VRNS Stock Analysis: Varonis Systems | NASDAQ

Data Security, Threat Detection, Data Classification, Cloud Protection

Total Rating 40

Safety 53

Buy Signal 1.55

Software - Infrastructure
Industry Rotation: +0.1

Market Cap: 5.04B
Avg Turnover: 52.1M

Risk 3d forecast

Volatility73.6%

VaR 5^th Pctl11.1%

VaR vs Median-6.58%

Reward TTM

Sharpe Ratio0.15

Rel. Str. IBD88.7

Rel. Str. Peer Group77.4

Character TTM

Beta0.721

Beta Downside1.219

Hurst Exponent0.447

Drawdowns 3y

Max DD68.11%

CAGR/Max DD0.22

CAGR/Mean DD0.68

EPS (Earnings per Share)

Last SUE: 0.31
Qual. Beats: 0

Revenue

Rev. CAGR: 13.17%
Rev. Trend: 99.4%

Last SUE: 0.56
Qual. Beats: 0

Warnings

Interest Coverage Ratio Critical

Altman Z'' In Financial Distress Zone

Tailwinds

Rs Leader

Idiosyncratic Leader

Confidence

Avwap Ph Month

Seasonality 11.6 years of data

Jan +2.8% 26

Feb -1.2% 24

Mar -0.5% 19

Apr +2.0% 5

May +12.2% 21

Jun +0.2% 19

Jul +4.5% 20

Aug +7.5% 47

Sep -5.8% 46

Oct -2.0% 0

Nov -0.3% 15

Dec -4.9% 28

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: VRNS Varonis Systems

Varonis Systems (NASDAQ: VRNS) is a U.S.-based data security software company incorporated in 2004 and headquartered in Miami, Florida, that completed its IPO in February 2014. The company develops a SaaS-delivered platform designed to discover and classify sensitive data, remediate exposure risks, and detect advanced threats using AI-driven analytics across customer cloud and on-premises environments.

Its main offering, the Varonis Data Security Platform, bundles capabilities such as data security posture management (DSPM), data access intelligence, data discovery and classification, least privilege automation, data activity monitoring, data detection and response, and user and entity behavior analytics. Alongside the platform, Varonis sells protection packages for Microsoft 365, Windows and NAS, hybrid, and cloud environments, plus database and email security capabilities and on-premises subscription products.

Varonis serves a diverse customer base across financial services, the public sector, healthcare, industrial, insurance, energy and utilities, technology, construction and engineering, education, and consumer and retail, with operations spanning North America, Europe, APAC, and the rest of the world. Classified within the GICS Systems Software sub-industry of Information Technology, the company sits at the intersection of cybersecurity and data governance, an area where enterprise customers are increasingly shifting from legacy on-premises deployments toward subscription-based SaaS models.

Headlines to Watch Out For

Subscription transition fuels recurring revenue and margin expansion
Cyber threats and data regulations boost platform demand
CrowdStrike and Microsoft intensify data security competition

Piotroski VR-10 (Strict) 2.5

Net Income: -141.4m TTM > 0 and > 6% of Revenue
FCF/TA: 0.07 > 0.02 and ΔFCF/TA -0.36 > 1.0
NWC/Revenue: 56.83% < 20% (prev 49.90%; Δ 6.93% < -1%)
CFO/TA 0.08 > 3% & CFO 138.2m > Net Income -141.4m
Net Debt/EBITDA: error (EBITDA <= 0)
Current Ratio: 1.65 > 1.5 & < 3
Outstanding Shares: last quarter (115.3m) vs 12m ago 2.90% < -2%
Gross Margin: 77.07% > 18% (prev 81.46%; Δ -4.39% > 0.5%)
Asset Turnover: 42.09% > 50% (prev 36.85%; Δ 5.24% > 0%)
Interest Coverage Ratio: -10.35 > 6 (EBIT TTM -133.6m / Interest Expense TTM 12.9m)

Altman Z'' -0.49

A: 0.24 (Total Current Assets 997.0m - Total Current Liabilities 605.9m) / Total Assets 1.65b
B: -0.58 (Retained Earnings -953.1m / Total Assets 1.65b)
C: -0.08 (EBIT TTM -133.6m / Avg Total Assets 1.63b)
D: 0.37 (Book Value of Equity 444.5m / Total Liabilities 1.21b)
Altman-Z'' = -0.49 = B

Beneish M -2.90

DSRI: 0.87 (Receivables 150.9m/149.7m, Revenue 688.1m/595.2m)
GMI: 1.06 (GM 81.46% / 77.07%)
AQI: 1.15 (AQ_t 0.34 / AQ_t-1 0.29)
SGI: 1.16 (Revenue 688.1m / 595.2m)
TATA: -0.17 (NI -141.4m - CFO 138.2m) / TA 1.65b)
Beneish M = -2.90 (Cap -4..+1) = A

What is the price of VRNS shares?

