What is Varonis? The data-security firm at No. 3

Varonis Systems (NASDAQ: VRNS) protects the data itself rather than the network around it: its platform maps who has access to a company's files, watches how that access is used, and flags abnormal behavior, a problem that has grown sharper as companies feed sensitive data into AI systems. It enters the Roundtable 100 at No. 3 with a Power Ranking of 80.

The second quarter marked the end of a multi-year bet. Varonis has completed its transition from selling licenses to selling SaaS, and the numbers show it: SaaS revenue rose 62% year over year to $171.7 million, total revenue grew 18% to $180 million, and total SaaS annual recurring revenue reached $726 million, up 52% from a year earlier.

Management raised full-year guidance on both SaaS ARR ($819 million to $850 million) and free cash flow ($105 million to $110 million). The caution flag: gross margin fell year over year as the company invests through the transition, one reason the stock slipped after the report despite the beat.

The committee scored Varonis 98 on Innovation and 98 on Safety, with a 50 on Market Dominance reflecting a crowded security market where it owns a defined niche rather than the whole field.

See the full Roundtable 100 list here.

Not investment advice. Rankings reflect the views of Roundtable analysts as of the ranking date.