Varonis Systems, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Varonis Systems, Inc. (VRNS)

If you purchased or acquired Varonis Systems securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Varonis Systems

Varonis Systems is a technology company that specializes in data security and analytics. The company provides solutions designed to protect sensitive data, detect cyber threats, and ensure compliance for organizations across various industries. Its offerings include both on-premises and cloud-based software platforms.

Potential Concerns Under Investigation

Attorneys are investigating whether Varonis Systems and certain executives may have made statements or omissions that misrepresented, or failed to fully disclose, material information about the company’s business performance between May 6 and October 28, 2025.

During this period, management allegedly highlighted healthy demand for its SaaS platform and strong renewal activity. On May 6, 2025, Varonis reported first-quarter 2025 results and indicated that it was raising full-year ARR guidance, citing strong adoption trends. In the Q2 results on July 29, 2025, management highlighted “growing demand for Varonis SaaS” and noted that SaaS represented 69% of ARR, with expectations for additional growth.

However, on October 28, 2025, Varonis announced third quarter fiscal 2025 results that appeared to fall short of market expectations. The company reported revenue of approximately $161.6 million, reflecting a modest year over year increase but coming in below some analyst estimates. Management also adjusted its annual recurring revenue guidance and stated that renewals in the on premises subscription business were weaker than anticipated.

It also announced plans to discontinue support for its self-hosted product by December 31, 2026, and to reduce its workforce by about 5%.

Following the announcement, Varonis stock dropped from a closing at $63.00 on October 28 to $32.34 on October 29, 2025, causing substantial harm to investors.

The investigation may focus on whether prior statements about renewal strength and business momentum adequately reflected internal conditions and whether investors were sufficiently informed of risks affecting the on-premises segment.

Your Rights and Next Steps

This is an ongoing investigation and not a filed lawsuit. Investors who purchased or otherwise acquired Varonis Systems securities between May 6, 2025 and October 28, 2025, and experienced losses may have legal rights. If evidence indicates that investors were misled, the case could lead to a class action seeking recovery for affected shareholders.

Lawyers are available to help investors understand their options and determine whether they qualify to participate. There is no cost or obligation to join the investigation, and participation is confidential.

You May Be Entitled to Compensation

Securities investigations are time-sensitive, and acting promptly can help preserve your rights. If you purchased or acquired Varonis Systems (VRNS) securities during the relevant period, you may be eligible to seek compensation for your losses.

To learn more and participate in the investigation, complete the form below.