The Short Answer
Impinj's business activity is qualitatively halal, but its current quantitative asset-based screen fails. The March 31, 2026 filing shows debt/assets of 48.05% and liquidity/assets of 46.81%. This is a ZakatInvest calculation, not a universal scholar ruling.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
241.47 / 502.524
235.224 / 502.524
104.649 / 502.524
2.666 / 74.25
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.05% and liquidity/assets is 46.81%, above examined limits; receivables-plus-cash/assets is 20.82% and the income upper bound is 3.59%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.05% and liquidity/assets is 46.81%, above the examined MSCI total-assets limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.05% and liquidity/assets is 46.81%, above the examined Malaysia limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based debt and liquidity screens already fail.
Business-activity disclosure
Impinj develops RAIN RFID endpoint chips, readers and connectivity software for inventory, retail and supply-chain use. The technology activity is generally permissible, while downstream customer and end-use revenue is not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every customer, product or end use by a universal Sharia category; activity remains qualitative.
Purification
Other income, net is used as a conservative upper bound because it is primarily interest income; ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Impinj's March 31, 2026 Form 10-Q.
- Long-term debt is $241.470 million; operating lease liabilities are excluded.
- Cash is $32.295 million and short- plus long-term investments in government, corporate and commercial-paper securities total $202.929 million.
- Net accounts receivable is $72.354 million and first-quarter revenue is $74.250 million.
- Other income, net is $2.666 million and is described as primarily interest income on short-term investments; it is used as a conservative upper bound, not a fixed purification percentage.
- RAIN RFID semiconductors, readers and software are generally permissible, but no universal prohibited-revenue numerator is disclosed.
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.
Designing and selling identification semiconductors, reader hardware, and connectivity software is generally permissible at the activity level. The filing-based screen is more cautionary: debt and liquidity exceed the examined total-assets thresholds, while other income, net is a conservative 3.59% upper bound and no universal prohibited-revenue numerator is disclosed.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Impinj's Business Activity
Impinj's RAIN RFID platform comprises:
- Endpoint ICs: Tiny tag chips that give items a unique digital identity
- Reader ICs and devices: Hardware that reads and writes to tagged items
- Connectivity software: Tools that turn tag reads into usable item data
Designing and selling these semiconductors, readers, and software is permissible at the activity level — used for inventory visibility, loss prevention, and supply-chain efficiency.
Concerns to Be Aware Of
1. Convertible-Note Leverage
Impinj reports $241.470 million of debt against $502.524 million of assets (48.05%). Convertible notes are interest-bearing instruments, and the asset-based debt screen fails; a market-cap denominator is not calculated here.
2. Interest Income on Cash
Cash and securities total $235.224 million, or 46.81% of assets, above the examined liquidity limits. Other income, net of $2.666 million is primarily interest income, a conservative upper bound of 3.59% of revenue; ZakatInvest does not prescribe a fixed purification percentage.
3. Semiconductor Cyclicality
As a semiconductor company, Impinj's revenue and margins can be cyclical and sensitive to inventory and retail-demand swings. This is a business consideration rather than a Sharia screen concern.
Filing-Based Ratios (March 31, 2026)
These calculations use Impinj's first-quarter 2026 Form 10-Q and total-assets denominators:
- Debt / assets: 48.05% — fails the examined 33.333% limits
- Cash + securities / assets: 46.81% — fails the examined liquidity limits
- Receivables + cash / assets: 20.82% — below the examined 50% limit
- Other income upper bound / revenue: 3.59%; no fixed purification percentage asserted
Methodology Interpretation
On the stored total-assets calculations, FTSE Yasaar, MSCI Islamic and Malaysia SAC financial screens fail on debt and/or liquidity. These are comparisons with published methodologies, not claims of index membership or an external agency verdict.
Bottom Line
Impinj (PI) has a generally permissible RFID business, but the current filing-based quantitative screen fails because debt/assets and liquidity/assets exceed the examined limits. This is not a universal halal certification; investors should consult a qualified scholar and review updated filings.
For Muslim investors seeking semiconductor exposure, PI sits alongside other halal-screened names like Rambus (RMBS) and ARM Holdings (ARM).
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