The strong SaaS ARR growth (25% ex-conversions) and raised full-year guidance signal accelerating demand for data and AI security. Traders should watch for continued new logo momentum and SaaS conversion trends in Q3, as the company guides for 22-23% SaaS ARR growth ex-conversions.
Price Chart
Executive Summary
Varonis reported Q2 2026 results with total revenue of $180.0M (+18.3% YoY), beating consensus estimates of $176.9M. SaaS ARR excluding conversions grew 25% YoY to $726M, and the company raised its full-year SaaS ARR guidance excluding conversions to 21% growth at the midpoint. The strong SaaS momentum and raised outlook are bullish signals for the stock.
Key Financial Metrics
Key Facts
- Total Q2 2026 revenue of $180.0M, up 18.3% YoY from $152.2M
- SaaS ARR reached $726.0M, up 52% YoY (25% excluding conversions)
- Non-GAAP operating income of $3.7M vs a loss of ($1.9M) in Q2 2025
- Full-year SaaS ARR guidance raised to $819M-$850M (28-33% growth)
- Full-year SaaS ARR excluding conversions guidance raised to 20-21% growth
- Cash and marketable securities of $911.5M as of June 30, 2026
Financial Impact
Revenue beat consensus by $3.1M (+1.8%), SaaS ARR growth of 25% ex-conversions, and raised full-year guidance by $5M at midpoint
Risk Factors
- GAAP operating loss widened to ($40.6M) from ($36.6M) due to higher R&D and S&M spend
- Free cash flow declined to $69.1M from $82.7M in H1 2025
- Term license and maintenance revenues continue to decline as customers convert to SaaS
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3334710 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 28, 2026 9w ago | Press Release | $40.65 $41.40 | ▲ +1.84% | ▼ −3.18% | $47.57 (+17.02%) |
Jun 2, 2026 17w ago | 8-K | $33.51 $42.86 | ▲ +27.90% | ▲ +28.90% | $47.57 (+41.96%) |
Apr 28, 2026 22w ago | 8-K | $27.29 $30.24 | ▲ +10.81% | ▲ +5.35% | $47.57 (+74.31%) |
Apr 17, 2026 24w ago | DEFA14A | $24.22 $27.22 | ▲ +12.39% | ▲ +7.02% | $47.57 (+96.41%) |
Apr 13, 2026 24w ago | Press Release | $21.76 $28.00 | ▲ +28.68% | ▲ +22.38% | $47.57 (+118.61%) |
US Market Status
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