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Jun 30, 2025
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
Revenue by Segment
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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