Varonis Insiders Deploy $1.1M After Post-Earnings Plunge

Varonis Systems Inc. (VRNS:US) is a leading provider of data security solutions, specializing in protecting sensitive data across on-premises, cloud, and hybrid environments. The company offers a comprehensive platform focused on data discovery, classification, access governance, threat detection, and response, helping organizations combat insider threats, ransomware, and data breaches. The company has a market capitalization of approximately $3.0-3.1 billion.

Recent Insider Trades

Insider activity at Varonis has been notably bullish in early February 2026, with key executives and directors making significant open-market purchases shortly after a sharp stock decline triggered by earnings guidance. These buys, clustered around February 6-9, 2026, total over $1.1 million and signal strong internal conviction at depressed prices:

• On February 9, 2026, David Bass, Chief Technology Officer (CTO) and EVP of Engineering, purchased 2,980 shares of common stock at $23.47 per share, for a total value of $69,940. 

• Also on February 9, 2026, Yakov Faitelson, Founder and CEO, bought 26,725 shares at $22.41 per share, amounting to $598,907.

• On February 6, 2026, John Gavin Jr., an Independent Director, acquired 5,000 shares at $22.54 per share, valued at $112,700.

• On the same date, February 6, 2026, Avrohom J. Kess, an Independent Director, purchased 17,800 shares at $22.29 per share, for $396,762.

These transactions followed a post-earnings sell-off where the stock dropped significantly (from around $29-30 to the low $20s), creating a buying opportunity that insiders seized aggressively. Such clustered purchases, with no offsetting sales in the period, are frequently viewed as a positive indicator of undervaluation and confidence in the company's strategic direction.

Company Financials

Varonis reported Q4 2025 and full-year results on February 3, 2026, with total revenue of $173.4 million (up 9% YoY, beating estimates) and adjusted EPS of $0.08 (significantly above consensus of $0.03). SaaS revenue surged to $142.3 million, and SaaS ARR reached $638.5 million (86% of total ARR), with ex-conversion growth at 32% YoY. Full-year 2025 revenue hit $623.5 million, with positive cash flow from operations.

However, shares plunged sharply (down 10-13% initially, extending to lows near $20) after weaker-than-expected 2026 guidance: revenue of $722-730 million (16-17% growth), SaaS ARR of $805-840 million (with ex-conversion growth of 18-20%), and adjusted EPS of $0.06-$0.10 (well below prior consensus). 

The insider cluster buying post-dip suggests leadership views the market reaction as excessive, betting on execution in data security demand and eventual margin expansion. Investors may monitor upcoming quarters for signs of SaaS stabilization and cash flow strength as key catalysts.