CARG
CarGurus, Inc.
Is CARG Halal?
Online automotive marketplace whose core listings business is permissible, but a wholesale/digital segment involves vehicle financing exposure that should be screened.
What You Should Know
CarGurus, Inc. operates an online automotive marketplace connecting shoppers with dealers. Its March 31, 2026 Form 10-Q reports $519.613 million of assets, no conventional debt, $72.049 million of cash, $44.568 million of receivables and $243.555 million of quarterly revenue. Debt/assets is 0.00%, cash/assets is 13.87%, receivables-plus-cash/assets is 22.44% and disclosed investment income interest is $1.671 million, or 0.69% of revenue. The marketplace core is permissible, but CarOffer and financing-adjacent operations remain qualitatively doubtful because the filing does not quantify their Sharia mix.
⚠️ Concerns
- •The digital wholesale and financing-adjacent operations carry exposure to interest-based auto financing; the share of revenue is hard to bound and no prohibited-revenue percentage is inferred
- •Known filing-based asset ratios pass and disclosed investment income is 0.69% of revenue, but this does not resolve the business-activity screen
- •Dealer, advertiser and CarOffer arrangements require qualitative review
- •The verdict is judgment-dependent — stricter investors may treat it as non-compliant, while others accept the permissible marketplace core with purification
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
0 / 519.613
72.049 / 519.613
116.617 / 519.613
1.671 / 243.555
- Financial
- Pass
- Overall
- Incomplete
Known debt/assets is 0.00%, liquidity/assets is 13.87%, receivables-plus-cash/assets is 22.44% and disclosed investment income is 0.69%; business activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known asset ratios and disclosed investment income are below examined limits; financing-adjacent activity allocation remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and income ratios pass examined limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the qualitative financing-adjacent review remains necessary.
Business-activity disclosure
CarGurus operates an online automotive marketplace funded mainly by dealer listings and advertising, a generally permissible activity. Its digital wholesale and CarOffer-related operations touch vehicle financing and require qualitative review, but the filing does not quantify a prohibited-revenue numerator.
Limitation: The filing does not allocate every wholesale, dealer, financing-adjacent or advertising arrangement to a universal Sharia category.
Purification
CarGurus discloses $1.671 million of investment income interest, or 0.69% of revenue, but does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from CarGurus' March 31, 2026 Form 10-Q.
- No conventional interest-bearing debt balance is reported; operating lease liabilities are excluded.
- Cash and cash equivalents are $72.049 million and net accounts receivable are $44.568 million; no separately identified interest-bearing securities balance is added.
- First-quarter revenue is $243.555 million and disclosed investment income interest is $1.671 million, or 0.69% of revenue.
- The filing does not provide a universal prohibited-revenue numerator for the CarOffer and financing-adjacent vehicle ecosystem; no unsupported percentage is inferred.
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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