VRNS · Varonis Systems, Inc.

Varonis Systems reported strong first quarter 2026 results, with total revenues of $173.1 million, up 27% year-over-year, driven by a 69% surge in SaaS ARR to $683.2 million. Excluding conversions, SaaS ARR grew 29%, indicating robust organic demand. The company's transition to a SaaS model is evident as SaaS revenues rose to $161.1 million from $88.6 million, while term license and maintenance revenues declined as customers converted. GAAP operating loss widened slightly to ($44.5 million) from ($43.8 million), but non-GAAP operating loss improved to ($1.4 million) from ($6.5 million), reflecting operating leverage. Management highlighted strong execution, new logo acceleration, and expansion with existing customers. The launch of Varonis Atlas, powered by the AllTrue.ai acquisition, positions the company to capitalize on AI security tailwinds. The company raised full-year 2026 guidance: SaaS ARR growth of 27%-32% (excluding conversions 20%-21%), revenue of $731-$737 million, non-GAAP operating income of $7-$9 million, and free cash flow of $100-$105 million. Q2 2026 guidance implies revenue of $175-$178 million and non-GAAP net income per share of $0.00-$0.01. The company also repurchased 5.36 million shares for $132.1 million during the quarter, signaling confidence. Overall, the results and raised guidance underscore strong momentum in data and AI security, with improving profitability and cash generation.