Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm Encourages Varonis Systems, Inc. (VRNS) Shareholders To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Varonis Systems, Inc. (“Varonis” or the “Company”) (NASDAQ: VRNS) common stock between February 4, 2025 and October 28, 2025, inclusive (the “Class Period”). Varonis investors have until March 9, 2026 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR VARONIS SYSTEMS, INC. (VRNS) INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS

What Happened?

On October 28, 2025, Varonis released its third quarter 2025 financial results, reporting revenue which missed consensus estimates, including a 63.9% decline in term license subscription revenues, year over year. The Company also stated it was “reducing our full-year ARR [“Annual Recurring Revenues”] guidance to account for the underperformance of [its] on-prem subscription business.”

In an earnings call the same day, Yakov Faitelson, the Company’s Co-Founder, Chairman, CEO & President, stated the on-premises subscription business is a “drag on total company ARR growth.” Management also cited a number of factors which contributed to “lower renewal rate of on-prem subscription[s],” including “sales process issues.”

On this news, Varonis’s stock price fell $30.66, or 48.7%, to close at $32.34 per share on October 29, 2025, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Varonis was ill-equipped to continue its ARR growth trajectory without maintaining a significantly high rate of quarterly conversions; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Varonis common stock during the Class Period, you may move the Court no later than March 9, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.