The Short Answer
SPS Commerce stock (SPSC) has a qualitative business verdict that is HALAL and passes the known filing-based financial ratios, but the overall screen remains incomplete. SPS Commerce provides cloud supply-chain software and operates without interest-bearing debt.
Cloud supply-chain and trading-partner-connectivity software is generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 0.00%, liquidity/assets of 13.28% and receivables-plus-cash/assets of 18.45%; gross interest income and activity classification remain incomplete.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
0 / 1,161.208
154.271 / 1,161.208
219.377 / 1,161.208
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 0.00%, liquidity/assets is 13.28% and receivables-plus-cash/assets is 18.45%; gross interest income and activity remain incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known financial ratios pass; this is not an index-membership claim and activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt and liquidity ratios pass; this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored.
Business-activity disclosure
SPS Commerce provides cloud-based retail-network, fulfillment and analytics software. General-purpose commerce software is generally permissible, but customer end uses are not reduced to a universal prohibited-revenue numerator.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed.
Purification
Gross interest income is not separately disclosed; ZakatInvest does not infer a purification amount.
Inputs, assumptions and primary sources
- Amounts are USD thousands from SPS Commerce's March 31, 2026 Form 10-Q; this record expresses them in millions-equivalent values.
- No interest-bearing debt is reported; operating leases are excluded.
- Cash is $154.271 million and net accounts receivable is $65.106 million.
- Quarterly revenue is $192.121 million. The filing does not separately disclose gross interest income.
- Retail-network software and fulfillment services are generally permissible, but no universal prohibited-revenue numerator is disclosed.
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.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
SPS Commerce's Business Activity
SPS Commerce's retail-network platform:
- Automates EDI: Electronic-data-interchange connections among trading partners
- Manages fulfillment: Order, fulfillment, and logistics workflows
- Provides analytics: Retail-performance data for suppliers and retailers
This is a general-purpose cloud-software business connecting retailers, grocers, distributors, suppliers, and logistics firms. This is permissible at the activity level.
Concerns to Be Aware Of
1. Interest Income on Cash — The Primary Screen
SPS Commerce reports no interest-bearing debt. The filing does not separately disclose gross interest income, so ZakatInvest does not infer a purification amount.
2. Debt Ratio
The filing reports no interest-bearing debt at March 31, 2026. Market-cap denominator methods are not calculated here.
3. Acquisition Activity
SPS Commerce periodically acquires complementary supply-chain businesses. Acquisition activity can affect the balance sheet, so the financial screen should be re-verified following material transactions.
Filing-Based Ratios (March 31, 2026)
Using SPS Commerce's latest Form 10-Q (USD millions):
- Debt / total assets: 0.00%
- Cash + securities / total assets: 13.28%
- Receivables + cash / total assets: 18.45%
- Gross interest income: Not separately disclosed
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Known ratios pass; gross interest income and activity remain incomplete.
- MSCI-style: Known financial ratios pass; this is not an index-membership claim.
- Malaysia-style: Known debt and liquidity ratios pass; this is not an official classification.
Bottom Line
SPS Commerce (SPSC) has a generally permissible supply-chain-software business and passes the known filing-based ratios. Because gross interest income and a universal prohibited-revenue numerator are not disclosed, the overall result remains incomplete rather than a universal halal certification; consult the methodology you follow.
For Muslim investors seeking software exposure, SPSC sits alongside other halal-screened names like Descartes Systems (DSGX) and Manhattan Associates (MANH).
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