VRNSVaronis Systems, Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VRNS?
Varonis Systems, Inc. keeps −22% of every revenue dollar as operating profit, against 5.8% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Share count, year on year
- +2.5%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 39%
R&D as % of revenue
- Gross margin
- 77%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −27% |
| FY2021 | −25% |
| FY2022 | −26% |
| FY2023 | −23% |
| FY2024 | −21% |
| FY2025 | −24% |
Details›
- Gross margin12 months to Q2 2026
- 77%
- Operating margin12 months to Q2 2026
- −22%
- Net margin12 months to Q2 2026
- −21%
- Free cash flow margin
- 18%
- R&D as % of revenue
- 39%
- Revenue, trailing twelve months
- $688M
- Free cash flow, trailing twelve months
- $122M
- Net income, trailing twelve months
- −$141M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #75 of 80 by RyuScore