The Short Answer
VRNS is doubtful under the current filing-backed screen. Data-security SaaS is generally permissible, but liquidity/assets is 55.03% and disclosed interest income/revenue is 5.85%.
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.
Business activity
Varonis provides data discovery and classification, access governance, data detection and response, insider-threat protection, posture management and managed data detection and response across Microsoft 365, Salesforce, AWS, Azure, Snowflake, Google Workspace and on-premises file shares.
Qualitative context
The product is general-purpose cybersecurity rather than a financial product, so financial-services customer exposure does not automatically make the activity prohibited. Varonis is transitioning from legacy on-premises licensing to a SaaS subscription model and has reported GAAP losses during that transition; convertible senior notes are also material.
What the filing changes
The March 31, 2026 filing reports $452.8 million of convertible-note debt and $899.5 million of cash, deposits and marketable securities against $1.63 billion of assets. Quarterly revenue was $173.1 million and disclosed interest income was $10.123 million.
Bottom line
VRNS remains doubtful. Recheck the next filing and use the school or advisory-board standard you follow.