Varonis Systems
29 named things its latest annual report says its results depend on, each in the company's own words. 16 of them are also named by other companies we've read.
Customers
Public sector customers
earns fromnamed as a riskWe derive a portion of our revenues from contracts with federal, state, local and foreign governments and government-owned or -controlled entities (such as public health care bodies, educational institutions and utilities), which we refer to as the public sector herein.Risk factors (Item 1A)
Also named by GOOG
Suppliers
Third-party cloud hosting and data center providers
depends onnamed as a riskThird-party cloud providers run their own platforms that we access, and we are, therefore, vulnerable to their service interruptions.Risk factors (Item 1A)
Partners and platforms
Channel partners (resellers and distributors)
depends on · substantially all of our salesnamed as a riskIn 2024 and 2025, our channel partners fulfilled substantially all of our sales, and we expect that sales to channel partners will continue to account for substantially all of our revenues for the foreseeable future.Risk factors (Item 1A)
Other companies
2029 Convertible Notes
$460.0 millionnamed as a riskAs of December 31, 2025, we have $460.0 million outstanding aggregate principal amount of the 2029 Notes.Risk factors (Item 1A)
Yakov Faitelson
depends onnamed as a riskThe loss of Mr. Faitelson’s services could significantly delay or prevent the achievement of our development and strategic objectives and adversely affect our business.Risk factors (Item 1A)
Capped Call Transactions counterparties
named as a riskAll or some of the financial institutions (which are counterparties to the capped call transactions) might default under the Capped Call Transactions.Risk factors (Item 1A)
Places
Hazards
Russia–Ukraine war
operates innamed as a riskWhile sales in Russia represented a very small percentage of our overall business, and while our operations in Russia and Ukraine have historically been a small portion of our overall workforce, the conflict is complex and evolving and subjects us to additional regulatory risk and compliance costs.Risk factors (Item 1A)
Also named by ADSK, ATR, AVAV, CSCO, CTVA, EMR, FIS, FLO and 21 more
Israel Defense Forces reserve duty
named as a riskCurrently, due to the war in Israel that began on October 7, 2023, a portion of our employees have been called to active reserve duty and additional employees may be called in the future, if needed.Risk factors (Item 1A)
Boycott of Israel
named as a riskThe boycott, restrictive laws, policies or practices directed towards Israel, Israeli businesses or Israeli citizens could, individually or in the aggregate, have a material adverse effect on our business in the future.Risk factors (Item 1A)
Commodities and inputs
Euro
exposed to its price · Approximately one quarter of our revenuesnamed as a riskApproximately one quarter of our revenues for the years ended December 31, 2025 and 2024 were earned in non-U.S. dollar denominated currencies, mainly in the Euro and Pound Sterling.Market risk (Item 7A)
Also named by ABBV, ABNB, ABT, ADBE, ADI, AME, AMG, AMGN and 186 more
British Pound Sterling
exposed to its price · Approximately one quarter of our revenuesnamed as a riskApproximately one quarter of our revenues for the years ended December 31, 2025 and 2024 were earned in non-U.S. dollar denominated currencies, mainly in the Euro and Pound Sterling.Market risk (Item 7A)
Also named by AMG, BGC, BKNG, CBRE, CTRE, FCFS, FDS, FIS and 31 more
New Israeli Shekel
exposed to its pricenamed as a riskOur expenses are generally denominated in the currencies in which our operations are located, primarily the U.S. dollar and New Israeli Shekel, and to a lesser extent the Euro, Pound Sterling, Canadian dollar, Australian dollar and Singapore dollar.Market risk (Item 7A)
Regulators
U.S. Export Administration Regulations (BIS)
subject tonamed as a riskWe incorporate certain encryption technology into certain of our products and, as a result, are required to comply with U.S. export control laws and regulations, including the Export Administration Regulations administered by the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”).Risk factors (Item 1A)
Also named by ADI, ALAB, AMD, APP, ARW, AVGO, CARR, CDRE and 40 more
Department of Government Efficiency
