Is PD (PagerDuty, Inc.) halal?

Q: Is PD (PagerDuty, Inc.) halal?

DOUBTFUL: General-purpose SaaS is generally permissible, but the latest filing fails debt and liquidity screens. PagerDuty's April 30, 2026 Form 10-Q reports $936.592M of assets, $396.327M of convertible-note debt, $208.880M of cash, $235.077M of interest-bearing securities, $76.025M of receivables and $120.967M of quarterly revenue. Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined asset-based limits; receivables plus cash/assets is 30.42% and disclosed interest income/revenue is 3.25%. The software activity remains qualitatively permissible, but no universal prohibited-revenue numerator is disclosed.

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PD

PagerDuty, Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is PD Halal?

General-purpose SaaS is generally permissible, but the latest filing fails debt and liquidity screens.

What You Should Know

PagerDuty's April 30, 2026 Form 10-Q reports $936.592M of assets, $396.327M of convertible-note debt, $208.880M of cash, $235.077M of interest-bearing securities, $76.025M of receivables and $120.967M of quarterly revenue. Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined asset-based limits; receivables plus cash/assets is 30.42% and disclosed interest income/revenue is 3.25%. The software activity remains qualitatively permissible, but no universal prohibited-revenue numerator is disclosed.

⚠️ Concerns

•Debt/assets is 42.32%, above the examined FTSE, MSCI and Malaysia limits
•Liquidity/assets is 47.40%, above the examined FTSE, MSCI and Malaysia limits
•Convertible-note financing and interest-bearing securities are material
•The filing does not provide a universal prohibited-revenue numerator

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-13.

USD · millions

Interest-bearing debt / assets

42.32%Above limit

Below 33.333% under FTSE Yasaar

396.327 / 936.592

Cash + interest-bearing securities / assets

47.40%Above limit

Below 33.333% under FTSE Yasaar

443.957 / 936.592

Receivables + cash / assets

30.42%Within limit

Below 50% under FTSE Yasaar

284.905 / 936.592

Non-compliant income / revenue

3.25%Within limit

No more than 5% under FTSE Yasaar

3.926 / 120.967

Methodology	Financial	Overall	What drives it
FTSE Yasaar v4.6, February 2026	Fails	Fails	Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined FTSE limits; receivables plus cash/assets is 30.42% and interest income/revenue is 3.25%.
MSCI Islamic (total-assets series) October 2024 methodology	Fails	Fails	Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined MSCI limits; receivables plus cash/assets is below its limit.
Malaysia SAC financial ratios single 5% activity benchmark adopted November 2025	Fails	Fails	Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined Malaysia SAC limits.
Market-cap denominator methods MSCI M-Series, S&P and Dow Jones methods differ	Not calculated	Fails	No licensed historical market-cap series is stored; the asset-based financial screens fail.

FTSE Yasaar

v4.6, February 2026

Financial: Fails
Overall: Fails

Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined FTSE limits; receivables plus cash/assets is 30.42% and interest income/revenue is 3.25%.

MSCI Islamic (total-assets series)

October 2024 methodology

Financial: Fails
Overall: Fails

Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined MSCI limits; receivables plus cash/assets is below its limit.

Malaysia SAC financial ratios

single 5% activity benchmark adopted November 2025

Financial: Fails
Overall: Fails

Debt/assets is 42.32% and liquidity/assets is 47.40%, above the examined Malaysia SAC limits.

Market-cap denominator methods

MSCI M-Series, S&P and Dow Jones methods differ

Financial: Not calculated
Overall: Fails

No licensed historical market-cap series is stored; the asset-based financial screens fail.

Business-activity disclosure

PagerDuty provides digital-operations, incident-response and AIOps software. General-purpose enterprise software is generally permissible, while downstream customer use remains a qualitative question.

Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator, so no percentage is invented.

Purification

The filing discloses $3.926 million of interest income; ZakatInvest does not prescribe a fixed scholar-approved purification percentage.

Inputs, assumptions and primary sources

Amounts are USD millions from PagerDuty's April 30, 2026 Form 10-Q.
Interest-bearing securities are included in the liquidity numerator; receivables plus cash uses cash and cash equivalents only.
Debt uses the carrying value of convertible senior notes; quarterly revenue was $120.967 million and interest income was $3.926 million.
PagerDuty provides digital-operations and incident-response SaaS; the filing does not provide a universal prohibited-revenue numerator.

U.S. Securities and Exchange Commission: PagerDuty First Quarter Fiscal 2027 Form 10-Q FTSE Russell: FTSE Yasaar Global Equity Shariah Index Series Ground Rules MSCI: MSCI Islamic Index Series Methodology Securities Commission Malaysia: Shariah-Compliant Securities Screening Methodology

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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