ALRM
Alarm.com Holdings
Is ALRM Halal?
Cloud-based smart home and business security platform with permissible business.
What You Should Know
Alarm.com provides cloud-based security and automation for homes and businesses. Core business is halal, minimal debt, excellent financial position. Its March 31, 2026 Form 10-Q reports $1,643.637 million of assets, $490.365 million of interest-bearing debt, $497.449 million of cash, $141.221 million of receivables and $265.193 million of quarterly revenue. Debt/assets is 29.83%, liquidity/assets is 30.27%, receivables-plus-cash/assets is 38.86%, and disclosed interest income is 1.86% of revenue; FTSE and Malaysia-style ratios pass while the examined MSCI receivables ratio does not.
⚠️ Concerns
- •Receivables-plus-cash/assets 38.86% exceeds the examined MSCI limit
- •Interest income
- •Convertible-note financing
- •Weapons-detection, surveillance and partner use cases
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
490.365 / 1,643.637
497.449 / 1,643.637
638.67 / 1,643.637
4.931 / 265.193
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 29.83%, liquidity/assets is 30.27%, receivables-plus-cash/assets is 38.86% and disclosed interest income is 1.86% of revenue; the examined FTSE asset ratios pass while activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 38.86%, above the examined MSCI 33.33% limit; debt/assets and liquidity/assets are 29.83% and 30.27%.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and liquidity/assets pass the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification, and activity remains incomplete.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; method-specific filing-based results remain documented.
Business-activity disclosure
Alarm.com provides connected-property security, automation, energy management and safety platforms. The core technology activity is generally permissible, while surveillance, weapons-detection, energy and customer end uses require qualitative review.
Limitation: The filing does not provide a universal prohibited-activity numerator across hardware, SaaS, license revenue and customer uses.
Purification
Alarm.com discloses $4.931 million of interest income, but does not provide a complete prohibited-activity numerator or scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Alarm.com's March 31, 2026 Form 10-Q.
- Interest-bearing debt is the $490.365 million net carrying amount of the 2029 convertible senior notes; the 2026 notes were paid in January 2026 and operating leases are excluded.
- Cash and cash equivalents are $497.449 million. Investments in unconsolidated entities of $219.850 million are equity investments and are not counted as interest-bearing securities.
- Accounts receivable are $141.221 million, quarterly revenue is $265.193 million and disclosed interest income is $4.931 million.
- Connected-property security and automation are generally permissible, while surveillance, weapons-detection, energy and customer end uses require qualitative review.
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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