Varonis Reports Q3 Adjusted Earnings Per Share of 6 Cents, Exceeding Consensus of 5 Cents
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
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Q3 Financial Performance: Varonis reported Q3 revenue of $161.6 million, falling short of the consensus estimate of $166.2 million, while annual recurring revenue (ARR) reached $718.6 million, marking an 18% year-over-year increase.
Cash Reserves: As of September 30, 2025, the company held $1.1 billion in cash and cash equivalents, short-term deposits, and marketable securities.
SaaS Platform Demand: CEO Yaki Faitelson noted strong demand for their SaaS platform, which now constitutes 76% of total company ARR, driven by automated outcomes and customer interest in AI and cloud security.
Challenges in Renewals: The company faced lower renewals in the Federal sector and its non-Federal on-prem subscription business towards the end of the quarter, contributing to the revenue shortfall.
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Analyst Views on VRNS
Wall Street analysts forecast VRNS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VRNS is 52.18 USD with a low forecast of 37.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 34.210
Low
37.00
Averages
52.18
High
80.00
Current: 34.210
Low
37.00
Averages
52.18
High
80.00
About VRNS
Varonis Systems, Inc. is a data security company. The Company’s cloud-native data security platform discovers and classifies critical data, removes exposures, and detects advanced threats with artificial intelligence (AI)-powered automation. Varonis software enables enterprises of all sizes and industries to protect data stored in the cloud and on-premises, including sensitive files, emails and databases; confidential personal data belonging to customers, patients and employees; financial records; source code, strategic and product plans; and other intellectual property. Its SaaS product portfolio includes two product lines: its flagship Varonis Data Security Platform, which protects Microsoft 365, Windows file shares, Active Directory, Edge devices (VPN, DNS, proxy), UNIX/Linux and hybrid NAS storage, and DatAdvantage Cloud, which protects IaaS environments and SaaS applications, such as Salesforce, AWS, Azure, Google Cloud, Google Workspace, Databricks, ServiceNow, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Faruqi & Faruqi Investigates Potential Claims Against Varonis Systems
- Legal Investigation Initiated: Faruq & Faruqi, LLP is investigating potential claims against Varonis Systems, Inc., particularly for investors who purchased or acquired securities between February 4, 2025, and October 28, 2025, highlighting a commitment to protecting investor rights.
- Investor Rights Reminder: The firm reminds investors that March 9, 2026, is the deadline to seek the role of lead plaintiff in a federal securities class action, a time constraint that could affect investors' legal options and potential recoveries.
- Direct Contact Channels: Securities Litigation Partner Josh Wilson encourages affected investors to contact him directly, providing multiple contact numbers for consultations, demonstrating a commitment to client service and support.
- Potential Market Impact: This investigation may negatively impact Varonis's stock price, prompting investors to monitor subsequent legal developments to assess the risks and potential losses associated with their investments.
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Varonis Systems Faces Class Action Lawsuit
- Class Action Initiation: Robbins Geller law firm announces that investors who purchased Varonis Systems stock between February 4, 2025, and October 28, 2025, can apply to be lead plaintiffs in a class action lawsuit by March 9, 2026, reflecting significant investor concern over the company's financial transparency.
- Allegations Overview: The lawsuit alleges that Varonis and its executives violated the Securities Exchange Act of 1934 by making false representations regarding revenue outlook and growth expectations, which severely undermines investor confidence and could negatively impact stock performance.
- Performance Decline: On October 28, 2025, Varonis reported third-quarter results that fell significantly short of expectations and lowered its full-year guidance, with CEO Yakov Faitelson attributing the shortfall to decreased renewals in both federal and non-federal subscription businesses, leading to a nearly 49% drop in stock price.
- Legal Process Explanation: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Varonis stock during the class period can seek to be appointed as lead plaintiff, representing the interests of other investors, highlighting the legal mechanisms in place to protect investor rights.
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