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
0mins
Should l Buy VRNS?
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
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 24.180
Low
37.00
Averages
52.18
High
80.00
Current: 24.180
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.
Greenvale Capital Fully Liquidates Varonis Position
- Liquidation Trade: On February 17, 2026, Greenvale Capital disclosed to the SEC that it fully liquidated its position in Varonis Systems, amounting to approximately $99.14 million, indicating a pessimistic outlook on the company's future prospects.
- Holding Change: This transaction reduced Greenvale's Varonis holdings from 1.725 million shares to zero, previously constituting 7.8% of its assets under management, reflecting a significant decline in confidence regarding the company's performance.
- Performance Decline: Varonis's stock price fell 40% over the past year, closing at $25.36 on February 13, 2026, significantly underperforming the S&P 500's roughly 20% gain during the same period, indicating a lack of competitiveness in the market.
- Portfolio Repositioning: Greenvale's current top holdings include high-growth companies like Sunrun, Zeta Global, and Okta, suggesting a strategic shift towards investments with greater growth potential to counter Varonis's poor performance.
See More
Greenvale Capital Exits Entire Varonis Holdings
- Complete Liquidation: Greenvale Capital exited its entire position in Varonis Systems by selling 1,725,000 shares in Q4, resulting in a $99.14 million decline in position value, marking a significant shift as the stake dropped from 7.8% to 0% of fund AUM.
- Severe Market Reaction: Varonis's stock plummeted nearly 50% in a single day after management revealed that the transition to a subscription and SaaS model would take longer than expected, effectively erasing two years of stock gains and highlighting market sensitivity to growth expectations.
- Weak Revenue Growth: Despite reporting a 16% increase in annual recurring revenues and full-year revenue rising from $551 million to $623.5 million, Varonis's performance has not met investor expectations for robust growth, leading to a decline in investor confidence.
- Portfolio Restructuring: Greenvale Capital is shifting its focus towards other high-growth software and energy transition companies like Zeta Global and Okta, which have shown relatively stable market performance, indicating a reassessment of future growth potential within the fund's investment strategy.
See More
Tremblant Capital Increases Stake in Varonis Systems
- Stake Increase: Tremblant Capital Group increased its stake in Varonis Systems by 3,058,524 shares in Q4 2025, with an estimated trade value of $128.40 million, indicating confidence in the company's growth potential.
- Quarter-End Position Value: As of December 31, 2025, Tremblant's position in Varonis was valued at $115.12 million, reflecting a net increase of $89.19 million due to both stock price appreciation and additional share purchases.
- Revenue Growth Trend: Varonis generated approximately $623.5 million in revenue for 2025, a 13% year-over-year increase, while annual recurring revenue reached about $745 million, showcasing the company's potential in transitioning to a SaaS model.
- Market Reaction and Investor Confidence: Despite a nearly 50% stock price drop last year due to lowered full-year guidance, Tremblant's stake increase signals investor confidence in Varonis's long-term growth prospects, particularly amid rising demand for data security solutions.
See More
Tremblant Capital Increases Stake in Varonis Systems
- Share Acquisition: On February 17, 2026, Tremblant Capital Group disclosed the acquisition of 3,058,524 shares of Varonis Systems, with an estimated transaction value of approximately $128.40 million, indicating confidence in the company's future.
- Ownership Proportion: Following this acquisition, Varonis represented 2.94% of Tremblant Capital's 13F reportable assets, highlighting its significance within the investment portfolio.
- Market Performance: As of February 17, 2026, Varonis shares were priced at $25.32, down about 40% over the past year, significantly lagging behind the S&P 500's roughly 20% gain during the same period, reflecting market concerns about its growth prospects.
- Revenue Growth: Despite challenges, Varonis generated approximately $623.5 million in revenue in 2025, a 13% year-over-year increase, while annual recurring revenue reached about $745 million, indicating the potential of its transition to a SaaS model.
See More
Class Action Lawsuits Filed Against Varonis and Ardent Health
- Varonis Lawsuit Overview: Shareholders of Varonis Systems, Inc. are facing losses from February 4 to October 28, 2025, due to the company's failure to disclose its ability to sustain growth, leading to a misunderstanding of its prospects, with a class action deadline of March 9, 2026.
- Ardent Lawsuit Details: Similarly, shareholders of Ardent Health, Inc. from July 18, 2024, to November 12, 2025, encountered issues as the company misrepresented the collectability of accounts receivable, resulting in a misjudgment of its financial health, with the same class action deadline of March 9, 2026.
- Legal Consultation Advice: The Law Offices of Frank R. Cruz remind investors who suffered losses during the specified periods to contact the firm to understand their legal rights, providing contact details including phone and email.
- Class Action Participation Note: Investors need not take immediate action to be part of the class action, and the law firm offers various contact methods for shareholders to obtain more information and consultation.
See More
Varonis Systems Faces Class Action Lawsuit Reminder
- Class Action Notice: The Schall Law Firm reminds investors of a class action lawsuit against Varonis Systems for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between February 4 and October 28, 2025.
- False Statement Allegations: The complaint alleges that Varonis made overly optimistic claims about its ability to convert existing customers to its SaaS offering, while struggling to persuade customers to switch, thereby reducing opportunities for annual recurring revenue growth.
- Investor Losses: As the market learned the truth about Varonis, investors suffered damages, indicating that the company's public statements were false and materially misleading throughout the class period.
- Legal Consultation Opportunity: The Schall Law Firm encourages affected investors to contact them before March 9, 2026, to discuss their rights and participate in the lawsuit, noting that the class has not yet been certified, meaning investors are not represented by an attorney until then.
