
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems reported a revenue increase of 9% year-over-year to $173.4 million, surpassing both company guidance and market expectations, which highlights the company's strong performance during its ongoing transition towards a cloud-based revenue model. The firm's SaaS business has seen significant growth, with 86% of Annual Recurring Revenue (ARR) now stemming from this segment and expectations to reach 100% by the end of calendar year 2026, positioning the company for substantial ARR growth of approximately 15-20% and a margin rebound in the subsequent fiscal year. Additionally, the company has shown remarkable resilience, with a robust 32% year-over-year SaaS ARR growth reported for calendar year 2025 when excluding conversions from on-premises solutions, indicating a healthy trajectory for the business as it successfully navigates its transformation.
Bears say
Varonis Systems has reported a decline in Gross Margin from 84.4% to 80.0%, falling short of expectations and indicating potential difficulties in maintaining profitability during the ongoing cloud transition. The company also experienced a significant Operating Loss, which was worse than consensus estimates, and revised its 2025 guidance downward, including a $17 million reduction in ARR expectations, impacted by poorer renewal rates. Additionally, the decline in non-SaaS ARR during the transition phase raises concerns about future Free Cash Flow, further contributing to a negative outlook for the company's financial health.
This aggregate rating is based on analysts' research of Varonis Systems and is not a guaranteed prediction by Public.com or investment advice.
Varonis Systems (VRNS) Analyst Forecast & Price Prediction
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