New York, February 24, 2026, 09:41 EST — Regular session
- Varonis Systems gained roughly 2.4%, bouncing back a bit after sliding 11% on Monday.
- A securities class action has been filed, the law firm announced, with a lead-plaintiff deadline of March 9.
- All eyes remain on the company’s SaaS transition and its 2026 forecast, following the earlier guidance upheaval that rattled investors.
Shares of Varonis Systems Inc bounced back about 2.4% to $21.59 Tuesday morning, clawing back from a sharp drop the previous session. The move came as the data-security firm faced fresh attention from yet another set of shareholder lawsuits.
The legal update arrives just as Varonis is pushing to recalibrate investor expectations, caught mid-pivot to software-as-a-service (SaaS) subscriptions and rolling out fresh metrics that Wall Street is watching. SaaS, for the record, refers to software provided online, typically sold through subscriptions.
Shares have swung since early February, after the company released its 2026 guidance and pointed to challenges as clients transition from older self-hosted offerings to SaaS.
Bernstein Liebhard announced that a shareholder has lodged a securities class action targeting Varonis, covering investors who picked up Varonis common shares from Feb. 4, 2025 through Oct. 28, 2025.
Hagens Berman, for its part, flagged a March 9, 2026 window for investors to seek lead-plaintiff status in a securities class action it says targets the company and certain executives.
Varonis shares slid 11.0% on Monday, landing at $21.08.
The stock traded between $20.68 and $21.67 on Tuesday, starting the session at $21.12, Investing.com data show.
Varonis, a software provider focused on helping companies secure sensitive data, has been making its case to investors around subscription-based annual recurring revenue (ARR)—a key metric for the software sector’s steady income. On the Feb. 3 earnings call, CFO and COO Guy Melamed singled out “SaaS ARR, excluding conversions, is really the most important KPI,” marking it as the performance measure to watch. Investing.com
The company pointed out to investors that its U.S. federal and state government clients make up the “largest cohort” unlikely to move over to SaaS. Because of that, it’s bracing for a headwind of $30 million to $50 million in 2026. Investing.com
Varonis operates in a packed segment of cybersecurity and data governance. Companies here are bundling protection tools, with customers consolidating their vendor lists and relying more heavily on major cloud platforms.
The constant threat of litigation could weigh on the stock, particularly if additional firms serve notices or court dates begin colliding with sales cycles and renewals.
Eyes are on fresh court filings ahead of the March 9 lead-plaintiff cutoff, with investors also bracing for the company’s next updates — its earnings report is on the calendar for early May.
