Is Sprout Social, Inc. (SPT) Halal?

NASDAQ Technology United States $329M
✓ HALAL
Confidence: 95/100
Sprout Social, Inc. (SPT) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 14.2% against the AAOIFI threshold of 30%, Sprout Social, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 14.2%
/ 30%
24.8%
/ 30%
26.3%
/ 30%
0.75%
/ 5%
✓ HALAL
DJIM 14.2%
/ 33%
24.8%
/ 33%
26.3%
/ 33%
0.75%
/ 5%
✓ HALAL
MSCI 10.5%
/ 33%
18.2%
/ 33%
19.3%
/ 33%
0.75%
/ 5%
✓ HALAL
S&P 14.2%
/ 33%
24.8%
/ 33%
26.3%
/ 33%
0.75%
/ 5%
✓ HALAL
FTSE 10.5%
/ 33%
18.2%
/ 33%
19.3%
/ 50%
0.75%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.74
P/B Ratio
1.6
EV/EBITDA
-9.7
EV: $289M
Revenue
$458M
Growth: 12.9%
Beta
1.0
Average volatility
Current Ratio
0.9

Profitability

Gross Margin 77.6%
Operating Margin -7.6%
Net Margin -9.5%
Return on Equity (ROE) -23.4%
Return on Assets (ROA) -5.4%

Cash Flow & Balance Sheet

Operating Cash Flow$43M
Free Cash Flow$39M
Total Debt$55M
Debt-to-Equity26.9
Current Ratio0.9
Total Assets$523M

Price & Trading

Last Close$5.74
50-Day MA$7.29
200-Day MA$12.30
Avg Volume1.6M
Beta1.0
52-Week Range
$5.39
$25.48

About Sprout Social, Inc. (SPT)

CEO
Mr. Ryan Paul Barretto
Employees
1,362
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$329M
Currency
USD

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. It offers AI-powered solutions, such as publishing and scheduling, social customer care, reporting and analytics, social listening and business intelligence, reputation management, social commerce, influencer marketing, predictive media intelligence, employee advocacy, and automation and workflows. In addition, the company provides smart inbox, comprehensive case management, social customer relationship management, social monitoring and alerts, customer service tools, and automation; and centralized content planning, creation, and publishing, automated scheduling, content performance reporting, suggested content, message approval workflows, publishing permissions and governance, and content and asset libraries. Further, it offers social media; content performance, customer service and team, custom report builder, and reporting API; and market research, brand health, competitive insights, consumer trends, and product feedback; and reputation and review management, mobile applications, and chat bot creation and management. Additionally, the company offers professional services consisting of consulting and training services. It serves social and community management; public relations; marketing; influencer marketing; customer service and care; commerce, sales and customer acquisition; recruiting and hiring, product development, and business strategy; and small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. The company was incorporated in 2010 and is headquartered in Chicago, Illinois.

Purification Calculator

As a halal stock with 0.75% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Sprout Social, Inc. (SPT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Sprout Social, 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 Sprout Social, Inc.'s debt ratio?

Sprout Social, Inc.'s debt ratio is 14.2% 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 10.5%.

Does Sprout Social, Inc. require dividend purification?

Yes, Sprout Social, Inc. has an impermissible income ratio of 0.75%, which means 0.75% 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 Sprout Social, Inc.'s key financial metrics?

Sprout Social, Inc. has a market capitalization of $329M, and revenue of $458M. The company maintains a gross margin of 77.6% and a net margin of -9.5%. Return on equity stands at -23.4%.

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.