Varonis Systems, Inc. (NASDAQ: VRNS)

This lawsuit is for anyone who acquired securities in Varonis Systems, Inc. (NASDAQ: VRNS) from February 4, 2025 through October 28, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely disclose to investors the extent to which transitioning on-premises customers to cloud-based software-as-a-service (SaaS) subscriptions would hurt the Company’s growth.

On October 28, 2025, Varonis released its third quarter 2025 financial results, reporting revenue which missed consensus estimates, including a 63.9% decline in term license subscription revenues, year over year. The Company also stated it was “reducing our full-year ARR guidance to account for the underperformance of [its] on-prem subscription business.” In an earnings call the next day, Yakov Faitelson, the Company’s Co-Founder, Chairman, CEO & President, stated the on-premises subscription business is a “drag on total company ARR growth.” Management also cited a number of factors which contributed to “lower renewal rate of on-prem subscription[s],” including “sales process issues.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Varonis Systems, Inc. (NASDAQ: VRNS) from February 4, 2025 through October 28, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.