Varonis(US:VRNS) Prnewswire·2026-01-08 17:18Core Viewpoint - Varonis Systems is facing legal action due to allegations of misleading statements regarding its ability to convert its customer base to a SaaS model, which has resulted in a significant decline in its stock price following disappointing financial results [2][3][4]. Financial Performance - On October 28, 2025, Varonis reported third-quarter financial results that significantly missed its Annual Recurring Revenue (ARR) targets and reduced its full-year projections, attributing this to weaker-than-expected renewals and conversions in its subscription business [3]. - The company announced the end of life for its self-hosted solution and a 5% reduction in headcount as part of its restructuring efforts [3]. Stock Market Reaction - Following the announcement of its financial results, 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 just one day [4]. Legal Proceedings - A class action lawsuit has been initiated against Varonis, with a court-appointed lead plaintiff representing the interests of affected shareholders [5]. - The law firm Faruqi & Faruqi is encouraging individuals with information regarding Varonis' conduct to come forward, including whistleblowers and former employees [6].