Greenvale Capital Exits Varonis Systems with Significant Loss
On February 17, 2026, Greenvale Capital submitted a filing with the U.S. Securities and Exchange Commission (SEC), announcing its complete divestiture from Varonis Systems (NASDAQ: VRNS).
This transaction is estimated to have totaled approximately $99.14 million, reflecting the previously reported values of their holdings.
The SEC filing, dated February 17, 2026, indicates that Greenvale Capital sold all 1,725,000 shares of Varonis Systems, effectively reducing its stake to nil. The divestment marks a substantial decrease of $99.14 million compared to previous valuations.
- Greenvale liquidated its entire position in Varonis, which constituted 7.8% of its assets under management (AUM).
- Leading holdings following the divestiture:
- NASDAQ:RUN: $197.23 million (18.5% of AUM)
- NYSE:ZETA: $142.91 million (13.4% of AUM)
- NYSE:SN: $116.57 million (10.9% of AUM)
- NASDAQ:OKTA: $81.71 million (7.7% of AUM)
- NASDAQ:ENPH: $75.32 million (7.1% of AUM)
- As of February 13, 2026, Varonis shares were trading at $25.36, representing a 40% decline over the past year, significantly lagging the S&P 500’s approximate 20% growth during the same timeframe.
| Metric | Value |
|---|---|
| Revenue (TTM) | $623.53 million |
| Net Income (TTM) | ($129.32 million) |
| Price (as of market close 2/13/26) | $25.36 |
| One-Year Price Change | -41.99% |
- Varonis Systems specializes in software solutions for data security, analytics, classification, and access management, offering products such as DatAdvantage, DatAlert, and DataPrivilege.
- The company generates revenue primarily through the licensing and subscription sales of its proprietary software, in conjunction with related maintenance services.
- Varonis caters to enterprise IT and security teams across North America, Europe, the Middle East, and Africa (EMEA), as well as globally, particularly focusing on organizations managing sensitive and regulated data.
Varonis Systems, Inc. is a pivotal player in the technology space, delivering advanced software that assists enterprises in managing, securing, and analyzing data across on-premises and cloud environments.
Utilizing sophisticated analytics and automation, Varonis aids organizations in safeguarding sensitive information while ensuring compliance.
The firm distinguishes itself with a holistic platform aimed at addressing multifaceted data security and governance challenges present in large, data-centric organizations.
Recent considerable downturns, such as the one experienced by Varonis last quarter, underscore the volatility often associated with the tech sector.
Following management’s announcement that the transition to a subscription-based and Software as a Service (SaaS) model would require additional time, the stock suffered a staggering nearly 50% plunge in a single day last October.
This drastic shift erased two years of stock appreciation, with shares still down approximately 40% over the subsequent months.
While long-term patience has been rewarded in the cybersecurity sector, the market’s reaction to Varonis’s revised expectations illustrates how swiftly sentiment can fluctuate.
Recently, the company reported a 16% increase in annual recurring revenues, contributing to a full-year revenue figure of $623.5 million, up from $551 million in 2024. Yet, this growth may not suffice to meet the aspirations of investors anticipating meteoric increases.
In this context, the strategic realignment of the portfolio becomes clearer. The organization’s predominant holdings are now skewed towards high-growth software and energy transition ventures like Zeta Global, Okta, and Sunrun, all of which are performing substantially better than Varonis.
Source link: Finance.yahoo.com.
