Varonis SaaS Revenue Hits $185.1 Million As Cloud Shift Deepens, Net Loss Widens To $41.6 Million
The company also skipped guidance and its earnings call because of the pending Proofpoint acquisition.
Varonis, the data security software company, said its third-quarter revenue rose to $189.5 million from $161.6 million a year earlier, as customers moved onto its cloud platform, while its net loss widened to $41.6 million. The company, which has agreed to be bought by Proofpoint, said in an 8-K filed Tuesday that it will give no guidance and hold no earnings call.
Cloud up, licenses nearly gone
SaaS revenue, from cloud subscriptions, was $185.1 million, against $125.8 million in the third quarter of 2025. Term license subscription revenue fell to $1.2 million from $24.8 million, and maintenance and services revenue to $3.1 million from $10.9 million. The company said the vast majority of both declines came from customers converting to its SaaS platform.
SaaS annual recurring revenue, the annualized value of active cloud contracts, was $774.6 million, up 42% from a year earlier and up 24% excluding conversions.
Wider loss, thin adjusted profit
The operating loss was $47.7 million on a standard-accounting basis, against $35.9 million a year earlier. The net loss was $41.6 million, or $0.36 a share, compared with $29.9 million, or $0.26 a share.
On an adjusted basis, which excludes stock pay, payroll tax on stock pay and acquisition-related items, operating income rose to $7.6 million from $0.2 million.
For the first nine months, operating cash flow was $108.3 million, down from $122.7 million, and free cash flow was $94.8 million, down from $111.6 million. Varonis held $937.8 million in cash, deposits and marketable securities at September 30.
Proofpoint deal replaces the usual call
Varonis sells software that protects data in the cloud, in software-as-a-service apps and on company systems. Because of the pending acquisition by Proofpoint, a Thoma Bravo portfolio company, it will not provide forward-looking guidance or updates to earlier guidance, and will skip the call and webcast.
The merger agreement is dated October 15. Closing requires Varonis stockholders to adopt it and governmental entities to grant regulatory approvals, and the company lists the risk that it may not close at all.
Varonis will not hold an earnings call for the quarter, leaving the press release as its only account of the results.
Sources
- 8-K Filing — VARONIS SYSTEMS INC (VRNS) — SEC EDGAR
- Exhibit exh_991.htm — VARONIS SYSTEMS INC 8-K exhibit — SEC EDGAR
