Varonis Systems Inc. (NASDAQ:VRNS) surged 18.16% in after-hours trading to $30.06 after reporting its first-quarter 2026 results on Tuesday. The stock closed the regular session at $25.44 before the sharp post-market move.
Revenue Growth Driven By SaaS Expansion
The company reported total revenue of $173.1 million, up from $136.4 million a year earlier. SaaS revenue was the main driver, rising to $161.1 million from $88.6 million in the prior-year quarter.
SaaS annual recurring revenue reached $683.2 million, up 69% year-over-year, while growth excluding conversions came in at 29%.
AI Security Push And Product Development
Varonis highlighted continued expansion in AI-driven data security, including the launch of Varonis Atlas following its acquisition of AllTrue.ai. The platform focuses on visibility and control across AI systems and enterprise data environments.
Management emphasized increasing demand for AI security tools as enterprises accelerate adoption of artificial intelligence.
Profitability And Cash Position
The company reported a GAAP operating loss of $44.5 million, compared to $43.8 million a year earlier. On a non-GAAP basis, operating loss improved to $1.4 million from $6.5 million.
Net loss was $36.9 million versus $35.8 million in the prior-year period.
Varonis ended the quarter with $899.5 million in cash and marketable securities. Operating cash flow stood at $55 million, while free cash flow was $49 million. Adjusted free cash flow was $61.6 million.
The company also repurchased 5.35 million shares at an average price of $24.67, totaling $132.1 million.
Trading Metrics, Technical Context And Price Action
Varonis has a market capitalization of $2.92 billion. The stock has traded within a 52-week range of $19.70 to $63.90. It is currently trading well below its yearly high despite the post-earnings surge.
Over the past year, the stock has declined by 40.59%.
Price Action
Varonis Systems closed the regular session at $25.44 before surging to $30.06 in after-hours trading following its earnings release.
Benzinga's Edge Stock Rankings indicate that VRNS is showing a positive short-term price trend, while the medium and long-term trends remain negative.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Thapana_Studio via Shutterstock
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