Varonis Q4 EPS Surges 166.7%, SaaS Revenue Jumps 97.1%
Varonis Systems reported Q4 2025 EPS of $0.08, beating by 166.7%, with revenues up to $173.37M, a 9.4% year-over-year increase driven by a 97.1% jump in SaaS sales to $142.3M. Gross margin dipped 470 basis points to 78.9% and Q1 2026 guidance forecasts a non-GAAP loss of $0.05–0.06 per share.
1. Q4 2025 Financial Highlights
In Q4 2025 Varonis reported non-GAAP EPS of $0.08, a 166.7% beat, on revenues of $173.37 million, up 9.4% year over year. Annual recurring revenue rose 16.1% to $745.4 million, underscoring strong subscription momentum.
2. SaaS Growth and Segment Shifts
SaaS subscriptions drove revenue to $142.3 million, a 97.1% increase, representing 82.1% of total sales, while term license and maintenance declined 68.6% and 48.3% respectively as customers transition to the cloud platform.
3. Margin Compression and Profitability
The company’s gross margin contracted by 470 basis points to 78.9% as SaaS mix increased, and non-GAAP operating income fell to $4.6 million, yielding a 2.7% operating margin versus 9.7% a year earlier.
4. 2026 Guidance Outlook
For Q1 2026 Varonis projects revenues of $164–166 million (20–22% growth) with a non-GAAP operating loss of $10–11 million and net loss per share of $0.05–0.06; full-year 2026 revenue guidance is $722–730 million with breakeven to $4 million operating income.