The Short Answer
TransMedics stock (TMDX) has a qualitative business verdict that is HALAL, but its current filing-based financial screen FAILS on debt and receivables. TransMedics is a medical-technology company focused on organ transplantation.
Development and sale of organ-preservation medical devices and clinical-logistics services are generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 59.73%, liquidity/assets of 32.18% and receivables-plus-cash/assets of 38.52%; debt and receivables screens fail the examined limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
857.024 / 1,434.82
461.739 / 1,434.82
552.466 / 1,434.82
- Financial
- Fails
- Overall
- Fails
Debt/assets is 59.73%, liquidity/assets is 32.18% and receivables-plus-cash/assets is 38.52%; debt and receivables screens fail.
- Financial
- Fails
- Overall
- Fails
Debt/assets and receivables-plus-cash/assets exceed the examined limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 59.73%, above the examined limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; asset-based debt screens already fail.
Business-activity disclosure
TransMedics provides organ-preservation, transport and transplant-management technology and services. Medical technology is generally permissible, but customer and clinical end-use allocation is not reduced to a universal prohibited-revenue numerator.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed.
Purification
The filing does not provide a separable gross interest-income amount; ZakatInvest does not infer a purification amount.
Inputs, assumptions and primary sources
- Amounts are USD thousands from TransMedics' March 31, 2026 Form 10-Q; this record expresses them in millions-equivalent values.
- Debt includes current debt of $15.000 million, convertible senior notes of $453.530 million, long-term debt of $44.665 million and finance-lease liability of $343.829 million; operating leases are excluded.
- Cash is $461.739 million and accounts receivable is $90.727 million.
- Quarterly revenue is $173.933 million. Mixed interest income and other income (expense), net is not used as a gross interest numerator.
- Organ-transplant technology and clinical services 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.
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)
TransMedics' Business Activity
TransMedics provides:
- Organ Care System (OCS): A portable warm-perfusion platform that keeps donor hearts, lungs, and livers in a near-physiologic state outside the body
- National OCS Program: An organ-retrieval logistics and aviation network used in transplantation
- Clinical services: Supporting transplant centers across the procurement process
This is a permissible healthcare and medical-device business at the activity level.
Concerns to Be Aware Of
1. Convertible-Note Leverage — The Primary Screen
The filing reports $857.024 million of debt and finance-lease liabilities, or 59.73% of total assets. This exceeds the examined asset-based debt limits; market-cap denominator methods are not calculated here.
2. Interest-Bearing Instruments
Convertible notes are interest-bearing instruments. Investors who object to any conventional-debt issuance should weigh this even where the debt ratio passes the 33% screen.
3. High-Growth Volatility
As a high-growth company, TransMedics' earnings and margins can be volatile and sensitive to transplant volumes, reimbursement, and aviation-network costs. This is a business consideration rather than a Sharia screen concern.
Filing-Based Ratios (March 31, 2026)
Using TransMedics' latest Form 10-Q (USD millions):
- Debt / total assets: 59.73% — above the examined limits
- Cash + securities / total assets: 32.18%
- Receivables + cash / total assets: 38.52% — above the examined MSCI limit
- Gross interest income: Not separately disclosed
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Debt and receivables screens fail.
- MSCI-style: Debt and receivables screens fail; this is not an index-membership claim.
- Malaysia-style: Debt screen fails; this is not an official classification.
Bottom Line
TransMedics (TMDX) has a generally permissible medical-technology business, but its current filing-based debt and receivables screens fail. The qualitative business verdict remains HALAL while the quantitative result is not compliant under the examined financial limits; consult the methodology you follow.
For Muslim investors seeking medical-device exposure, TMDX sits alongside other halal-screened names like Globus Medical (GMED) and Inspire Medical (INSP).
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