Varonis Systems misses Q3 revenue estimates , sets $150 million share buyback

Varonis Systems

28/10/2025 20:18

Overview

Varonis Q3 revenue misses analyst expectations

Company announces $150 mln share repurchase authorization

SaaS revenues grow significantly, driving shift from term license subscriptions

Outlook

Varonis expects Q4 revenue of $165.0 mln to $171.0 mln, up 4% to 8% YoY

Company reduces full-year ARR guidance due to on-prem subscription underperformance

Varonis forecasts 2025 full-year ARR of $730.0 mln to $738.0 mln, up 14% to 15%

Result Drivers

SAAS DEMAND - Strong demand for SaaS platform, now 76% of total ARR, driven by automated outcomes and AI initiatives

DECLINE IN TERM LICENSES - Significant decline in term license and maintenance revenues as customers convert to SaaS

LOWER RENEWALS - Lower renewals in Federal and non-Federal on-prem subscription business affected results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$161.57 mln
$166.14 mln (19 Analysts)
Q3 Net Income
-$29.94 mln
Q3 Gross Profit
$126.42 mln
Q3 Operating Income
-$35.93 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Varonis Systems Inc is $65.00, about 3.6% above its October 27 closing price of $62.68

The stock recently traded at 199 times the next 12-month earnings vs. a P/E of 191 three months ago

Press Release: ID:nGNXbm4xLR

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)