As of September 03, 2026, the stock is trading at USD 46.76 with a total of 5,700,184 shares traded. Over the past week, the price has changed by +12.95%, over one month by +13.55%, over three months by +30.32% and over the past year by -17.73%.

Current recommended Stop Loss: 44.40 (which is 5% or 1.2 ATR below the current price).

Is VRNS a buy, sell or hold?

Varonis Systems has received a consensus analysts rating of 4.21. Therefore, it is recommended to buy VRNS.

StrongBuy: 12
Buy: 5
Hold: 7
Sell: 0
StrongSell: 0

What are the forecasts/targets for the VRNS price?

Analysts Target Price	50.7	8.4%

Varonis Systems (VRNS) - Fundamental Data Overview as of 31 August 2026

Market Cap USD = 5.04b (5.04b USD * 1.0 USD.USD)
P/E Forward = 256.4103
P/S = 7.3314
P/B = 11.5715
P/EG = 7.3788
Revenue TTM = 688.1m USD
EBIT TTM = -133.6m USD
EBITDA TTM = -114.7m USD
Long Term Debt = 453.3m USD (from longTermDebt, last quarter)
Short Term Debt = 11.0m USD (from shortTermDebt, two quarters ago)
Debt = 579.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 62.9m
Net Debt = -81.1m USD (calculated: Debt 579.0m - CCE 660.1m)
Enterprise Value = 4.96b USD (5.04b + Debt 579.0m - CCE 660.1m)
Interest Coverage Ratio = -10.35 (Ebit TTM -133.6m / Interest Expense TTM 12.9m)
EV/FCF = 40.70x (Enterprise Value 4.96b / FCF TTM 121.9m)
FCF Yield = 2.46% (FCF TTM 121.9m / Enterprise Value 4.96b)
FCF Margin = 17.72% (FCF TTM 121.9m / Revenue TTM 688.1m)
Net Margin = -20.55% (Net Income TTM -141.4m / Revenue TTM 688.1m)
Gross Margin = 77.07% ((Revenue TTM 688.1m - Cost of Revenue TTM 157.8m) / Revenue TTM)
Gross Margin QoQ = 75.27% (prev 75.99%)
Tobins Q-Ratio = 3.00 (Enterprise Value 4.96b / Total Assets 1.65b)
Interest Expense / Debt = 2.23% (Interest Expense 12.9m / Debt 579.0m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -105.5m (EBIT -133.6m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.65 (Total Current Assets 997.0m / Total Current Liabilities 605.9m)
Debt / Equity = 1.30 (Debt 579.0m / totalStockholderEquity, last quarter 444.5m)
Debt / EBITDA = 0.71 (negative EBITDA) (Net Debt -81.1m / EBITDA -114.7m)
Debt / FCF = -0.67 (Net Debt -81.1m / FCF TTM 121.9m)
Total Stockholder Equity = 525.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -8.65% (Net Income -141.4m / Total Assets 1.65b)
RoE = -26.91% (Net Income TTM -141.4m / Total Stockholder Equity 525.4m)
RoCE = -13.65% (EBIT -133.6m / Capital Employed (Equity 525.4m + L.T.Debt 453.3m))
RoIC = -10.41% (negative operating profit) (NOPAT -105.5m / Invested Capital 1.01b)
WACC = 7.82% (E(5.04b)/V(5.62b) * Re(8.52%) + D(579.0m)/V(5.62b) * Rd(2.23%) * (1-Tc(0.21)))
Discount Rate = 8.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 56.51 | Cagr: 2.12%
[DCF] Terminal Value 75.12% ; FCFF base≈123.1m ; Y1≈121.2m ; Y5≈123.5m
[DCF] Fair Price = 17.50 (EV 1.93b - Net Debt -81.1m = Equity 2.01b / Shares 114.9m; r=8.35% [WACC [floored]]; 5y FCF grow -2.30% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.31 | # QB: 0
Revenue Correlation: 99.36 | Revenue CAGR: 13.17% | SUE: 0.56 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.03 | Chg30d=N/A | Revisions=+75% | Analysts=22
EPS current Year (2026-12-31): EPS=0.15 | Chg30d=+27.38% | Revisions=+88% | GrowthEPS=-16.0% | GrowthRev=+18.3%
EPS next Year (2027-12-31): EPS=0.41 | Chg30d=+8.01% | Revisions=+46% | GrowthEPS=+172.9% | GrowthRev=+18.6%
[Analyst] Revisions Ratio: +76% (up=54, down=6)