VRNS

Technology

Varonis Systems, Inc. · Software - Infrastructure · $4B

UQS Score — Balanced Preset
37.6
Below Average

Varonis Systems, Inc. scores 37.6/100 using the Balanced preset.

UQS vs Technology Sector
VRNS
37.6
Sector avg
38.0
Quality
Weak
Moat
Weak
Growth
Neutral
Risk
Neutral
Valuation
Neutral

What is Varonis Systems, Inc.?

Varonis Systems is a mid-cap software company focused on enterprise data security and governance, helping organizations protect sensitive files, emails, and personal data stored on-premises and in the cloud.

Varonis generates revenue by licensing software that monitors, analyzes, and secures enterprise data across Windows, UNIX/Linux, cloud applications, and email systems. Its platform helps IT and security teams detect unusual behavior, classify sensitive data, and manage access permissions — reducing the risk of data breaches and compliance failures.

Varonis was founded in 2014 and is headquartered in New York City.

  • DatAdvantage — data access monitoring and analysis
  • DatAlert — behavioral threat detection and alerting
  • Data Classification Engine — automated sensitive data tagging
  • DataPrivilege — self-service access request and governance portal

Is VRNS a Good Stock to Buy?

UQS Score rates VRNS as Below Average overall.

The Risk and Valuation pillars are the relative bright spots in Varonis's profile, suggesting the stock does not carry extreme downside risk and is not obviously overpriced relative to its fundamentals.

Quality and Moat are both rated Weak, indicating the business has not yet demonstrated durable competitive advantages or consistent financial strength.

See the full pillar breakdown and underlying financial metrics by signing up for a Pro account at UQS Score. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does VRNS pay dividends?

No — Varonis Systems, Inc. does not currently pay a dividend.

Varonis does not currently pay a dividend. As a growth-oriented software company, it reinvests available resources into product development and expanding its customer base rather than returning cash to shareholders through distributions.

When does VRNS report earnings?

Varonis Systems reports earnings on a quarterly cadence, consistent with standard practice for US-listed technology companies.

The company's Growth pillar is rated Neutral, reflecting a revenue trajectory that is neither accelerating strongly nor declining materially. Investors should monitor whether the ongoing transition toward a subscription-based model improves recurring revenue visibility over time.

For the most recent quarter's results and guidance, visit Varonis Systems' official investor relations page.

VRNS Price History

-49.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Varonis Systems, Inc.?

$
Today it would be worth
$4,670
That's a -53.3% total return, or -14.1% annualized.

Based on Varonis Systems, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does Varonis Systems do?

Varonis provides enterprise software that monitors and secures data stored on-premises and in the cloud. Its platform helps organizations detect threats, classify sensitive information, and manage who has access to critical files and systems.

Does VRNS pay dividends?

No, Varonis does not pay a dividend. The company prioritizes reinvesting in its software platform and customer growth rather than distributing cash to shareholders.

When does VRNS report earnings?

Varonis reports on a quarterly basis. For exact dates and the most recent results, check the investor relations section of the Varonis Systems website directly.

Is VRNS a good stock to buy?

UQS Score rates VRNS as Below Average, with Weak scores on Quality and Moat. The Risk and Valuation pillars are more favorable. Whether it fits your portfolio depends on your risk tolerance and investment criteria — view the full analysis on UQS Score.

Is VRNS overvalued?

The Valuation pillar for VRNS is rated Good, suggesting the stock is not trading at a significant premium relative to its fundamentals. The complete valuation metrics are available to Pro members on UQS Score.

What is VRNS's market cap bracket?

Varonis Systems is classified as a mid-cap company, placing it in a tier that typically offers more growth potential than large-caps but with greater volatility than mega-cap peers.

Is VRNS a long-term quality investment?

Long-term quality is best assessed through consistent moat strength, financial quality, and sustainable growth. VRNS currently scores Weak on both Quality and Moat pillars, which warrants caution for investors focused on durable compounders. Monitor whether the subscription transition improves these scores over time.

What sector does VRNS belong to?

Varonis operates in the Technology sector, specifically within cybersecurity and data governance software — a segment that addresses growing regulatory and threat-landscape pressures faced by enterprises globally.

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Pro Analysis

VRNS — Score History

3035404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 15 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202637.613.232.046.458.554.8-0.5
May 19, 202638.113.832.046.458.557.0-0.1
May 17, 202638.213.932.046.458.557.60.0
May 15, 202638.213.932.046.458.558.1-0.2
May 14, 202638.414.132.046.458.558.8+0.4
May 11, 202638.013.632.046.458.556.9-1.7
May 7, 202639.716.632.046.463.558.2-0.1
May 3, 202639.816.632.046.463.559.3-0.3
May 1, 202640.116.632.046.463.560.9+0.2
Apr 26, 202639.916.632.045.463.561.10.0

VRNS — Pillar Breakdown

Quality

13.2/100 (25%)

Varonis Systems, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

46.4/100 (20%)

Varonis Systems, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

58.5/100 (15%)

Varonis Systems, Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

54.8/100 (15%)

Varonis Systems, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

Moat

32/100 (25%)

Varonis Systems, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for VRNS.

Score Composition

Quality
13.2×25%3.3
Growth
46.4×20%9.3
Risk
58.5×15%8.8
Valuation
54.8×15%8.2
Moat
32.0×25%8.0
Total
37.6Below Average

Financial Data

More Stock Analysis

How is the VRNS UQS Score Calculated?

The UQS (Unified Quality Score) for Varonis Systems, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Varonis Systems, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Varonis Systems, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.