Varonis (VRNS) Hits New Record Low on Higher Net Loss, Dismal Guidance

Core Insights - Varonis Systems, Inc. (VRNS) experienced a significant decline in stock price, reaching an all-time low of $32.02, closing down 48.67% at $32.34 on the trading day [1] - The company reported a net loss of $29.9 million for Q3, a 63% increase from the previous year's loss of $18.3 million, despite an 8.78% increase in total revenues to $161 million [2] - Varonis lowered its full-year revenue outlook for 2025 to a range of $615.2 million to $621.2 million, down from the previous guidance of $616 million to $628 million [2] - The annual recurring revenue outlook was also reduced to $730 million to $738 million, reflecting a growth rate of 14 to 15%, compared to the earlier forecast of $748 million to $750 million with a growth rate of 17% [3] - CEO Yaki Faitelson noted a decline in renewals in both the Federal vertical and non-Federal on-prem subscription business, contributing to the shortfall in expectations [3]