Core Viewpoint - Impinj (PI) reported better-than-expected financial results for Q3, surpassing both revenue and earnings estimates [1] Financial Performance - The company achieved significant growth in its financials, indicating strong demand for its products and services [1] - Specific figures regarding revenue and earnings were not provided in the summary, but the overall performance was positive [1]

Financial Performance - Annual revenue increased from $138.9 million in 2020 to $366.1 million in 2024, representing a 27% compound annual growth rate (CAGR)[12] - Systems revenue for Q3 2025 was $17.3 million, while endpoint ICs revenue was $78.8 million[89] - Non-GAAP gross margin for Q3 2025 was 53.0%[91] - Non-GAAP research and development expenses for Q3 2025 were $17.8 million[94] - Adjusted EBITDA for Q3 2025 was $19.1 million[97] - Non-GAAP EPS (diluted) for Q3 2025 was $0.58[100] - The company has $265.1 million in cash and investments[105] - Adjusted free cash flow for the twelve-month period ended September 30, 2025, was $40.8 million[105] Market and Technology - The company has sold over 120 billion endpoint ICs[13,49] - RAIN-enabled connectivity was used for over 52 billion items in 2024, representing approximately 0.5% of connectable items[44]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $96.1 million, a slight increase of $0.9 million (0.9%) compared to $95.2 million in the same period of 2024[94]. - For the nine months ended September 30, 2025, total revenue decreased by $6.3 million (2.3%) to $268.2 million compared to $274.5 million in the same period of 2024[94]. Endpoint IC Revenue - Endpoint IC revenue decreased by $2.2 million to $78.8 million for the three months ended September 30, 2025, primarily due to a $7.5 million decrease from lower average selling prices (ASPs) offset by a $5.3 million increase in shipment volumes[97]. - The company experienced a decrease in endpoint IC revenue of $7.2 million for the nine months ended September 30, 2025, primarily due to a $24.6 million decrease from lower ASPs[99]. - The overall endpoint IC sales volumes increased at a compounded annual growth rate of 27% from 2010 to 2024, indicating a long-term trend of growth in RAIN technology adoption[88]. Systems Revenue - Systems revenue increased by $3.0 million to $17.3 million for the three months ended September 30, 2025, driven by increased shipment volumes[98]. - Systems revenue for the nine months ended September 30, 2025, increased by $1.0 million, attributed to higher shipment volumes[100]. Gross Profit and Margin - Gross margin improved to 50.3% for the three months ended September 30, 2025, compared to 50.0% in the same period of 2024, reflecting better cost management[94]. - Gross profit for the three months ended September 30, 2025, increased to $48,328,000, up from $47,569,000 in the same period of 2024, reflecting a change of $759,000, while gross margin improved to 50.3% from 50.0%[101][102]. - For the nine months ended September 30, 2025, gross profit decreased to $141,622,000 from $142,633,000 in 2024, a decline of $1,011,000, although gross margin increased to 52.8% from 52.0%[101][103]. Operating Income - Income from operations for the three months ended September 30, 2025, was $656,000, a significant improvement from a loss of $769,000 in the same period of 2024[94]. Research and Development Expenses - Research and development expenses for the three months ended September 30, 2025, rose to $25,720,000, an increase of $228,000 compared to $25,492,000 in 2024[104][105]. - For the nine months ended September 30, 2025, research and development expenses increased by $2,751,000 to $75,686,000 from $72,935,000 in 2024[104][106]. Sales and Marketing Expenses - Sales and marketing expenses for the three months ended September 30, 2025, decreased to $9,380,000, down by $508,000 from $9,888,000 in 2024[107][108]. - For the nine months ended September 30, 2025, sales and marketing expenses decreased by $3,718,000 to $26,173,000 from $29,891,000 in 2024[107][109]. General and Administrative Expenses - General and administrative expenses for the three months ended September 30, 2025, were $12,035,000, a decrease of $417,000 from $12,452,000 in 2024[110][111]. - For the nine months ended September 30, 2025, general and administrative expenses decreased by $2,781,000 to $39,040,000 from $36,259,000 in 2024[110][112]. Other Income - Other income, net for the nine months ended September 30, 2025, increased to $6,705,000 from $5,830,000 in 2024, an increase of $875,000[118][119]. Cash Flow and Investments - For the nine months ended September 30, 2025, the company generated $43.6 million in net cash from operating activities, primarily due to $55.6 million in net income adjusted for non-cash items[140]. - The company used $29.2 million in net cash for investing activities, which included $146.3 million for investments and $11.3 million for equipment purchases, partially offset by $128.4 million from investment maturities and sales[141]. - The company issued convertible notes due 2029 in September 2025, with an aggregate principal amount of $190.0 million, bearing no regular interest[136]. - The net proceeds from the 2025 Notes were approximately $183.6 million after initial debt issuance costs, which were used to exchange the 2021 Notes and cover capped call transaction costs[137]. - As of September 30, 2025, the outstanding principal balance on the 2021 Notes was $97.5 million and on the 2025 Notes was $190.0 million[144]. Future Plans and Investments - The company aims to continue investing in product development and expanding offerings despite the uneven adoption rates in the market[89]. - The company plans to continue investing to enhance and extend its platform, with potential future capital raises through equity or debt financing if necessary[130]. Working Capital and Financial Health - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $190.1 million, with working capital of $220.0 million[128]. - The company reported a decrease in working capital of $12.0 million primarily due to lower accrued compensation[140]. Economic Factors - The company has not experienced material effects from inflation, managing to offset higher product costs through price increases[152]. - The company is exposed to foreign currency exchange risks, particularly through its Voyantic subsidiary, which uses Euros as its functional currency[153].

