Varonis Faces Class Action Lawsuit After 48.7% Stock Drop Due to Poor Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: Businesswire
- Performance Decline: Varonis reported Q3 2025 revenues that missed expectations, with a staggering 63.9% year-over-year drop in annual subscription revenues, indicating significant challenges in sustaining ARR growth and directly impacting investor confidence.
- Stock Plunge: Following the disappointing results, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025, resulting in substantial losses for investors.
- Legal Action: The company faces a class action lawsuit alleging it failed to disclose material adverse facts about its business and prospects, prompting investors to consider participation in the lawsuit to protect their rights, highlighting serious concerns over corporate transparency.
- Management Issues: Management acknowledged that sales process issues contributed to a lower renewal rate for subscriptions, exacerbating fears about the company's future growth and reflecting potential flaws in internal management practices.
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 57.61 USD with a low forecast of 40.00 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.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 35.750
Low
40.00
Averages
57.61
High
80.00
Current: 35.750
Low
40.00
Averages
57.61
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.
