APPF

AppFolio, Inc.

HALAL — FINANCIAL SCREENS PASSstock

Is APPF Halal?

Property management software — real estate SaaS is permissible with minor ancillary concerns.

What You Should Know

AppFolio provides cloud-based property-management software for residential and commercial real estate managers. Its March 31, 2026 Form 10-Q reports $580.560 million of assets, no reported interest-bearing debt, $147.412 million of cash, $4.241 million of current investment securities, $43.966 million of receivables and $262.214 million of quarterly revenue. Debt/assets is 0.00%, liquidity/assets is 26.12%, receivables-plus-cash/assets is 32.96% and disclosed interest income is 0.68% of revenue; the examined FTSE, MSCI and Malaysia financial ratios pass. The core SaaS business remains permissible, with payment and insurance-facilitation concerns treated qualitatively.

⚠️ Concerns

  • Payment-processing relationships
  • Property-management and tenant-data end uses
  • Strategic equity investments
  • Interest income

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 580.56

Cash + interest-bearing securities / assets
26.12%Within limit
Below 33.333% under FTSE Yasaar

151.653 / 580.56

Receivables + cash / assets
32.96%Within limit
Below 50% under FTSE Yasaar

191.378 / 580.56

Non-compliant income / revenue
0.68%Within limit
No more than 5% under FTSE Yasaar

1.784 / 262.214

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Pass

Debt/assets is 0.00%, liquidity/assets is 26.12%, receivables-plus-cash/assets is 32.96% and disclosed interest income is 0.68% of revenue; examined FTSE ratios and core activity pass.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Pass

Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI total-assets limits; this is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Pass

Debt/assets and liquidity/assets pass the examined Malaysia limits; this is a calculation against the named ratios, not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed historical market-cap series is not stored; filing-based financial results remain documented.

Business-activity disclosure

AppFolio provides property-management software, workflow tools and related services. The core technology activity is generally permissible.

Limitation: The filing does not allocate every payment, customer-property, tenant or downstream use into a scholar-approved prohibited-revenue numerator.

Purification

AppFolio discloses $1.784 million of interest income, net but does not provide a scholar-approved purification percentage or separate prohibited-activity numerator.

Inputs, assumptions and primary sources
  • Amounts are USD millions converted from AppFolio's March 31, 2026 Form 10-Q values reported in thousands.
  • No interest-bearing debt is reported; operating lease liabilities are excluded.
  • Cash is $147.412 million and current investment securities are $4.241 million; long-term strategic equity investments are excluded from the interest-bearing-securities proxy.
  • Accounts receivable are $43.966 million net; first-quarter revenue is $262.214 million.
  • Disclosed interest income, net is $1.784 million.
  • Property-management software, workflow tools and related services are treated as generally permissible; payment, customer and downstream property 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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