Varonis(US:VRNS) Globenewswire·2026-01-15 16:25Core Viewpoint - A securities class action lawsuit has been filed against Varonis Systems, Inc. and certain executives, representing investors who acquired Varonis common stock between February 4, 2025, and October 28, 2025, following a significant drop in share price due to disappointing financial results and guidance [1][2]. Company Performance - Varonis reported weaker than expected renewals and conversions from its on-premises subscription business to its software-as-a-service (SaaS) model, leading to a significant downward revision of its annual recurring revenue (ARR) [2][5]. - The company's Q3 2025 financial results missed both its own and consensus estimates, prompting a reduction in Q4 revenue and 2025 ARR guidance [5]. Market Reaction - Following the announcement of disappointing results, Varonis shares plummeted approximately 48%, resulting in a loss of about $3.8 billion in market capitalization the next day [6]. Allegations of Misrepresentation - The lawsuit alleges that Varonis misled investors by making overly positive statements about its ability to convert on-prem customers to SaaS, while failing to disclose critical information regarding its actual conversion capabilities [4]. - The complaint claims that Varonis was not adequately prepared to transition its existing on-prem customers to the SaaS model, which adversely affected its ARR growth potential [4].