Varonis Systems Stock Dives Nearly 11% on Earnings Miss and Acquisition News
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy VRNS?
Source: Yahoo Finance
- Earnings Shortfall: Varonis reported total revenue of $173.4 million for Q4 2025, a 9% year-over-year increase, yet net income plummeted by 53% to $11.1 million ($0.08 per share), starkly missing the expected $0.03 per share non-GAAP net income, which has shaken investor confidence.
- SaaS Growth Surge: Despite the disappointing overall performance, Varonis's key software-as-a-service (SaaS) revenue nearly doubled to over $142 million, indicating strong demand and market potential in the data security sector.
- Acquisition Announcement: Varonis disclosed its acquisition of private firm AllTrue.ai, focusing on AI trust, risk, and security management, although the undisclosed price raises investor concerns, this move is expected to bolster Varonis's competitive edge in the AI domain.
- Bleak Future Guidance: Varonis anticipates revenue of $722 million to $730 million for 2026, a 16% increase from 2025, but analysts expect adjusted earnings per share of $0.34, significantly higher than the company's forecast, reflecting market apprehension about its future performance.
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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: 26.530
Low
37.00
Averages
52.18
High
80.00
Current: 26.530
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.
Varonis Systems Q4 2025 Earnings Highlights
- SaaS Business Growth: Varonis reported a Q4 2025 SaaS ARR of $638.5 million, constituting 86% of total ARR, with a year-over-year increase of 32%, indicating strong market demand and customer conversion capabilities during its transition.
- Strategic Transition Decision: The company plans to fully phase out its self-hosted platform by the end of 2026, expecting to convert between $50 million to $75 million of ARR to SaaS, which will further solidify its leadership in the cloud security market.
- Acquisition of AllTrue: Varonis acquired AI security firm AllTrue to enhance its ability to address emerging AI risks and extend its platform to secure all AI systems and their data, demonstrating foresight in technological innovation and market adaptability.
- 2026 Outlook: The company projects total SaaS ARR of $805 million to $840 million for 2026, representing a growth rate of 26% to 32%, alongside expected free cash flow of $100 million to $105 million, reflecting confidence in future growth despite challenges from its non-SaaS business.
See More
Varonis Systems Stock Plummets After Earnings Miss
- Earnings Report Miss: Varonis reported nearly $173.4 million in total revenue for Q4 2025, a 9% year-over-year increase, but net income plummeted 53% to $11.1 million ($0.08 per share), falling short of analysts' expectations of $0.03 per share, resulting in an 11% drop in stock price.
- SaaS Revenue Surge: Despite the disappointing overall performance, Varonis's key software-as-a-service (SaaS) offerings saw revenue nearly double to over $142 million, indicating strong demand in the data security sector that could lay the groundwork for future growth.
- Acquisition Announcement: Varonis announced its acquisition of privately held AllTrue.ai, although the price remains undisclosed; this company focuses on AI trust, risk, and security management, which is expected to enhance Varonis's competitive edge in the AI space.
- Cautious Future Outlook: Varonis anticipates total revenue between $722 million and $730 million for 2026, a 16% increase from 2025, but analysts expect adjusted earnings per share of $0.34, reflecting market skepticism about its future performance.
See More
Varonis Systems Stock Dives Nearly 11% on Earnings Miss and Acquisition News
- Earnings Shortfall: Varonis reported total revenue of $173.4 million for Q4 2025, a 9% year-over-year increase, yet net income plummeted by 53% to $11.1 million ($0.08 per share), starkly missing the expected $0.03 per share non-GAAP net income, which has shaken investor confidence.
- SaaS Growth Surge: Despite the disappointing overall performance, Varonis's key software-as-a-service (SaaS) revenue nearly doubled to over $142 million, indicating strong demand and market potential in the data security sector.
- Acquisition Announcement: Varonis disclosed its acquisition of private firm AllTrue.ai, focusing on AI trust, risk, and security management, although the undisclosed price raises investor concerns, this move is expected to bolster Varonis's competitive edge in the AI domain.
- Bleak Future Guidance: Varonis anticipates revenue of $722 million to $730 million for 2026, a 16% increase from 2025, but analysts expect adjusted earnings per share of $0.34, significantly higher than the company's forecast, reflecting market apprehension about its future performance.
