VARONIS SYSTEMS INC

For the period ended Jun 30, 2025. Filed Jul 30, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Jul 30, 2025

VRNS$48.80+0.1%Stored close · as of Nov 6, 2026

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Contents

Unaudited

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2025	2024	2025	2024
Revenues:
SaaS	$105,895	$44,785	$194,455	$78,770
Term license subscriptions	32,374	62,729	63,862	118,709
Maintenance and services	13,894	22,832	30,269	46,889
Total revenues	152,163	130,346	288,586	244,368
Cost of revenues	31,249	22,436	60,267	43,785
Gross profit	120,914	107,910	228,319	200,583
Operating expenses:
Research and development	56,247	44,933	110,457	92,760
Sales and marketing	76,578	70,041	149,341	141,268
General and administrative	24,641	21,762	48,839	43,014
Total operating expenses	157,466	136,736	308,637	277,042
Operating loss	(36,552)	(28,826)	(80,318)	(76,459)
Financial income, net	4,967	8,249	16,918	16,794
Loss before income taxes	(31,585)	(20,577)	(63,400)	(59,665)
Income taxes	(4,239)	(3,371)	(8,207)	(4,773)
Net loss	$(35,824)	$(23,948)	$(71,607)	$(64,438)
Net loss per share of common stock, basic and diluted	$(0.32)	$(0.21)	$(0.64)	$(0.58)
Weighted average number of shares used in computing net loss per share of common stock, basic and diluted	112,054,715	111,885,305	112,347,961	110,934,149

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2025	2024	2025	2024
Net loss	$(35,824)	$(23,948)	$(71,607)	$(64,438)
Other comprehensive income (loss):
Unrealized income (loss) on marketable securities, net of tax	46	(548)	2,477	(2,800)
Loss on marketable securities reclassified into earnings, net of tax	(123)	(11)	(161)	(12)
	(77)	(559)	2,316	(2,812)
Unrealized income on derivative instruments, net of tax	17,073	2,184	11,504	7,224
Loss on derivative instruments reclassified into earnings, net of tax	(1,337)	(3,145)	(1,999)	(6,388)
	15,736	(961)	9,505	836
Total other comprehensive income (loss)	15,659	(1,520)	11,821	(1,976)
Comprehensive loss	$(20,165)	$(25,468)	$(59,786)	$(66,414)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, except share data)

Common stock · Additionalpaid-in capital · Accumulatedothercomprehensive income (loss) · Accumulated deficit · Totalstockholders’ equity
Number · Amount
Balance as of December 31, 2023	109,103,721	$109	$1,142,578	$(8,649)	$(644,390)	$489,648
Stock-based compensation expense	—	—	32,093	—	—	32,093
Common stock issued under employee stock plans	2,485,389	3	6,411	—	—	6,414
Taxes related to net share settlement of equity awards	—	—	(34,860)	—	—	(34,860)
Unrealized income on derivative instruments, net of tax	—	—	—	1,797	—	1,797
Unrealized loss on available for sale securities, net of tax	—	—	—	(2,253)	—	(2,253)
Net loss	—	—	—	—	(40,490)	(40,490)
Balance as of March 31, 2024	111,589,110	$112	$1,146,222	$(9,105)	$(684,880)	$452,349
Stock-based compensation expense	—	—	30,089	—	—	30,089
Common stock issued under employee stock plans	590,312	—	3,378	—	—	3,378
Taxes related to net share settlement of equity awards	—	—	(1,748)	—	—	(1,748)
Unrealized loss on derivative instruments, net of tax	—	—	—	(961)	—	(961)
Unrealized loss on available for sale securities, net of tax	—	—	—	(559)	—	(559)
Common stock issued for debt conversion	195	—	6	—	—	6
Net loss	—	—	—	—	(23,948)	(23,948)
Balance as of June 30, 2024	112,179,617	$112	$1,177,947	$(10,625)	$(708,828)	$458,606