named as a riskPressures on and uncertainty surrounding the U.S. federal government’s budget and potential changes in budgetary priorities, could adversely affect the funding for individual programs and delay purchasing decisions by our customers.Risk factors (Item 1A)
Laws and programs
Internal Revenue Code Section 382
subject to · $211.5 million of federal NOLnamed as a riskFuture changes in our stock ownership, including future offerings, as well as changes that may be outside of our control, could result in a subsequent ownership change under Section 382, that would impose an annual limitation on NOLs.Risk factors (Item 1A)
Israeli Law for the Encouragement of Capital Investments, 5719-1959
subject to · 16%named as a riskTo the extent we do not meet these conditions, our Israeli operations will be subject to a corporate tax at the standard rate of 23%.Risk factors (Item 1A)
General Data Protection Regulation (GDPR)
subject tonamed as a riskCompliance with GDPR, the UK regime as amended by the Data (Use and Access) Act 2025, and other international privacy laws may require significant operational changes and costs, while non‑compliance could result in substantial fines, litigation, and reputational harm, adversely affecting our business, financial condition, and results of operations.Risk factors (Item 1A)
Also named by A, AB, ABNB, ADBE, ADP, AGX, AIOT, AJG and 100 more
California Consumer Privacy Act (CCPA)
subject tonamed as a riskIn the United States, the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) impose significant obligations on businesses and grant consumers enhanced rights, such as the ability to opt out of certain sales of personal information.Risk factors (Item 1A)
Also named by AAP, AIOT, AKAM, ALL, APP, AYI, BAC, BBSI and 69 more
Foreign Corrupt Practices Act (FCPA)
subject tonamed as a riskViolations of the FCPA or other anti-corruption laws may result in severe criminal or civil sanctions, including suspension or debarment from government contracting, and we may be subject to other liabilities, which could negatively affect our business, operating results and financial condition.Risk factors (Item 1A)
Also named by A, ADBE, ADP, AIR, AJG, ALB, AME, AMZN and 112 more
One Big Beautiful Bill Act (OBBBA)
subject tonamed as a riskThese legislative changes could have an adverse impact on our future effective tax rate, tax liabilities and cash paid for income taxes.Risk factors (Item 1A)
Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more
EU–U.S. Data Privacy Framework
subject tonamed as a riskCross‑border data transfers from the European Economic Area and the UK to the United States rely on mechanisms such as standard contractual clauses, the UK’s International Data Transfer Agreement (or Addendum), and the EU–U.S. Data Privacy Framework (including its UK extension).Risk factors (Item 1A)
Also named by ADBE, APP, CRM, CRWD, DDOG, DOCN, GTLB, IDXX and 12 more
Israeli export control laws
subject tonamed as a riskWe are also subject to Israeli export control laws on encryption technology.Risk factors (Item 1A)
Internal Revenue Code Section 174
subject tonamed as a riskOnce our available NOLs or tax credits are fully utilized, then, due to the capitalization of research and development expenses for those activities conducted outside of the U.S., we would incur a significant increase in our tax expenses and a decrease in our cash flows provided by operations.Risk factors (Item 1A)
OECD BEPS Plan
subject tonamed as a riskDue to the expansion of our international business activities, those modifications may increase our worldwide effective tax rate, create tax and compliance obligations in jurisdictions in which we previously had none and adversely affect our financial position.Risk factors (Item 1A)
New York telemarketing legislation
subject tonamed as a riskOur ability to attract new customers may be adversely affected by newly enacted laws that may prohibit certain sales and marketing activities, such as legislation passed in the State of New York, pursuant to which unsolicited telemarketing sales calls are prohibited.Risk factors (Item 1A)
Technology
Self-hosted products end-of-life
named as a riskFurther, we plan to end-of-life our self-hosted business as of December 31, 2026, which we expect to increase the uncertainty with our remaining term license customers going forward.Risk factors (Item 1A)