1. Varonis missed revenue estimates, citing a 63.9% drop in subscriptions. 2. The company reduced its full-year ARR guidance due to on-premises issues. 3. Stock price plummeted 48.67% following the announcement of poor results. 4. Kessler Topaz Meltzer & Check is investigating potential securities law violations. 5. The on-prem subscription business is severely impacting overall company growth.
FAQ
Why Very Bearish?
The significant revenue decline and drastically reduced guidance suggest deeper business issues. Historical examples, such as Eastman Kodak's decline post-revenue misses, indicate future price instability.
How important is it?
The investigation and drastic revenue decline are critical for current and potential investors. Immediate concerns over financial stability impact investor sentiment significantly.
Why Short Term?
The immediate stock drop reflects investor reactions to recent earnings and guidance cuts. However, any recovery could hinge on the company's ability to rectify business issues.
Investigation Announced for Varonis Systems, Inc. (NASDAQ: VRNS) by Kessler Topaz Meltzer & Check, LLP
RADNOR, Pa., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Kessler Topaz Meltzer & Check, LLP is actively investigating potential violations of federal securities laws concerning investors in Varonis Systems, Inc. (NASDAQ: VRNS). This investigation follows the company's disappointing third-quarter financial results disclosed on October 28, 2025, which included a substantial revenue shortfall compared to consensus estimates.
Key Financial Disclosures by Varonis
Varonis reported a dramatic 63.9% year-over-year decline in term license subscription revenues. In addition, the company announced a reduction in its annual recurring revenue (ARR) guidance for the fiscal year, citing underperformance in its on-premises subscription business.
The company described its on-premises subscription offerings as a "drag on total company ARR growth," attributing this downturn to various factors, such as:
- Lower renewal rates for on-prem subscriptions
- Issues within the sales process
Impact on Stock and Investor Concerns
Following the announcement, Varonis’ stock experienced a significant decline, dropping $30.66 per share, or 48.67%, to close at $32.34 per share on October 29, 2025. This substantial decrease has prompted concerns among investors regarding the company's future performance and operational strategy.
How to Get Involved in the Investigation
Investors in Varonis who wish to learn more about this investigation are encouraged to reach out. Kessler Topaz Meltzer & Check, LLP is receiving inquiries via an online form and is available for direct contact. Interested parties can reach Jonathan Naji, Esq. at (484) 270-1453 or via email at info@ktmc.com.
For additional details about the investigation, please visit here.
About Kessler Topaz Meltzer & Check, LLP
Kessler Topaz Meltzer & Check, LLP is renowned for prosecuting class actions in both state and federal courts across the United States, focusing on securities fraud, breaches of fiduciary duties, and various other violations of securities law. The firm has successfully recovered billions of dollars on behalf of institutional and individual investors globally.
Contact Information:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
info@ktmc.com