Financial Performance - Impinj reported third-quarter 2025 revenue of $96.1 million, a slight increase from $95.2 million in the same quarter of 2024[16] - The company experienced a GAAP net loss of $12.8 million, or a loss of $0.44 per diluted share, compared to a net income of $0.22 million in Q3 2024[16] - Adjusted EBITDA for the third quarter was $19.1 million, reflecting strong operational performance[4] - For the fourth quarter of 2025, Impinj expects revenue between $90.0 million and $93.0 million, with a GAAP net loss projected between $2.6 million and $1.1 million[5] - The company anticipates a non-GAAP net income of $14.7 million to $16.2 million for Q4 2025, translating to a non-GAAP net income per diluted share of $0.48 to $0.52[5] - For the nine months ended September 30, 2025, the company reported a net loss of $9,708,000 compared to a net income of $43,528,000 for the same period in 2024[18] - The company expects a GAAP net loss of $1,868,000 for the three months ending December 31, 2025, with an adjusted EBITDA forecast of $16,160,000[26] - Non-GAAP net income for the three months ending December 31, 2025, is projected to be $15,444,000, translating to a non-GAAP net income per share of $0.50[26] Assets and Cash Flow - Total current assets increased to $351.8 million as of September 30, 2025, up from $326.4 million at the end of 2024[14] - Cash and cash equivalents rose to $51.7 million, compared to $46.1 million at the end of 2024[14] - Impinj's total assets reached $516.5 million, an increase from $489.1 million at the end of 2024[14] - The net cash provided by operating activities for the nine months ended September 30, 2025, was $43,610,000, a decrease of 62.3% from $115,687,000 in 2024[18] - Free cash flow for the nine months ended September 30, 2025, was $32,267,000, a decrease of 68.6% from $102,708,000 in 2024[24] - The cash and cash equivalents at the end of the period on September 30, 2025, were $51,726,000, compared to $73,704,000 at the end of the same period in 2024[18] Margins and Operational Performance - The company reported a gross margin of 50.3% for Q3 2025, with a non-GAAP gross margin of 53.0% expected for Q4 2025[4] - The company achieved a GAAP gross margin of 52.8% for the nine months ended September 30, 2025, compared to 52.0% in 2024[23] - Adjusted EBITDA for the nine months ended September 30, 2025, was $53,139,000, up from $50,833,000 in 2024, reflecting a year-over-year increase of 4.6%[23] Stock-Based Compensation and Expenses - The company reported stock-based compensation of $40,096,000 for the nine months ended September 30, 2025, slightly down from $41,336,000 in 2024[23] - The company incurred an induced conversion expense related to convertible notes amounting to $15,026,000 for the nine months ended September 30, 2025[23] Strategic Focus - Impinj continues to focus on its Gen2X solutions, which are contributing to revenue growth and market leadership[2]

Core Insights - Carillon Tower Advisers reported a strong performance in equity markets during the third quarter of 2025, driven by AI advancements, reduced inflation from tariffs, and potential interest rate cuts by the U.S. Federal Reserve [1] - The Russell 2000® Growth Index increased by 12.19% in the quarter, slightly underperforming the Russell 2000 Value Index, which rose by 12.60% [1] Company Highlights: Impinj, Inc. (NASDAQ:PI) - Impinj, Inc. experienced a one-month return of 30.51% and a 52-week gain of 17.95%, closing at $235.89 per share with a market capitalization of $6.862 billion on October 28, 2025 [2] - The company provides RFID chips for inventory and asset tracking, showing strong revenue growth that exceeded expectations, with a broadening adoption of RFID technology beyond traditional uses [3] - Impinj's revenue for the second quarter was reported at $97.9 million, marking a 32% sequential increase but a 4% year-over-year decrease [4]