Common stock · Additionalpaid-in capital · Accumulatedothercomprehensive income (loss) · Accumulated deficit · Totalstockholders’ equity
Number · Amount
Balance as of December 31, 2024	112,550,156	$113	$1,193,022	$2,676	$(740,155)	$455,656
Stock-based compensation expense	—	—	32,255	—	—	32,255
Common stock issued under employee stock plans	1,808,876	2	7,161	—	—	7,163
Taxes related to net share settlement of equity awards	—	—	(26,447)	—	—	(26,447)
Repurchase of common stock	(1,476,456)	(2)	(61,262)	—	—	(61,264)
Unrealized loss on derivative instruments, net of tax	—	—	—	(6,231)	—	(6,231)
Unrealized income on available for sale securities, net of tax	—	—	—	2,393	—	2,393
Common stock issued for debt conversion	32	—	1	—	—	1
Net loss	—	—	—	—	(35,783)	(35,783)
Balance as of March 31, 2025	112,882,608	$113	$1,144,730	$(1,162)	$(775,938)	$367,743
Stock-based compensation expense	—	—	33,859	—	—	33,859

Common stock issued under employee stock plans	163,501	—	—	—	—	—
Taxes related to net share settlement of equity awards	—	—	(1,352)	—	—	(1,352)
Repurchase of common stock	(1,003,885)	(1)	(38,735)	—	—	(38,736)
Unrealized income on derivative instruments, net of tax	—	—	—	15,736	—	15,736
Unrealized loss on available for sale securities, net of tax	—	—	—	(77)	—	(77)
Common stock issued for debt conversion	4,885	—	150	—	—	150
Net loss	—	—	—	—	(35,824)	(35,824)
Balance as of June 30, 2025	112,047,109	$112	$1,138,652	$14,497	$(811,762)	$341,499

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Six Months EndedJune 30,
	2025	2024
Cash flows from operating activities:
Net loss	$(71,607)	$(64,438)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,988	5,767
Stock-based compensation	66,114	62,182
Amortization of deferred commissions	25,141	23,619
Non-cash operating lease costs	4,952	4,722
Amortization of debt issuance costs	1,774	768
Amortization of premium and accretion of discount on marketable securities, net	414	(7,611)
Changes in assets and liabilities:
Trade receivables	39,004	46,704
Prepaid expenses and other short-term assets	1,427	(3,399)
Deferred commissions	(35,592)	(24,418)
Other long-term assets	(1,120)	(58)
Trade payables	2,802	1,860
Accrued expenses and other short-term liabilities	15,953	(4,374)
Deferred revenues	34,070	26,995
Other long-term liabilities	1,029	128
Net cash provided by operating activities	89,349	68,447
Cash flows from investing activities:
Proceeds from maturities of marketable securities	126,000	45,101
Investment in marketable securities	(57,654)	(166,099)
Proceeds from short-term and long-term deposits	99,750	14,338
Investment in short-term and long-term deposits	(96,388)	(9,192)
Acquisition, net of cash acquired	(18,584)	—
Purchases of property and equipment	(5,716)	(1,116)
Capitalized internal-use software	(975)	—
Other investing activities	(1,500)	—
Net cash provided by (used in) investing activities	44,933	(116,968)
Cash flows from financing activities:
Proceeds from employee stock plans	7,163	9,792
Taxes paid related to net share settlement of equity awards	(27,799)	(36,608)
Repurchase of common stock	(100,000)	—
Net cash used in financing activities	(120,636)	(26,816)
Increase (decrease) in cash and cash equivalents	13,646	(75,337)
Cash and cash equivalents at beginning of period	185,585	230,740
Cash and cash equivalents at end of period	$199,231	$155,403
Supplemental disclosure of cash flow information:

Supplemental disclosure of non-cash activities:
Cash paid for income taxes	$5,266	$5,739
Cash paid for interest	$3,945	$1,602
Liability related to acquisition holdback	$3,502	$—
Lease liabilities arising from obtaining right-of-use assets	$702	$285
Common stock issued for debt conversion	$151	$6

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.