Is EXTREME NETWORKS INC (EXTR) Halal?

NASDAQ Technology United States $2.0B
✓ HALAL
Confidence: 95/100
EXTREME NETWORKS INC (EXTR) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 11.9% against the AAOIFI threshold of 30%, EXTREME NETWORKS INC comfortably passes the key financial ratio tests. The company operates in the Technology sector (Communication Equipment), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 11.9%
/ 30%
12.3%
/ 30%
6.8%
/ 30%
0.38%
/ 5%
✓ HALAL
DJIM 11.9%
/ 33%
12.3%
/ 33%
6.8%
/ 33%
0.38%
/ 5%
✓ HALAL
MSCI 19.4%
/ 33%
20.1%
/ 33%
11.0%
/ 33%
0.38%
/ 5%
✓ HALAL
S&P 11.9%
/ 33%
12.3%
/ 33%
6.8%
/ 33%
0.38%
/ 5%
✓ HALAL
FTSE 19.4%
/ 33%
20.1%
/ 33%
11.0%
/ 50%
0.38%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
254.3
Forward: 12.0
EPS
$0.06
P/B Ratio
21.3
EV/EBITDA
25.6
EV: $2.0B
Revenue
$1.1B
Growth: 13.8%
Beta
1.7
High volatility
Current Ratio
0.9

Profitability

Gross Margin 61.3%
Operating Margin 6.4%
Net Margin 0.8%
Return on Equity (ROE) 12.4%
Return on Assets (ROA) 3.4%

Cash Flow & Balance Sheet

Operating Cash Flow$152M
Free Cash Flow$127M
Total Debt$223M
Debt-to-Equity221.2
Current Ratio0.9
Total Assets$1.2B

Price & Trading

Last Close$15.46
50-Day MA$14.71
200-Day MA$17.75
Avg Volume1.6M
Beta1.7
52-Week Range
$10.10
$22.89

About EXTREME NETWORKS INC (EXTR)

CEO
Mr. Edward B. Meyercord III
Employees
2,811
Sector
Technology
Industry
Communication Equipment
Country
United States
Exchange
NASDAQ
Market Cap
$2.0B
Currency
USD

Extreme Networks, Inc., together with its subsidiaries, develops, markets, and sells network infrastructure equipment and related software in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers ExtremeCloud IQ, an ML/AI powered, wired and wireless cloud network management solution that offers advanced visibility and control over users, devices, and applications; ExtremeCloud IQ-Site Engine, which provides task automation, access control, granular visibility with real-time analytics and multi-vendor device management; and ExtremeCloud IQ Essentials that offers wireless intrusion prevention system, location services, and guest management services. It also provides wireless local area networks access point products; wired for edge, campus, and data center solutions through Extreme Switching that offers access edge products, such as connection speeds for physical presentations along with options to deliver Ethernet or convergence-friendly power-over-ethernet; and ExtremeCloud SD-WAN, a software-defined wide area networks solution offering an all-inclusive subscription, which includes hardware, the cloud-based SD-WAN service, support and maintenance, and customer success support; and ExtremeCloud Universal ZTNA, a network access security solution. In addition, the company offers cloud native platforms and applications; and customer services and support, including post-sale support, consultative, customized training and operational manuals, and education classes. It serves mid-market and enterprise customers, as well as service providers in the sports and entertainment venues, hospitality, retail, transportation and logistics, education, government, healthcare, and manufacturing industries. The company sells its products through original equipment manufacturers and strategic relationships, distributors, resellers, and field sales. Extreme Networks, Inc., was incorporated in 1996 and is headquartered in Morrisville, North Carolina.

Purification Calculator

As a halal stock with 0.38% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is EXTREME NETWORKS INC (EXTR) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), EXTREME NETWORKS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is EXTREME NETWORKS INC's debt ratio?

EXTREME NETWORKS INC's debt ratio is 11.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 19.4%.

Does EXTREME NETWORKS INC require dividend purification?

Yes, EXTREME NETWORKS INC has an impermissible income ratio of 0.38%, which means 0.38% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are EXTREME NETWORKS INC's key financial metrics?

EXTREME NETWORKS INC has a market capitalization of $2.0B, trailing P/E ratio of 254.3, and revenue of $1.1B. The company maintains a gross margin of 61.3% and a net margin of 0.8%. Return on equity stands at 12.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.