CHGGNot HalalF
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Compliance Status

Not Halal

Screened on Oct 8, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Chegg, Inc. (CHGG) halal? Not Halal. Based on AAOIFI screening, Chegg, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Chegg, Inc. (CHGG) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 8, 2026. Source: https://halalscreener.app/en/stock/CHGG

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

61.6% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding CHGG

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

Chegg, Inc.

CHGG: Is Chegg, Inc. Halal?

Chegg, Inc.

NYSEConsumer DefensiveUS

$0.74

Market Cap: 82.4M

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About Chegg, Inc.

Chegg, Inc. is an educational technology company that provides a direct-to-student learning platform. Its purpose is to assist students throughout their academic studies and into their professional lives, offering resources designed to deepen their comprehension of course content. The company's services generally fall into two main categories: its subscription-based "Chegg Services" and essential academic materials, including physical and digital textbooks. Among its subscription offerings, Chegg presents several key products: Chegg Study: Helps students independently grasp challenging academic concepts. Chegg Writing: Delivers a comprehensive suite of tools, such as plagiarism detection, grammar and writing style improvements, tailored expert feedback, and advanced citation generation. Chegg Math: A step-by-step solver and calculator for mathematical problems. Chegg Study Pack: Bundles Chegg Study, Chegg Writing, and Chegg Math Solver into an integrated platform for holistic academic support. Busuu: An online language learning solution that combines self-paced lessons, live tutoring sessions with experts, and opportunities to practice with a community of learners. Thinkful: A skills-focused learning platform offering professional development courses, along with networking, interview coaching, and career assistance. Beyond these, Chegg also provides other services like Chegg Life, Chegg Prep, and Chegg Internships, in addition to training for personal and professional skill development. The company also manages the rental and sale of both print and eTextbooks. Chegg, Inc. was established in 2005 and is based in Santa Clara, California.

Sector: Consumer Defensive · Industry: Education & Training Services

Why this does not pass

  • Interest-bearing debt is 61.6% of market cap, over the 30% AAOIFI limit.
  • Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 8, 2026

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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Consumer Defensive

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Frequently Asked Questions

Is Chegg, Inc. (CHGG) halal to invest in?
Chegg, Inc. (CHGG) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Chegg, Inc. get a F compliance rating?
Chegg, Inc. (CHGG) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 61.6% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Chegg, Inc.'s Shariah verdict?
Chegg, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Chegg, Inc. re-screened for Shariah compliance?
Chegg, Inc. (CHGG) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 8, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.