The Short Answer
Recursion Pharmaceuticals stock (RXRX) is currently classified as HALAL in the qualitative catalog, but its March 31, 2026 filing-based quantitative result does not pass. Drug discovery is generally permissible, while liquidity and investment-income screens fail on the current minimal-revenue balance.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
72.375 / 1,339.522
654.473 / 1,339.522
668.058 / 1,339.522
5.963 / 6.472
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 48.86%, above the examined 33.333% limit, and disclosed interest income is 92.14% of quarterly revenue; debt/assets is 5.40% and receivables-plus-cash/assets is 49.87%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 48.86%, receivables-plus-cash/assets is 49.87% and disclosed interest income is 92.14%; the examined MSCI limits fail.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 48.86% and the disclosed income ratio is 92.14%, 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 total-assets liquidity and income screens already fail.
Business-activity disclosure
Recursion uses AI, automation and partnerships to discover and develop medicines. Drug research is generally permissible, while clinical, licensing and customer-use allocation remains qualitative.
Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator by partnership, clinical workflow or end use.
Purification
Recursion reports $5.963 million of interest income, but no scholar-specific purification percentage or universal prohibited-revenue numerator is provided.
Inputs, assumptions and primary sources
- Amounts are USD millions from Recursion's March 31, 2026 Form 10-Q.
- Debt includes $16.446 million of notes payable and financing-lease liabilities and $55.929 million of operating-lease liabilities.
- Cash and cash equivalents are $654.473 million; restricted cash is excluded and no separate interest-bearing securities balance is disclosed.
- Other receivables are $13.585 million and first-quarter revenue is $6.472 million.
- The filing reports $5.963 million of interest income, primarily from cash and money-market funds, approximately 92.14% of quarterly revenue.
- AI-driven drug discovery and pharmaceutical research 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.
The filing reports debt/assets of 5.40%, liquidity/assets of 48.86%, receivables plus cash/assets of 49.87%, and interest income of $5.963 million against $6.472 million of quarterly revenue. Liquidity, receivables-plus-cash and disclosed income screens fail.
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)
Recursion's Business Activity
Recursion Pharmaceuticals, Inc. is a clinical-stage biotechnology company. Its activity is:
- AI-driven drug discovery: Using automation and machine learning to find new medicines
- Pipeline development: Advancing its own drug candidates through trials
- Pharma partnerships: Collaborating with large drug companies for milestone payments
Drug discovery and pharmaceutical research are permissible activities with no inherent haram revenue line.
Why RXRX Is Halal
1. Permissible Core Business
Pharmaceutical research that develops medicines is a halal activity that benefits patients. There is no gambling, alcohol, conventional banking, or other prohibited line at the heart of the business.
2. Equity-Funded Balance Sheet
Recursion carries only $72.375 million of debt and leases against $1,339.522 million of assets, so the debt ratio is 5.40%. That result is outweighed by cash and investment income relative to the small commercial-revenue base.
3. Clinical-Stage Caveats
Recursion is pre-profit and speculative. The filing reports $5.963 million of interest income, or 92.14% of quarterly revenue; no fixed purification percentage is asserted, and the ratios should be re-screened as product revenue develops.
Filing-Based Ratios (March 31, 2026)
Based on Recursion's latest Form 10-Q:
- Debt / Total Assets: 5.40% ✅
- Liquidity / Total Assets: 48.86% — above examined limits ⚠️
- Receivables + Cash / Total Assets: 49.87% — above the examined MSCI limit ⚠️
- Disclosed Interest Income / Revenue: 92.14% — above the 5% benchmark ⚠️
- Prohibited-Product Revenue: No universal numerator disclosed — qualitative review required ⚠️
Methodology Interpretation
The current filing-based screen fails on liquidity/assets, receivables-plus-cash/assets and disclosed interest income under the examined FTSE, MSCI and Malaysia-style limits. Drug discovery remains generally permissible, but the clinical-stage economics and purification treatment require review.
- Core activity: AI-driven drug discovery and pharmaceutical research
- Quantitative status: Debt passes; liquidity, receivables and income fail
- Scholar review: Confirm income treatment and partnership economics
Bottom Line
Recursion Pharmaceuticals (RXRX) has a generally permissible core activity and remains classified as HALAL in the qualitative catalog, but the current filing-based result is not passing because liquidity/assets is 48.86% and disclosed interest income is 92.14% of quarterly revenue. It remains a speculative, clinical-stage holding.
For Muslim investors seeking healthcare and AI exposure, compare RXRX with peers like Tempus AI (TEM) and Pfizer (PFE).
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