INVESTOR ALERT: Varonis Systems (VRNS) Investors with Substantial Losses Have Opportunity to Lead Varonis Securities Class Action

Core Viewpoint - Varonis Systems, Inc. is facing a securities class action lawsuit due to allegations of misleading investors about its transition to a Software-as-a-Service (SaaS) model, which resulted in significant financial losses for shareholders [1]. Company Performance - The lawsuit claims that Varonis executives misrepresented the company's ability to convert its legacy on-premise customer base to its new SaaS platform, leading to a 63.9% year-over-year decline in term license subscription revenues disclosed on October 28, 2025 [1]. - Following this disclosure, Varonis's stock price plummeted by 48%, dropping from $63.00 to $32.34, resulting in a loss of approximately $3.8 billion in market capitalization [1]. Allegations of Misleading Statements - The litigation alleges that Varonis provided false assurances regarding its SaaS transition, claiming it was "well on our way to becoming a SaaS company" and that it would "accelerate [its] SaaS transition" [1]. - The company reportedly misrepresented its conversion potential, stating that it had a "massive opportunity to increase the ARR from our existing customer base," while the reality indicated a struggle to convince on-premises users to migrate [1]. Financial Guidance and Performance Issues - Following a disappointing Q3 performance, Varonis significantly reduced its Q4 revenue and full-year annual recurring revenue (ARR) guidance [1]. - The lawsuit highlights that weaker renewals in both the Federal vertical and non-Federal on-prem subscription business contributed to the company's performance miss, contradicting previous optimistic statements from Varonis [1].