Varonis(US:VRNS) Prnewswire·2026-03-04 15:39Core Viewpoint - Varonis Systems, Inc. is facing a federal securities class action lawsuit due to allegations of making false and misleading statements regarding its business performance and customer retention capabilities, leading to significant financial losses for investors [1][2]. Company Overview - Varonis Systems, Inc. (NASDAQ: VRNS) is under investigation by Faruqi & Faruqi, LLP for potential securities fraud claims [1]. - The company is accused of failing to disclose material adverse facts about its ability to convert existing customers to its SaaS offerings, which has negatively impacted its Annual Recurring Revenue (ARR) growth potential [1]. Financial Performance - On October 28, 2025, Varonis reported third-quarter fiscal 2025 results, revealing a significant miss in ARR and a reduction in full-year guidance, despite having previously raised guidance for two consecutive quarters [1]. - The company attributed its disappointing results to weaker-than-expected renewals and conversions in its subscription business, leading to the announcement of a 5% headcount reduction and the end of life for its self-hosted solution [1]. Stock Market Reaction - Following the announcement of its financial results, Varonis' stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 per share on October 29, 2025, marking a decline of approximately 48.67% in just one day [1].