FRSH
Freshworks Inc.
Is FRSH Halal?
Cloud customer-experience and IT-service software — a permissible SaaS business whose current liquidity screen fails.
What You Should Know
Freshworks provides cloud customer-service, CRM and IT-service-management software. Its March 31, 2026 Form 10-Q reports assets of $1,605.382 million, debt and operating leases of $38.795 million, cash of $548.168 million, marketable securities of $231.069 million, receivables of $127.338 million and quarterly revenue of $228.633 million. Debt/assets is 2.42%, liquidity/assets is 48.54% and receivables plus cash/assets is 42.08%; the total-assets liquidity screen fails. The filing reports $7.022 million of interest income, approximately 3.07% of quarterly revenue, while no universal prohibited-revenue numerator is disclosed.
⚠️ Concerns
- •Known liquidity/assets is 48.54%, above examined 33.333% limits
- •Disclosed interest income is 3.07% of quarterly revenue; no fixed purification percentage asserted
- •Enterprise customer-use mix requires qualitative review
- •Marketable-securities balance and share-repurchase activity can change liquidity
- •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.
38.795 / 1,605.382
779.237 / 1,605.382
675.506 / 1,605.382
7.022 / 228.633
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 48.54%, above the examined 33.333% limit; debt/assets is 2.42%, receivables-plus-cash/assets is 42.08% and disclosed interest income is 3.07%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 48.54% and receivables-plus-cash/assets is 42.08%, above the examined MSCI limits; debt/assets is 2.42%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 48.54%, above the examined Malaysia limit; debt/assets is 2.42%. This is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; total-assets liquidity screening already fails.
Business-activity disclosure
Freshworks provides cloud customer-service, CRM and IT-service-management software. 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 $7.022 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 Freshworks' March 31, 2026 Form 10-Q for the three months ended that date.
- Debt includes $38.795 million of current and noncurrent operating-lease liabilities; no interest-bearing borrowing balance was separately reported.
- Cash is $548.168 million, marketable securities are $231.069 million and net accounts receivable is $127.338 million.
- The filing discloses $7.022 million of interest income, approximately 3.07% of quarterly revenue.
- Cloud customer-service, CRM and IT-service 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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