Varonis Systems (VRNS) Fell as It Missed Quarterly Projections

Core Insights - Loomis Sayles Small Cap Growth Fund's performance in Q4 2025 was below the Russell 2000 Growth Index, returning 0.51% compared to the benchmark's 1.22% [1] - The earnings of small-cap companies are reaccelerating in 2025, aligning with previous forecasts [1] - The Fund's top five holdings provide insights into their investment strategy for 2025 [1] Company-Specific Insights - Varonis Systems, Inc. (NASDAQ:VRNS) is highlighted as a key stock in the Fund's letter, focusing on AI-powered data protection technology [2] - Varonis reported a total revenue of $173.4 million in Q4 2025, marking a 9% increase from Q4 2024 [3] - The company faced challenges, including a significant drop in stock price by 47.21% over the past twelve months and a one-month return of -3.13% [2] - Varonis decided to discontinue its on-premises solution, which accounted for approximately 15% of its revenue, to focus on its SaaS platform, leading to increased volatility and a stop loss exit by the Fund [2] - Varonis is not among the 40 most popular stocks among hedge funds, with 31 hedge fund portfolios holding its shares at the end of Q4 2025, down from 37 in the previous quarter [3]