AFRM
Affirm Holdings, Inc.
Is AFRM Halal?
Consumer-finance platform whose core installment-credit model is interest-bearing lending; current financial ratios also fail the examined limits.
What You Should Know
Affirm's March 31, 2026 Form 10-Q reports $13,141.580 million of total assets, $8,873.911 million of interest-bearing debt, $1,723.413 million of cash, $757.597 million of securities available for sale, $8,291.362 million of loans plus accounts receivable and $1,038.765 million of quarterly revenue. ZakatInvest calculates debt/assets 67.53%, liquidity 18.88% and receivables plus cash/assets 76.21%; disclosed interest income was $532.449 million, or 51.26% of revenue. Affirm also reports interest-bearing installment loans at 70% of quarterly GMV. This is a current ZakatInvest calculation, not an index-membership claim.
⚠️ Concerns
- •Disclosed interest income was $532.449 million, or 51.26% of quarterly revenue
- •Interest-bearing installment loans represented 70% of quarterly GMV; 0% APR monthly loans were 13% and Pay-in-X 16%
- •Debt/assets of 67.53% and receivables plus cash/assets of 76.21% exceed the examined asset-based limits
- •Warehouse facilities, variable funding notes, sale-and-repurchase agreements and securitization-trust notes fund the loan book
- •Loan-sale gains, servicing income, merchant fees and card-network revenue remain economically connected to the consolidated credit platform
- •Consumer underwriting, collections, data use, fair lending and debt-stress concerns require continuing qualitative review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
8,873.911 / 13,141.58
2,481.01 / 13,141.58
10,014.775 / 13,141.58
532.449 / 1,038.765
- Financial
- Fails
- Overall
- Fails
Debt/assets are 67.53%, liquidity is 18.88%, receivables plus cash are 76.21% and disclosed interest income is 51.26% of quarterly revenue. Each entered financial comparison fails the examined limits, and the core interest-bearing lending activity independently fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets and receivables plus cash exceed the examined MSCI total-assets limits. The core consumer-credit business and disclosed interest-income minimum independently fail; this is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets are 67.53% and receivables plus cash are 76.21%, while interest income is 51.26% of revenue. The conventional installment-credit activity is not a minority business; this is not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed historical market-cap series is not stored, but a different denominator cannot cure the independently failed consumer-credit business activity and disclosed interest-income screen.
Business-activity disclosure
Affirm is a consumer-finance and payment platform whose core economics include originating, purchasing, servicing and selling installment loans. The latest filing reports $532.449 million of quarterly interest income and says interest-bearing installment loans represented 70% of quarterly GMV. The disclosed 0% APR and Pay-in-X products do not turn the consolidated lender into a minority interest business.
Limitation: Affirm reports revenue by network, interest income, loan-sale gains and servicing, and reports product mix by GMV rather than a scholar-approved prohibited-revenue taxonomy. The directly disclosed interest-income minimum and interest-bearing GMV majority are sufficient to establish the core activity failure without inventing a complete prohibited-revenue allocation.
Purification
Affirm fails at the core consumer-credit business-activity level. The 51.26% disclosed interest-income minimum establishes failure; it is not a percentage that can be donated to make continued ownership compliant. Investors should follow qualified guidance for disposing of income from an impermissible holding.
Inputs, assumptions and primary sources
- Inputs use Affirm's March 31, 2026 Form 10-Q; amounts are USD millions.
- Debt uses $8,873.911 million of total debt outstanding net of discounts: funding debt, securitization-trust notes and convertible senior notes. Operating liabilities and restricted cash are not silently treated as debt or cash.
- Cash uses $1,723.413 million of cash and cash equivalents. Securities available for sale of $757.597 million are entered separately; restricted cash of $750.892 million is excluded from the liquidity numerator.
- Receivables use $8,060.659 million of loans held for investment, net, plus $230.703 million of accounts receivable. This is a finance-company receivables proxy and includes the loan book that drives the business model.
- Total quarterly revenue was $1,038.765 million. Disclosed interest income was $532.449 million, entered as a minimum directly reported riba-related income numerator; gain on loan sales and servicing income are not added to avoid unsupported classification.
- Affirm reports interest-bearing installment loans at 70% of quarterly GMV, while 0% APR monthly installment loans were 13% and Pay-in-X 16%; product mix does not make the consolidated conventional lending model a minority activity.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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