Core Insights - Alger Weatherbie Specialized Growth Fund's third-quarter 2025 investor letter indicates that equity markets are on an upward trend, with the S&P 500 Index increasing by 8.12% during the quarter [1] - The fund's Class A shares underperformed compared to the Russell 2500 Growth Index in the same period [1] - Impinj, Inc. (NASDAQ:PI) is highlighted as a key stock, showing a one-month return of 30.51% and a 52-week gain of 17.95% [2] Company Performance - Impinj, Inc. reported a market capitalization of $6.862 billion as of October 28, 2025, with shares closing at $235.89 [2] - The company specializes in RAIN RFID technology, which aids in item tracking across supply chains, and is well-positioned for growth as item-level tracking adoption increases [3] - Impinj's fiscal second-quarter results exceeded expectations, contributing positively to its stock performance, alongside an improved outlook for the third quarter [3] Financial Metrics - Impinj, Inc. recorded revenue of $97.9 million for the second quarter, marking a 32% sequential increase but a 4% year-over-year decrease [4] - The company is experiencing ongoing progress with large enterprise rollouts and pilot programs in food and grocery sectors [3]

Group 1 - Impinj (PI) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date return of 36.2% compared to the sector average of 21.6% [4] - The Zacks Rank for Impinj is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past 90 days, the Zacks Consensus Estimate for Impinj's full-year earnings has increased by 1233.3%, reflecting improved analyst sentiment [4] Group 2 - Impinj is part of the Electronics - Semiconductors industry, which has gained an average of 37.6% this year, indicating that Impinj is slightly underperforming its industry [6] - Another notable stock in the Computer and Technology sector is Arqit Quantum Inc. (ARQQ), which has seen a year-to-date increase of 49.7% and has a Zacks Rank of 2 (Buy) [5] - The Internet - Software industry, where Arqit Quantum Inc. belongs, has moved up by 17.1% since the beginning of the year [6]

Core Viewpoint - Impinj's stock has seen a significant increase of 11% week to date, driven by positive analyst coverage and strong positioning in the IoT market [1] Analyst Evaluations - Cantor Fitzgerald's Troy Jensen raised his price target for Impinj from $158 to $217 per share, maintaining an overweight (buy) recommendation [2][3] - Barclays' Guy Hardwick initiated coverage with a buy recommendation and set a price target of $200 for Impinj's shares [3] Market Positioning - Both analysts believe Impinj is well-positioned to benefit from the growing adoption of Internet of Things (IoT) technologies, which are crucial for its RFID components [4] - Jensen has increased his revenue and profitability estimates for Impinj for the years 2025 and 2026, reflecting confidence in the company's future performance [4]

SEATTLE--(BUSINESS WIRE)--Impinj to Announce Third-Quarter 2025 Financial Results. ...

Summary of Impinj Conference Call Company Overview - **Company**: Impinj, Ticker: PI - **Industry**: Endpoint Integrated Circuits (ICs) for RFID technology Key Points Market Stability and Volatility - The endpoint IC market is showing signs of stability after a volatile Q1, which was influenced by tariffs affecting partner ecosystems [2][3] - Q2 saw moderated volatility, primarily involving adjustments to delivery timing rather than cancellations [2][3] End Market Penetration - Approximately 50% to 60% of endpoint ICs are shipped to the retail market, which represents an opportunity of 80 billion units annually [5] - Retail apparel has a penetration rate of about 40% by volume, with over 90% penetration on a brand basis [8] - New verticals such as general merchandise ($325 billion unit opportunity) and logistics ($400 billion unit opportunity) are emerging, both currently at low single-digit penetration [8][9] - The food sector presents a significant opportunity, larger than all other verticals combined, but is still in early pilot stages [9][10] Food Market Developments - The largest public pilot in the food category is Kroger's bakery deployment, currently at around 700 stores [13] - Eight out of the ten largest grocers are either piloting or exploring RAIN deployments in food [13] General Merchandise and Retail Apparel - A major North American retailer has expanded from apparel to general merchandise, with ongoing assessments for future phases [14][15] - Despite a softer macro environment, retail apparel continues to see progress with new deployments from brands like Old Navy and Academy Sports [18] Digital Product Passport (DPP) - DPP aims to track items from manufacture to recycling, enhancing consumer engagement and potential use cases [21][22] - The initiative is being phased in, starting with lithium-ion batteries and moving to textiles, which aligns with apparel customers [25] Impinj M800 Chip - The M800 chip is the smallest and most sensitive endpoint IC, offering a 25% increase in die per wafer compared to its predecessor, the M700 [26][27] - Anticipated gross margin accretion of 300 basis points as the M800 ramps up, expected to cross the 50% threshold by 2025 [27] Gen2X Protocol - Gen2X enhances readability, speed, and range of RAIN RFID, enabling fixed or autonomous reading applications [29][30] - Impinj is unique in offering both reader ASICs and endpoint ICs, providing a competitive edge in the RFID market [31] Cost Reduction Strategies - Cost reductions are achieved through smaller, more sensitive chips and competitive pricing in the inlay market, with sub-$0.02 inlays becoming common [33] Future Outlook - All three key markets (apparel, general merchandise, and food) are expected to contribute to growth, with food anticipated to become the largest category in the long term due to its high velocity [34] Additional Insights - The company is actively engaging with major retailers and grocers to expand its market presence and explore new opportunities in various sectors [12][13][14]