Stock Track | Varonis Plunges 15.57% After-Hours on Disappointing Earnings Guidance

Stock Track
Feb 04

Varonis Systems Inc. (VRNS) experienced a significant after-hours plunge of 15.57% following the release of its fourth-quarter 2025 financial results and forward guidance.

The data security company reported Q4 adjusted earnings of $0.08 per share, down from $0.18 a year ago, though this beat analyst estimates. Revenue for the quarter rose to $173.4 million, exceeding expectations. However, the stock's sharp decline appears driven by its guidance for the first quarter and full year 2026. Varonis forecasted a Q1 adjusted loss per share of $0.06 to $0.05, contrasting sharply with analyst expectations for a $0.04 profit. Furthermore, the company's full-year 2026 adjusted EPS guidance of $0.06 to $0.10 fell well below the consensus estimate of $0.35.

The company also reported a GAAP net loss of $27.8 million and an operating loss of $30.3 million for the fourth quarter. While Varonis announced the acquisition of AI security firm AllTrue.ai to boost its enterprise AI capabilities, investor focus remained squarely on the earnings outlook that missed market expectations.

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