---
title: "Is Robinhood Markets Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/robinhood-markets-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: not_halal
verdict_label: Not Halal
entity_type: stock
ticker: HOOD
exchange: NASDAQ
last_reviewed: 2026-06-15
data_as_of: 2026-03-31
---
# Is Robinhood Markets Stock Halal?

**Verdict: Not Halal** (Not permissible)

Robinhood Markets, Inc. (HOOD) does not pass Shariah screening: its core business fails the activity screen (Robinhood's 10-K disaggregates 2025 net interest revenues of $1), and impermissible income / total revenue is 33.8% against the < 5% limit (data as of 2026-03-31). It is not held by Shariah-screened ETFs SPUS or HLAL. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

Robinhood's own revenue table makes the Shariah analysis fairly clear. In 2025, $1.51 billion of its $4.47 billion in net revenue, about a third, was net interest revenue, and the company itemizes exactly where it comes from: margin lending to customers ($573 million), interest on segregated customer cash ($319 million), the cash sweep program ($229 million), securities lending ($190 million), corporate cash ($167 million), and its credit card ($64 million). Interest is not incidental to Robinhood's model; it is one of its three reported revenue pillars and has grown every year the company has disclosed it.

The largest pillar, transaction-based revenue ($2.63 billion), carries its own issues. It is earned primarily through payment for order flow and transaction rebates, which some scholars critique separately as a transparency and fairness concern, and its biggest single component is options trading revenue ($1.12 billion), where the underlying instruments are widely considered impermissible. Crypto trading revenue ($901 million) adds the separate coin-by-coin permissibility debate.

With an interest share of revenue several times above the roughly 5% threshold common in AAOIFI-style screening, Robinhood is not a borderline case the way some payment companies are. It is absent from both SPUS (June 11, 2026 holdings) and HLAL (February 28, 2026 SEC-filed holdings). Muslim investors who like the brokerage-platform theme generally need to look at the company's revenue composition each year, but as of the 2025 10-K the interest-driven share puts HOOD clearly outside standard screens.

## Business activity screen

Result: Fail

Robinhood is a retail brokerage offering commission-free trading of equities, options, crypto, and futures, plus a Gold subscription and a credit card. Per its 2025 10-K, total net revenues were $4.47 billion: transaction-based revenues of $2.63 billion (59%), net interest revenues of $1.51 billion (34%), and other revenues of $331 million (7%, including $179 million of Gold subscriptions).

Robinhood's 10-K disaggregates 2025 net interest revenues of $1.514 billion (about 34% of total revenue): margin interest $573M, interest on segregated cash and deposits $319M, cash sweep $229M, securities lending $190M, interest on corporate cash $167M, and credit card interest $64M. This is far above the ~5% impermissible-revenue tolerance in AAOIFI-style screens. Separately, transaction-based revenues ($2.63B: options $1,123M, crypto $901M, equities $302M, other $302M) are earned largely via payment for order flow and transaction rebates, a practice some scholars critique on its own terms; options revenue also derives from instruments most scholars consider impermissible.

## Financial ratio screen (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 16.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 14.5% | < 30% | Pass |
| Impermissible income / total revenue | 33.8% | < 5% | Fail |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## Scholars' and screeners' positions

- **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](https://www.sp-funds.com/spus/))
- **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](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm))

## Sources

- HOOD latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Robinhood%20Markets%2C%20Inc.&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Robinhood 2025 10-K revenue disaggregation (SEC EDGAR XBRL) (https://www.sec.gov/Archives/edgar/data/1783879/000178387926000023/R13.htm)
- Robinhood Q4/FY2025 results (company IR) (https://investors.robinhood.com/news-releases/news-release-details/robinhood-reports-fourth-quarter-and-full-year-2025-results)
- SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)

## Frequently asked questions

### Is Robinhood Markets, Inc. (HOOD) stock halal?

No. Robinhood Markets, Inc. fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons.

### Does Robinhood Markets, Inc. pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 16.0% of market cap (limit < 30%); cash plus interest-bearing securities is 14.5% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is Robinhood Markets, Inc. held in halal ETFs like SPUS or HLAL?

No — as of our last check, Robinhood Markets, Inc. is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope — verify current holdings before citing.

## Related verdicts

- [Is Palantir Technologies Stock Halal?](https://www.halalwallet.ca/is-it-halal/palantir-technologies-stock.md) — Not Halal
- [Is Super Micro Computer Stock Halal?](https://www.halalwallet.ca/is-it-halal/super-micro-computer-stock.md) — Not Halal
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- [Is Alibaba Stock Halal?](https://www.halalwallet.ca/is-it-halal/alibaba-group-holding-limited-stock.md) — Not Halal
- [Is Altria Stock Halal?](https://www.halalwallet.ca/is-it-halal/altria-group-stock.md) — Not Halal

---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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