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Jun 30
Varonis Q2 2025 Earnings Report
Varonis reported strong SaaS momentum in Q2 2025, with significant ARR growth and a continued transition away from on-premise licensing.
Key Takeaways
Varonis delivered $152.2 million in revenue and continued its transition to SaaS, with 69% of total ARR now from SaaS products and ARR growing 19% YoY. The company reported a GAAP net loss of $35.8 million and non-GAAP EPS of $0.03.
Total revenue rose to $152.2 million, up from $130.3 million YoY
ARR reached $693.2 million, growing 19% YoY
SaaS represented 69% of total ARR, expected to grow to 82% by year-end
Free cash flow was $82.7 million for the YTD period
Varonis
Varonis
Varonis Revenue by Segment
Revenue by Segment
SaaS Revenue
CapyFin.comTerm License Subscriptions Revenue
CapyFin.comMaintenance and Services Revenue
CapyFin.com Forward Guidance
Varonis raised its full-year ARR and SaaS mix expectations, projecting continued double-digit revenue growth and healthy cash flow generation as SaaS adoption expands.
Positive Outlook
- Q3 2025 revenue projected at $163–168 million
- Full-year ARR guidance raised to $748–754 million
- SaaS mix expected to reach 82% by year-end
- Free cash flow guidance increased to $120–125 million
- Strong strategic partnerships, including with Microsoft
Challenges Ahead
- GAAP operating and net losses continue
- Non-SaaS revenue segments declining steeply
- R&D and sales costs remain elevated
- Macroeconomic uncertainty could impact customer budgets
- No specific geographic breakdown of performance provided
Revenue & Expenses
Visualization of income flow from segment revenue to net income