ACHR

Archer Aviation Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is ACHR Halal?

Electric vertical-takeoff-and-landing aircraft — permissible aerospace technology with dual-use concerns.

What You Should Know

Archer Aviation develops electric vertical-takeoff-and-landing aircraft, related technology and manufacturing operations. The core aerospace technology is generally permissible, but the company is pre-commercial and defense, dual-use and aviation deployment contexts require qualitative review. Its March 31, 2026 Form 10-Q reports $2,322.8 million of assets, $80.2 million of interest-bearing debt, $958.4 million of cash and restricted cash, $824.8 million of short-term investments and $1.6 million of quarterly revenue. Debt/assets is 3.45%, liquidity/assets is 76.77%, and disclosed net interest income is 1,025.00% of reported revenue; the liquidity and income screens fail while the product and customer activity mix remains qualitative.

⚠️ Concerns

  • Very large cash and short-term-investment balance
  • Pre-commercial revenue base
  • Defense and dual-use aviation applications
  • Disclosed net interest income is large relative to current revenue

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
3.45%Within limit
Below 33.333% under FTSE Yasaar

80.2 / 2,322.8

Cash + interest-bearing securities / assets
76.77%Above limit
Below 33.333% under FTSE Yasaar

1,783.2 / 2,322.8

Receivables + cash / assets
41.26%Within limit
Below 50% under FTSE Yasaar

958.4 / 2,322.8

Non-compliant income / revenue
1025.00%Above limit
No more than 5% under FTSE Yasaar

16.4 / 1.6

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 3.45%, liquidity/assets is 76.77% above the examined 33.333% limit, receivables-plus-cash/assets is 41.26%, and disclosed income is 1,025.00% of revenue because the company is pre-commercial.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 76.77% and receivables-plus-cash/assets is 41.26%, above the examined MSCI limits; debt/assets is 3.45%.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Liquidity/assets is 76.77%, above the examined Malaysia 33% limit; this is a calculation against SAC ratios, not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A properly licensed and reproducible historical market-cap series is not stored; the liquidity and income failures remain independently documented.

Business-activity disclosure

Archer develops electric vertical-takeoff-and-landing aircraft, related technology and manufacturing operations. The core aerospace technology is generally permissible, while planned defense and commercial aviation applications are not reduced to a universal prohibited-activity numerator.

Limitation: The company is pre-commercial and reports only $1.6 million of quarterly revenue; the filing does not provide a mature product or customer activity mix.

Purification

Archer reports $16.4 million of net interest income, but does not provide a complete prohibited-activity numerator or scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Archer Aviation's March 31, 2026 Form 10-Q.
  • Debt is $80.2 million carrying amount for the Synovus Bank loan and Banc of California facility; lease liabilities are excluded.
  • Cash and cash equivalents plus restricted cash are $958.4 million. Short-term investments are $824.8 million, including U.S. Treasuries and corporate debt securities.
  • No accounts-receivable balance is separately reported. First-quarter revenue is $1.6 million, of which $1.0 million is lease-related; interest income, net is $16.4 million.
  • Electric vertical-takeoff-and-landing aircraft and related technology are generally permissible, while defense, aviation, lease and commercialization contexts require qualitative review.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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