Varonis(US:VRNS) Businesswire·2026-01-12 19:51Core Viewpoint - Varonis Systems, Inc. is facing a class action lawsuit due to significant financial underperformance and misleading statements made by the company's management regarding its business operations and growth prospects [4]. Financial Performance - On October 28, 2025, Varonis reported third quarter 2025 financial results, revealing revenue that fell short of consensus estimates, including a 63.9% year-over-year decline in term license subscription revenues [3]. - The company reduced its full-year Annual Recurring Revenues (ARR) guidance, attributing this to the underperformance of its on-prem subscription business [3]. - Following the earnings announcement, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025 [3]. Lawsuit Details - The class action complaint alleges that during the Class Period, Varonis's management made materially false and misleading statements and failed to disclose adverse facts about the company's business and operations [4]. - Specifically, it is claimed that Varonis was not adequately prepared to sustain its ARR growth without maintaining a high rate of quarterly conversions, rendering positive statements about the company's prospects misleading [4]. Legal Participation - Investors who purchased Varonis common stock during the Class Period have until March 9, 2026, to file a lead plaintiff motion in the ongoing lawsuit [5].