Is Netflix Stock Halal?
Netflix, Inc. · NFLX · NASDAQ
Netflix, Inc. (NFLX) passes our computed AAOIFI financial-ratio screen (data as of 2026-03-31) — interest-bearing debt 4.3% and cash plus interest-bearing securities 3.6% of market cap, both under the 30% limits — but both major U.S. Shariah-screened ETFs (SPUS and HLAL) exclude it from their holdings as of June 2026, which typically signals a business-activity concern that automated ratio screens cannot see. We report it as conditional until the segment revenue in the latest annual filing is verified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Netflix is one of the clearest examples of a stock that struggles on the Shariah business-activity screen rather than on its balance sheet alone. The company operates as a single segment, and essentially all of its $45.2 billion in fiscal 2025 revenue comes from monthly streaming memberships and, increasingly, advertising. Unlike a diversified entertainment company, there is no parks or hospitality revenue to offset the content; the product is the content.
Most Shariah screeners that look at business activity fail Netflix because producing and distributing film and television entertainment is a category these methodologies treat as impermissible or heavily restricted, owing to music, depictions, and themes that conflict with Islamic guidelines. This is a qualitative judgment, not a disclosed percentage, and it is where the strongest scholarly objection to Netflix lies. An investor who wished to take a more permissive view would still be in a clear minority and would face the same content concern without an easy purification basis, since the impermissible activity is the whole business rather than a slice of it.
Netflix also carries meaningful leverage, with $14.5 billion of senior notes outstanding at year-end 2025, which independently pressures the financial-ratio screens. Consistent with both concerns, Netflix is in the S&P 500 yet is held by neither SPUS (as of June 11, 2026) nor HLAL (as of February 28, 2026). The funds do not publish their reasons, but for a Muslim investor the combined picture, content-driven revenue plus significant debt, makes Netflix a name that the major US Shariah methodologies currently exclude and that most screeners would not pass.
Business Activity Screen
Netflix, Inc. is a subscription streaming entertainment service operating as a single business segment, with revenue derived primarily from monthly membership fees and a growing advertising business. Per its fiscal 2025 10-K (year ended December 31, 2025; filed January 23, 2026), total streaming revenues were $45,183 million, up 16% year over year; advertising revenue surpassed $1.5 billion for the year.
Netflix is, like Disney, a business-activity case rather than only a ratio case. Essentially all of its $45.2 billion revenue comes from producing, licensing, and distributing streaming entertainment content, a category many Shariah screeners treat as impermissible or heavily restricted because of music, depictions, and adult or morally objectionable themes. There is no clean revenue line to separate; the entire model is content. Separately, Netflix carries significant interest-bearing debt: $14.5 billion of senior notes outstanding as of December 31, 2025, which feeds the leverage portion of financial screens. Netflix is an S&P 500 constituent but is absent from SPUS (2026-06-11) and HLAL (2026-02-28); the entertainment-content industry screen and/or leverage are plausible causes, but neither fund publishes a stock-level reason.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 4.3% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.6% | < 30% | Pass |
| Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K | 0.4% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Netflix screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 4.3% | 3.6% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 4.3% | 3.6% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 24.2% | 20.2% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Conditions
Our computed AAOIFI financial-ratio screen passes on the latest filing data, but both major U.S. Shariah-screened ETFs — SPUS (S&P Shariah methodology) and HLAL (FTSE Shariah methodology) — exclude Netflix, Inc. from their holdings as of our June 2026 check, even though it is in their parent indices. Professional screens apply filing-level business-activity analysis (alcohol, pork, tobacco, or media revenue share) and different ratio bases that an automated ratio screen cannot replicate. That divergence usually signals an impermissible-revenue question. Treat this as unresolved until the segment revenue in the latest annual filing is verified line by line.
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether Netflix, Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- NFLX latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- Netflix FY2025 10-K / annual report (SEC EDGAR PDF)
- Netflix FY2025 10-K filing index (SEC EDGAR, accession 0001065280-26-000034)
- SPUS holdings (SP Funds)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR)
- HalalWallet Methodology
- Editorial Policy
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