Varonis Systems stock posts Q3 revenue growth as SaaS ARR rises

Published on 11/05/2026 at 13:57 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Varonis Systems stock follows a quarter of stronger SaaS momentum. Proofpoint's pending acquisition limits the company's outlook and investor communication.

Q3 growth meets pending deal uncertainty

Revenue increased year over year as Varonis continued shifting customers toward its SaaS platform.
SaaS recurring revenue advanced, while the pending Proofpoint acquisition limits forward guidance and earnings communication.
Investors must weigh stronger recurring revenue against wider GAAP losses and lower year-to-date cash generation.

VRNS, US9222801022, Illustration mit AI erstellt.

Varonis Systems reported higher third-quarter revenue on November 3, while the shift to its SaaS platform lifted recurring revenue and the pending Proofpoint acquisition kept management from issuing guidance. The results were carried in a Yahoo Finance release from GlobeNewswire.

SaaS transition drives quarterly growth

Revenue for the quarter ended September 30, 2026, rose to USD 189.5 million from USD 161.6 million a year earlier. SaaS revenue climbed to USD 185.1 million from USD 125.8 million, while term-license subscriptions and maintenance revenue declined as customers converted to the SaaS platform.

SaaS annual recurring revenue reached USD 774.6 million at quarter-end, up 42 percent year over year and 24 percent excluding conversions. Non-GAAP operating income increased to USD 7.6 million from USD 0.2 million, but GAAP operating loss widened to USD 47.7 million from USD 35.9 million.

Acquisition shapes the outlook

Varonis said it would not provide forward-looking guidance or updates to prior guidance because Proofpoint's acquisition remains pending. The company also said it would not hold a third-quarter earnings call or webcast, leaving investors with less management commentary on demand, integration and the path ahead.

For the first nine months, operating cash flow fell to USD 108.3 million from USD 122.7 million, while free cash flow declined to USD 94.8 million from USD 111.6 million. The company held USD 937.8 million in cash, deposits and marketable securities at September 30.