Financial Data and Key Metrics Changes - Fourth quarter revenue was $92.8 million, down 3% sequentially from $96.1 million in Q3 2025, and up 1% year-over-year from $91.6 million in Q4 2024 [12] - 2025 revenue totaled $361.1 million, down 1% year-over-year compared to $366.1 million in 2024 [12] - Fourth quarter gross margin was 54.5%, compared to 53% in Q3 2025 and 53.1% in Q4 2024 [14] - 2025 adjusted EBITDA was a record $69.6 million, compared to $65.9 million in 2024, with a margin of 19.3% [16] Business Line Data and Key Metrics Changes - Fourth quarter Endpoint IC revenue was $75.2 million, down 5% sequentially from $78.8 million in Q3 2025, and up 2% year-over-year from $74.1 million in Q4 2024 [12] - Fourth quarter systems revenue was $17.7 million, up 2% sequentially from $17.3 million in Q3 2025, and up 1% year-over-year from $17.5 million in Q4 2024 [13] - 2025 Endpoint IC revenue declined 2% year-over-year, while systems revenue grew 2% year-over-year [13] Market Data and Key Metrics Changes - The company noted a downward trend in apparel imports and inventory reductions across retail markets, impacting the RAIN market [5] - The company anticipates a normalization of Endpoint IC demand for apparel as early as Q2 2026 [9] Company Strategy and Development Direction - The company is focusing on custom-built Endpoint ICs to meet specific customer needs, which is expected to drive future growth [8][9] - The introduction of Gen2X is seen as a key enabler for solutions, enhancing performance and creating new opportunities [10] - The company aims to shift its selling model to focus on solution value rather than individual components [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a rebound in Endpoint IC volumes and overall growth in 2026, despite challenges faced in 2025 [7][11] - The company expects first quarter revenue to decline sequentially due to inventory burn down and retail weakness, but anticipates improvement as the year progresses [7][12] Other Important Information - The company ended Q4 with record cash and cash equivalents of $279.1 million, up from $265.1 million in Q3 2025 [17] - The company expects first quarter revenue between $71 million and $74 million, reflecting a year-over-year decrease of 2% at the midpoint [17] Q&A Session Summary Question: Can you break down the first quarter guidance miss? - Management explained that the decline is primarily due to lower volume as partners reduce inventory, with each week of burn down approximating $5 million [22] Question: What gives confidence that the situation will improve quickly? - Management highlighted strong January turn orders and a return to normal levels of rescheduling behavior as indicators of improvement [23] Question: Will logistics normalize in Q2? - Management indicated that while apparel is expected to normalize, logistics may take longer due to existing inventory levels [32] Question: How does the custom chip impact pricing? - Management stated that the custom chip will be priced to market, aiming to drive ROI for both the customer and the company [110] Question: What is the impact of the EM Microelectronic license? - Management noted that the impact on revenue in 2026 will be immaterial, as the first chip is still in development [106]

Impinj (NasdaqGS:PI) Q4 2025 Earnings call February 05, 2026 05:00 PM ET Speaker9Welcome to Impinj's fourth quarter and full year 2025 financial results conference call and webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, p ...

Impinj Conference Call Summary Company Overview - **Company**: Impinj (NasdaqGS:PI) - **Industry**: RAIN RFID technology Key Points and Arguments Market Potential and Growth - The Total Addressable Market (TAM) for the RAIN industry is significant, with a unit Compound Annual Growth Rate (CAGR) of 28% since 2010, reaching a total volume of **$52.8 billion** in 2024, an increase of **$8 billion** from the previous year [6][7] - The primary growth driver is the retail apparel sector, but there is expansion into logistics, general merchandise, and item-level food [7] Challenges in Market Penetration - The industry must build a robust hardware foundation before fully realizing its potential, similar to the mobile phone evolution [6] - Key verticals such as automotive and pharmaceuticals are lagging in adoption despite having use cases [10] Competitive Advantage - Impinj's platform is a competitive advantage, with unique functionalities in their Integrated Circuits (ICs) that cannot be replicated by mix-and-match solutions [11] - The introduction of Gen2X features in their ICs enhances read speed and range, providing a significant edge in the market [12][15] Retail Market Dynamics - Retail apparel is currently using handheld readers for inventory, but the goal is to achieve 100% tagging to unlock additional use cases like self-checkout and loss prevention [19][20] - The transition to fixed or autonomous reading systems is expected to drive market share for Impinj as retailers strive for full tagging [20][22] Supply Chain Management - Impinj manages supply chain risks by obtaining monthly inventory reports from channel partners and tracking macro trends in retail [24] - Lead times for inventory are typically **six to seven weeks**, with a 50% turnover rate each quarter [25] Food Market Opportunities - The item-level food market is seen as the largest RAIN market, with several global food retailers exploring RAIN technology [29] - Challenges in tagging high moisture and metal-containing items are being addressed through innovative solutions [33][34] Financial Performance and Margins - The ramp-up of the M800 IC is expected to drive a **300 basis points** gross margin uplift, with further improvements anticipated as the product mix evolves [45][46] - The company is focused on optimizing its balance sheet, including refinancing convertible debt to reduce dilution and improve financial flexibility [47] Future Outlook - Impinj anticipates growth opportunities in apparel, general merchandise, logistics, and food sectors in 2026, driven by increased penetration and new programs [31][32] - The company is also exploring software solutions to enhance its offerings and drive recurring revenue streams [48][49] Revenue Mix Evolution - Endpoint ICs currently account for approximately **80%** of revenue, but growth in systems and software is expected to diversify the revenue mix over the coming years [50] Additional Important Insights - The company is actively working on solutions for hard-to-tag items, demonstrating a commitment to innovation and customer support [36] - Impinj's partnerships with major retailers and logistics providers are crucial for driving adoption and showcasing the ROI of RAIN technology [43][44]

