OTEX

Open Text Corporation

DOUBTFUL — SCREEN DOES NOT PASSstock

Is OTEX Halal?

Enterprise software is generally permissible, but March 2026 debt/assets is 46.60%, above the examined asset-based limits.

What You Should Know

OpenText's March 31, 2026 Form 10-Q reports $13,325.101M of assets, $6,210.508M of debt, $1,254.144M of cash, $620.742M of trade receivables and $1,282.504M of quarterly revenue. Debt/assets is 46.60%, liquidity/assets 9.41%, receivables plus cash/assets 14.08% and disclosed interest income/revenue is 0.85%. Its content, business-network, cybersecurity, ITOM and analytics products are generally permissible, but acquisition leverage is the binding financial concern.

⚠️ Concerns

  • Debt/assets is 46.60%, above the examined FTSE Yasaar, MSCI and Malaysia SAC limits
  • Acquisition financing remains material
  • $10.916M of interest income is disclosed; no fixed purification percentage is asserted
  • The filing does not provide a universal prohibited-revenue numerator

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
46.61%Above limit
Below 33.333% under FTSE Yasaar

6,210.508 / 13,325.101

Cash + interest-bearing securities / assets
9.41%Within limit
Below 33.333% under FTSE Yasaar

1,254.144 / 13,325.101

Receivables + cash / assets
14.07%Within limit
Below 50% under FTSE Yasaar

1,874.886 / 13,325.101

Non-compliant income / revenue
0.85%Within limit
No more than 5% under FTSE Yasaar

10.916 / 1,282.504

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

Debt/assets is 46.60%, above the examined 33.333% limit; liquidity/assets is 9.41%, receivables plus cash/assets 14.08% and interest income/revenue is 0.85%.

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

Debt/assets is 46.60%, above the examined MSCI 33.33% limit; other identified ratios pass.

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

Debt/assets is 46.60%, above the examined Malaysia SAC 33% limit.

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

No licensed historical market-cap series is stored.

Business-activity disclosure

OpenText provides enterprise content, business-network, cybersecurity, IT-operations, analytics and developer software. The activity is generally permissible, but customer mix and the filing's lack of a prohibited-revenue numerator keep the qualitative screen incomplete.

Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator by customer or downstream use.

Purification

The filing discloses $10.916 million of interest income; ZakatInvest does not assert a fixed purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from OpenText's March 31, 2026 Form 10-Q.
  • Total debt outstanding is $6,210.508 million, including $35.850 million current and $6,174.658 million non-current debt; cash is $1,254.144 million.
  • Trade receivables are $620.742 million; contract assets are separately disclosed and not added to avoid double counting.
  • Quarterly revenue is $1,282.504 million and disclosed interest income is $10.916 million.
  • OpenText's content, business-network, cybersecurity, ITOM, analytics and developer software are generally permissible activities, but customer use and leverage remain material concerns.

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.

🧾
Own OTEX? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track OTEX and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →