Pomerantz Law Firm Investigates Varonis Systems, Inc. Amid Decline in Stock Prices
The Pomerantz Law Firm, a prominent litigator in corporate and securities cases, is currently investigating claims on behalf of investors in Varonis Systems, Inc. (NASDAQ: VRNS). This development comes on the heels of alarming financial results released by Varonis for the third quarter of 2025, which revealed a staggering 63.9% decrease in term license subscription revenue compared to the previous year. Given the significance of this decline, investors are urged to consider their legal options as the situation unfolds.
On October 28, 2025, Varonis disclosed its quarterly earnings, falling short of market estimates, prompting an immediate response from the financial community. In the subsequent earnings call, Varonis's co-founder, Yakov Faitelson, addressed the issue, acknowledging that the company's on-premises subscription business negatively impacted overall annual recurring revenue (ARR) growth. Faitelson cited sales process deficiencies among other factors as contributors to the reduced renewal rates for on-prem subscriptions.
Following the release of this information, Varonis's stock witnessed a dramatic drop, plummeting by approximately 48.67%, with a closing price of $32.34 per share on October 29, 2025. This stark decline raises concerns about possible securities fraud or misconduct by the company and its leadership. Pomerantz LLP is dedicated to protecting investor rights and ensuring that those affected by potential corporate misdeeds receive justice.
Founded over 85 years ago by the late Abraham L. Pomerantz, often referred to as the pioneer of securities class actions, Pomerantz has a legacy of advocating for the rights of investors. The firm's track record includes numerous significant recoveries for class members in various securities fraud cases. This investigation into Varonis is another chapter in their ongoing efforts to challenge corporate wrongdoing.
If you are an investor in Varonis Systems and have concerns regarding your investment, it is vital to stay informed and consider participating in any potential class action that may arise from these developments. Pomerantz LLP encourages affected investors to reach out for further details and explore their legal rights. Interested parties can contact attorney Danielle Peyton at [email protected] or call 646-581-9980 ext. 7980 for additional information.
As the investigation progresses, stakeholders will closely monitor the situation, analyzing Varonis's operational strategies and potential recovery routes. Investors should be aware of the implications that this inquiry may have on Varonis's future performance and stock value. The financial circumstances of the company underscore the significance of corporate governance and transparency in building trust among investors, a principle that Pomerantz steadfastly upholds in its litigation processes.
In conclusion, the ongoing investigation by Pomerantz into Varonis Systems serves as a critical reminder of the complexities of corporate investments and the necessity for vigilance in the wake of financial disclosures. Stakeholders must remain proactive in advocating for their rights, particularly in turbulent market conditions driven by disappointing financial performances.