Varonis(US:VRNS) Globenewswire·2025-10-28 20:05Core Insights - Varonis Systems, Inc. reported an 18% year-over-year increase in annual recurring revenues (ARR), reaching $718.6 million as of September 30, 2025 [6] - The company's SaaS ARR constituted approximately 76% of total ARR, reflecting strong demand for its SaaS platform [2][6] - The company generated $122.7 million in cash from operations year-to-date, compared to $90.9 million in the previous year [6] - Free cash flow for the year-to-date was $111.6 million, up from $88.6 million in the prior year [6] - Varonis announced a $150 million share repurchase authorization [6] Financial Performance - Total revenues for the third quarter were $161.6 million, compared to $148.1 million in the same quarter of 2024 [5] - SaaS revenues increased significantly to $125.8 million from $57.8 million year-over-year [5] - Term license subscription revenues decreased to $24.8 million from $68.8 million, primarily due to customer transitions to the SaaS platform [5] - Maintenance and services revenues also declined to $10.9 million from $21.5 million, again attributed to the shift to SaaS [5] - The GAAP operating loss was $35.9 million, compared to a loss of $23.6 million in the third quarter of 2024 [5] Business Developments - The company acquired SlashNext, enhancing its email security capabilities with AI-driven solutions [6] - Varonis launched new products, including Varonis Interceptor for email security and Next-Gen Database Activity Monitoring (DAM) for database security [6] - The company introduced AI identity protection for Salesforce Agentforce, improving visibility and control over data accessed by AI agents [6] Guidance and Outlook - Varonis has reduced its full-year ARR guidance due to lower-than-expected renewals in the Federal vertical and non-Federal on-prem subscription business [7] - The company anticipates a lower renewal rate for its on-prem subscription business in the fourth quarter [7]