Varonis Systems reported adjusted earnings of $0.08 per share for the quarter ended December 31, 2025, topping the consensus estimate of $0.03 and marking a notable improvement from $0.18 in the year-ago period. This performance was driven by disciplined expense management, with non-GAAP operating expenses growing at a slower 14% year-over-year compared with revenue expansion, resulting in a 22% non-GAAP operating margin.

Total revenue reached $111 million, up 20% year-over-year, led by subscription and support services which accounted for 87% of top-line sales. Annualized recurring revenue (ARR) climbed to $425 million, a 24% increase, reflecting strong customer adoption of cloud-based data security and analytics offerings. New SaaS deployments grew 45% year-over-year, while on-premises renewals remained resilient, contributing to a net dollar retention rate of 112%.

Cloud workload security revenue surged 60% year-over-year as customers expanded usage across AWS, Azure and Google Cloud environments. Varonis also announced the integration of its data classification engine with leading AI toolkits, enabling automated sensitive data detection and policy enforcement. The company cited a 35% increase in large enterprise deals—each exceeding $500,000 in annual contract value—highlighting growing demand for AI-powered threat detection and compliance reporting.