1. Kessler Topaz is investigating Varonis for potential securities law violations. 2. Varonis missed earnings estimates with a 63.9% decline in subscription revenues. 3. The company reduced its full-year ARR guidance due to underperformance. 4. Varonis cited sales process issues affecting subscription renewal rates. 5. Its stock fell 48.67% following the negative earnings report.
FAQ
Why Very Bearish?
The substantial decline in revenue and stock price indicates severe investor loss of confidence, reminiscent of previous failures in tech sectors facing economic challenges.
How important is it?
The ongoing investigation and poor financial performance substantially threaten investor confidence and stock price.
Why Short Term?
The immediate effects of this news likely caused a rapid decline in stock price and investor trust.
Investigation Launched for Varonis Systems, Inc. (NASDAQ: VRNS) Shareholders
RADNOR, Pa., Dec. 14, 2025 (GLOBE NEWSWIRE) -- Kessler Topaz Meltzer & Check, LLP is actively investigating potential violations of federal securities laws affecting investors of Varonis Systems, Inc. (NASDAQ: VRNS). This follows Varonis's disappointing third-quarter financial results announced on October 28, 2025, which fell below analysts’ expectations.
Significant Revenue Decline and Guidance Reduction
In its earnings report, Varonis disclosed a staggering 63.9% decline in term license subscription revenues year over year. Moreover, the company has lowered its full-year ARR guidance due to the underperformance of its on-premises subscription business. Varonis cited various factors contributing to this underperformance, including issues within the sales process that have led to a lower renewal rate for on-prem subscriptions.
Impact on Stock Performance
Following the financial announcement, the stock price of Varonis witnessed a dramatic decline of $30.66 per share, which equates to a drop of 48.67%, closing at $32.34 per share on October 29, 2025. This sharp decline reflects the market’s reaction to the company's challenging performance and outlook.
Investor Actions and Legal Support
Shareholders who have experienced significant losses in their investments with Varonis Systems, Inc. (NASDAQ: VRNS) are encouraged to take action. Kessler Topaz Meltzer & Check, LLP invites affected investors to learn more about the ongoing investigation. Interested parties can click here to complete an online form or connect directly with Jonathan Naji, Esq. at (484) 270-1453 or via email at info@ktmc.com.
About Kessler Topaz Meltzer & Check, LLP
Kessler Topaz Meltzer & Check, LLP is a renowned law firm specializing in class action lawsuits and has a track record of prosecuting cases involving securities fraud and other breaches of fiduciary duties. The firm is a prominent advocate for corporate governance reform and has successfully recovered billions for its clients, including institutional and individual investors, both domestically and internationally.
Contact Information
For further inquiries, contact:
- Kessler Topaz Meltzer & Check, LLP
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- Radnor, PA 19087
- (484) 270-1453
- info@ktmc.com
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