Varonis Hit With Investor Class Actions Over SaaS Conversion Claims and ARR Miss

Overview

• At least one securities class action has been filed on behalf of investors who bought Varonis stock between February 4, 2025 and October 28, 2025.
• Complaints allege the company touted its ability to convert on‑prem customers to SaaS and sustain ARR growth despite internal struggles that undercut those claims.
• On October 28, 2025, Varonis reported a Q3 revenue miss, a 63.9% year‑over‑year drop in term license subscription revenue, and lowered full‑year ARR guidance.
• CEO Yakov Faitelson said the on‑premises subscription business was a drag on total company ARR growth, and the stock fell about 49% to $32.34 the next day.
• Multiple firms including Kessler Topaz, Glancy Prongay, Hagens Berman, Schall, Portnoy, DJS Law Group, Rosen Law, and Frank R. Cruz cite alleged violations of Sections 10(b) and 20(a) and SEC Rule 10b‑5.