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AAOIFI No. 21 screening

Is LOVE halal?

The Lovesac Company

Halal

The Lovesac Company passed every check under AAOIFI Shariah standard No. 21: no prohibited business activity, and all three financial ratios are within limits.

Checked: 16 October 2026

Exchange

NASDAQ

Price

14.515

Day

-1.59%

Market cap

$211.7M

Industry

Furnishings, Fixtures & Appliances

Sector

Consumer Cyclical

What the company does

Lovesac sells modular sofas (Sactionals) and beanbag-style seats (Sacs) through its own showrooms and online. Money comes from furniture sales.

What was checked

The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.

  • Business activity

    No prohibited activity

  • Interest-bearing debt / market cap

    limit 30%

    Interest-bearing debt $0 ÷ 36-month average market cap $303.14M = 0.0%

    0.0%

    Pass

  • Cash & investments / market cap

    limit 30%

    Cash + interest-bearing securities $68.80M ÷ 36-month average market cap $303.14M = 22.7%

    22.7%

    Pass

  • Non-compliant income / total revenue

    limit 5%

    Interest income $1.30M ÷ annual revenue $697.12M (2026) = 0.2%

    0.2%

    Pass

Figures from the company's filings (2026-07-31), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $211.74M.

For information (AAOIFI 3/1 note): cash + receivables are 15.9% of total assets (2026-07-31). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.

In the lists

In the S&P 500
Not in the S&P 500
Among halal stocks
0.00% · #1117 of 1454

Halal stocks in the same industry

The largest halal stocks in Furnishings, Fixtures & Appliances — for comparison.

Related articles

Halal is the first question. The second: when to enter?

Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.

This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.

Earnings historyLOVE's next report date, EPS estimate vs actual for recent quarters and the post-earnings price move.View earnings →