Filing Flows › Varonis Systems (VRNS) › Q1 2025
Varonis Systems (VRNS) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Varonis Systems (VRNS) reported revenue of $136M for the first quarter 2025 (Q1 2025), +20% from a year earlier and -14% from the quarter before. Operating margin was -32.1%, net loss $35.8M (26.2% of revenue).
Varonis Systems, Q1 2025: revenue $136M (+20% year over year), operating margin -32.1%, net loss $35.8M, operating cash flow $68.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $136M | -14% | +20% |
| Operating profit | −$43.8M | — | — |
| Net earnings | −$35.8M | — | — |
| Operating cash flow | $68.0M | +180% | +20% |
| Free cash flow | $65.3M | — | — |
What changed
Revenue was $136.4M in Q1 2025, up 20% year over year and down 14% from the previous quarter. SaaS was the largest line at 65% of revenue. SaaS added $54.6M year over year (up 161%), 244% of the total change. Term license subscriptions declined 44%.
Gross margin was 78.7%, down 2.5 points from a year earlier. Operating costs exceeded revenue by $43.8M, an operating margin of -32.1%. Operating expenses grew 8% against revenue growth of 20%. The fastest-growing cost line was General & admin (+14%). The quarter ended with a net loss of $35.8M, wider than the previous quarter's $13.0M loss. Non-operating items added $12.0M, -38% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $68.0M (up 20% year over year). Non-cash charges added back $2.4M of depreciation and amortization and $32.3M of share-based compensation. Working capital and other items added $69.1M. After purchases of property and equipment ($2.3M) and capitalized internal-use software ($325K), free cash flow as the company reports it was $65.3M.
Questions
What was Varonis Systems' revenue in the first quarter 2025?
Varonis Systems (VRNS) reported revenue of $136M for the first quarter 2025 (Q1 2025), +20% from a year earlier and -14% from the quarter before.
Was Varonis Systems profitable in the first quarter 2025?
Operating loss was $43.8M (-32.1% of revenue) and net loss $35.8M.
Source: Varonis Systems 10-Q on SEC EDGAR.