HOOD
Robinhood Markets Inc.
Is HOOD Halal?
Fails the business-activity screen under the conservative review: brokerage, margin, options, crypto, futures, and prediction-market products are core activities; net interest revenue was 33.65% of quarterly revenue.
What You Should Know
Robinhood's March 31, 2026 Form 10-Q reports $45,474 million of assets, $703 million of outstanding Credit Card Funding Trust borrowing, $5,012 million of cash, $4,467 million of identifiable Treasury and money-market securities, $18,599 million of brokerage and user receivables, and $1,067 million of quarterly revenue. Net interest revenue was $359 million. The existing DOUBTFUL qualitative assessment is retained, while the conservative activity screen fails because the platform combines interest-bearing margin and cash products with options, futures, crypto, securities lending, and prediction-market activity.
⚠️ Concerns
- •Margin lending and credit-card financing involve riba
- •Net interest revenue was $359 million, or 33.65% of quarterly revenue
- •Options, futures, crypto, and prediction-market products require contract-level review
- •Payment for order flow, cash sweep, securities lending, and user-held assets require continuing Sharia review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
703 / 45,474
9,479 / 45,474
23,611 / 45,474
359 / 1,067
- Financial
- Fails
- Overall
- Fails
Debt/assets is 1.55% and liquidity/assets is 20.84%, but receivables plus cash/assets is 51.92% and net interest revenue is 33.65% of revenue; the core platform activity also fails.
- Financial
- Fails
- Overall
- Fails
Receivables plus cash/assets is above the examined total-assets limit; the direct brokerage, margin, and derivatives activity fails independently.
- Financial
- Pass
- Overall
- Fails
Debt/assets and liquidity/assets are below the examined 33% limits, but the direct trading and interest-bearing platform activity fails; this is not an official SAC classification.
- Financial
- Not calculated
- Overall
- Fails
Market-cap methods are not calculated; the direct platform activity independently prevents a pass.
Business-activity disclosure
Robinhood operates a retail brokerage and financial-services platform spanning securities, options, futures, crypto, prediction markets, margin, securities lending, cash sweep, and credit-card products. The direct activity mix requires a conservative failure under this screen.
Limitation: The filing provides direct evidence of the platform's financial products; no permissible carve-out is assumed for the editorial, subscription, or education components.
Purification
Net interest revenue of $359 million is disclosed, but purification cannot cure a direct core-business failure.
Inputs, assumptions and primary sources
- Amounts are USD millions from Robinhood's March 31, 2026 Form 10-Q and rounded to the nearest million.
- Interest-bearing debt is the $703 million outstanding principal and interest of the consolidated Credit Card Funding Trust; Robinhood reports no borrowings outstanding under its revolving credit facilities at quarter-end.
- Cash is $5,012 million. Identifiable interest-bearing securities are $4,467 million of Treasury securities, foreign Treasury securities, deposits with clearing organizations, and money-market funds; user-held fractional shares are excluded.
- Accounts receivable includes receivables from brokers and clearing organizations of $484 million plus receivables from users of $18,115 million; securities borrowed is excluded from this narrower receivable input.
- Quarterly revenue is $1,067 million and net interest revenue is $359 million. Total revenue is used as a conservative prohibited-revenue proxy because trading, margin, crypto, futures, and prediction-market products are core platform activities.
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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