A law firm is probing Varonis for possible investor misrepresentation after its Q3 2025 results missed expectations, leading to a 48.7% stock drop.

A law firm is investigating Varonis Systems over potential securities law violations after the company reported third-quarter 2025 results that missed expectations, citing a 63.9% drop in term license subscription revenue and weaker renewals in its on-premises business. Varonis lowered its annual recurring revenue guidance and announced plans to discontinue its self-hosted solution by late 2026, leading to a 48.7% stock plunge. The investigation focuses on whether prior statements misled investors about the company’s performance and prospects.