing transition to a SaaS delivery model.

Despite the revenue growth, Varonis reported a net loss of $35.8 million for the second quarter, compared to a loss of $23.9 million in the same quarter of 2024. The net loss for the first half of 2025 was $71.6 million, up from $64.4 million in the prior year. The increase in losses was attributed to higher operating expenses, which rose to $157.5 million for the second quarter and $308.6 million for the first half, driven by increased investments in research and development, sales and marketing, and general administrative costs.

In terms of operational metrics, Varonis reported an Annual Recurring Revenue (ARR) of $693.2 million as of June 30, 2025, a 19% increase from $584.2 million a year earlier. The company also noted a strong renewal rate of over 90% for both periods. The transition to a SaaS model is expected to continue impacting revenue recognition, with variations anticipated as existing customers convert to SaaS offerings.

Strategically, Varonis completed the acquisition of Cyral, Inc. in March 2025 for $25.5 million, enhancing its database security capabilities. The company also initiated a share repurchase program, completing the buyback of $100 million worth of its common stock by the end of June 2025. As of the reporting date, Varonis held $199.2 million in cash and cash equivalents, alongside $571.6 million in marketable securities, indicating a solid liquidity position to support ongoing operations and growth initiatives.

Looking ahead, Varonis anticipates continued growth in SaaS revenues and overall revenues, despite the challenges posed by the transition to a SaaS delivery model. The company remains focused on expanding its market presence both domestically and internationally, while managing the associated risks and costs of this growth strategy.