Strategic Consolidation Drives Operational Excellence for the P-A-T Strategy, Positioning Company as Manufacturing Leader for Advanced RFID and BLE IoT Solutions SANTA ANA, Calif., Dec. 18, 2025 /PRNewswire/ -- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID- and BLE-enabled Internet of Things (IoT) solutions, today announced the successful completion of its manufacturing transition from Singapore to its state-of-the-art facility in Bangkok, Thailand. The successful production transition to Thailand ...

Core Insights - Class Action Attorney Juan Monteverde's firm has recovered millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] - Kenvue Inc. is under investigation regarding its sale to Kimberly-Clark Corporation, with shareholders set to receive $3.50 in cash plus 0.14625 shares of Kimberly-Clark for each Kenvue share [1] - FirstSun Capital Bancorp is merging with First Foundation Inc., with FirstSun shareholders expected to own 59.5% of the combined entity upon completion [2] - First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share of First Foundation [3] - Gulf Island Fabrication, Inc. is being sold to IES Holdings, Inc., with shareholders to receive $12.00 in cash per share [4] Company Transactions - Kenvue Inc. shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark for each share held [1] - FirstSun Capital Bancorp shareholders will own 59.5% of the merged company with First Foundation Inc. [2] - First Foundation Inc. shareholders will receive 0.16083 shares of FirstSun for each share held [3] - Gulf Island Fabrication, Inc. shareholders will receive $12.00 in cash per share in the transaction with IES Holdings, Inc. [4] Legal Context - Monteverde & Associates PC is a national class action securities firm with a successful track record in recovering funds for shareholders [5] - The firm operates from the Empire State Building and emphasizes the importance of legal representation for shareholders [5][6]

Core Insights - Identiv, Inc. reported a quarterly loss of $0.15 per share, better than the Zacks Consensus Estimate of a loss of $0.23, and improved from a loss of $0.25 per share a year ago, resulting in an earnings surprise of +34.78% [1] - The company achieved revenues of $5.01 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.18%, but down from $6.53 million in the same quarter last year [2] - Identiv has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.21 on revenues of $5.1 million, and for the current fiscal year, it is -$0.95 on revenues of $20.4 million [7] Industry Context - The Computer - Peripheral Equipment industry, to which Identiv belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Identiv's stock performance [5]

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Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $5.0 million, down from $6.5 million in Q3 2024, attributed to exiting lower margin business [5][10] - GAAP gross margin improved to 10.7% from 3.6% year-over-year, while non-GAAP gross margin increased to 19.1% from 9.3% [5][8] - GAAP net loss from continuing operations decreased to $3.5 million, or $0.15 per share, compared to a loss of $9.3 million, or $0.40 per share in Q3 2024 [8][10] - Non-GAAP adjusted EBITDA loss was $3.6 million, an improvement from $4.5 million in Q3 2024 [8][9] Business Line Data and Key Metrics Changes - The transition to the new manufacturing facility in Thailand has been completed, leading to lower costs and improved efficiency [4][12] - The company has achieved 100% production of RFID tags, inlays, and labels in Thailand, marking a significant operational milestone [12][21] Market Data and Key Metrics Changes - The company is seeing growth from existing channel customers and increased traction in BLE projects, contributing to expected sales growth in Q4 2025 [26][30] - The new opportunity pipeline has expanded, with 118 new opportunities identified, and 18% of these have been converted to sales [19][20] Company Strategy and Development Direction - The company continues to execute its Perform, Accelerate, and Transform (PAT) strategy, focusing on operational excellence, high-value segments, and strategic M&A [3][19] - The strategic focus has shifted to being a pure play in IoT and RFID technologies following the separation from the physical security business [15][22] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in Q3 and the potential for continued growth in high-value segments [11][22] - The company anticipates completing the Singapore site shutdown by year-end and expects further margin expansion as the Thailand facility reaches full productivity [4][10] Other Important Information - The company has launched CRM and MRP automation initiatives to enhance operational efficiency [12] - New product development initiatives are underway, particularly in BLE technology, which is expected to drive future growth [16][18] Q&A Session Summary Question: What is driving the expected sales growth in Q4? - Management noted growth from existing channel customers and increased traction in BLE projects as key drivers [26] Question: Is IFCO on track for volume