See More
Greenvale Capital Fully Liquidates Varonis Position
- Liquidation Trade: On February 17, 2026, Greenvale Capital disclosed to the SEC that it fully liquidated its position in Varonis Systems, amounting to approximately $99.14 million, indicating a pessimistic outlook on the company's future prospects.
- Holding Change: This transaction reduced Greenvale's Varonis holdings from 1.725 million shares to zero, previously constituting 7.8% of its assets under management, reflecting a significant decline in confidence regarding the company's performance.
- Performance Decline: Varonis's stock price fell 40% over the past year, closing at $25.36 on February 13, 2026, significantly underperforming the S&P 500's roughly 20% gain during the same period, indicating a lack of competitiveness in the market.
- Portfolio Repositioning: Greenvale's current top holdings include high-growth companies like Sunrun, Zeta Global, and Okta, suggesting a strategic shift towards investments with greater growth potential to counter Varonis's poor performance.
See More
Greenvale Capital Exits Entire Varonis Holdings
- Complete Liquidation: Greenvale Capital exited its entire position in Varonis Systems by selling 1,725,000 shares in Q4, resulting in a $99.14 million decline in position value, marking a significant shift as the stake dropped from 7.8% to 0% of fund AUM.
- Severe Market Reaction: Varonis's stock plummeted nearly 50% in a single day after management revealed that the transition to a subscription and SaaS model would take longer than expected, effectively erasing two years of stock gains and highlighting market sensitivity to growth expectations.
- Weak Revenue Growth: Despite reporting a 16% increase in annual recurring revenues and full-year revenue rising from $551 million to $623.5 million, Varonis's performance has not met investor expectations for robust growth, leading to a decline in investor confidence.
- Portfolio Restructuring: Greenvale Capital is shifting its focus towards other high-growth software and energy transition companies like Zeta Global and Okta, which have shown relatively stable market performance, indicating a reassessment of future growth potential within the fund's investment strategy.
See More
Tremblant Capital Increases Stake in Varonis Systems
- Stake Increase: Tremblant Capital Group increased its stake in Varonis Systems by 3,058,524 shares in Q4 2025, with an estimated trade value of $128.40 million, indicating confidence in the company's growth potential.
- Quarter-End Position Value: As of December 31, 2025, Tremblant's position in Varonis was valued at $115.12 million, reflecting a net increase of $89.19 million due to both stock price appreciation and additional share purchases.
- Revenue Growth Trend: Varonis generated approximately $623.5 million in revenue for 2025, a 13% year-over-year increase, while annual recurring revenue reached about $745 million, showcasing the company's potential in transitioning to a SaaS model.
- Market Reaction and Investor Confidence: Despite a nearly 50% stock price drop last year due to lowered full-year guidance, Tremblant's stake increase signals investor confidence in Varonis's long-term growth prospects, particularly amid rising demand for data security solutions.
See More
Tremblant Capital Increases Stake in Varonis Systems
- Share Acquisition: On February 17, 2026, Tremblant Capital Group disclosed the acquisition of 3,058,524 shares of Varonis Systems, with an estimated transaction value of approximately $128.40 million, indicating confidence in the company's future.
- Ownership Proportion: Following this acquisition, Varonis represented 2.94% of Tremblant Capital's 13F reportable assets, highlighting its significance within the investment portfolio.
- Market Performance: As of February 17, 2026, Varonis shares were priced at $25.32, down about 40% over the past year, significantly lagging behind the S&P 500's roughly 20% gain during the same period, reflecting market concerns about its growth prospects.
- Revenue Growth: Despite challenges, Varonis generated approximately $623.5 million in revenue in 2025, a 13% year-over-year increase, while annual recurring revenue reached about $745 million, indicating the potential of its transition to a SaaS model.
See More
Class Action Lawsuits Filed Against Varonis and Ardent Health
- Varonis Lawsuit Overview: Shareholders of Varonis Systems, Inc. are facing losses from February 4 to October 28, 2025, due to the company's failure to disclose its ability to sustain growth, leading to a misunderstanding of its prospects, with a class action deadline of March 9, 2026.
- Ardent Lawsuit Details: Similarly, shareholders of Ardent Health, Inc. from July 18, 2024, to November 12, 2025, encountered issues as the company misrepresented the collectability of accounts receivable, resulting in a misjudgment of its financial health, with the same class action deadline of March 9, 2026.
- Legal Consultation Advice: The Law Offices of Frank R. Cruz remind investors who suffered losses during the specified periods to contact the firm to understand their legal rights, providing contact details including phone and email.
- Class Action Participation Note: Investors need not take immediate action to be part of the class action, and the law firm offers various contact methods for shareholders to obtain more information and consultation.
See More
Varonis Systems Faces Class Action Lawsuit Reminder
- Class Action Notice: The Schall Law Firm reminds investors of a class action lawsuit against Varonis Systems for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between February 4 and October 28, 2025.
- False Statement Allegations: The complaint alleges that Varonis made overly optimistic claims about its ability to convert existing customers to its SaaS offering, while struggling to persuade customers to switch, thereby reducing opportunities for annual recurring revenue growth.
- Investor Losses: As the market learned the truth about Varonis, investors suffered damages, indicating that the company's public statements were false and materially misleading throughout the class period.
- Legal Consultation Opportunity: The Schall Law Firm encourages affected investors to contact them before March 9, 2026, to discuss their rights and participate in the lawsuit, noting that the class has not yet been certified, meaning investors are not represented by an attorney until then.
See More