See More
Notice to Varonis Systems Shareholders Regarding Class Action
- Lawsuit Background: The Gross Law Firm has issued a notice to shareholders of Varonis Systems, Inc. (NASDAQ: VRNS), encouraging those who purchased shares during the class period from February 4, 2025, to October 28, 2025, to contact the firm regarding potential lead plaintiff appointment.
- False Statement Allegations: The complaint alleges that Varonis provided overwhelmingly positive statements to investors while concealing its inability to effectively convert existing customers to its SaaS offering, resulting in significantly reduced annual recurring revenue (ARR) growth potential.
- Financial Performance Miss: On October 28, 2025, Varonis announced its third-quarter financial results, revealing a significant miss in ARR and lowering its full-year 2025 guidance due to weaker-than-expected renewals and conversions in its subscription business.
- Stock Price Plunge: Following the adverse news, Varonis' stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 per share on October 29, 2025, marking a dramatic decline of approximately 48.67% in just one day, resulting in substantial losses for investors.
See More
Varonis Systems Faces Class Action Lawsuit Over Securities Fraud
- Class Action Notification: Levi & Korsinsky, LLP has initiated a class action lawsuit against Varonis Systems, Inc. to recover losses for investors affected by alleged securities fraud between February 4, 2025, and October 28, 2025, highlighting serious concerns regarding the company's integrity.
- Financial Performance Miss: Varonis reported disappointing third-quarter results for 2025, significantly missing its Annual Recurring Revenue (ARR) targets and lowering its full-year guidance, indicating struggles with customer renewals and conversions that have shaken investor confidence.
- Stock Price Plunge: Following the release of its poor financial results, Varonis' stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 on October 29, representing a staggering 48.67% drop in just one day, reflecting severe investor concerns about the company's future.
- Layoffs and Product Termination: The company announced the discontinuation of its self-hosted solution and a 5% workforce reduction, raising further doubts about the sustainability of its business model and potentially impacting its long-term growth prospects.
See More
Faruqi & Faruqi Investigates Varonis Securities Litigation
- Legal Investigation: Faruq & Faruqi LLP is investigating potential claims against Varonis Systems, Inc. due to misleading statements made between February 4, 2025, and October 28, 2025, which may have led investors to purchase securities at artificially inflated prices, resulting in significant losses.
- Financial Performance Decline: Varonis reported third-quarter results on October 28, 2025, revealing a significant miss in annual recurring revenue (ARR) and lowering its full-year guidance, reflecting weak customer renewals and conversions that directly impacted market confidence in the company.
- Stock Price Plunge: Following the unfavorable earnings report, Varonis's stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 per share on October 29, 2025, marking a decline of approximately 48.67%, which inflicted severe financial damage on investors.
- Investor Rights Protection: Faruq & Faruqi reminds investors that March 9 is the deadline to apply for lead plaintiff status in the federal securities class action, encouraging affected investors to contact the firm to discuss their legal rights and options.
See More
Varonis Systems Q4 2025 Earnings Highlights
- SaaS Business Growth: Varonis reported a Q4 2025 SaaS ARR of $638.5 million, constituting 86% of total ARR, with a year-over-year increase of 32%, indicating strong market demand and customer conversion capabilities during its transition.
- Strategic Transition Decision: The company plans to fully phase out its self-hosted platform by the end of 2026, expecting to convert between $50 million to $75 million of ARR to SaaS, which will further solidify its leadership in the cloud security market.
- Acquisition of AllTrue: Varonis acquired AI security firm AllTrue to enhance its ability to address emerging AI risks and extend its platform to secure all AI systems and their data, demonstrating foresight in technological innovation and market adaptability.
- 2026 Outlook: The company projects total SaaS ARR of $805 million to $840 million for 2026, representing a growth rate of 26% to 32%, alongside expected free cash flow of $100 million to $105 million, reflecting confidence in future growth despite challenges from its non-SaaS business.
See More
Varonis Systems Stock Plummets After Earnings Miss
- Earnings Report Miss: Varonis reported nearly $173.4 million in total revenue for Q4 2025, a 9% year-over-year increase, but net income plummeted 53% to $11.1 million ($0.08 per share), falling short of analysts' expectations of $0.03 per share, resulting in an 11% drop in stock price.
- SaaS Revenue Surge: Despite the disappointing overall performance, Varonis's key software-as-a-service (SaaS) offerings saw revenue nearly double to over $142 million, indicating strong demand in the data security sector that could lay the groundwork for future growth.
