How much of Intuit’s revenue comes from haram?

Intuit offers financial software that provides a wide range of solutions, including helping individuals run their businesses, pay employees and send invoices, separate business and personal expenses, track their money, and file income taxes.

In addition, in December 2020, Intuit acquired Credit Karma, a consumer technology platform that provides personalized financial offers to its customers, including credit cards, loans, insurance, and savings and checking accounts. 

Intuit also owns QuickBooks, TurboTax, and Mint. 

Intuit earns its revenue from the following revenue sources:

  • Small Businesses & Self-Employed:

Includes revenue generated by QuickBooks financial and business management services and software, payroll solutions, merchant payment processing solutions, and Quickbooks Capital lending services for small businesses.

  • Consumer:

Includes revenue generated by TurboTax income tax preparation products and services and Mint offerings that help individuals understand and improve their financial health.

  • Strategic Partner:

Includes software and solutions for professional accountants for tax preparation and filing. 

The contributions from each of Intuit’s revenue segments in their 2020 annual report were as follows:

Revenue generated by Intuit’s Quickbooks Capital lending services, which involves extending loans and charging interest, is not permissible in Islam.

In addition, Credit Karma, which facilitates obtaining and applying for interest-based loans through its platform, contributed 7.6% of Intuit’s total revenue in Q3 2021.

Intuit stated the following in its Q3 2021 earnings call regarding its goals to expand Credit Karma’s business:

“our strategic focus is to grow the core, including credit cards and personal loans; expand growth verticals, including home loans, auto loans and insurance; and develop emerging verticals focused on digital money offerings, such as savings and checking accounts.”

Practical Islamic Finance concludes:

Although Intuit does not disclose how much revenue it earns from charging interest for its lending services, it is clear Intuit’s involvement in riba is expanding with its purchase of Credit Karma.

Accordingly, a material part of Intuit’s revenue comes from haram.

Does Intuit rely on interest to operate?

Year-to-Date
for period ended
4/30/2021
Fiscal year
ended
7/31/2020
Fiscal year
ended
7/31/2019
Interest Income $3,000$39,000$46,000
Total Revenue$4,173,000$7,679,000$6,784,000
Interest Expense $7,000$14,000$15,000
Total Expenses$2,259,000$5,503,000$4,930,000
Interest Income / Revenue0.07%0.51%0.68%
Interest Expense / Total Expense0.31%0.25%0.30%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Intuit’s operations.

What is Intuit’s Environmental, Social, and Governance (ESG) impact?

Environment

Intuit achieved 100% renewable energy use in its global operations in 2020.

Social

In 2020, Intuit employees volunteered more than 28,400 hours and donated over $6.5 million to charitable organizations, including Intuit’s match.

In addition, Intuit has a high Glassdoor rating of 4.4 out of 5.0 from over 7,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Intuit has a net positive ESG impact.

Comfort Rating

From Intuit’s business, financial, and ESG reviews, Practical Islamic Finance rates Intuit stock as:

Uncomfortable to invest in from a Halal perspective.

Justification for our rating

The Prophet Muhammad (peace be upon him) cursed the one who consumes riba (interest), the one who pays it, the one who writes it down (documents the contract), and the two witnesses of the agreement, and he said: they are all the same (in sin).

It’s clear from this authenticated hadith that being involved in facilitating riba-based contracts is a serious sin that Muslims should avoid.

Intuit’s current involvement with riba-based products and plans for expanding these offerings make us uncomfortable investing in it from a Halal perspective.

Sources

How It Works | QuickBooks Capital 

Personal Loans 2021: See Rates & Apply for Online Loans 

Intuit Inc (INTU) Q3 2021 Earnings Call Transcript 

Intuit Q3 2021 10-Q

Intuit 2020 10-K 

Intuit Corporate Responsibility Report 2020 

Intuit Reviews