PCTY
Paylocity Holding Corporation
Is PCTY Halal?
Cloud-based payroll and HR software with strong compliance.
What You Should Know
Paylocity provides cloud-based payroll and human capital management. The software activity is generally permissible. Its March 31, 2026 Form 10-Q reports $4,389.428 million of assets, $162.5 million of interest-bearing debt, $2,482.526 million of cash including restricted funds-held-for-clients cash, $619.681 million of available-for-sale securities, $41.642 million of receivables and $502.286 million of quarterly revenue. Debt/assets is 3.70%, liquidity/assets is 70.67%, receivables-plus-cash/assets is 57.51%, and disclosed interest income on funds held for clients is 6.66% of revenue; client-funds structure and income make the quantitative result a fail despite the qualitative software activity.
⚠️ Concerns
- •Interest income on funds held for clients
- •Client-funds investment and custody structure
- •Liquidity/assets 70.67% exceeds examined limits
- •Receivables-plus-cash/assets 57.51% exceeds examined limits
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
162.5 / 4,389.428
3,102.207 / 4,389.428
2,524.168 / 4,389.428
33.452 / 502.286
- Financial
- Fails
- Overall
- Fails
Debt/assets is 3.70%, liquidity/assets is 70.67%, receivables-plus-cash/assets is 57.51% and disclosed interest income is 6.66% of revenue; client-funds classification requires explicit review.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 70.67% and receivables-plus-cash/assets is 57.51%, above the examined MSCI limits; the client-funds balance is included in the filed total-assets denominator.
- Financial
- Fails
- Overall
- Fails
The examined liquidity and receivables-plus-cash ratios exceed the limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Paylocity provides cloud payroll, HR, finance and IT software. The software activity is generally permissible, while client-funds investment operations and product end uses require separate review.
Limitation: The filing distinguishes client-funds interest revenue but does not provide a universal prohibited-activity numerator for every product workflow or client use.
Purification
Paylocity discloses $33.452 million of interest income on funds held for clients, but does not prescribe a scholar-approved purification percentage; the disclosed amount is not treated as a complete prohibited-revenue numerator.
Inputs, assumptions and primary sources
- Amounts are USD millions from Paylocity's March 31, 2026 Form 10-Q.
- Interest-bearing debt is $162.5 million of long-term borrowings; operating lease liabilities are excluded.
- Cash and cash equivalents input includes $398.070 million corporate cash plus $2,084.456 million of restricted funds-held-for-clients cash; available-for-sale securities of $619.681 million are included as interest-bearing securities. The client-funds treatment is shown explicitly because the corresponding client-funds obligation is also on the balance sheet.
- Accounts receivable, net are $41.642 million and quarterly total revenue is $502.286 million. Interest income on funds held for clients is $33.452 million.
- Payroll, HR, finance and IT software are generally permissible, but client-funds investment income and the restricted-funds structure require separate quantitative and 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.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →