Revenue: As of FY2025 Q2, the actual value is USD 152.16 M, beating the estimate of USD 147.83 M.EPS: As of FY2025 Q2, the actual value is USD -0.32, missing the estimate of USD -0.2446.EBIT: As of FY2025 Q2, the actual value is USD -31.59 M.<h3>Segment Revenue</h3><ul><li>SaaS Revenue: Increased by 137% from $44.8 million in Q2 2024 to $105.9 million in Q2 2025, driven by new customer acquisitions, existing customer conversions, and high renewal rates.</li><li>Term License Subscriptions: Decreased by 48.4% from $62.7 million in Q2 2024 to $32.4 million in Q2 2025, due to the transition to a SaaS delivery model.</li><li>Maintenance and Services: Decreased by 39.1% from $22.8 million in Q2 2024 to $13.9 million in Q2 2025, attributed to customer conversions to SaaS and churn.</li></ul><h3>Operational Metrics</h3><ul><li>Net Loss: Increased from $23.9 million in Q2 2024 to $35.8 million in Q2 2025.</li><li>Gross Margin: Decreased from 82.8% in Q2 2024 to 79.5% in Q2 2025, primarily due to increased third-party hosting costs and increased headcount for customer success personnel.</li><li>Operating Loss: Increased from $28.8 million in Q2 2024 to $36.6 million in Q2 2025.</li></ul><h3>Cash Flow</h3><ul><li>Net Cash Provided by Operating Activities: Increased to $89.3 million for the six months ended June 30, 2025, from $68.4 million for the same period in 2024, driven by a decrease in accounts receivable and an increase in deferred revenues.</li><li>Net Cash Used in Financing Activities: Increased to $120.6 million for the six months ended June 30, 2025, from $26.8 million for the same period in 2024, primarily due to $100 million in repurchases of common stock.</li></ul><h3>Unique Metrics</h3><ul><li>Annual Recurring Revenues (ARR): Increased by 19% from $584.2 million as of June 30, 2024, to $693.2 million as of June 30, 2025.</li></ul><h3>Future Outlook and Strategy</h3><ul><li>Core Business Focus: The company is transitioning to a SaaS delivery model, expecting SaaS revenues to continue increasing and the transition to be complete by the end of 2025. This transition is expected to drive growth despite potential short-term revenue recognition variations.</li><li>Non-Core Business: The company completed the acquisition of Cyral, Inc. to enhance its database security capabilities, with the acquisition expected to provide synergies and expanded market opportunities.</li></ul>

Varonics | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 152.16 M