Varonis Systems, Inc.

Worth knowing

• Stock pay outran buybacks. Stock-based pay expense $397M vs $159M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years Varonis Systems recorded $397M of stock-based pay expense and spent $159M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Varonis Systems recorded $397M of stock-based pay expense and spent $159M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Stock-based pay is a large cost. Stock pay was 21% of revenue in 2025.

  Varonis Systems paid employees $130M in stock in 2025, 21% of its $624M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

• Valuation signals disagree. Cheaper than 45% of peers on free cash flow, but only 0% on earnings.

  Relative to its free cash flow, Varonis Systems looks cheaper than 45% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

• Not profitable yet. Reported a loss in the 12 months to June 2026.

  Varonis Systems reported a net loss over the last twelve months, so earnings-based measures can't show it as cheap.