Core Viewpoint - The complaint against Varonis alleges that the company and its executives violated federal securities laws by making false and misleading statements regarding its ability to convert its existing customer base to a SaaS offering, which has resulted in reduced annual recurring revenue (ARR) growth potential [2] Group 1: Allegations and Impact - The complaint claims that Varonis provided overwhelmingly positive statements to investors while concealing material adverse facts about its customer conversion capabilities [2] - The misleading statements led to shareholders purchasing Varonis' securities at artificially inflated prices, impacting their financial interests [2] Group 2: Legal Proceedings - The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought and is responsible for directing the litigation on behalf of the class [3] - Any member of the putative class can move the court to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [3] Group 3: Call for Information - The law firm Faruqi & Faruqi encourages individuals with information regarding Varonis's conduct, including whistleblowers and former employees, to come forward [4]

Core Viewpoint - Varonis Systems, Inc. is facing a class action securities lawsuit due to alleged securities fraud that negatively impacted investors between February 4, 2025, and October 28, 2025 [1] Group 1: Lawsuit Details - The lawsuit claims that Varonis provided misleading positive statements while concealing adverse facts about its ability to convert its customer base to its SaaS offering, leading to reduced Annual Recurring Revenue (ARR) growth potential [2] - On October 28, 2025, Varonis reported third-quarter financial results that significantly missed ARR expectations and lowered its full-year guidance, attributing this to weaker than expected renewals and conversions in its subscription business [2] - Following the announcement, Varonis' stock price plummeted from $63.00 per share to $32.34 per share on October 29, 2025, marking a decline of approximately 48.67% in one day [2] Group 2: Next Steps for Investors - Investors who suffered losses during the relevant timeframe have until March 9, 2026, to request appointment as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States [4]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased common stock of Varonis Systems, Inc. during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Varonis common stock between February 4, 2025, and October 28, 2025, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by March 9, 2026 [3]. - Investors can join the class action by visiting the provided link or contacting the law firm directly for more information [6]. Group 2: Case Background - The lawsuit alleges that Varonis made materially false and misleading statements regarding its ability to maintain Annual Recurring Revenue (ARR) projections while transitioning customers to a software-as-a-service (SaaS) model [5]. - It is claimed that Varonis was not adequately prepared to convince existing users of the benefits of the SaaS offering, leading to reduced ARR growth potential [5]. - The lawsuit asserts that the misleading statements about Varonis' business and prospects resulted in investor damages when the true situation became known [5]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time [4]. - The firm has been consistently ranked among the top firms for securities class action settlements and has recovered hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, showcasing its effectiveness in representing investor rights [4].

Core Viewpoint - The Varonis Systems, Inc. is facing a class action lawsuit due to allegations of misleading investors regarding its revenue outlook and growth potential, leading to significant stock price declines following disappointing financial results [3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Molchanov v. Varonis Systems, Inc. and involves claims against Varonis and its executives for violations of the Securities Exchange Act of 1934 [1]. - Investors who purchased Varonis common stock between February 4, 2025, and October 28, 2025, can seek to be appointed as lead plaintiff by March 9, 2026 [1][5]. - The lawsuit alleges that Varonis misrepresented its ability to sustain revenue growth and downplayed risks associated with seasonality and macroeconomic factors [3]. Group 2: Financial Performance - On October 28, 2025, Varonis reported third-quarter results that significantly missed prior projections and subsequently lowered its full-year guidance [4]. - The CEO, Yakov Faitelson, attributed the shortfall to lower renewals in both Federal and non-Federal subscription businesses during the final weeks of the quarter [4]. - Following the announcement of these results, Varonis' stock price plummeted nearly 49% [4]. Group 3: Legal Representation - Robbins Geller Rudman & Dowd LLP is leading the class action lawsuit and is recognized as a top law firm in securities fraud and shareholder litigation [6]. - The firm has a strong track record, having recovered over $2.5 billion for investors in 2024 alone, which is more than the combined total of the next five law firms [6].

Core Viewpoint - Varonis Systems, Inc. is experiencing strong financial performance, particularly in its SaaS segment, which is driving growth and attracting positive market attention [2][3][4]. Financial Performance - Varonis reported earnings per share (EPS) of 8 cents for Q4 2025, exceeding the Zacks Consensus Estimate by 166.7% [2][6]. - Revenues for the fourth quarter reached $173.37 million, surpassing the Zacks Consensus Estimate by 2.87% and showing a significant increase from $158.5 million in the same quarter last year [3][6]. - The company's total annual recurring revenue (ARR) reached $745.4 million, reflecting a 16.1% increase from the previous year, driven by strong SaaS ARR growth [4]. SaaS Revenue Growth - SaaS revenues surged by 97.1% year over year, accounting for more than 82% of total quarterly revenues [3][4]. Market Position and Stock Performance - D.A. Davidson set a price target of $30 for Varonis, indicating a potential upside of 26.74% from its current trading price of $23.67 [2][6]. - The stock is currently priced at $23.67, reflecting a decrease of 10.78% with a change of $2.86, and has fluctuated between a low of $20.06 and a high of $24.50 today [5]. - Varonis has a market capitalization of approximately $2.79 billion, with a trading volume of 19,810,692 shares on NASDAQ [5].

