Why Impinj Stock Was Plunging Today

Core Insights - Impinj's stock experienced a significant decline of 21.4% following the announcement of fourth-quarter results that slightly missed estimates and a disappointing first-quarter guidance [1] Financial Performance - Fourth-quarter revenue was flat, increasing by 1.4% to $92.8 million, aligning with analyst consensus [1] - Adjusted EBITDA rose from $15 million to $16.4 million, while adjusted earnings per share increased to $0.50 from $0.48, slightly below the consensus estimate of $0.51 [2] - On a GAAP basis, the company reported a loss of $1.1 million for the quarter and a total GAAP loss of $10.8 million for the year [2] Management Commentary - CEO Chris Diorio described 2025 as a "transition year" for Impinj, highlighting challenges such as tariffs, inventory reductions, and a decline in apparel imports and RFID adoption in general merchandise [3] Future Outlook - The company forecasted first-quarter revenue between $71 million and $74 million, indicating a 2% decline at the midpoint, which is significantly below the analyst consensus of $90.5 million [4] - Impinj anticipates a GAAP net loss of $15.1 million to $16.6 million, with adjusted per-share profit expectations of $0.08 to $0.13, far worse than the estimated $0.39 [4] Market Reaction - Wall Street analysts have lowered their price targets for Impinj but generally maintained positive ratings, noting the historical volatility of the business and questioning the stock's premium valuation amid ongoing headwinds [5]