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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VRNS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 25.660
Low
37.00
Averages
52.18
High
80.00
Current: 25.660
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 Faces Class Action Lawsuit from Investors
- Class Action Initiated: Bragar Eagel & Squire has filed a class action lawsuit against Varonis on behalf of investors who purchased shares between February 4, 2025, and October 28, 2025, seeking compensation for losses incurred due to the company's failure to disclose critical adverse information.
- Poor Financial Performance: Varonis reported third-quarter 2025 results that missed consensus estimates, including a 63.9% year-over-year decline in term license subscription revenues, prompting the company to lower its full-year ARR guidance, indicating significant challenges to its growth trajectory.
- Stock Price Plummet: Following the release of disappointing earnings, Varonis's stock price fell by 48.7% to close at $32.34 per share on October 29, 2025, directly resulting in substantial losses for investors and reflecting a severe erosion of market confidence in the company's future prospects.
- Legal Process Developments: Investors must apply by March 9, 2026, to be appointed as lead plaintiffs in the lawsuit, expressing dissatisfaction with the management's lack of transparency regarding financial performance and business outlook, which could lead to broader legal implications.
See More
Multiple Companies Facing Class Action Lawsuits
- Varonis Systems Lawsuit: Varonis Systems, Inc. (NASDAQ:VRNS) is facing allegations for failing to sustain its ARR growth from February 4 to October 28, 2025, which has severely undermined investor confidence and is expected to negatively impact its stock performance.
- Ardent Health Issues: Ardent Health, Inc. (NYSE:ARDT) is accused of inaccurately assessing the collectability of accounts receivable from July 18, 2024, to November 12, 2025, potentially distorting financial reports and affecting investor perceptions of its financial health.
- CoreWeave Risks: CoreWeave, Inc. (NASDAQ:CRWV) is alleged to have overstated its ability to meet customer demand from March 28 to December 15, 2025, which could lead to significant negative impacts on revenue, prompting investors to be cautious about its future performance.
- Bath & Body Works Challenges: Bath & Body Works, Inc. (NYSE:BBWI) is facing accusations of failing to meet financial guidance from June 4, 2024, to November 19, 2025, indicating serious flaws in its market strategy that could affect brand reputation and market share.
See More
VRNS Investors Urged to Act Amid Class Action Lawsuit
- Litigation Alert: Hagens Berman is notifying investors in Varonis Systems, Inc. (NASDAQ:VRNS) about the upcoming March 9, 2026, deadline for lead plaintiffs in a securities class action lawsuit against the company and its executives, urging prompt action to protect their rights.
- Revenue Decline: The lawsuit alleges that Varonis executives concealed significant renewal softness in its Federal vertical and legacy on-premises business while publicly promoting a transition to a SaaS platform, resulting in a 63.9% year-over-year decline in term license revenue disclosed on October 28, 2025.
- Stock Crash: This disclosure triggered a 48% single-day stock crash, wiping out approximately $3.8 billion in market value, indicating a severe loss of investor confidence in the company's future prospects.
- Investor Action: Hagens Berman is urging investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered substantial losses to submit their loss information promptly to participate in the lawsuit and ensure their legal rights are protected.
See More
Class Action Filed Against Varonis Systems for Securities Violations
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Varonis Systems, alleging violations of federal securities laws during the period from February 4, 2025, to October 28, 2025, affecting all investors who purchased Varonis securities during this timeframe.
- False Statements Allegation: The complaint claims that Varonis made overly optimistic statements to investors while concealing its inability to effectively convert existing customers to its SaaS offerings, resulting in significantly reduced ARR growth potential.
- Investor Losses: Due to these false statements, investors purchased Varonis securities at artificially inflated prices, leading to potential financial losses, with the lawsuit seeking compensation for these affected investors.
- Legal Fee Structure: Bronstein, Gewirtz & Grossman, LLC operates on a contingency fee basis for class action representation, meaning they will only charge fees if they successfully recover funds, ensuring maximum protection of investor interests.
See More
Integer Holdings and Others Under Shareholder Investigation
- Shareholder Investigation Initiated: Grabar Law Office is investigating Integer Holdings Corp. (NYSE: ITGR) for potential breaches of fiduciary duties by its executives, allowing shareholders who purchased before July 25, 2024, to seek corporate reforms and fund recovery.
- False Statements Allegations: A recent federal securities fraud class action claims that Integer failed to disclose its true competitive position in the EP manufacturing market, misleading investors about the company's business prospects and undermining investor confidence.
- Similar Issues for Molina Healthcare: Molina Healthcare, Inc. (NYSE: MOH) is also under investigation by Grabar Law Office for failing to disclose adverse information regarding medical cost trends, which could lead to significant cuts in financial guidance for fiscal year 2025.
- Varonis Systems Faces Major Losses: Varonis Systems, Inc. (NASDAQ: VRNS) is being investigated for not accurately disclosing its expected annual recurring revenue (ARR), resulting in a significant miss in its third-quarter results and a stock price drop of over 48% in a single day.
See More
Varonis Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Varonis Systems, alleging securities fraud and unlawful business practices, with investors urged to apply as Lead Plaintiff by March 9, 2026, indicating significant legal risks that could undermine investor confidence.
- Disappointing Earnings: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, prompting management to lower full-year ARR guidance, reflecting competitive pressures and challenges in its business model.
- Stock Price Plunge: Following the disappointing earnings report, Varonis's stock price plummeted by 48.67% to close at $32.34 per share on October 29, 2025, signaling a pessimistic outlook from the market regarding the company's future performance and potential investor attrition.
- Management's Warning: CEO Yakov Faitelson highlighted that the on-premises subscription business is a drag on total ARR growth, with lower renewal rates attributed to sales process issues, indicating a need for strategic adjustments to regain growth momentum.
