Securities Fraud Investigation Into Varonis Systems, Inc. (VRNS) Continues – Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz

Core Viewpoint - Varonis Systems, Inc. is under investigation for potential violations of federal securities laws following a significant decline in its financial performance, particularly in its on-premises subscription business [1][2]. Financial Performance - On October 28, 2025, Varonis reported third quarter 2025 financial results, revealing revenue that fell short of consensus estimates, with a notable 63.9% year-over-year decline in term license subscription revenues [2]. - The company has reduced its full-year Annual Recurring Revenue (ARR) guidance due to the underperformance of its on-premises subscription business [2]. Management Commentary - In an earnings call, CEO Yakov Faitelson described the on-premises subscription business as a "drag on total company ARR growth" and highlighted issues in the sales process as contributing factors to the lower renewal rates of on-prem subscriptions [2]. Market Reaction - Following the announcement of the disappointing financial results, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025, resulting in significant losses for investors [2].