Core Insights - Varonis Systems experienced a significant stock decline of nearly 11% despite reporting robust revenue growth and announcing a new acquisition, primarily due to a substantial miss on net income guidance [1][2]. Financial Performance - In Q4 2025, Varonis reported total revenue of approximately $173.4 million, reflecting a year-over-year increase of 9%. However, net income, not in accordance with GAAP, fell sharply by 53% to $11.1 million, equating to $0.08 per share [2]. - Analysts had projected revenues of $168.5 million and a non-GAAP net income of $0.03 per share, indicating that Varonis outperformed on revenue but underperformed on profitability expectations [3][6]. - The company's key growth driver was its software-as-a-service (SaaS) offerings, which nearly doubled to over $142 million [3]. Acquisition Announcement - Varonis announced the acquisition of AllTrue.ai, a privately held company specializing in AI trust, risk, and security management, although the financial details of the acquisition were not disclosed [4]. Future Guidance - For the first quarter and the entirety of 2026, Varonis anticipates revenues between $722 million and $730 million, representing a 16% increase from 2025. Adjusted net income per share is expected to be between $0.06 and $0.10 [5]. - Analysts are projecting adjusted profitability of $0.34 per share, while revenue estimates are slightly lower at just under $719 million [6]. Market Context - The current market sentiment is particularly harsh towards software companies that miss guidance, which has contributed to the stock's decline despite the company's strong revenue growth [6]. - The data security niche in which Varonis operates is viewed as promising, with expectations for continued growth in demand [7].

NEW YORK, Feb. 04, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Varonis Systems, Inc. (NASDAQ: VRNS). Shareholders who purchased shares of VRNS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/varonis-systems-inc-loss-submission-form/?id=183330&from=3 CLASS PERIOD: Feb ...

Product and Technology Development - Varonis introduced the Varonis Data Security Platform as a SaaS offering in 2022 to simplify deployment and accelerate time-to-value [25]. - Varonis expanded its platform capabilities through strategic acquisitions, including Cyral for database activity monitoring and SlashNext for AI-based email security [35]. - The platform continuously discovers and classifies sensitive data, using machine learning to identify novel data types [31]. - Varonis's approach focuses on reducing unnecessary access to sensitive data, which is essential for limiting the impact of security incidents [28]. - The platform includes capabilities such as Data Security Posture Management, Data Access Intelligence, and User & Entity Behavior Analytics, providing real-time visibility and automated risk reduction [59][61]. - Varonis invests in research and development to enhance the platform's capabilities, focusing on automation and adapting to evolving data environments and threat models [77][79]. - Incorporation of machine learning and AI solutions is becoming increasingly important, with competition and regulatory challenges in this area [172]. Market and Economic Conditions - The International Data Corporation predicts data will grow at a compound annual growth rate of 25.4%, reaching over 527 zettabytes by 2029, with unstructured data accounting for approximately 90% of this growth [39]. - The market for software that analyzes, secures, governs, manages, and migrates enterprise data may not continue to grow at the same pace, which could materially adversely impact the company's results of operations [92]. - Prolonged economic uncertainties or downturns could lead to decreased business investments, negatively affecting corporate spending on enterprise software [93]. - Economic turmoil in Europe has caused budgetary tightening and longer sales cycles, which may negatively impact the company's results of operations [94]. - A downturn in leading industries may cause enterprises to reduce spending on IT, delaying or canceling IT projects, which could disproportionately affect the company's revenues [95]. - Overall economic uncertainty may lead to risks such as reduced economic activity, not meeting key performance metrics, and increased bad debt reserves [96]. Customer Retention and Revenue - The renewal rate for Varonis for the year ended December 31, 2025, was over 90%, indicating strong customer retention [43]. - The renewal rate for maintenance and support related to term license subscriptions is over 90% for 2025, although revenues are expected to decline as the company transitions to a SaaS model [70]. - The company plans to end on-premises subscriptions by December 31, 2026, expecting customers to adopt the SaaS platform as the primary engagement method [64]. - Future growth depends on expanding sales to existing customers and increasing the customer base, particularly those with high lifetime values [137]. - The company relies on channel partners for sales, which accounted for substantially all revenues in 2024 and 2025 [139]. - Renewal rate for customer agreements has remained over 90% for the years ended December 31, 2025, 2024, and 2023 [165]. Competition and Market Risks - Increased competition in the data security market is driven by regulatory demands and the rising sophistication of cyber threats, intensifying the competitive landscape [98]. - The company faces competition from both established players and emerging innovators, which may lead to price cuts and longer sales cycles [100]. - Security breaches and cyberattacks pose significant risks to the company's reputation and competitive position, especially with the increase in remote work [110]. - The company anticipates an increase in hacking attempts and cyberattacks as it expands its client base and brand, which may compromise its security systems [112]. - The company may face increased costs and reduced demand for its products due to privacy and personal information security concerns among customers [109]. Financial Performance and Risks - The company incurred net losses of $129.3 million, $95.8 million, and $100.9 million for the years ended December 31, 2025, 2024, and 2023, respectively [138]. - Approximately 71% and 73% of total revenues for the years ended December 31, 2025, and 2024, respectively, were derived from sales in the United States [142]. - The company expects operating expenses to increase as it hires additional personnel and expands distribution channels [138]. - The company faces risks associated with international operations, including compliance with foreign laws and potential economic sanctions [142][145]. - The company is subject to collection and credit risks, which could impact operating results due to significant bankruptcies among customers and resellers [151]. - The company has $460.0 million outstanding aggregate principal amount of the 2029 Notes as of December 31, 2025, which may limit its ability to borrow additional funds [194]. Regulatory and Compliance Challenges - Compliance with evolving privacy and data protection laws may require significant operational changes and costs, with non-compliance potentially resulting in substantial fines [107]. - The company must comply with public sector contracting laws, which may impose added costs and affect revenue from government contracts [156]. - The adoption of the One Big Beautiful Bill Act (OBBBA) may have an adverse impact on the company's future effective tax rate and cash paid for income taxes [190]. Corporate Governance and Shareholder Matters - The company does not intend to pay dividends on its common stock, limiting returns to stock price appreciation [215]. - Anti-takeover provisions may hinder beneficial acquisitions and depress the trading price of the company's common stock and Notes [216]. - The company is authorizing "blank check" preferred stock, which can be issued without stockholder approval and may have superior rights compared to common stock, potentially increasing outstanding shares and complicating takeover attempts [218]. - A classified board of directors has been established, allowing members to be dismissed only for cause [218]. - There is a prohibition on actions by written consent of stockholders, limiting shareholder influence [218]. - The company has implemented limitations on who may call a special meeting of stockholders, further controlling shareholder engagement [218].

