Varonis Systems (NASDAQ:VRNS) Posts Earnings Results, Beats Expectations By $0.05 EPS

Varonis Systems (NASDAQ:VRNS) announced its earnings results on Tuesday. The technology company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.05, FiscalAI reports. Varonis Systems had a negative return on equity of 21.91% and a negative net margin of 18.82%.The business had revenue of $173.37 million during the quarter, compared to the consensus estimate of $168.66 million.

Varonis Systems Trading Down 9.3%

VRNS stock traded down $2.72 during trading on Tuesday, reaching $26.53. 10,114,381 shares of the stock were exchanged, compared to its average volume of 2,657,010. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.75. The firm has a market capitalization of $3.13 billion, a price-to-earnings ratio of -26.01 and a beta of 0.58. The business has a 50 day moving average price of $33.11 and a 200-day moving average price of $45.94. Varonis Systems has a 1 year low of $25.03 and a 1 year high of $63.90.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its position in Varonis Systems by 344.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company’s stock worth $62,000 after acquiring an additional 940 shares during the period. Harvest Fund Management Co. Ltd acquired a new position in shares of Varonis Systems in the 3rd quarter valued at $68,000. Advisory Services Network LLC purchased a new position in shares of Varonis Systems during the 3rd quarter worth $75,000. Caxton Associates LLP acquired a new stake in shares of Varonis Systems during the 1st quarter worth about $200,000. Finally, Twin Tree Management LP acquired a new stake in shares of Varonis Systems during the 3rd quarter worth about $211,000. 95.65% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Varonis Systems

Here are the key news stories impacting Varonis Systems this week:

• Positive Sentiment: Strong Q4 / full‑year results: Varonis reported growth in ARR (annual recurring revenue) and SaaS metrics, with SaaS ARR (ex‑conversions) up ~32% y/y and SaaS representing ~86% of total ARR; year‑to‑date cash from operations and free cash flow increased versus prior year — a constructive operating performance for a SaaS transition. Varonis Announces Fourth Quarter 2025 and Full-Year 2025 Financial Results
• Positive Sentiment: Strategic acquisition: Varonis announced it will acquire AllTrue.ai to add AI TRiSM (AI trust, risk & security management) capabilities — this complements Varonis’ data/access security stack and may bolster long‑term product differentiation in enterprise AI security. Varonis to Acquire AllTrue.ai to Manage and Secure AI Across the Enterprise
• Neutral Sentiment: Mixed profitability picture: the company beat Q4 estimates (reported EPS $0.08 vs. $0.03 est.; revenue $173.4M vs. $168.7M est.) but remains unprofitable on a trailing basis and analysts expect negative full‑year EPS — a cause for cautious positioning until trends sustain. Varonis Systems (VRNS) Dipped Despite Reporting Strong Earnings
• Negative Sentiment: Significant litigation headline risk: multiple law firms have filed or issued shareholder alerts and are soliciting lead‑plaintiff motions in a securities class action (class period Feb 4, 2025–Oct 28, 2025), alleging the company misled investors about its SaaS transition — numerous notices and the looming March 9 lead‑plaintiff deadline likely accelerated selling and volatility. Representative filings/alerts: Bragar Eagel & Squire; Rosen Law Firm; Hagens Berman; Pomerantz; Berger Montague; Schall Law Firm, among others. Bragar Eagel & Squire Reminder Rosen Law Firm Alert Hagens Berman Alert

Analyst Ratings Changes

VRNS has been the topic of several recent analyst reports. Susquehanna decreased their price objective on shares of Varonis Systems from $65.00 to $50.00 and set a “positive” rating on the stock in a report on Wednesday, October 29th. Zacks Research upgraded Varonis Systems from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 11th. Citigroup cut their price objective on Varonis Systems from $58.00 to $40.00 and set a “neutral” rating for the company in a research note on Monday, November 3rd. Piper Sandler upgraded Varonis Systems from a “neutral” rating to an “overweight” rating and raised their target price for the company from $45.00 to $47.00 in a research report on Monday, January 5th. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $41.00 price target (down from $44.00) on shares of Varonis Systems in a research note on Monday, January 26th. Fifteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $53.50.

About Varonis Systems

Varonis Systems is a cybersecurity firm specializing in the protection and management of unstructured data. The company’s flagship Data Security Platform provides advanced analytics for monitoring file systems, email servers, collaboration platforms and cloud storage. By continuously mapping and analyzing data permissions and user behavior, Varonis enables organizations to detect insider threats, verify compliance and remediate exposed data in real time.

Founded in 2005 and headquartered in New York City, Varonis serves a diverse global customer base across financial services, healthcare, media, manufacturing and government.