Varonis Systems (NASDAQ:VRNS) Releases FY 2025 Earnings Guidance

Key Points

• Varonis Systems has issued an earnings guidance for FY 2025 with EPS expected to be between 0.110 and 0.120, significantly higher than the consensus estimate of -0.230.
• The company's revenue guidance ranges from $616.0 million to $628.0 million, slightly below the consensus estimate of $625.6 million.
• Varonis Systems shares opened at $57.16, with analysts generally rating the stock as a "Moderate Buy" and setting an average target price of $61.65.

Varonis Systems (NASDAQ:VRNS - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.110-0.120 for the period, compared to the consensus EPS estimate of -0.230. The company issued revenue guidance of $616.0 million-$628.0 million, compared to the consensus revenue estimate of $625.6 million. Varonis Systems also updated its Q3 2025 guidance to 0.040-0.060 EPS.

Varonis Systems Price Performance

Shares of NASDAQ VRNS traded up $0.57 during trading on Friday, hitting $58.06. The company had a trading volume of 3,412,272 shares, compared to its average volume of 1,279,114. The stock has a fifty day simple moving average of $55.81 and a two-hundred day simple moving average of $48.77. Varonis Systems has a fifty-two week low of $36.53 and a fifty-two week high of $60.58. The firm has a market capitalization of $6.51 billion, a price-to-earnings ratio of -63.11 and a beta of 0.67. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 1.32.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its earnings results on Tuesday, July 29th. The technology company reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.02. Varonis Systems had a negative net margin of 17.30% and a negative return on equity of 23.06%. The business had revenue of $152.16 million for the quarter, compared to analyst estimates of $147.80 million. During the same quarter last year, the business earned $0.05 earnings per share. The company's revenue for the quarter was up 16.7% compared to the same quarter last year. Varonis Systems has set its FY 2025 guidance at 0.160-0.180 EPS. Q3 2025 guidance at 0.070-0.080 EPS. On average, research analysts expect that Varonis Systems will post -0.83 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. B. Riley assumed coverage on shares of Varonis Systems in a report on Tuesday, August 26th. They issued a "buy" rating and a $80.00 target price on the stock. Cantor Fitzgerald restated an "overweight" rating and set a $60.00 target price on shares of Varonis Systems in a report on Tuesday, July 22nd. Needham & Company LLC restated a "buy" rating and issued a $70.00 target price on shares of Varonis Systems in a report on Wednesday, September 3rd. Royal Bank Of Canada restated an "outperform" rating and issued a $64.00 target price on shares of Varonis Systems in a research note on Wednesday, September 3rd. Finally, UBS Group boosted their target price on shares of Varonis Systems from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Wednesday, July 30th. Fourteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $61.65.

Insider Activity at Varonis Systems

In related news, Director Den Bosch Fred Van sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $55.08, for a total transaction of $165,240.00. Following the transaction, the director owned 128,666 shares of the company's stock, valued at approximately $7,086,923.28. This trade represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Guy Melamed sold 51,889 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $55.10, for a total transaction of $2,859,083.90. Following the transaction, the chief financial officer directly owned 470,602 shares in the company, valued at approximately $25,930,170.20. The trade was a 9.93% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 113,386 shares of company stock worth $6,429,405. Insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of the company. Osaic Holdings Inc. grew its stake in shares of Varonis Systems by 10.5% in the second quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company's stock worth $234,000 after acquiring an additional 440 shares during the last quarter. CANADA LIFE ASSURANCE Co grew its stake in shares of Varonis Systems by 3.4% in the second quarter. CANADA LIFE ASSURANCE Co now owns 209,656 shares of the technology company's stock worth $10,633,000 after acquiring an additional 6,841 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of Varonis Systems by 449.6% in the second quarter. Tower Research Capital LLC TRC now owns 16,081 shares of the technology company's stock worth $816,000 after acquiring an additional 13,155 shares during the last quarter. Sender Co & Partners Inc. acquired a new stake in shares of Varonis Systems in the second quarter worth $1,011,000. Finally, Captrust Financial Advisors grew its stake in shares of Varonis Systems by 40.1% in the second quarter. Captrust Financial Advisors now owns 20,709 shares of the technology company's stock worth $1,051,000 after acquiring an additional 5,926 shares during the last quarter. Institutional investors own 95.65% of the company's stock.

Varonis Systems Company Profile

Varonis Systems, Inc provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property.