MPWR

Monolithic Power Systems, Inc.

HALAL — FINANCIAL SCREENS PASSstock

Is MPWR Halal?

Power-management semiconductors are broadly permissible, and the March 2026 filing passes the examined asset-based financial screens with no conventional debt balance reported.

What You Should Know

Monolithic Power Systems' March 31, 2026 Form 10-Q reports $4,448.866M total assets, no conventional debt balance, $1,062.930M cash, $304.179M short-term investments, $302.138M accounts receivable and $804.185M quarterly revenue. ZakatInvest calculates debt/assets 0.00%, cash plus identifiable short-term investments/assets 30.73%, receivables plus cash/assets 30.68% and gross disclosed interest income/revenue 0.99%. Enterprise-data, storage, automotive, communications, consumer and industrial power-management products are broadly permissible general-purpose semiconductor activity. The filing states that prior 2024 audited and 2025 quarterly statements should no longer be relied upon because of an unintentional error; this current filing is used as the evidence base. Downstream end-use revenue is not quantified into a universal prohibited-revenue numerator.

⚠️ Concerns

  • The March 2026 filing includes a prior-filing reliability disclosure requiring future correction and restatement monitoring
  • 30.73% liquidity/assets is below the examined limits but close enough to warrant rechecking as cash and investments change
  • 88% of revenue is sold through distributors and value-added resellers, limiting final end-use visibility
  • General-purpose chips can enter gaming, defense, surveillance and other mixed downstream markets
  • Customer concentration, export controls, tariffs, semiconductor supply chains, warranty exposure and geopolitical risks remain material

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 4,448.866

Cash + interest-bearing securities / assets
30.73%Within limit
Below 33.333% under FTSE Yasaar

1,367.109 / 4,448.866

Receivables + cash / assets
30.68%Within limit
Below 50% under FTSE Yasaar

1,365.068 / 4,448.866

Non-compliant income / revenue
0.99%Within limit
No more than 5% under FTSE Yasaar

7.941 / 804.185

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt is 0.00%, cash plus identifiable short-term investments are 30.73%, receivables plus cash are 30.68% and gross disclosed interest income is 0.99%; the reported ratios are below the examined FTSE limits, but downstream business-use disclosure remains incomplete.

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

Debt, identifiable liquidity, receivables plus cash and disclosed interest income are below the examined MSCI total-assets limits. This is not an index-membership claim; final-customer and downstream-use classification remains incomplete.

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

Debt is 0.00% and identifiable conventional liquidity is 30.73%, below the examined Malaysia SAC financial limits. This is a contextual calculation, not an official classification of a U.S.-listed security.

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

A properly licensed and reproducible historical market-cap series is not stored, so no unsupported market-cap percentage is substituted for the filing-backed asset-based calculation.

Business-activity disclosure

Monolithic Power Systems designs and sells analog and mixed-signal power-management integrated circuits, power modules and related products across enterprise data, storage and computing, automotive, communications, consumer and industrial markets. Semiconductor power-management technology is broadly permissible, but the filing does not allocate downstream end uses into a school-specific prohibited-revenue numerator.

Limitation: MPS reports end-market revenue and sells primarily through distributors and value-added resellers; it does not identify every final customer, application or downstream use. A universal gaming, defense, surveillance or other prohibited percentage cannot be inferred from the filing.

Purification

MPS discloses $7.941 million of interest income, or 0.99% of quarterly revenue, but does not prescribe a scholar-approved purification percentage. Downstream product-use classification remains incomplete, so no fixed prescription is asserted.

Inputs, assumptions and primary sources
  • Inputs use Monolithic Power Systems' March 31, 2026 Form 10-Q; amounts are USD millions after converting the filing's thousands presentation.
  • The 2026 Form 10-Q is the current evidence base. The filing states that the Audit Committee determined prior 2024 audited and 2025 quarterly statements should no longer be relied upon because of an unintentional error; this record does not reuse prior-period values from those filings.
  • No conventional debt balance is reported on the March 31, 2026 balance sheet. Total liabilities include tax, compensation and other operating liabilities; those are not silently treated as interest-bearing debt.
  • Cash uses $1,062.930 million of cash and cash equivalents. Identifiable interest-bearing securities use $304.179 million of short-term investments, primarily certificates of deposit; a further $0.049 million investment within other long-term assets is excluded from the conservative short-term proxy.
  • Receivables use $302.138 million of accounts receivable, net. Inventories, deferred tax assets and other current or long-term assets are excluded.
  • Revenue was $804.185 million. The filing separately discloses $7.941 million of interest income and $6.030 million of total other income, net; the gross interest-income line is used as a conservative disclosed-income numerator, or 0.99% of revenue.
  • Revenue by end market was enterprise data 32.7%, storage and computing 21.7%, automotive 18.9%, communications 13.9%, consumer 6.8% and industrial 6.0%. The filing does not provide a universal prohibited-revenue numerator for downstream end uses.

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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