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
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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 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: 30.570
Low
37.00
Averages
52.18
High
80.00
Current: 30.570
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 Faces Securities Class Action Lawsuit
- Lawsuit Notification Issued: Hagens Berman has issued a notice to investors in Varonis Systems, Inc. (NASDAQ: VRNS) regarding the March 9, 2026, lead plaintiff deadline in a pending securities class action lawsuit against the company and its executives.
- Performance Decline Revealed: The lawsuit alleges that Varonis executives misled investors, as evidenced by a 63.9% year-over-year decline in term license subscription revenues disclosed on October 28, 2025, leading to a staggering 48% stock crash and a $3.8 billion loss in market capitalization, severely impacting investor confidence.
- False Statements Allegation: The lawsuit claims Varonis misrepresented its ability to transition on-premise customers to a SaaS model, while in reality, the company struggled to convince its existing users to migrate, resulting in performance misses.
- Guidance Cut Significantly: Following the disappointing Q3 results, Varonis slashed its Q4 revenue and full-year ARR guidance, further exacerbating market concerns regarding its future growth potential.
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Class Action Filed Against Varonis Systems for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Varonis Systems and certain officers, aiming to recover damages for investors who purchased securities between February 4, 2025, and October 28, 2025, highlighting serious concerns over potential fraud by the company.
- Allegations of False Statements: The complaint alleges that Varonis made overly optimistic statements to investors while concealing its true inability to convert existing customers to its SaaS offerings, resulting in significantly reduced ARR growth potential and misleading investors in their purchasing decisions.
- Investor Rights Protection: Affected investors are encouraged to apply to be lead plaintiffs by March 9, 2026, to share in any potential recovery from the lawsuit, underscoring the importance of legal proceedings in safeguarding investor rights.
- No-Cost Representation: Bronstein, Gewirtz & Grossman, LLC offers contingency fee representation, meaning they only charge fees if they successfully recover funds, ensuring that investors do not bear additional financial burdens while pursuing compensation.
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