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Is U (Unity Software Inc.) Halal or Haram?

New York Stock ExchangeTechnologySoftware - Application$8.04B2026-02-25
U is Halal4/4 screens passed

Unity Software passes all AAOIFI screening criteria, making it a compliant investment option for Muslim investors . While its interest-bearing debt ratio is 29.7%, which is comfortably below the 33% threshold but worth monitoring, the company reports negligible interest income relative to its total revenue. Its liquidity levels are also healthy, with cash and short -term securities sitting at 25.6% of its market capitalization.

Price Chart (5D)

$27.71+1.45 (+5.52%)
2026-05-082026-04-30

U — Last 7 Days

DateOpenHighLowCloseVolumeChange
2026-05-0826.5027.8025.8127.643.5M+4.32%
2026-05-0729.8630.6526.3326.7332.8M-10.48%
2026-05-0627.1327.5526.6327.2814.5M+0.55%
2026-05-0527.9928.1527.0027.348.3M-2.32%
2026-05-0427.4128.2527.0127.7210.8M+1.13%
2026-05-0126.9527.6026.7027.139.2M+0.67%
2026-04-3026.1026.4625.1426.427.3M+1.23%

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Shariah Screening Details for U

Business Activity

Permissible

Unity's core business of providing a real-time 3D development platform for gaming, architecture, and film is inherently permissible, as software creation tools are generally considered Halal.

Debt / Market Cap

29.66%

Debt: $2.39BThreshold: ≤33%

Interest Income

0.00%

Interest: $0Threshold: ≤5%

Cash & Securities

25.56%

Cash: $2.06BThreshold: ≤33%

About Unity Software Inc. (U)

Unity Software Inc. is the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content. While best known as the engine behind thousands of popular video games on mobile, PC, and consoles, Unity's technology has expanded significantly into industrial sectors. Architects, automotive designers, and filmmakers now use Unity's tools for simulation, visualization, and virtual reality experiences, diversifying its revenue beyond just gaming.

For Muslim investors, Unity Software Inc. is currently classified as Halal, having passed all four AAOIFI screening metrics. The company’s core business activity involves selling software subscriptions and monetization tools, which is permissible under Shariah law. This 'Halal' status means you can confidently include Unity in your portfolio without needing to purify dividends, provided the financial ratios remain stable.

Financially, Unity demonstrates compliance with key leverage and liquidity thresholds. Its interest-bearing debt to market cap ratio stands at 29.7%, which is beneath the 33% limit but close enough to warrant regular checking if the stock price drops significantly. Additionally, the company generates effectively zero interest income relative to its total revenue, ensuring that its earnings are derived from legitimate trade rather than impermissible R iba.

Investors should continue to monitor Unity's acquisition strategy, as tech companies often acquire smaller firms that may hold non-compliant assets or debt. Furthermore, while the platform itself is Halal, some scholars advise caution regarding the ' Monetize' solutions if they heavily facilitate gambling or haram advertising, though the consensus remains that the tool provider is not liable for how third parties use the software.

CEO

Matthew Samuel Bromberg

Employees

4,987

IPO Date

2020-09-18

Headquarters

San Francisco, CA, US

Website

unity.com

U Key Financial Statistics

Revenue

$1.85B

Net Income

$-402.8M

EPS (Diluted)

$-0.96

Stock Price

18.58

Beta

2.08

52-Week Range

15.33-52.15

Total Debt

$2.39B

Total Equity

$3.24B

Current Ratio

1.84

U Financial Health & Profitability

Profit Margins

Gross Margin74.2%
Operating Margin-22.8%
Net Margin-21.8%

Revenue Growth (YoY)

+2.0%

Prior year: $1.81B

Net Debt

$329.9M

Cash: $2.06B — Debt: $2.39B

R&D Spending

$929.5M

% of Revenue

50.3%

Frequently Asked Questions About U

Is U (Unity Software Inc.) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, U is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (29.66% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (25.56% vs ≤33% threshold).
What does Unity Software Inc. do?
Unity Software Inc. is the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content. While best known as the engine behind thousands of popular video games on mobile, PC, and consoles, Unity's technology has expanded significantly into industrial sectors. Architects, automotive designers, and filmmakers now use Unity's tools for simulation, visualization, and virtual reality experiences, diversifying its revenue beyond just gaming. For Muslim investors, Unity Software Inc. is currently classified as Halal, having passed all four AAOIFI screening metrics. The company’s core business activity involves selling software subscriptions and monetization tools, which is permissible under Shariah law. This 'Halal' status means you can confidently include Unity in your portfolio without needing to purify dividends, provided the financial ratios remain stable. Financially, Unity demonstrates compliance with key leverage and liquidity thresholds. Its interest-bearing debt to market cap ratio stands at 29.7%, which is beneath the 33% limit but close enough to warrant regular checking if the stock price drops significantly. Additionally, the company generates effectively zero interest income relative to its total revenue, ensuring that its earnings are derived from legitimate trade rather than impermissible R iba. Investors should continue to monitor Unity's acquisition strategy, as tech companies often acquire smaller firms that may hold non-compliant assets or debt. Furthermore, while the platform itself is Halal, some scholars advise caution regarding the ' Monetize' solutions if they heavily facilitate gambling or haram advertising, though the consensus remains that the tool provider is not liable for how third parties use the software. Unity Software Inc. operates in the Technology sector under the Software - Application industry and is headquartered in San Francisco, CA, US. The company is led by CEO Matthew Samuel Bromberg and employs approximately 4,987 people.
What screening criteria were used for U?
U was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. U passed 4 of these 4 screens.
Does U require income purification?
U has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.
When was U last screened?
U was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.

Disclaimer

This shariah compliance assessment for U (Unity Software Inc.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-02-25.

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