Impinj(PI) - 2025 Q2 - Quarterly Results

Financial Highlights and Outlook Second Quarter 2025 Financial Summary Impinj achieved strong Q2 2025 financial results, with revenue and adjusted EBITDA exceeding guidance, driven by investments in technology and market adoption - Second quarter 2025 revenue and adjusted EBITDA exceeded company guidance[2] - The company remains focused on expanding technology leadership, market share, platform adoption, and enhancing enterprise customer satisfaction[2] Third Quarter 2025 Financial Outlook Impinj provided its Q3 2025 financial outlook, projecting revenue between $91.0M and $94.0M, and detailing GAAP/non-GAAP gross margin, net income/loss, and EPS Third Quarter 2025 Financial Outlook (in millions of dollars, except per share data) | Metric | Range (in millions of dollars) | | :--------------------------------- | :----------------: | | Revenue | $91.0 to $94.0 | | GAAP Net Loss | ($2.2) to ($0.7) | | Adjusted EBITDA Income | $15.6 to $17.1 | | GAAP Diluted Net Loss Per Share | ($0.07) to ($0.02) | | Non-GAAP Net Income | $14.0 to $15.5 | | Non-GAAP Diluted Net Income Per Share | $0.47 to $0.51 | - GAAP gross margin is projected at 57.8%; non-GAAP gross margin is projected at 60.4%[4] Corporate Information Conference Call Information Impinj will host a conference call and webcast on July 30, 2025, to discuss Q2 2025 results and Q3 outlook, with replay services available - The conference call and webcast will be held on July 30, 2025, at 5:00 PM ET / 2:00 PM PT[6] - Investors can participate by calling +1-412-317-1863 or visiting the company's website at investor.impinj.com[6] Forward-Looking Statements This press release contains forward-looking statements on strategy, investments, market conditions, and Q3 2025 guidance, with risks that may cause actual results to differ materially - Forward-looking statements cover company strategy, investment plans, market conditions, and financial guidance for Q3 2025 and future periods[8] - Actual results may differ materially from projections due to known and unknown risks and uncertainties, and reported results should not be considered indicative of future performance[9] - Potential risks and uncertainties are detailed in the "Risk Factors" section of the company's 10-K and 10-Q reports[10] About Impinj Impinj (NASDAQ: PI) is a leading RAIN RFID provider and IoT pioneer, connecting billions of items to the internet for analysis, optimization, and innovation - Impinj provides timely data for everyday items through its RAIN RFID platform, enabling the boundless IoT[11] - The company helps businesses and individuals analyze, optimize, and innovate by connecting everyday items like apparel, automotive parts, luggage, and shipments[11] Contact Information Contact information for investor relations and media relations is provided - Investor Relations contact: Andy Cobb, CFA, Phone: +1-206-315-4470, Email: ir@impinj.com[12] - Media Relations contact: Emily Schauer, Phone: +1 206-209-2923, Email: eschauer@impinj.com[12] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, Impinj's total assets and equity increased, while total liabilities decreased due to long-term debt reclassification and reduced current liabilities Key Balance Sheet Data (as of June 30, 2025 vs December 31, 2024, in thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | Change | Change Rate | | :----------------------- | :-------------: | :-------------: | :----: | :------: | | Assets: | | | | | | Total Assets | $508,817 | $489,080 | +$19,737 | +4.03% | | Liabilities and Stockholders' Equity: | | | | | | Total Liabilities | $321,128 | $339,216 | -$18,088 | -5.33% | | Total Stockholders' Equity | $187,689 | $149,864 | +$37,825 | +25.24% | | Current Liabilities: | | | | | | Total Current Liabilities | $30,051 | $331,177 | -$301,126 | -90.93% | | Current Portion of Long-Term Debt | — | $283,493 | -$283,493 | -100.00% | | Long-Term Debt | $284,321 | — | +$284,321 | N/A | - Current liabilities significantly decreased, primarily due to the reclassification of the current portion of long-term debt from $283,493 thousand as of December 31, 2024, to zero as of June 30, 2025, with a corresponding increase in long-term debt[14] Condensed Consolidated Statements of Operations Impinj achieved Q2 2025 net income growth, but H1 net income significantly decreased year-over-year due to prior-year litigation settlement income, despite controlled operating expenses Key Statements of Operations Data (in thousands of dollars, except per share data) | Metric | Q2 2025 | Q2 2024 | Q2 YoY Change | H1 2025 | H1 2024 | H1 YoY Change | | :----------------------- | :--------: | :--------: | :----------: | :--------: | :--------: | :----------: | | Revenue | $97,894 | $102,495 | -4.49% | $172,171 | $179,320 | -3.99% | | Cost of Sales | $41,281 | $44,979 | -8.22% | $78,877 | $84,256 | -6.41% | | Gross Profit | $56,613 | $57,516 | -1.57% | $93,294 | $95,064 | -1.86% | | Total Operating Expenses | $45,739 | $48,470 | -5.63% | $91,989 | $97,751 | -5.90% | | Operating Income (Loss) | $10,874 | $9,046 | +20.20% | $1,305 | ($2,687) | N/A | | Litigation Settlement Income | — | — | N/A | — | $45,000 | -100.00% | | Net Income | $11,553 | $9,963 | +15.96% | $3,102 | $43,307 | -92.84% | | Diluted Net Income Per Share | $0.39 | $0.34 | +14.71% | $0.10 | $1.44 | -93.06% | - Operating income for Q2 2025 increased by 20.20% year-over-year, indicating improved operational efficiency[16] - The significant decrease in first-half net income was primarily due to $45,000 thousand in litigation settlement income in the first half of 2024, with no such income in the first half of 2025[16] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, Impinj's operating cash flow decreased, and investing cash flow shifted to a net outflow, resulting in a notable decline in cash and equivalents Key Cash Flow Statement Data (for the six months ended June 30, 2025, in thousands of dollars) | Metric | H1 2025 | H1 2024 | YoY Change | Change Rate | | :----------------------- | :--------: | :--------: | :--------: | :------: | | Net Cash Provided by Operating Activities | $22,717 | $105,619 | -$82,902 | -78.49% | | Net Cash Provided by (Used in) Investing Activities | ($31,688) | $5,465 | -$37,153 | N/A | | Net Cash Provided by Financing Activities | $4,963 | $8,844 | -$3,881 | -43.88% | | Net Increase (Decrease) in Cash and Cash Equivalents | ($3,636) | $119,860 | -$123,496 | N/A | | Cash and Cash Equivalents at End of Period | $42,417 | $214,653 | -$172,236 | -80.24% | - Operating cash flow decreased primarily due to a decline in net income and changes in accounts payable and accrued compensation and employee-related benefits[18] - Investing cash flow shifted from a net inflow last year to a net outflow, primarily due to increased purchases of investments[18] Non-GAAP Financial Measures Non-GAAP Metric Definitions Impinj uses Adjusted EBITDA, non-GAAP net income (loss), free cash flow, and adjusted free cash flow as key non-GAAP metrics to supplement GAAP financials, assessing core operations and liquidity - Adjusted EBITDA is defined as GAAP net income (loss), excluding stock-based compensation, depreciation and amortization, restructuring costs, settlement income, other income (expense) net, interest expense, acquisition-related expenses, and income tax effects[20] - Non-GAAP net income (loss) is defined as GAAP net income (loss), excluding stock-based compensation, depreciation and amortization, restructuring costs, settlement income, acquisition-related expenses, and the corresponding income tax effects of these adjustments[21] - Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment; adjusted free cash flow further subtracts cash proceeds from