Varonis Systems Faces Securities Class Action Lawsuit Over Revenue Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy VRNS?
Source: PRnewswire
- Significant Revenue Decline: Varonis Systems disclosed a staggering 63.9% year-over-year decline in term license revenue on October 28, 2025, indicating that its transition to a Software-as-a-Service (SaaS) model is lagging behind expectations, which has severely impacted investor confidence.
- Stock Price Crash: Following the revenue drop, Varonis's stock plummeted 48% in a single day, erasing approximately $3.8 billion in market value, reflecting deep concerns about the company's future growth potential in the eyes of investors.
- Legal Action Initiated: Hagens Berman law firm has filed a securities class action lawsuit against Varonis and certain executives, alleging that they failed to disclose significant renewal softness in its Federal vertical and legacy business, potentially violating federal securities laws.
- Investor Action Urged: The law firm is urging investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered losses to submit their information promptly to participate in the lawsuit and seek compensation.
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Analyst Views on VRNS
Wall Street analysts forecast VRNS stock price to rise
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 21.080
Low
37.00
Averages
52.18
High
80.00
Current: 21.080
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.
Analysis of Insider Buying in Cybersecurity ETF
- Significant Insider Buying: The iShares Cybersecurity and Tech ETF (Symbol: IHAK) shows that 12.1% of its holdings have experienced insider buying in the past six months, indicating strong confidence from executives that could positively influence investor sentiment.
- Varonis Systems Activity: Varonis Systems, Inc (Symbol: VRNS), comprising 3.42% of the ETF, has seen 4 directors and officers purchase shares in the last six months, suggesting optimism about the company's future performance, which may attract more investor interest.
- Tenable Buying Trends: Tenable Holdings Inc (Symbol: TENB), the 16th largest holding in the ETF, with $23,369,067 worth of shares, recently had 2 directors and officers file purchase reports, reflecting internal recognition of the company's value that could bolster market confidence.
- ETF Asset Allocation: With total assets of $24,117,375, the insider buying activities of VRNS and TENB may enhance the overall attractiveness of the iShares Cybersecurity and Tech ETF, potentially driving fund inflows and strengthening its market position.
See More
Varonis Systems Faces Securities Class Action Lawsuit Over Revenue Decline
- Significant Revenue Decline: Varonis Systems disclosed a staggering 63.9% year-over-year decline in term license revenue on October 28, 2025, indicating that its transition to a Software-as-a-Service (SaaS) model is lagging behind expectations, which has severely impacted investor confidence.
- Stock Price Crash: Following the revenue drop, Varonis's stock plummeted 48% in a single day, erasing approximately $3.8 billion in market value, reflecting deep concerns about the company's future growth potential in the eyes of investors.
- Legal Action Initiated: Hagens Berman law firm has filed a securities class action lawsuit against Varonis and certain executives, alleging that they failed to disclose significant renewal softness in its Federal vertical and legacy business, potentially violating federal securities laws.
- Investor Action Urged: The law firm is urging investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered losses to submit their information promptly to participate in the lawsuit and seek compensation.
See More
Reminder of Class Action for Varonis Systems Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, that they must apply to be lead plaintiff by March 9, 2026, or risk losing their right to compensation.
- Fee Arrangement: Investors participating in the class action will not incur any upfront costs, as the law firm operates on a contingency fee basis, allowing investors to seek compensation without financial burden, thus lowering the barrier to participation in the lawsuit.
- Lawsuit Background: The lawsuit alleges that Varonis failed to disclose challenges in transitioning existing customers to a software-as-a-service (SaaS) model, resulting in investor losses when the truth emerged, highlighting uncertainties and potential risks in the company's business transformation.
- Law Firm's Strength: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification: Hagens Berman law firm is notifying Varonis Systems (NASDAQ: VRNS) investors that March 9 will be the lead plaintiff deadline for a pending securities class action lawsuit against the company and its executives, urging investors to submit their losses promptly.
