What Happened?
Shares of data security company Varonis Systems (NASDAQ: VRNS) fell 2.7% in the afternoon session after the company announced a 5% workforce reduction and received a lower price target from an analyst, extending the slide from its recent weak earnings report.
This move followed a massive 48.7% drop two days prior after Varonis released its third-quarter 2025 financial results. The report showed that revenue missed consensus estimates, with term license subscription revenues falling 63.9% compared to the previous year. In response to the poor performance of its on-premise subscription business, the company also reduced its full-year guidance. The negative developments continued as the data security firm announced it was cutting its workforce by 5%, which affected about 120 employees. Varonis also revised its fourth-quarter guidance downward due to a sharp decline in renewal rates that began in late September. Adding to the pressure, analysts at DA Davidson reduced their price objective on the stock from $55.00 to $40.00.
The shares closed the day at $35.22, up 0.6% from previous close.
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What Is The Market Telling Us
Varonis Systems’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Varonis Systems is down 20.7% since the beginning of the year, and at $35.18 per share, it is trading 44.4% below its 52-week high of $63.31 from October 2025. Investors who bought $1,000 worth of Varonis Systems’s shares 5 years ago would now be looking at an investment worth $906.47.
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