Filing Flows › Varonis Systems (VRNS) › Q1 2026
Varonis Systems (VRNS) Q1 2026 earnings results (first quarter 2026)
10-Q filed Apr 29, 2026
Varonis Systems (VRNS) reported revenue of $173M for the first quarter 2026 (Q1 2026), +27% from a year earlier and -0.1% from the quarter before. Operating margin was -25.7%, net loss $36.9M (21.3% of revenue).
Varonis Systems, Q1 2026: revenue $173M (+27% year over year), operating margin -25.7%, net loss $36.9M, operating cash flow $55.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $173M | -0.1% | +27% |
| Operating profit | −$44.5M | — | — |
| Net earnings | −$36.9M | — | — |
| Operating cash flow | $55.0M | +123% | -19% |
| Free cash flow | $49.0M | — | -25% |
What changed
Revenue was $173.1M in Q1 2026, up 27% year over year and roughly flat from the previous quarter. SaaS was the largest line at 93% of revenue. SaaS added $72.5M year over year (up 82%), 198% of the total change. Term license subscriptions declined 78%.
Gross margin was 76.0%, down 2.7 points from Q1 2025. Operating costs exceeded revenue by $44.5M, an operating margin of -25.7%. Operating expenses grew 16% against revenue growth of 27%. The fastest-growing cost line was Research & development (+29%). The quarter ended with a net loss of $36.9M, wider than the previous quarter's $27.8M loss.
Operating cash flow was $55.0M (down 19% year over year). Non-cash charges added back $4.4M of depreciation and amortization and $33.7M of share-based compensation. Working capital and other items added $53.8M. After purchases of property and equipment ($5.0M) and capitalized internal-use software ($1.0M), free cash flow as the company reports it was $49.0M.
Questions
What was Varonis Systems' revenue in the first quarter 2026?
Varonis Systems (VRNS) reported revenue of $173M for the first quarter 2026 (Q1 2026), +27% from a year earlier and -0.1% from the quarter before.
Was Varonis Systems profitable in the first quarter 2026?
Operating loss was $44.5M (-25.7% of revenue) and net loss $36.9M.
Source: Varonis Systems 10-Q on SEC EDGAR.