shipments next year? - Management confirmed progress with IFCO and ongoing product development, with prototypes being tested in the field [28][29] Question: What can be expected for gross margins in Q4? - Management indicated that while benefits from the Singapore shutdown will continue, full impact on gross margins may not be realized until Q1 of the following year [32] Question: What percentage of new opportunities converted are above the 28% gross margin goal? - Approximately two-thirds of the converted opportunities are expected to exceed the 30% gross margin threshold [36] Question: What is the status of healthcare opportunities? - Management remains positive about healthcare opportunities, noting that these projects typically take longer to commercialize compared to logistics and consumer products [39]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $5.0 million, down from $6.5 million in Q3 2024, attributed to exiting lower margin business [5][8] - GAAP gross margin improved to 10.7% from 3.6% year-over-year, while non-GAAP gross margin increased to 19.1% from 9.3% [5][6] - GAAP net loss from continuing operations decreased to $3.5 million, or $0.15 per share, compared to a loss of $9.3 million, or $0.40 per share in Q3 2024 [8][9] - Non-GAAP adjusted EBITDA loss was $3.6 million, an improvement from $4.5 million in Q3 2024 [8] Business Line Data and Key Metrics Changes - The transition of production to Thailand has been completed, leading to lower manufacturing costs and improved efficiency [4][12] - The company achieved 100% production of RFID tags, inlays, and labels in Thailand, marking a significant operational milestone [12][22] Market Data and Key Metrics Changes - The company is seeing growth from existing channel customers and increased traction from BLE projects, contributing to expected sales growth in Q4 2025 [25][26] - The new opportunity pipeline has expanded, with 118 new opportunities identified, and 18% of these converted to sales [19][20] Company Strategy and Development Direction - The company continues to execute its Perform, Accelerate, and Transform (PAT) strategy, focusing on operational excellence, high-value segments, and strategic M&A [3][19] - The strategic focus has shifted to being a pure play in IoT and RFID technologies following the separation from the physical security business [15][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress and strategy, highlighting the importance of completing the Singapore site shutdown and enhancing productivity in Thailand [11][23] - The company anticipates continued margin expansion and improved financial performance in 2026 and beyond [10][23] Other Important Information - The company has launched CRM and MRP automation initiatives to streamline operations, with implementation expected by year-end [12] - New product development initiatives are aligned with high-value market segments, with several projects set to begin in the next quarter [18][22] Q&A Session Summary Question: What is driving the expected sales growth in Q4? - Management noted growth from existing channel customers and increased traction from BLE projects as key drivers [25] Question: Is IFCO on track for volume shipments in the second half of next year? - Management confirmed progress on product development for IFCO and ongoing qualification of Wiliot's next generation product [26] Question: What can be expected for gross margins in Q4? - Management indicated that gross margins would benefit from the full impact of the Singapore shutdown, with improvements expected in Q1 of the following year [28] Question: What percentage of new opportunities converted are above the 28% gross margin goal? - Approximately two-thirds of the converted opportunities are expected to exceed the 30% gross margin threshold [30] Question: What is the status of healthcare opportunities? - Management remains positive about healthcare opportunities, noting that a third of the current NPD pipeline is healthcare-related, although these projects take longer to commercialize [31]

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Financial Performance - Q3 2025 net revenue was $5.0 million, compared to $6.5 million in Q3 2024, due to exiting lower-margin business earlier in FY 2025[9] - GAAP gross margin improved to 10.7% in Q3 2025 from 3.6% in Q3 2024, due to the completion of the production transition to Thailand[9] - Non-GAAP gross margin increased to 19.1% in Q3 2025 from 9.3% in Q3 2024[9] - GAAP operating expenses decreased to $6.1 million in Q3 2025 from $9.8 million in Q3 2024, driven by a reduction in strategic review costs[9] - Non-GAAP operating expenses were $4.5 million in Q3 2025, compared to $5.1 million in Q3 2024, reflecting key organic growth investments[9] - GAAP net loss from continuing operations improved to ($3.5 million) in Q3 2025 from ($9.3 million) in Q3 2024, due to reduced strategic review costs[9] - Non-GAAP adjusted EBITDA was ($3.6 million) in Q3 2025, compared to ($4.5 million) in Q3 2024, driven by expanded gross margin and lower operating expenses[9] Business Outlook - The company expects net revenue for Q4 2025 to be between $5.4 million and $5.9 million[10] Strategic Initiatives - The company's "Perform, Accelerate, and Transform" (P-A-T) strategy remains central to transforming the company and creating lasting value for stockholders[7] - The company completed the transition of 100% of RFID production to its Thailand facility[21] - The company converted approximately 18% year-to-date of its new opportunity pipeline into sales, representing almost 10% of Q3 sales[21]

