NASDAQ Shariah screener · October 2026

Is Robinhood Markets, Inc. (HOOD) Halal?

FAIL

Robinhood Markets, Inc. · NASDAQ: HOOD · Financials

The short answer

No - Robinhood (HOOD) does not pass this Shariah stock screen. Its commission-free brokerage business has interest-based margin lending as a core revenue line (net interest revenues $1,514M were ~33.8% of FY2025 total net revenues of $4,473M, on a record $16.8B margin book), so the business-activity gate fails. It carries essentially no interest-bearing debt (revolvers undrawn, ~0% of its ~$101.1B market cap), so the debt gate passes - but non-compliant interest income of ~33.85% of revenue far exceeds the 5% ceiling. Zoya covers HOOD and flags it as not Shariah-compliant (interest income $1,514M = 33.85% of revenue, FY2025). No HOOD coverage was found on Musaffa or ShariaPortfolio - honestly reported as absent, not invented.

Gate 1 — Business activity: FAIL

Robinhood Markets, Inc. (NASDAQ: HOOD) is a US brokerage and fintech company offering commission-free trading in stocks, options, futures, event contracts (prediction markets), and cryptocurrencies (including Bitstamp, acquired June 2025), plus retirement accounts, Robinhood Gold subscriptions, and a banking rollout. Interest-based margin lending is a core, material revenue line: net interest revenues were $1,514M of $4,473M total net revenues in FY2025 (~33.8%), driven by margin interest on a record $16.8B margin book (+113% YoY at Dec 31, 2025), interest on segregated customer cash, cash sweep, and securities lending. Event-contract revenue grew over 10x to $156M in Q2 2026. Because interest-based lending is a core business line, Gate 1 fails. Facts only.

Gate 2 — Debt and cash: PASS

At December 31, 2025 Robinhood carried no long-term debt on its consolidated balance sheet, and Note 9 states there were no outstanding borrowings under its revolving credit facilities. Its large liabilities - securities loaned $11.6B, payables to users $12.0B, fractional-share repurchase obligation $3.8B - are operational broker-dealer items, not interest-bearing corporate debt, so interest-bearing debt is effectively $0. Against a market cap of about $101.1B (HOOD at $112.50, October 1, 2026; roughly 899M shares outstanding), debt to market cap is about 0%, far below the ~33% ceiling. Cash and cash equivalents of about $5.4B at June 30, 2026 (Q2 2026 results) are about 5.3% of market cap, within the ~33% guideline. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: FAIL

Net interest revenues were $1,514M in FY2025 against total net revenues of $4,473M - about 33.85% of revenue, far above the 5% non-compliant income limit (interest lines include margin interest, interest on segregated cash, cash sweep, and securities lending). Q2 2026 confirms the pattern: net interest revenues of $389M were about 29.7% of $1.31B total net revenues. The interest is earned on margin lending and customer cash balances - core business revenue, not incidental treasury income. Gate 3 fails. Facts only.

Key figures used

Business: US commission-free brokerage - stocks, options, futures, event contracts/prediction markets, crypto incl. Bitstamp (acquired Jun 2025); retirement, Gold subscriptions, banking rollout; 28.4M funded customers, $369B platform assets (Q2 2026)
FY2025 revenue mix (results release Feb 10, 2026): total net revenues $4,473M; net interest revenues $1,514M (~33.8%) - margin interest, interest on segregated cash, cash sweep, securities lending; transaction-based $2,628M; other $331M
Q2 2026 (Jul 29, 2026): total net revenues $1.31B; net interest revenues $389M (~29.7%); transaction-based $776M (event contracts $156M, 10x+; options $342M; equities $129M; crypto $100M, down 38%); other $143M
Margin book record $16.8B at Dec 31, 2025 (+113% YoY); $18.4B in Jan 2026 (+121% YoY)
Interest-bearing debt: $0 - no long-term debt on Dec 31, 2025 balance sheet; revolving credit facilities undrawn (Note 9); debt to market cap ~0% of ~$101.1B market cap
Market cap: ~$101.1B (HOOD $112.50 close, Oct 1, 2026; ~899M shares); cash and cash equivalents ~$5.4B at Jun 30, 2026 (~5.3% of market cap)
Zoya covers HOOD (zoya.finance/stocks/hood): flags not Shariah-compliant - interest income $1,514M = 33.85% of FY2025 revenue, matching this screen; no HOOD coverage found on Musaffa or ShariaPortfolio (reported as absent, not invented)

Frequently asked questions

What does Robinhood do?

Robinhood Markets, Inc. (NASDAQ: HOOD) is a US financial-services company best known for commission-free stock trading. Through its subsidiaries it offers trading in stocks, options, futures, event contracts (prediction markets), and cryptocurrencies (including Bitstamp, acquired June 2025), plus retirement accounts, Robinhood Gold subscriptions, and a banking rollout. In Q2 2026 it reported 28.4 million funded customers and $369 billion of total platform assets. Margin lending is central to its model: the margin book reached a record $16.8 billion at December 31, 2025, up 113% year over year.

Why does Robinhood fail this Shariah stock screen?

Two gates fail. The business-activity gate fails because interest-based margin lending is a core, material revenue line: net interest revenues were $1,514M of $4,473M total net revenues in FY2025 (about 33.8%), driven by margin interest on the $16.8B margin book plus interest on segregated customer cash, cash sweep, and securities lending. The income gate fails for the same reason: 33.85% is far above the 5% non-compliant income ceiling. The debt gate passes - Robinhood carries no long-term debt and its revolving credit facilities were undrawn at December 31, 2025. This is a factual screen, not a religious ruling - consult a qualified scholar for personal guidance.

What is Robinhood's interest-bearing debt ratio?

Essentially zero. Robinhood's December 31, 2025 consolidated balance sheet shows no long-term debt, and Note 9 to the financial statements states there were no outstanding borrowings under its revolving credit facilities. Its large liabilities (securities loaned $11.6B, payables to users $12.0B, fractional-share repurchase obligation $3.8B) are operational broker-dealer items, not interest-bearing corporate debt. Against a market cap of about $101.1B (HOOD at $112.50 on October 1, 2026; roughly 899 million shares outstanding), debt to market cap is about 0%, far below the 33% ceiling. Cash and cash equivalents of about $5.4B at June 30, 2026 are about 5.3% of market cap.

What is Robinhood's non-compliant income ratio?

About 33.85% for FY2025: net interest revenues of $1,514M against total net revenues of $4,473M, per the company's FY2025 results release (February 10, 2026). The disclosed interest lines include margin interest, interest on segregated cash, cash sweep, interest on corporate cash, and securities lending. Q2 2026 confirms the pattern: net interest revenues of $389M were about 29.7% of the $1.31B total net revenues. Both are far above the 5% non-compliant income ceiling, so the income gate fails.

Do Zoya, Musaffa, or ShariaPortfolio cover Robinhood?

Zoya covers HOOD at zoya.finance/stocks/hood and flags it as not Shariah-compliant, citing interest income of $1,514M - 33.85% of FY2025 revenue of $4,473M, which matches the figures used in this screen. No HOOD coverage was found on Musaffa or ShariaPortfolio in a web search - honestly reported as absent, not invented.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).