Varonis Systems (VRNS) Shareholders File Class Action After 48.67% Stock Drop in One Day
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Class Action Notice: The Gross Law Firm has issued a notice to shareholders of Varonis Systems (NASDAQ: VRNS), encouraging those who purchased shares between February 4, 2025, and October 28, 2025, to contact them for potential lead plaintiff appointment, indicating significant legal risks for the company.
- Financial Performance Miss: Varonis significantly lowered its annual recurring revenue (ARR) guidance in its Q3 2025 report, primarily due to weaker-than-expected customer renewals and conversions, highlighting challenges in transitioning to a SaaS model and impacting future growth potential.
- Stock Price Volatility: On October 28, 2025, Varonis' stock plummeted from $63.00 to $32.34 per share, a dramatic 48.67% drop in a single day, reflecting strong market concerns about the company's outlook and potentially eroding investor confidence.
- Layoffs and Product Termination: The company announced the end of its self-hosted solution and a 5% workforce reduction, indicating urgency in adjusting its business strategy to address market challenges, which may affect employee morale and operational efficiency.
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: 32.580
Low
37.00
Averages
52.18
High
80.00
Current: 32.580
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.