Financial Performance - For the three months ended September 30, 2025, total net revenue was $5,009,000, a decrease from $6,532,000 in the same period of 2024, representing a decline of approximately 23.3%[65]. - As of September 30, 2025, the Company reported a net loss from continuing operations of $3.451 million, compared to a net loss of $9.329 million for the same period in 2024[60]. - The Company reported a basic net loss per common share of $0.15 for the three months ended September 30, 2025, compared to a net income of $3.62 per share for the same period in 2024[60]. - For the three months ended September 30, 2024, the discontinued operations reported a net revenue of $9.045 million and a loss from discontinued operations of $4.268 million[30]. Discontinued Operations - The Company completed the sale of its Physical Security Business for approximately $143.9 million in cash on September 6, 2024[22][28]. - The total operating expenses for the discontinued operations for the nine months ended September 30, 2024, were $22.360 million, resulting in a loss from operations of $2.712 million[30]. - The total stock-based compensation expense for discontinued operations was $4.264 million for the three months ended September 30, 2024[57]. - The Company completed the sale of its Physical Security Business and access card operations, resulting in a single reportable segment: the Internet of Things (IoT) Business segment[62]. Assets and Liabilities - As of September 30, 2025, the Company reported cash equivalents of $32.6 million and treasury bills of $79.9 million[34]. - The total assets measured at fair value on a recurring basis included cash equivalents and treasury bills, with no liabilities measured at fair value[34][36]. - The Company’s total accrued expenses decreased from $2.327 million as of December 31, 2024, to $1.403 million as of September 30, 2025[41]. - The Company’s inventories decreased from $7.475 million as of December 31, 2024, to $5.909 million as of September 30, 2025[40]. Stock and Equity - The Company repurchased a total of 463,779 shares of common stock under the Stock Repurchase Program for approximately $1.9 million as of September 30, 2025[50]. - The balance of Series B convertible preferred stock increased to $28.089 million as of September 30, 2025, from $27.271 million in 2024, with cumulative dividends of $207,000 for the three months ended September 30, 2025[47]. - The Company has 10,067,167 shares of common stock reserved for future issuance as of September 30, 2025, including 7,541,449 shares issuable upon conversion of Series B convertible preferred stock[52]. Expenses and Compensation - Stock-based compensation expense for continuing operations was $2.411 million for the nine months ended September 30, 2025, compared to $2.600 million for the same period in 2024[57]. - The Company granted 561,304 restricted stock units (RSUs) with a weighted average fair value of $3.51 during the nine months ended September 30, 2025[54]. - The unrecognized compensation expense related to unvested RSUs was $3.0 million as of September 30, 2025, expected to be recognized over 1.83 years[54]. - The Company has not recognized any tax benefits from RSUs or PSUs for the nine months ended September 30, 2025[54]. Operational Metrics - The warranty accrual balance at the end of Q3 2025 was $295,000, unchanged from the previous quarter, indicating stable warranty costs[76]. - The weighted average remaining lease term for the Company's operating leases was 1.8 years as of September 30, 2025[71]. - The Company recorded restructuring expenses of $79,000 and $413,000 for the three and nine months ended September 30, 2025, respectively[68]. - The Company reported impairment charges of $323,000 and $669,000 related to operating lease right-of-use assets for the three and nine months ended September 30, 2025, respectively[72]. Accounting and Compliance - The Company is evaluating the impact of new accounting standards, including ASU 2023-09 and ASU 2024-03, which may affect future financial disclosures[25][26]. - The Company recorded depreciation expense of $532,000 for the three months ended September 30, 2025, compared to $426,000 for the same period in 2024[40]. - Total property and equipment, net, decreased from $7,694,000 as of December 31, 2024, to $7,369,000 as of September 30, 2025[67]. Revenue Sources - The Americas accounted for 51% of net revenue in Q3 2025, up from 42% in Q3 2024, while Europe and the Middle East remained at 25%[65]. - One customer represented 12% of net revenue for the three months ended September 30, 2025, compared to 16% in the same period of 2024[66].

