DBX

Dropbox, Inc.

HALAL — SCREEN DOES NOT PASSstock

Is DBX Halal?

Cloud file-storage and collaboration software — a permissible SaaS business whose current debt/assets screen fails materially.

What You Should Know

Dropbox operates a cloud file-storage, synchronization and collaboration platform. Its March 31, 2026 Form 10-Q reports assets of $3,030.9 million, debt and lease obligations of $4,008.6 million, cash of $1,207.4 million, short-term investments of $81.4 million, receivables of $74.7 million and quarterly revenue of $629.5 million. Debt/assets is 132.26%, liquidity/assets is 42.52% and receivables plus cash/assets is 42.30%; the asset-based debt screen fails materially. The filing reports $7.6 million of interest income, approximately 1.21% of quarterly revenue, while no universal prohibited-revenue numerator is disclosed.

⚠️ Concerns

  • Known debt/assets is 132.26%, materially above examined limits
  • Liquidity/assets is 42.52% and receivables-plus-cash/assets is 42.30%
  • Disclosed interest income is 1.21% of quarterly revenue; no fixed purification percentage asserted
  • Term-loan, convertible-note and lease obligations expanded the balance sheet
  • No universal prohibited-revenue numerator is disclosed

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
132.26%Above limit
Below 33.333% under FTSE Yasaar

4,008.6 / 3,030.9

Cash + interest-bearing securities / assets
42.52%Above limit
Below 33.333% under FTSE Yasaar

1,288.8 / 3,030.9

Receivables + cash / assets
42.30%Within limit
Below 50% under FTSE Yasaar

1,282.1 / 3,030.9

Non-compliant income / revenue
1.21%Within limit
No more than 5% under FTSE Yasaar

7.6 / 629.5

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

Debt/assets is 132.26% and liquidity/assets is 42.52%, above the examined limits; receivables-plus-cash/assets is 42.30% and disclosed interest income is 1.21%.

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

Debt/assets is 132.26%, liquidity/assets is 42.52% and receivables-plus-cash/assets is 42.30%, above the examined MSCI limits.

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

Debt/assets is 132.26% and liquidity/assets is 42.52%, above the examined Malaysia limits. This is not an official classification.

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

A properly licensed and reproducible historical market-cap series is not stored; asset-based debt screening already fails.

Business-activity disclosure

Dropbox provides cloud file storage, synchronization, collaboration and related productivity tools. The core SaaS activity is generally permissible, while customer-use allocation remains qualitative.

Limitation: The filing does not provide a universal prohibited-revenue numerator across customer use cases.

Purification

The filing discloses $7.6 million of interest income, but no scholar-specific purification instruction or universal prohibited-revenue numerator is provided.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Dropbox's March 31, 2026 Form 10-Q for the three months ended that date.
  • Debt combines $690.3 million convertible notes, $2,611.7 million net term-loan balances, $392.0 million operating-lease liabilities and $314.6 million finance-lease obligations.
  • Cash is $1,207.4 million, short-term investments are $81.4 million and trade and other receivables are $74.7 million.
  • The filing discloses $7.6 million of interest income from cash, cash equivalents and short-term investments, approximately 1.21% of quarterly revenue.
  • Cloud storage and collaboration software is generally permissible, but no universal prohibited-revenue numerator is asserted.

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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