Shares Fall, Yet Analysts See Opportunity in Oversold Varonis Systems (VRNS)

Core Viewpoint - Varonis Systems, Inc. (NASDAQ:VRNS) is considered an oversold stock, with analysts suggesting it may present a buying opportunity despite recent declines in share price [2][4]. Financial Performance - Varonis reported total revenue of $161.6 million for Q3 2025, an increase from $148.1 million in Q3 2024 [5]. - The company's non-GAAP EPS (diluted) for the quarter was $0.06, down from $0.10 in Q3 2024 [6]. Share Price Movement - The share price of Varonis reached a 52-week low of $32.01, reflecting a decline of 27.19% in 2025 and 35.18% over the past year as of November 26 [2]. - Following the Q3 2025 results announcement on October 28, the share price dropped 48.67% within a day [3]. Revenue Segments - Term License Subscription revenue fell significantly from $68.8 million in Q3 2024 to $24.8 million due to customer migration to the SaaS platform [6]. - Maintenance & Services revenue also decreased from $21.5 million in Q3 2024 to $10.9 million, driven by the same customer migration trend [6]. Analyst Sentiment - Analyst Jason Ader from William Blair maintained a "Buy" rating, viewing the stock's recent decline as an overreaction and highlighting better-than-expected term renewals earlier in the year [4].