- Revenue Decline: On October 28, 2025, Varonis disclosed difficulties in its transition to a SaaS model, resulting in a 63.9% year-over-year decline in term license revenue and a significant reduction in ARR guidance, directly impacting the company's stock price.
- Stock Price Crash: Following this disclosure, VRNS shares plummeted from $63.00 to $32.34, representing a 48% single-day drop and erasing approximately $3.8 billion in market value, severely harming shareholder interests.
- Transition Challenges: The lawsuit alleges that Varonis executives failed to disclose the renewal softness in its Federal vertical and legacy on-premises business, despite previously claiming significant progress in transitioning to a SaaS model.
See More
Class Action Lawsuits Filed for Multiple Companies
- Class Action Notification: The Law Offices of Frank R. Cruz remind investors of class action lawsuits filed against agilon health, inc., Fermi Inc., Varonis Systems, Inc., and Ardent Health, Inc., urging investors to file lead plaintiff motions by the specified deadlines to protect their rights.
- agilon health Lawsuit Details: The lawsuit alleges that agilon made materially false statements regarding its 2025 financial guidance, failing to disclose industry headwinds, which misled investors about the company's prospects, with a lead plaintiff deadline of March 2, 2026.
- Fermi Inc. Lawsuit Issues: Fermi's lawsuit claims that the company overstated tenant demand and failed to disclose significant risks regarding funding commitments for its Project Matador, leading to misleading positive statements about its operations, with a lead plaintiff deadline of March 6, 2026.
- Varonis and Ardent Allegations: Varonis is accused of being unable to sustain its annual recurring revenue growth, while Ardent faces allegations of failing to accurately assess the collectability of accounts receivable, with lead plaintiff deadlines for both companies set for March 9, 2026.
See More
American Capital Management Increases Stake in Varonis Systems
- Stake Increase: American Capital Management increased its stake in Varonis Systems by 137,233 shares during Q4 2025, valued at approximately $5.76 million, indicating confidence in the company's future despite a 42.7% decline in stock price over the past year.
- Asset Allocation Shift: This increase brings Varonis to 2.18% of American Capital's 13F reportable assets, highlighting its significance in the investment portfolio, although other holdings still dominate the overall asset management.
- Market Performance Analysis: Varonis's stock has dropped 42.74% over the past year and nearly 28% year-to-date in 2026, suggesting a pessimistic market outlook despite Q4 revenue and earnings exceeding analyst expectations.
- Strategic Transformation Outlook: Varonis aims to drive revenue and earnings growth in 2026 through AI data integrations and a shift to a higher-margin cloud-based Software as a Service (SaaS) model, although it faces competition from AI agents and legal challenges from investor lawsuits.
See More
Analysis of Insider Buying in Cybersecurity ETF
- Significant Insider Buying: The iShares Cybersecurity and Tech ETF (Symbol: IHAK) shows that 12.1% of its holdings have experienced insider buying in the past six months, indicating strong confidence from executives that could positively influence investor sentiment.
- Varonis Systems Activity: Varonis Systems, Inc (Symbol: VRNS), comprising 3.42% of the ETF, has seen 4 directors and officers purchase shares in the last six months, suggesting optimism about the company's future performance, which may attract more investor interest.
- Tenable Buying Trends: Tenable Holdings Inc (Symbol: TENB), the 16th largest holding in the ETF, with $23,369,067 worth of shares, recently had 2 directors and officers file purchase reports, reflecting internal recognition of the company's value that could bolster market confidence.
- ETF Asset Allocation: With total assets of $24,117,375, the insider buying activities of VRNS and TENB may enhance the overall attractiveness of the iShares Cybersecurity and Tech ETF, potentially driving fund inflows and strengthening its market position.
See More
Varonis Systems Faces Securities Class Action Lawsuit Over Revenue Decline
- Significant Revenue Decline: Varonis Systems disclosed a staggering 63.9% year-over-year decline in term license revenue on October 28, 2025, indicating that its transition to a Software-as-a-Service (SaaS) model is lagging behind expectations, which has severely impacted investor confidence.
