Varonis Systems, Inc. the data and AI security leader, today announced financial results for the third quarter ended September 30, 2026.
Total revenues were $189.5 million, compared with $161.6 million in the third quarter of 2025. SaaS revenues were $185.1 million, compared with $125.8 million in the third quarter of 2025. Term license subscription revenues were $1.2 million, compared with $24.8 million in the third quarter of 2025, with the vast majority of the decline driven by customers converting to SaaS platform. Maintenance and services revenues were $3.1 million, compared with $10.9 million in the third quarter of 2025, with vast majority of decline driven by customers converting to SaaS platform.
GAAP operating loss was $47.7 million, compared to GAAP operating loss of $35.9 million in the third quarter of 2025. Non-GAAP operating income was $7.6 million, compared to non-GAAP operating income of $0.2 million in the third quarter of 2025.
SaaS ARR was $774.6 million as of the end of the third quarter, up 42% year-over-year and up 24% year-over-year excluding conversions. As of September 30, 2026, the Company had $937.8 million in cash and cash equivalents, short-term deposits and short-term and long-term marketable securities.
During the nine months ended September 30, 2026, the Company generated $108.3 million of cash from operations, compared to $122.7 million generated in prior year period. During the nine months, Company generated $94.8 million of free cash flow compared to $111.6 million prior year, and $108.2 million of adjusted free cash flow compared to $113.4 million prior year.
In light of the pending acquisition by Proofpoint, a portfolio company of Thoma Bravo, Varonis will not be providing forward-looking guidance or updates to previously issued guidance and will not conduct an earnings conference call or webcast for its third quarter fiscal 2026 results.
About Varonis
Varonis secures AI and the data that powers it. The Varonis platform gives organizations automated visibility and control over their critical data wherever it lives and helps ensure safe and trustworthy AI from code to runtime. Backed by 24x7x365 managed detection and response, Varonis gives thousands of organizations worldwide the confidence to adopt AI, reduce data exposure, and stop AI-powered threats.
