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

Gaotu Techedu Inc.

GOTU: Is Gaotu Techedu Inc. Halal?

Not Halal

Gaotu Techedu Inc.

NYSEConsumer DefensiveCN

$1.63

+4.82%

About Gaotu Techedu Inc.

Gaotu Techedu Inc. operates as a tech-focused educational enterprise, delivering online K-12 supplementary instruction across the People's Republic of China. Its curriculum for students from kindergarten through twelfth grade encompasses a broad spectrum of academic disciplines, such as mathematics, English language, Chinese language, physics, chemistry, biology, history, geography, and political studies. Beyond K-12, the firm extends its educational offerings to include foreign language instruction in English and Japanese. It also offers specialized English preparation for post-graduate entrance examinations. Furthermore, Gaotu Techedu caters to working professionals with courses designed for various certification and qualification assessments, including those for teaching, Chartered Financial Analyst (CFA), and securities licenses, among others. Admission-focused programs are also available for tests like the national graduate entrance exam and civil service examinations. An interactive learning platform, the Gaotu App, serves diverse student populations. Moreover, the company delivers offline business consulting, aiming to bolster the management capabilities of leaders and administrators within private educational organizations. It also engages in the development and sale of intelligent devices, such as multi-functional translation pens, alongside educational aids like smart learning machines. Initially established in 2014, the firm was formerly recognized as GSX Techedu Inc., before rebranding to Gaotu Techedu Inc. in June 2021. Its main operational base is situated in Beijing, People's Republic of China.

Sector: Consumer Defensive 路 Industry: Education & Training Services

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap99.1% / 30.0%

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

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

Screened: Jun 18, 2026Fiscal: FY 2025Source: FMP

Financial Overview

Market Cap

591.3M

Price

$1.63

Sector

Consumer Defensive

Industry

Education & Training Services

Halal Alternatives in Consumer Defensive

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

Free 路 No credit card required

Track GOTU and 10,000+ stocks with AI insights

Create your free account to unlock AI-powered compliance analysis, track your portfolio, calculate purification, and get unlimited AAOIFI screening.

10,000+ assets AAOIFI standards Free watchlist

Frequently Asked Questions

Is Gaotu Techedu Inc. (GOTU) halal to invest in?
Gaotu Techedu Inc. (GOTU) 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 Gaotu Techedu Inc. get a F compliance rating?
Gaotu Techedu Inc. (GOTU) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 99.1% (limit 30%); interest-bearing deposits of 578.9% (limit 30%); prohibited income of 0.63% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Gaotu Techedu Inc.'s Shariah verdict?
Gaotu Techedu 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 Gaotu Techedu Inc. re-screened for Shariah compliance?
Gaotu Techedu Inc. (GOTU) 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: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 路 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.