PCOR

Procore Technologies, Inc.

HALAL

Score: 90/100

stock

Is PCOR Halal?

Cloud construction-management software connecting owners, general contractors, and specialty contractors on building projects — a permissible software business with a net-cash balance sheet.

What You Should Know

Procore Technologies, Inc. is a publicly-traded software company that provides a cloud-based construction-management platform used by owners, general contractors, and specialty contractors to manage project planning, preconstruction, field productivity, quality and safety, financials, and workforce across the building lifecycle. Developing and licensing construction-project software is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology. Procore maintains a debt-free balance sheet with a substantial net-cash position, so it comfortably passes the debt-to-market-cap screen; the primary financial-screen consideration is the interest income generated by its cash and investments, a small portion of which should be purified. Subject to verifying ratios at the time of investment, most major Sharia advisory boards classify Procore as permissible with purification of small interest-income components.

⚠️ Concerns

•Procore holds a substantial cash and investments balance that generates interest income — verify the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of any returns
•Debt-to-market-cap ratio should be confirmed against the 33% Sharia threshold at the time of investment, though Procore typically operates debt-free with a net-cash position
•As a high-growth software company, GAAP profitability and stock-based compensation should be monitored — this is a business and valuation consideration rather than a Sharia screen concern
•Receivables-to-assets ratio should be checked against the preferred board's threshold at the time of investment