See More
Varonis Faces Class Action Lawsuit from Investors
- Class Action Initiated: Bragar Eagel & Squire has filed a class action lawsuit against Varonis on behalf of investors who purchased shares between February 4, 2025, and October 28, 2025, seeking compensation for losses incurred due to the company's failure to disclose critical adverse information.
- Poor Financial Performance: Varonis reported third-quarter 2025 results that missed consensus estimates, including a 63.9% year-over-year decline in term license subscription revenues, prompting the company to lower its full-year ARR guidance, indicating significant challenges to its growth trajectory.
- Stock Price Plummet: Following the release of disappointing earnings, Varonis's stock price fell by 48.7% to close at $32.34 per share on October 29, 2025, directly resulting in substantial losses for investors and reflecting a severe erosion of market confidence in the company's future prospects.
- Legal Process Developments: Investors must apply by March 9, 2026, to be appointed as lead plaintiffs in the lawsuit, expressing dissatisfaction with the management's lack of transparency regarding financial performance and business outlook, which could lead to broader legal implications.
See More
Multiple Companies Facing Class Action Lawsuits
- Varonis Systems Lawsuit: Varonis Systems, Inc. (NASDAQ:VRNS) is facing allegations for failing to sustain its ARR growth from February 4 to October 28, 2025, which has severely undermined investor confidence and is expected to negatively impact its stock performance.
- Ardent Health Issues: Ardent Health, Inc. (NYSE:ARDT) is accused of inaccurately assessing the collectability of accounts receivable from July 18, 2024, to November 12, 2025, potentially distorting financial reports and affecting investor perceptions of its financial health.
- CoreWeave Risks: CoreWeave, Inc. (NASDAQ:CRWV) is alleged to have overstated its ability to meet customer demand from March 28 to December 15, 2025, which could lead to significant negative impacts on revenue, prompting investors to be cautious about its future performance.
- Bath & Body Works Challenges: Bath & Body Works, Inc. (NYSE:BBWI) is facing accusations of failing to meet financial guidance from June 4, 2024, to November 19, 2025, indicating serious flaws in its market strategy that could affect brand reputation and market share.
See More
VRNS Investors Urged to Act Amid Class Action Lawsuit
- Litigation Alert: Hagens Berman is notifying investors in Varonis Systems, Inc. (NASDAQ:VRNS) about the upcoming March 9, 2026, deadline for lead plaintiffs in a securities class action lawsuit against the company and its executives, urging prompt action to protect their rights.
- Revenue Decline: The lawsuit alleges that Varonis executives concealed significant renewal softness in its Federal vertical and legacy on-premises business while publicly promoting a transition to a SaaS platform, resulting in a 63.9% year-over-year decline in term license revenue disclosed on October 28, 2025.
- Stock Crash: This disclosure triggered a 48% single-day stock crash, wiping out approximately $3.8 billion in market value, indicating a severe loss of investor confidence in the company's future prospects.
- Investor Action: Hagens Berman is urging investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered substantial losses to submit their loss information promptly to participate in the lawsuit and ensure their legal rights are protected.
See More
Class Action Filed Against Varonis Systems for Securities Violations
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Varonis Systems, alleging violations of federal securities laws during the period from February 4, 2025, to October 28, 2025, affecting all investors who purchased Varonis securities during this timeframe.
- False Statements Allegation: The complaint claims that Varonis made overly optimistic statements to investors while concealing its inability to effectively convert existing customers to its SaaS offerings, resulting in significantly reduced ARR growth potential.
- Investor Losses: Due to these false statements, investors purchased Varonis securities at artificially inflated prices, leading to potential financial losses, with the lawsuit seeking compensation for these affected investors.
- Legal Fee Structure: Bronstein, Gewirtz & Grossman, LLC operates on a contingency fee basis for class action representation, meaning they will only charge fees if they successfully recover funds, ensuring maximum protection of investor interests.
See More
Integer Holdings and Others Under Shareholder Investigation
- Shareholder Investigation Initiated: Grabar Law Office is investigating Integer Holdings Corp. (NYSE: ITGR) for potential breaches of fiduciary duties by its executives, allowing shareholders who purchased before July 25, 2024, to seek corporate reforms and fund recovery.
- False Statements Allegations: A recent federal securities fraud class action claims that Integer failed to disclose its true competitive position in the EP manufacturing market, misleading investors about the company's business prospects and undermining investor confidence.
- Similar Issues for Molina Healthcare: Molina Healthcare, Inc. (NYSE: MOH) is also under investigation by Grabar Law Office for failing to disclose adverse information regarding medical cost trends, which could lead to significant cuts in financial guidance for fiscal year 2025.
- Varonis Systems Faces Major Losses: Varonis Systems, Inc. (NASDAQ: VRNS) is being investigated for not accurately disclosing its expected annual recurring revenue (ARR), resulting in a significant miss in its third-quarter results and a stock price drop of over 48% in a single day.
See More
Varonis Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Varonis Systems, alleging securities fraud and unlawful business practices, with investors urged to apply as Lead Plaintiff by March 9, 2026, indicating significant legal risks that could undermine investor confidence.
- Disappointing Earnings: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, prompting management to lower full-year ARR guidance, reflecting competitive pressures and challenges in its business model.
- Stock Price Plunge: Following the disappointing earnings report, Varonis's stock price plummeted by 48.67% to close at $32.34 per share on October 29, 2025, signaling a pessimistic outlook from the market regarding the company's future performance and potential investor attrition.
- Management's Warning: CEO Yakov Faitelson highlighted that the on-premises subscription business is a drag on total ARR growth, with lower renewal rates attributed to sales process issues, indicating a need for strategic adjustments to regain growth momentum.
See More
