Short answer
VARONIS SYSTEMS INC (VRNS) filed its fiscal 2025 10-K annual report with the SEC on Feb 4, 2026. It reported revenue of $624M (+13.2% year over year) and net income of −$129M.
- Top risk flagged: Regulatory risk from U.S. tax reform: Impact of the One Big Beautiful Bill Act (OBBBA) enacted July 4, 2025, affecting R&D expensing and foreign profit taxation
FY2025 key financial metrics · XBRL
- Revenue
- $624M
- +13.2% YoY
- Net income
- −$129M
- −35.0% YoY
- Operating margin
- -23.5%
- −2.1 pp YoY
- Gross margin
- 78.8%
- −4.1 pp YoY
- EPS (diluted)
- −$1.13
- −31.4% YoY
- ROE
- -21.6%
- −0.6 pp YoY
- Operating cash flow
- $147M
- +28.0% YoY
Source: XBRL data from the VARONIS SYSTEMS INC (VRNS) FY2025 10-K on SEC EDGAR. USD.
VARONIS SYSTEMS INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Automated data security platform protecting enterprise data across cloud, SaaS, and on-premises environments
- New emphasis on SaaS delivery model with end-of-life for self-hosted products by Dec 31, 2026, accelerating cloud deployment and automation
- Introduction of Athena AI generative AI layer for enhanced security operations assistance and two acquisitions: Cyral (database monitoring), SlashNext (AI-based email security)
- Renewal rate over 90% in 2025, supporting strong customer retention amid strategic SaaS transition
- Unique focus on AI-driven data access risk (blast radius) and automated least privilege enforcement addressing novel AI adoption challenges
Management Discussion & Analysis
- Net cash from operating activities increased to $147.4M in 2025 from $115.2M in 2024
- Investing cash use sharply reduced to $0.8M in 2025 vs $532.3M in 2024, driven by acquisition and capital expenditure during 2025
- Financing cash used $129.7M in 2025 mainly due to $115.0M stock repurchases, compared to $371.9M provided in 2024 from convertible notes issuance
- Share repurchase programs authorized $250M total in 2025, with $135M capacity remaining at year-end
- Management expects existing $921M liquidity plus cash flow sufficient for 12+ months operations; cautious on capital needs tied to growth and acquisitions
Risk Factors
- Regulatory risk from U.S. tax reform: Impact of the One Big Beautiful Bill Act (OBBBA) enacted July 4, 2025, affecting R&D expensing and foreign profit taxation
- Geopolitical exposure: 71% of revenues from U.S., 21% from EMEA, 8% from Rest of World, with international expansion risks including economic and political conditions
- Operational risk: Increased third-party hosting costs by $19.7M in 2025 due to SaaS delivery transition and increased customer success headcount for SaaS and MDDR support
- Competitive risk: Growing demand driven by generative AI tools integration and automated SaaS security, competing with AI-native email security firms like SlashNext (acquired 2025)
- Financial risk: Operating losses widened to $146.5M in 2025 with growing R&D expenses (+20.9%) and increased sales and marketing spend as SaaS revenues grow rapidly
Generated from the filing text; verify against the original. How to read a 10-K
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