Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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 ARE AN INVESTOR WHO SUFFERED A LOSS IN VARONIS SYSTEMS, INC. (VRNS), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

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.

Contact Us To Participate or Learn More:

If you purchased Varonis common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,

3070 Bristol Pike, Suite 112,

Bensalem, Pennsylvania 19020,

Telephone: (215) 638-4847

Email: howardsmith@howardsmithlaw.com,

Visit our website at: www.howardsmithlaw.com.

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

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