Is Stride, Inc. (LRN) Halal?

NYSE Consumer Defensive United States $3.8B
✓ HALAL
Confidence: 95/100
Stride, Inc. (LRN) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 14.4% against the AAOIFI threshold of 30%, Stride, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Education & Training Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 14.4%
/ 30%
25.9%
/ 30%
14.7%
/ 30%
1.07%
/ 5%
✓ HALAL
DJIM 14.4%
/ 33%
25.9%
/ 33%
14.7%
/ 33%
1.07%
/ 5%
✓ HALAL
MSCI 24.0%
/ 33%
43.0%
/ 33%
24.4%
/ 33%
1.07%
/ 5%
✗ NOT HALAL
S&P 14.4%
/ 33%
25.9%
/ 33%
14.7%
/ 33%
1.07%
/ 5%
✓ HALAL
FTSE 24.0%
/ 33%
43.0%
/ 33%
24.4%
/ 50%
1.07%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
13.2
Forward: 9.7
EPS
$6.51
P/B Ratio
2.3
EV/EBITDA
7.1
EV: $3.7B
Revenue
$2.4B
Growth: 47.8%
Beta
0.1
Low volatility
Current Ratio
7.3

Profitability

Gross Margin 39.3%
Operating Margin 5.4%
Net Margin 12.7%
Return on Equity (ROE) 22.3%
Return on Assets (ROA) 13.2%

Cash Flow & Balance Sheet

Operating Cash Flow$433M
Free Cash Flow$373M
Total Debt$550M
Debt-to-Equity57.9
Current Ratio7.3
Total Assets$2.3B

Price & Trading

Last Close$87.86
50-Day MA$83.19
200-Day MA$109.21
Avg Volume1.2M
Beta0.1
52-Week Range
$60.61
$171.17

About Stride, Inc. (LRN)

CEO
Mr. James J. Rhyu
Employees
8,600
Sector
Consumer Defensive
Industry
Education & Training Services
Country
United States
Exchange
NYSE
Market Cap
$3.8B
Currency
USD

Stride, Inc., together with its subsidiaries, provides proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; learning software and support services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brands, as well as provides staffing and talent development services to employers. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was incorporated in 1999 and is headquartered in Reston, Virginia.

Purification Calculator

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Frequently Asked Questions

Is Stride, Inc. (LRN) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Stride, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Stride, Inc.'s debt ratio?

Stride, Inc.'s debt ratio is 14.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 24.0%.

Does Stride, Inc. require dividend purification?

Yes, Stride, Inc. has an impermissible income ratio of 1.07%, which means 1.07% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Stride, Inc.'s key financial metrics?

Stride, Inc. has a market capitalization of $3.8B, trailing P/E ratio of 13.2, and revenue of $2.4B. The company maintains a gross margin of 39.3% and a net margin of 12.7%. Return on equity stands at 22.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.