DBX

Dropbox, Inc.

HALAL

Score: 78/100

stock

Is DBX Halal?

Cloud file-storage and collaboration software — a permissible SaaS business, though debt taken on for buybacks should be screened.

What You Should Know

Dropbox, Inc. operates a cloud-based file-storage, sync, and collaboration platform used by individuals and businesses on a subscription basis. The core activity — selling storage and productivity software — is permissible with no haram revenue line. Dropbox has issued convertible notes and term debt to fund share buybacks, so the total-debt-to-market-cap ratio is elevated relative to a pure net-cash SaaS peer and should be confirmed against the 33% threshold; the company has generally remained within Sharia limits, but this is the key item to monitor. Interest income on cash is incidental and should be checked and purified.

⚠️ Concerns

•Dropbox carries convertible and term debt taken on to fund buybacks — confirm total debt / market cap stays under the 33% threshold against the latest filings, as this is the main screening risk
•Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified