NEW YORK, Sept. 15, 2026 (GLOBE NEWSWIRE) —
- Varonis Systems Inc. (NYSE: VRNS) shareholders should email [email protected]
What is the Investigation About?
It is alleged Varonis has assured investors that many existing customers would be converting from on-prem to SaaS, “we are well on our way to becoming a SaaS company[,]” that it would “accelerate [its] SaaS transition and enable [us] to realize the benefit of SaaS” well in advance of its initial plan, that it has a “massive opportunity to increase the ARR from our existing customer base[,]” and that gross customer retention and renewal rate are “all very strong.”
It is further alleged Varonis provided these and other overwhelmingly positive statements while failing to disclose crucial information to investors about the true state of its ability to convert its existing on-prem customers to SaaS. Varonis may not have been equipped to convince its on-prem users to become SaaS users. In contrast to the “massive opportunity to increase ARR,” Varonis’ inability to convert significantly and adversely affected its ARR growth potential.
Investors learned the truth on October 28, 2025. That day, Varonis reported its Q3 2025 financial results, which significantly missed its own and consensus estimates, and the company reduced its Q4 revenue and 2025 ARR guidance to well below its own and consensus estimates.
Varonis blamed the miss and reduction on weaker renewals in its federal and non-federal on-prem business.
The market severely reacted to the news, sending the price of Varonis shares crashing about 48%, which wiped out roughly $3.8 billion of its market capitalization the next day.
If you own Varonis Systems, Inc. (NASDAQ: VRNS) securities, please contact Fletcher Moore at [email protected].
You may be able to seek monetary damages, corporate governance reforms, reimbursement to the company, and a court approved incentive award at no cost to you whatsoever. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
MOORE LAW PLLC
30 Wall Street, 8th Floor
New York, NY 10005
[email protected]
www.fmoorelaw.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7546cca8-ccd3-49d8-9075-0698e254e309
