VARONIS SYSTEMS INC Fair Value Disclosure
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Level I | Level II | Level III | Level I | Level II | Level III | ||||||||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||||||||
| Cash equivalents: | |||||||||||||||||||||||||||||||||||
| Money market funds | $ | 120,155 | $ | — | $ | — | $ | 133,113 | $ | — | $ | — | |||||||||||||||||||||||
| Marketable securities: | |||||||||||||||||||||||||||||||||||
| US Treasury securities | — | 681,225 | — | — | 343,383 | — | |||||||||||||||||||||||||||||
| Prepaid expenses and other short-term assets: | |||||||||||||||||||||||||||||||||||
| Forward foreign exchange contracts | — | 21,605 | — | — | 8,099 | — | |||||||||||||||||||||||||||||
| Long-term marketable securities: | |||||||||||||||||||||||||||||||||||
| US Treasury securities | — | 187,202 | — | — | 658,896 | — | |||||||||||||||||||||||||||||
| Long-term other assets: | |||||||||||||||||||||||||||||||||||
| Forward foreign exchange contracts | — | 6,465 | — | — | 3,083 | — | |||||||||||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||||||||
| Accrued expenses and other short-term liabilities: | |||||||||||||||||||||||||||||||||||
| Forward foreign exchange contracts | — | (2,515) | — | — | (2,902) | — | |||||||||||||||||||||||||||||
| Long-term other liabilities: | |||||||||||||||||||||||||||||||||||
| Forward foreign exchange contracts | — | (1,691) | — | — | — | — | |||||||||||||||||||||||||||||
| Total financial assets, net | $ | 120,155 | $ | 892,291 | $ | — | $ | 133,113 | $ | 1,010,559 | $ | — | |||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 4, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2020 | Feb 9, 2021 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.