IRTC

iRhythm Technologies, Inc.

HALAL — SCREEN DOES NOT PASSstock

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.

USD · millions
Interest-bearing debt / assets
64.62%Above limit
Below 33.333% under FTSE Yasaar

650.313 / 1,006.365

Cash + interest-bearing securities / assets
54.61%Above limit
Below 33.333% under FTSE Yasaar

549.62 / 1,006.365

Receivables + cash / assets
31.90%Within limit
Below 50% under FTSE Yasaar

321.009 / 1,006.365

Non-compliant income / revenue
2.45%Within limit
No more than 5% under FTSE Yasaar

4.879 / 199.39

FTSE Yasaar
v4.6, February 2026
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.

MSCI Islamic (total-assets series)
October 2024 methodology
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.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
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.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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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