- Stock Price Crash: Following the revenue drop, Varonis's stock plummeted 48% in a single day, erasing approximately $3.8 billion in market value, reflecting deep concerns about the company's future growth potential in the eyes of investors.
- Legal Action Initiated: Hagens Berman law firm has filed a securities class action lawsuit against Varonis and certain executives, alleging that they failed to disclose significant renewal softness in its Federal vertical and legacy business, potentially violating federal securities laws.
- Investor Action Urged: The law firm is urging investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered losses to submit their information promptly to participate in the lawsuit and seek compensation.
See More
Reminder of Class Action for Varonis Systems Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, that they must apply to be lead plaintiff by March 9, 2026, or risk losing their right to compensation.
- Fee Arrangement: Investors participating in the class action will not incur any upfront costs, as the law firm operates on a contingency fee basis, allowing investors to seek compensation without financial burden, thus lowering the barrier to participation in the lawsuit.
- Lawsuit Background: The lawsuit alleges that Varonis failed to disclose challenges in transitioning existing customers to a software-as-a-service (SaaS) model, resulting in investor losses when the truth emerged, highlighting uncertainties and potential risks in the company's business transformation.
- Law Firm's Strength: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification: Hagens Berman law firm is notifying Varonis Systems (NASDAQ: VRNS) investors that March 9 will be the lead plaintiff deadline for a pending securities class action lawsuit against the company and its executives, urging investors to submit their losses promptly.
- Revenue Decline: On October 28, 2025, Varonis disclosed difficulties in its transition to a SaaS model, resulting in a 63.9% year-over-year decline in term license revenue and a significant reduction in ARR guidance, directly impacting the company's stock price.
- Stock Price Crash: Following this disclosure, VRNS shares plummeted from $63.00 to $32.34, representing a 48% single-day drop and erasing approximately $3.8 billion in market value, severely harming shareholder interests.
- Transition Challenges: The lawsuit alleges that Varonis executives failed to disclose the renewal softness in its Federal vertical and legacy on-premises business, despite previously claiming significant progress in transitioning to a SaaS model.
See More
Class Action Lawsuits Filed for Multiple Companies
- Class Action Notification: The Law Offices of Frank R. Cruz remind investors of class action lawsuits filed against agilon health, inc., Fermi Inc., Varonis Systems, Inc., and Ardent Health, Inc., urging investors to file lead plaintiff motions by the specified deadlines to protect their rights.
- agilon health Lawsuit Details: The lawsuit alleges that agilon made materially false statements regarding its 2025 financial guidance, failing to disclose industry headwinds, which misled investors about the company's prospects, with a lead plaintiff deadline of March 2, 2026.
- Fermi Inc. Lawsuit Issues: Fermi's lawsuit claims that the company overstated tenant demand and failed to disclose significant risks regarding funding commitments for its Project Matador, leading to misleading positive statements about its operations, with a lead plaintiff deadline of March 6, 2026.
- Varonis and Ardent Allegations: Varonis is accused of being unable to sustain its annual recurring revenue growth, while Ardent faces allegations of failing to accurately assess the collectability of accounts receivable, with lead plaintiff deadlines for both companies set for March 9, 2026.
See More
American Capital Management Increases Stake in Varonis Systems
- Stake Increase: American Capital Management increased its stake in Varonis Systems by 137,233 shares during Q4 2025, valued at approximately $5.76 million, indicating confidence in the company's future despite a 42.7% decline in stock price over the past year.
- Asset Allocation Shift: This increase brings Varonis to 2.18% of American Capital's 13F reportable assets, highlighting its significance in the investment portfolio, although other holdings still dominate the overall asset management.
- Market Performance Analysis: Varonis's stock has dropped 42.74% over the past year and nearly 28% year-to-date in 2026, suggesting a pessimistic market outlook despite Q4 revenue and earnings exceeding analyst expectations.
- Strategic Transformation Outlook: Varonis aims to drive revenue and earnings growth in 2026 through AI data integrations and a shift to a higher-margin cloud-based Software as a Service (SaaS) model, although it faces competition from AI agents and legal challenges from investor lawsuits.
See More
