Stock

Varonis Systems

VRNS

Software - Infrastructure · Technology

Also trades as: 0VOU.L GBP 0.50 (+2.07%)

Price

$50.12

+1.24 (+2.54%)

Market Cap

$5.76B

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Oct 10, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality

Mixed

10/30

Growth

Mixed

6/20

Cash Flow

Mixed

3/10

Stability

Weak

2/10

Valuation

Data not available

0/10

Ownership

Mixed

6/15

Dividends

Not counted

n/a

27 of 95 counted points = Winston Score 28. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count rising — dilution

+22.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 105.3M (2021) → 129.2M (2025)

§Winston Score History

The full picture

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; strategic and product plans; and other intellectual property.

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3 trades / 12mo

0 Congressional buys and 3 sells on VRNS in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-28.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$238M/ year

↑ Rising (+21% vs prior year)

38.1% of revenue

2.5x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

3.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$660M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Varonis Systems is putting 38% of revenue into R&D and that number is rising. That's 2.5x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

75.3%

Premium pricing power — 75.3% gross margin

Profit after running costs

Operating Margin

-22.6%

Losing money on operations — -22.6%

Return on the money invested

ROCE

-15.8%

Weak — -15.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+15.6%

Fast-growing sales (+15.6% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

17.7%

Converts sales into free cash efficiently (17.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

1.16

Elevated debt (1.16)

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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