Revenue Performance - Revenue for Q3 2025 was $5.0 million, a decrease of 23.1% from $6.5 million in Q3 2024[2] - For Q4 2025, management expects net revenue to be in the range of $5.4 million to $5.9 million[7] Gross Margin and Profitability - GAAP gross margin improved to 10.7% in Q3 2025 from 3.6% in Q3 2024, while non-GAAP gross margin increased to 19.1% from 9.3%[3] - GAAP gross profit for Q3 2025 was $534 million, compared to $238 million in Q3 2024, representing a 125% increase[19] - Non-GAAP gross profit for the nine months ended September 30, 2025, was $1,484 million, up from $2,482 million in the same period of 2024, indicating a decrease of 40%[19] - Non-GAAP gross margin improved to 19% in Q3 2025 from 9% in Q3 2024[19] Operating Expenses - GAAP operating expenses decreased to $6.1 million in Q3 2025 from $9.8 million in Q3 2024, primarily due to reduced strategic review-related costs[4] - GAAP operating expenses decreased to $6,116 million in Q3 2025 from $9,791 million in Q3 2024, a reduction of 37%[19] - Non-GAAP operating expenses for the nine months ended September 30, 2025, were $13,540 million, slightly down from $13,814 million in the same period of 2024[19] - Strategic review-related costs in GAAP operating expenses were $372 million in Q3 2025, down from $3,551 million in Q3 2024[19] Net Loss and Adjusted EBITDA - GAAP net loss from continuing operations was ($3.5) million, or ($0.15) per share, compared to a loss of ($9.3) million, or ($0.40) per share in Q3 2024[5] - GAAP net loss from continuing operations narrowed to $3,451 million in Q3 2025 from $9,329 million in Q3 2024, a 63% improvement[19] - Non-GAAP adjusted EBITDA loss improved to ($3.6) million in Q3 2025 from ($4.5) million in Q3 2024[6] - Non-GAAP adjusted EBITDA for the nine months ended September 30, 2025, was $(12,056) million, compared to $(11,332) million in the same period of 2024[19] Assets and Liabilities - Total current assets decreased to $142.1 million as of September 30, 2025, down from $152.8 million at the end of 2024[17] - Total liabilities decreased to $7.4 million as of September 30, 2025, compared to $9.2 million at the end of 2024[17] Strategic Focus - The company continues to focus on its Perform-Accelerate-Transform (P-A-T) strategy to drive growth and improve operational efficiency[2] - The transition of production to Thailand contributed to reduced manufacturing overhead and direct labor costs, enhancing gross margins[3] Stock-Based Compensation - Stock-based compensation included in GAAP gross profit was $5 million for Q3 2025, consistent with Q3 2024[19] Reconciling Items - Total reconciling items included in GAAP net loss from continuing operations amounted to $(117) million in Q3 2025, compared to $4,849 million in Q3 2024[19]