Were you affected by investment losses in VRNS common stock between February 4, 2025, and October 28, 2025? Affected Investor Losses Summary Varonis Systems, Inc. securities class action filed Purchasers or acquirers of Varonis Systems, Inc. (NASDAQ: VRNS) common stock Seeking recovery of investment losses for material misstatements and/or omissions (as alleged) from February 4, 2025 through October 28, 2025 Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) can assist at no cost to investor RADNOR, Pa., ...

Core Insights - Varonis Systems (VRNS) reported Q4 2025 earnings of 8 cents per share, exceeding the Zacks Consensus Estimate by 166.7%, compared to earnings of 18 cents per share in the previous year [1][9] - The company achieved revenues of $173.37 million for the quarter, surpassing the Zacks Consensus Estimate by 2.87%, and up from $158.5 million year-over-year [1][9] - Varonis has consistently beaten Zacks Consensus Estimates over the last four quarters, with an average surprise of 123.8% [1] Revenue Performance - Varonis' strong Q4 performance was driven by SaaS momentum, increased demand for automated data security, AI adoption, higher SaaS retention, and accelerating cloud workloads [2] - SaaS revenues, which accounted for 82.1% of total revenues, increased by 97.1% year-over-year to $142.3 million [3][9] - Total annual recurring revenues (ARR) reached $745.4 million, reflecting a year-over-year increase of 16.1%, with SaaS ARR of $638.5 million making up 86% of total ARR, rising 32% year-over-year [4][9] Margin and Operating Income - Varonis' gross margin decreased by 470 basis points to 78.9% in Q4 2025, attributed to the transition towards a SaaS-centric revenue model [5] - The company reported a non-GAAP operating income of $4.6 million, down from $15.3 million in the same quarter last year, with a non-GAAP operating margin of 2.7%, down from 9.7% [5] Cash Flow and Balance Sheet - As of December 31, 2025, Varonis had $921 million in cash and equivalents, a decrease from $1.1 billion as of September 30, 2025 [6] - The company generated $147.4 million in operating cash flow and reported free cash flow of $131.9 million for the year [6] Guidance - For Q1 2026, Varonis expects revenues between $164 million and $166 million, indicating a year-over-year growth of 20-22%, with a Zacks Consensus Estimate of $163.8 million [7] - The company anticipates SaaS ARR growth of 27-28% year-over-year, excluding conversions, and a non-GAAP operating loss between $10 million and $11 million [7] - For the full year 2026, total revenues are projected to be between $722 million and $730 million, suggesting a year-over-year growth of 16-17%, with a Zacks Consensus Estimate of $717.3 million [8] Future Projections - Varonis expects non-GAAP net loss per share to be in the range of 5 to 6 cents, with a Zacks Consensus Estimate of 4 cents per share [8] - The company projects SaaS ARR to be between $805 million and $840 million, implying year-over-year growth of 26-32% [11]