- Acquisition Announcement: Varonis announced its acquisition of privately held AllTrue.ai, although the price remains undisclosed; this company focuses on AI trust, risk, and security management, which is expected to enhance Varonis's competitive edge in the AI space.
- Cautious Future Outlook: Varonis anticipates total revenue between $722 million and $730 million for 2026, a 16% increase from 2025, but analysts expect adjusted earnings per share of $0.34, reflecting market skepticism about its future performance.
See More
Varonis Systems Stock Dives Nearly 11% on Earnings Miss and Acquisition News
- Earnings Shortfall: Varonis reported total revenue of $173.4 million for Q4 2025, a 9% year-over-year increase, yet net income plummeted by 53% to $11.1 million ($0.08 per share), starkly missing the expected $0.03 per share non-GAAP net income, which has shaken investor confidence.
- SaaS Growth Surge: Despite the disappointing overall performance, Varonis's key software-as-a-service (SaaS) revenue nearly doubled to over $142 million, indicating strong demand and market potential in the data security sector.
- Acquisition Announcement: Varonis disclosed its acquisition of private firm AllTrue.ai, focusing on AI trust, risk, and security management, although the undisclosed price raises investor concerns, this move is expected to bolster Varonis's competitive edge in the AI domain.
- Bleak Future Guidance: Varonis anticipates revenue of $722 million to $730 million for 2026, a 16% increase from 2025, but analysts expect adjusted earnings per share of $0.34, significantly higher than the company's forecast, reflecting market apprehension about its future performance.
See More
Notice to Varonis Systems Shareholders Regarding Class Action
- Lawsuit Background: The Gross Law Firm has issued a notice to shareholders of Varonis Systems, Inc. (NASDAQ: VRNS), encouraging those who purchased shares during the class period from February 4, 2025, to October 28, 2025, to contact the firm regarding potential lead plaintiff appointment.
- False Statement Allegations: The complaint alleges that Varonis provided overwhelmingly positive statements to investors while concealing its inability to effectively convert existing customers to its SaaS offering, resulting in significantly reduced annual recurring revenue (ARR) growth potential.
- Financial Performance Miss: On October 28, 2025, Varonis announced its third-quarter financial results, revealing a significant miss in ARR and lowering its full-year 2025 guidance due to weaker-than-expected renewals and conversions in its subscription business.
- Stock Price Plunge: Following the adverse news, Varonis' stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 per share on October 29, 2025, marking a dramatic decline of approximately 48.67% in just one day, resulting in substantial losses for investors.
See More
Varonis Systems Faces Class Action Lawsuit Over Securities Fraud
- Class Action Notification: Levi & Korsinsky, LLP has initiated a class action lawsuit against Varonis Systems, Inc. to recover losses for investors affected by alleged securities fraud between February 4, 2025, and October 28, 2025, highlighting serious concerns regarding the company's integrity.
- Financial Performance Miss: Varonis reported disappointing third-quarter results for 2025, significantly missing its Annual Recurring Revenue (ARR) targets and lowering its full-year guidance, indicating struggles with customer renewals and conversions that have shaken investor confidence.
- Stock Price Plunge: Following the release of its poor financial results, Varonis' stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 on October 29, representing a staggering 48.67% drop in just one day, reflecting severe investor concerns about the company's future.
- Layoffs and Product Termination: The company announced the discontinuation of its self-hosted solution and a 5% workforce reduction, raising further doubts about the sustainability of its business model and potentially impacting its long-term growth prospects.
See More
Faruqi & Faruqi Investigates Varonis Securities Litigation
- Legal Investigation: Faruq & Faruqi LLP is investigating potential claims against Varonis Systems, Inc. due to misleading statements made between February 4, 2025, and October 28, 2025, which may have led investors to purchase securities at artificially inflated prices, resulting in significant losses.
- Financial Performance Decline: Varonis reported third-quarter results on October 28, 2025, revealing a significant miss in annual recurring revenue (ARR) and lowering its full-year guidance, reflecting weak customer renewals and conversions that directly impacted market confidence in the company.
- Stock Price Plunge: Following the unfavorable earnings report, Varonis's stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 per share on October 29, 2025, marking a decline of approximately 48.67%, which inflicted severe financial damage on investors.
- Investor Rights Protection: Faruq & Faruqi reminds investors that March 9 is the deadline to apply for lead plaintiff status in the federal securities class action, encouraging affected investors to contact the firm to discuss their legal rights and options.
See More
