VRNS Varonis (VRNS) Q1 FY26 earnings call
Varonis delivered a strong Q1 FY26, driven by robust SaaS ARR growth and accelerated new customer acquisition, fueled by increasing demand for AI and data security solutions. The company is successfully navigating its transition to a fully SaaS model, with management expressing confidence in sustaining over 20% growth post-conversion. While free cash flow was impacted by acquisition costs, the underlying business momentum and strategic focus on AI security position Varonis for continued expansion.
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VRNS operating KPIs by quarter
| KPI | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| Annual recurring revenue (ARR) SaaS excluding conversions | $522.6MIn Q1, SaaS ARR, excluding conversions, increased 29% year-over-year to $522.6 million and total SaaS ARR, including conversions was $683.2 million.Source: earnings call transcript | $598.1MIn Q2, SaaS ARR, excluding conversions, increased 25% year-over-year to $598.1 million and total SaaS ARR, including conversion was $726 million.Source: earnings call transcript | +14.4% |
| Annual recurring revenue (ARR) SaaS | $683.2MIn Q1, SaaS ARR, excluding conversions, increased 29% year-over-year to $522.6 million and total SaaS ARR, including conversions was $683.2 million.Source: earnings call transcript | $726MIn Q2, SaaS ARR, excluding conversions, increased 25% year-over-year to $598.1 million and total SaaS ARR, including conversion was $726 million.Source: earnings call transcript | +6.3% |
| Annual recurring revenue (ARR) Non-SaaS | ~$83.7MIn Q1, we had $11.3 million of conversion ARR, and we finished the quarter with approximately $83.7 million of non-SaaS ARR remaining.Source: earnings call transcript | ~$59.3MIn Q2, we had $11.4 million of conversion ARR, and we finished the quarter with approximately $59.3 million of non-SaaS ARR remaining.Source: earnings call transcript | — |
| Renewal rate SaaS | 90%+Our SaaS renewal rate was over 90%.Source: earnings call transcript | 90%+Our SaaS renewal rate was over 90%.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.