Description

Varonis’ SaaS Reset: How New ARR and Expansion Deals Are Powering the Next Leg!

Varonis Systems’ fourth quarter and full year 2025 financial results reflect both challenges and opportunities as the company continues its transition from a legacy on-premises deployment model to a fully SaaS-based platform. The overall financial performance for Varonis Systems during this period shows a company in transition, balancing the growth of its SaaS business with the decline of its legacy systems. From a positive standpoint, Varonis Systems reported a strong performance in its SaaS business, which constitutes 86% of their total Annual Recurring Revenue (ARR), growing 32% year-over-year, excluding conversions. The SaaS ARR reached $638.5 million, demonstrating solid momentum. Moreover, the decision to phase out its self-hosted platform led to significant customer conversion to the SaaS model, with approximately $65 million converted in Q4 alone.