Veracode

Veracode scans application code for security flaws, sold mostly to regulated enterprises.

Veracode still holds its regulated-enterprise customers, but shrinking headcount, PE ownership, and AI-native rivals are testing how long that lasts.

Veracode is a software that finds security problems in computer code before it goes live, mainly selling to big banks and regulated companies that need to prove their code is safe to auditors. Right now it is hard to replace because it works across many types of code and fits into strict audit requirements, but Microsoft's GitHub tool and new AI-powered competitors like Snyk and Cycode are building similar features and may be catching up. The company has cut its staff in half since 2023 while claiming sales are growing, which suggests the owners (a private equity firm) might be preparing to sell it in the next few years, and if Microsoft makes its compliance features as strong as Veracode's, Veracode's main advantage could disappear.

• TA Associates bought majority stake at $2.5B (2022-03-15)
• Headcount fell 35%, 788 to 512 staff (2026-06-29)
• Q4 2025 new ACV grew 81% year over year (2026-02-05)

• PE ownership (TA Associates, Thoma Bravo) makes a sale, recap, or leveraged exit likely within 3 to 5 years, uncertain employee equity outcome. Severity: high
• Headcount fell ~35% from 2023 to 2025 alongside claimed 81% ACV growth, an unexplained divergence. Severity: medium
• AI-native AppSec entrants offering real-time IDE feedback and lower false positives could erode developer-facing market share. Severity: high
• GitHub Advanced Security adding bank-grade compliance/governance workflows could narrow Veracode's core regulatory moat. Severity: high
• No confirmed audited financials; growth and profitability claims rest on company press releases, not independent verification. Severity: medium

Is Veracode profitable in 2026?

Veracode is private and does not disclose audited financials. Third-party estimates place revenue between $100M and $500M. The company itself reported 81% year-over-year growth in new Annual Contract Value for Q4 2025, per its February 5, 2026 press release, but no profit figures are public.

Who owns Veracode?

TA Associates took majority ownership of Veracode in March 2022 in a growth investment valuing the company at $2.5 billion, with prior owner Thoma Bravo retaining a minority stake. Veracode was previously owned by Broadcom and, before that, CA Technologies since 2017.

Could AI replace Veracode's product?

Not entirely as of 2026. Veracode's binary/bytecode SAST method and two decades of proprietary scan data (420 trillion lines processed in 2025 per its own report) give it a compliance-friendly moat, but AI-native rivals like Cycode, Endor Labs, and Corgea are actively marketed as faster alternatives.

Who is Veracode's biggest competitor?

Veracode faces GitHub Advanced Security (Microsoft) and OpenText's Fortify as incumbent-scale rivals, plus Checkmarx, which as of June 2026 marketed itself as outperforming Veracode's 'legacy' binary-compilation SAST workflow, and AI-native entrants like Cycode and Snyk.

Will Veracode go public (IPO)?

No IPO has occurred. Veracode reportedly prepared for one in 2015 but did not proceed, per Wikipedia. It has instead changed private owners three times since 2017 (CA, Broadcom, Thoma Bravo, then TA Associates in March 2022), making another private exit more likely than an IPO.

How much did Veracode's ACV grow in 2025?

Veracode reported that its new Annual Contract Value grew 81% year-over-year in Q4 2025, with more than 130 new customers added in that quarter alone, according to its own February 5, 2026 press release; this is a company-reported figure, not independently audited.

• 2026-03-24Veracode publishes Spring 2026 GenAI Code Security Update testing 150+ LLMs
• 2026-02-05Veracode reports 81% YoY ACV growth, 130+ new Q4 2025 customers, Leader rankings
• 2025-01-06Veracode acquires Phylum Inc's SCA malicious-package detection technology
• 2024-04-01Veracode acquires Longbow Security; Brian Roche becomes CEO
• 2022-03-15TA Associates takes majority stake at $2.5B valuation, Thoma Bravo keeps minority
• 2018-11Broadcom acquires CA Technologies; Thoma Bravo agrees to buy Veracode for $950M
• 2017-03-07CA Technologies announces acquisition of Veracode for approximately $614M
• 2006-01Veracode founded by Chris Wysopal and Christien Rioux, ex-@stake/L0pht researchers

• Veracode Announces Significant Growth Investment from TA Associates (2022-03-15)
• Veracode Closes Record Year of Growth and Innovation Amid Surging Demand for Application Risk Management (2026-02-05)
• Veracode Number of Employees 2026 (2026-06-29)
• Thoma Bravo To Buy Veracode From Broadcom For $950 Million
• Spring 2026 GenAI Code Security Update (2026-03-24)
• CA to acquire security testing firm Veracode for $614M (2017-03-07)
• Advancing Cloud-Native Application Security (2024-04-01)
• Veracode Acquires Phylum (2025-01-06)
• State of Software Security Report 2026 (2026-07-09)