VRNS
Varonis Systems, Inc.
Is VRNS Halal?
Data-security SaaS is generally permissible, but liquidity and disclosed interest-income screens fail the latest filing.
What You Should Know
Varonis's March 31, 2026 Form 10-Q reports $1,634.577M of assets, $452.769M of convertible-note debt, $179.339M of cash, $720.184M of interest-bearing securities, $156.617M of receivables and $173.126M of quarterly revenue. Liquidity/assets is 55.03% and interest income/revenue is 5.85%, producing failures under the examined methods. Data-security SaaS remains qualitatively permissible, while customer end markets and the SaaS transition remain separate context.
⚠️ Concerns
- •Liquidity/assets is 55.03%, above the examined FTSE, MSCI and Malaysia limits
- •Interest income/revenue is 5.85%, above the examined FTSE limit
- •Convertible senior notes are material
- •The filing does not provide a universal prohibited-revenue numerator
- •The company remains in a GAAP-loss SaaS transition
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
452.769 / 1,634.577
899.523 / 1,634.577
335.956 / 1,634.577
10.123 / 173.126
- Financial
- Fails
- Overall
- Fails
Debt/assets is 27.70% and receivables plus cash/assets is 20.55%, but liquidity/assets is 55.03% and interest income/revenue is 5.85%, above FTSE limits.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 55.03%, above the examined MSCI limit; debt/assets and receivables plus cash/assets are below their limits.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 55.03%, above the examined Malaysia SAC limit; debt/assets is 27.70%.
- Financial
- Not calculated
- Overall
- Fails
No licensed historical market-cap series is stored; the asset-based screens fail on liquidity and income.
Business-activity disclosure
Varonis provides data discovery, access governance, data detection and response, insider-threat protection and SaaS posture management. General-purpose cybersecurity is generally permissible, while customer end markets remain qualitative context.
Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator, so no percentage is invented.
Purification
The filing discloses $10.123 million of interest income; ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Varonis's March 31, 2026 Form 10-Q.
- Interest-bearing securities include short-term marketable securities, short-term deposits and long-term marketable securities; accounts receivable is reported net.
- Convertible senior notes were $452.769 million net; quarterly revenue was $173.126 million and disclosed interest income was $10.123 million.
- Varonis provides data-security and data-access-governance SaaS; the filing does not provide a universal prohibited-revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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