TakeoverPE & activists

VRNSVARONIS SYSTEMS INC

Services-Prepackaged Software · $5.6B market cap · 2,658 employees

1.1×

About as likely as average to be taken private

Top 16% of the Russell 3000 for a buyout by a private-equity firm, holdco or insiders. How it works

Takeover signals

What an activist or buyer would see: cheap, overpaid, diluted or under pressure.

4of 15 firedHow well they predict deals →
11 other checks
  • High CEO pay despite TSRNo
    $14M median
    Median CEO pay ≥ $15M while TSR trails
  • Earnings not backed by cashNo
    —
    Cash flow under 80% of net income
  • Payouts exceed cash flowNo
    78% of cash flow
    Buybacks + dividends over cash flow
  • Goodwill-heavyNo
    13% of assets
    Over 40% of assets
  • Shareholder dissentNo
    91% lowest support
    Any vote under 80% support
  • Quiet on AINo
    11.4 per 10K words · 94th pct
    Bottom quartile of AI mentions in 10-Ks
  • Net cashNo
    —
    More cash than debt, positive EBITDA
  • Buyout-sizedNo
    $5.6B market cap
    Market cap $500M–$5B
  • AI-rollup shapedNo
    0 of 10
    10-K business scored 5+ of 10 as an AI-rollup target
  • Active 13DNo
    0 filings
    Active-intent 13D in 18 months
  • Net insider sellingNo
    $1M net
    Net sales over $10M in 12 months

Deal filings

FiledFormAcquirerPricePremium
Oct 15, 20268-KProofpoint, Inc. (Thoma Bravo-affiliated)——

Key numbers

Revenue
$624MFY2021: $390MFY2022: $474MFY2023: $499MFY2024: $551MFY2025: $624M
13% YoY
Operating margin
-23.5%FY2021: -25.3%FY2022: -25.6%FY2023: -23.5%FY2024: -21.4%FY2025: -23.5%
10% YoY
EBITDA
−$134MFY2021: −$88MFY2022: −$109MFY2023: −$106MFY2024: −$107MFY2025: −$134M
26% YoY
Net debt / EBITDA
—

Financials

MetricFY2021FY2022FY2023FY2024FY2025YoYTrend
Revenue$390M$474M$499M$551M$624M 13% FY2021: $390MFY2022: $474MFY2023: $499MFY2024: $551MFY2025: $624M
Operating income−$99M−$121M−$117M−$118M−$147M 25% FY2021: −$99MFY2022: −$121MFY2023: −$117MFY2024: −$118MFY2025: −$147M
Net income−$117M−$125M−$101M−$96M−$129M 35% FY2021: −$117MFY2022: −$125MFY2023: −$101MFY2024: −$96MFY2025: −$129M
Operating cash flow$7M$12M$59M$115M$147M 28% FY2021: $7MFY2022: $12MFY2023: $59MFY2024: $115MFY2025: $147M
Capex$10M$11M$5M$7M$13M 89% FY2021: $10MFY2022: $11MFY2023: $5MFY2024: $7MFY2025: $13M
Stock-based comp$110M$143M$140M$127M$130M 2.8% FY2021: $110MFY2022: $143MFY2023: $140MFY2024: $127MFY2025: $130M
Buybacks$0$56M$44M$0$115MFY2021: $0FY2022: $56MFY2023: $44MFY2024: $0FY2025: $115M

13D filers

None on file.

Insider trading

+$1Mnet buying by insiders, open market, last 12 months
Bought $1M · 4 tradesSold $0 · 0 trades

Pay vs performance

YearCEO total compComp actually paidTSR (indexed)Peer TSR
FY2025$14M−$4M60258
FY2024$15M$20M81201
FY2023$14M$51M83147
FY2022$10M−$9M4489
FY2021$10M$13M89138