Is Intuit Stock Halal?
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.
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?
What is Intuit’s Environmental, Social, and Governance (ESG) impact?
Intuit achieved 100% renewable energy use in its global operations in 2020.
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.
No notable governance highlights.
Practical Islamic Finance concludes:
Intuit has a net positive ESG impact.
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.