litigation settlement income[22] Reconciliations of GAAP to Non-GAAP Financial Measures Gross Margin, Net Income, and Adjusted EBITDA Reconciliation Impinj provides reconciliations of GAAP gross margin, net income, and Adjusted EBITDA to non-GAAP metrics, offering a clearer view of operational performance by excluding non-cash items GAAP to Non-GAAP Gross Margin Reconciliation (in %) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :--------: | :--------: | :--------: | :--------: | | GAAP Gross Margin | 57.8% | 56.1% | 54.2% | 53.0% | | Adjustment: Depreciation and Amortization | 2.0% | 1.6% | 2.2% | 1.7% | | Adjustment: Stock-Based Compensation | 0.6% | 0.5% | 0.6% | 0.6% | | Non-GAAP Gross Margin | 60.4% | 58.2% | 57.0% | 55.3% | GAAP Net Income to Adjusted EBITDA Reconciliation (in thousands of dollars) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :--------: | :--------: | :--------: | :--------: | | GAAP Net Income | $11,553 | $9,963 | $3,102 | $43,307 | | Adjustment: Depreciation and Amortization | $3,709 | $2,999 | $7,230 | $6,908 | | Adjustment: Stock-Based Compensation | $13,023 | $14,705 | $25,545 | $26,495 | | Adjustment: Litigation Settlement Income | — | — | — | ($45,000) | | Adjusted EBITDA | $27,606 | $26,829 | $34,080 | $33,514 | GAAP to Non-GAAP Net Income Reconciliation (in thousands of dollars, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :--------: | :--------: | :--------: | :--------: | | GAAP Net Income | $11,553 | $9,963 | $3,102 | $43,307 | | Adjustment: Depreciation and Amortization | $3,709 | $2,999 | $7,230 | $6,908 | | Adjustment: Stock-Based Compensation | $13,023 | $14,705 | $25,545 | $26,495 | | Adjustment: Litigation Settlement Income | — | — | — | ($45,000) | | Non-GAAP Net Income | $24,516 | $25,313 | $30,820 | $31,484 | | Non-GAAP Diluted Net Income Per Share | $0.80 | $0.83 | $1.04 | $1.07 | Free Cash Flow Reconciliation Impinj provides reconciliations of GAAP operating cash flow to free cash flow and adjusted free cash flow, illustrating cash available after deducting capital expenditures and settlement income GAAP Operating Cash Flow to Free Cash Flow Reconciliation (in thousands of dollars) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :--------: | :--------: | :--------: | :--------: | | Net Cash Provided by Operating Activities | $33,860 | $45,479 | $22,717 | $105,619 | | Adjustment: Purchases of Property and Equipment | ($6,540) | ($1,366) | ($8,403) | ($7,568) | | Free Cash Flow | $27,320 | $44,113 | $14,314 | $98,051 | | Adjustment: Litigation Settlement Income | — | — | — | ($45,000) | | Adjusted Free Cash Flow | $27,320 | $44,113 | $14,314 | $53,051 | Reconciliations of GAAP to Non-GAAP Financial Outlook Impinj provides reconciliations of GAAP net loss to non-GAAP net income in its Q3 2025 financial outlook, presenting non-GAAP profitability expectations by adjusting for key non-cash and non-recurring items Third Quarter 2025 GAAP Net Loss to Adjusted EBITDA Reconciliation (in thousands of dollars) | Metric | Q3 2025 Outlook (Midpoint) | | :----------------------- | :--------------------: | | GAAP Net Loss | ($1,397) | | Adjustment: Depreciation and Amortization | $3,700 | | Adjustment: Stock-Based Compensation | $14,670 | | Adjustment: Interest Expense | $1,227 | | Adjustment: Other Income (Expense) Net | ($2,000) | | Adjustment: Income Tax Expense | $100 | | Adjusted EBITDA | $16,300 | Third Quarter 2025 GAAP Net Loss to Non-GAAP Net Income Reconciliation (in thousands of dollars, except per share data) | Metric | Q3 2025 Outlook (Midpoint) | | :----------------------- | :--------------------: | | GAAP Net Loss | ($1,397) | | Adjustment: Depreciation and Amortization | $3,700 | | Adjustment: Stock-Based Compensation | $14,670 | | Adjustment: Income Tax Impact | ($2,253) | | Non-GAAP Net Income | $14,720 | | Non-GAAP Diluted Net Income Per Share | $0.49 |