IRTC
iRhythm Technologies, Inc.
Is IRTC Halal?
Wearable cardiac monitoring — medical devices for heart health are permissible.
What You Should Know
iRhythm Technologies makes the Zio patch, a small wearable biosensor used to detect cardiac arrhythmias including atrial fibrillation. Its March 31, 2026 Form 10-Q reports $1,006.365 million of assets, $650.313 million of senior convertible notes, $240.146 million of cash, $309.474 million of marketable securities, $80.863 million of receivables and $199.390 million of quarterly revenue. Debt/assets is 64.62% and liquidity/assets is 54.61%, above the examined FTSE, MSCI and Malaysia limits; the financial screens fail even though cardiac monitoring is a generally permissible medical-device activity. Disclosed interest income is $4.879 million, or 2.45% of revenue.
⚠️ Concerns
- •Senior convertible-note financing materially exceeds asset-based limits
- •Not yet consistently profitable
- •Reimbursement rate risks from Medicare/Medicaid
- •Marketable securities and interest income
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
650.313 / 1,006.365
549.62 / 1,006.365
321.009 / 1,006.365
4.879 / 199.39
- Financial
- Fails
- Overall
- Fails
Debt/assets is 64.62% and liquidity/assets is 54.61%, both above the examined FTSE limits; receivables-plus-cash/assets is 31.90% and disclosed interest income is 2.45% of revenue.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 64.62% and liquidity/assets is 54.61%, above the examined MSCI total-assets limits; receivables-plus-cash/assets is below its limit.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 64.62% and liquidity/assets is 54.61%, above the examined Malaysia limits; this is a calculation against the named ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; debt/assets and liquidity/assets fail independently.
Business-activity disclosure
iRhythm provides wearable cardiac-monitoring devices and related diagnostic services used to detect arrhythmias and support clinical care. The core medical-device activity is generally permissible.
Limitation: The filing does not allocate every provider, payor or patient use into a scholar-approved prohibited-revenue numerator.
Purification
iRhythm discloses $4.879 million of interest income but does not provide a scholar-approved purification percentage or separate prohibited-activity numerator.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from iRhythm's March 31, 2026 Form 10-Q values reported in thousands.
- Interest-bearing debt is the $650.313 million senior convertible-notes balance; operating lease liabilities are excluded.
- Cash is $240.146 million and marketable securities are $309.474 million, used as the interest-bearing-securities proxy.
- Accounts receivable are $80.863 million net; first-quarter net revenue is $199.390 million.
- Disclosed interest income is $4.879 million; other income is not added to the income-screen numerator.
- Cardiac monitoring and diagnostic devices are generally permissible medical products, while reimbursement, data and patient-care issues remain qualitative.
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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