VRNS INVESTOR NOTICE: Varonis Systems, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Core 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 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 over 48%, resulting in a loss of approximately $3.8 billion in market capitalization the next day [2][6]. Allegations of Misrepresentation - The lawsuit alleges that Varonis misled investors by making overly positive statements about its transition to SaaS and the potential for ARR growth, while failing to disclose the challenges in converting existing on-prem customers [4][6]. - The complaint claims that Varonis was not adequately prepared to facilitate the transition from on-prem to SaaS, contradicting its assertions of a "massive opportunity" for ARR growth [4].