By Chris Wack
Varonis Systems shares were 45% lower, at $34.95, after the company reported a wider third-quarter loss, and cut its revenue guidance for 2025.
The stock hit its 52-week low of $33.91 earlier in the session, and is 40% lower in the past 12 months.
The data security company reported a quarterly loss of $29.9 million, or 26 cents a share, compared with a loss of $18.3 million, or 16 cents a share, in the same quarter last year. Analysts polled by FactSet were looking for a loss of $29.6 million, or 23 cents a share.
Adjusted earnings were 6 cents a share, matching the forecast of analysts.
Revenue for the quarter was $161.6 million, compared with last year's $148.1 million and the $164.9 analysts were expecting.
The company said that at the end of the quarter, it saw lower renewals in the federal vertical and in its non-federal on-prem subscription business, which led to a shortfall relative to its expectations. It also said it is expecting an even lower renewal rate in its on-prem subscription business for the fourth quarter.
Varonis said it is cutting 2025 revenue expectations to $615.2 million to $621.2 million, from previous guidance of $616 million to $628 million. It is also expecting adjusted earnings of 12 cents to 13 cents a share for the year.
Analysts are expecting 2025 revenue of $619.5 million, and adjusted earnings of 13 cents a share.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
October 29, 2025 10:20 ET (14:20 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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