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]

Financial Data and Key Metrics Changes - Second quarter revenue was $97.9 million, up 32% sequentially from $74.3 million in Q1 2025, but down 4% year-over-year from $102.5 million in Q2 2024 [17] - Adjusted EBITDA for Q2 was $27.6 million, compared to $6.5 million in Q1 2025 and $26.8 million in Q2 2024, with a new quarterly record adjusted EBITDA margin of 28.2% [20] - GAAP net income for Q2 was $11.6 million, while non-GAAP net income was $24.5 million, or $0.80 per share on a fully diluted basis [20] Business Line Data and Key Metrics Changes - Endpoint IC revenue for Q2 was $84.6 million, up 38% sequentially from $61.2 million in Q1 2025, but down 5% year-over-year from $89.4 million in Q2 2024 [17] - Systems revenue for Q2 was $13.3 million, up 2% sequentially from $13.1 million in Q1 2025 and up 1% year-over-year from $13.1 million in Q2 2024 [18] - Reader IC revenue declined sequentially due to significantly lower Indy shipment volumes as that product line concludes its end of life [13] Market Data and Key Metrics Changes - The company noted strong demand in the food sector, particularly for product freshness and supply chain efficiencies, driving pallet and case level deployments [16] - The company is experiencing a shift in market dynamics, with a noted slowdown in apparel and general retail growth, while food and logistics sectors are showing solid growth [37] Company Strategy and Development Direction - The company’s solution strategy focuses on using its platform to solve enterprise challenges, which has been central to its strong results and outlook [9] - The introduction of Gen2X is expected to be a key component of the industry's future, improving read range and inventory management [11][12] - The company aims to extend its technology lead, market share, and platform adoption while delighting enterprise customers [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market position despite macro headwinds and tariff-related uncertainties, highlighting ongoing engagement with enterprise customers [41] - The company anticipates third quarter revenue between $91 million and $94 million, reflecting a quarter-over-quarter increase of 13% at the midpoint [23] - Management expects product gross margin to increase in Q3 driven by a higher mix of M800 and lower-cost wafers [22][64] Other Important Information - The company ended Q2 with cash, cash equivalents, and investments totaling $260.5 million, up from $232.5 million in Q1 2025 [21] - The company is participating in several upcoming industry conferences to connect with investors and stakeholders [6] Q&A Session Summary Question: How much of the Q2 beat was related to turns? - Management noted that there was more turns than expected in Q2, but adjustments to delivery timing and location were also factors [29] Question: What is driving the increase in margins? - The increase in margins is attributed to the ramping of M800 and the benefits from lower wafer costs [32][34] Question: Are there more opportunities in the logistics vertical? - Management confirmed that there are more opportunities in logistics and emphasized the importance of supply chain resiliency across various sectors [60] Question: What is the outlook for food item-level deployments? - Management indicated that while there are ongoing pilots, meaningful volumes are expected to ramp up in 2026 [86] Question: What is the status of channel inventory? - Channel inventory decreased in Q2, but remains healthy compared to inlay partner demand [52]

Financial Data and Key Metrics Changes - Second quarter revenue was $97.9 million, up 32% sequentially from $74.3 million in Q1 2025, but down 4% year over year from $102.5 million in Q2 2024 [16] - Adjusted EBITDA for Q2 was $27.6 million, compared to $6.5 million in Q1 2025 and $26.8 million in Q2 2024, with a new quarterly record adjusted EBITDA margin of 28.2% [19] - GAAP net income for Q2 was $11.6 million, while non-GAAP net income was $24.5 million, or $0.80 per share on a fully diluted basis [19] Business Line Data and Key Metrics Changes - Endpoint IC revenue for Q2 was $84.6 million, up 38% sequentially from $61.2 million in Q1 2025, but down 5% year over year from $89.4 million in Q2 2024 [16] - Systems revenue for Q2 was $13.3 million, up 2% sequentially from $13.1 million in Q1 2025 and up 1% year over year from $13.1 million in Q2 2024 [17] - Gross margin for Q2 was 60.4%, compared to 52.7% in Q1 2025 and 58.2% in Q2 2024, driven by a richer mix of M800 and licensing revenue [18] Market Data and Key Metrics Changes - The company noted strong demand in the food sector, particularly for product freshness and supply chain efficiencies, which are driving pallet and case level deployments [15] - The company is experiencing a shift in market dynamics, with logistics and food sectors showing solid growth despite slower apparel and general retail growth [33][34] Company Strategy and Development Direction - The company’s solution strategy focuses on using its platform to solve enterprise challenges, which has been central to its strong results and outlook [8] - The introduction of Gen2X is expected to be a key component of the industry's future, improving read range and inventory management [10][11] - The company aims to extend its technology lead and market share while delighting enterprise customers [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market position and noted that enterprise customers are actively engaged in extending their RAIN deployments despite macro headwinds [14] - The company anticipates third quarter revenue between $91 million and $94 million, reflecting a quarter-over-quarter increase of 13% at the midpoint [22] - Management highlighted that both gross margin and adjusted EBITDA margin set new quarterly records, indicating progress towards long-term financial targets [20][21] Other Important Information - The company ended Q2 with cash, cash equivalents, and investments of $260.5 million, up from $232.5 million in Q1 2025 [20] - Inventory totaled $96.2 million, down $2.3 million from the prior quarter, indicating effective inventory management [20] Q&A Session Summary Question: How much of the Q2 beat was related to turns? - Management noted that there were more turns than expected in Q2, but adjustments to delivery timing and location also contributed to the results [26] Question: Can you elaborate on the margin improvements? - Management indicated that the M800 ramp and lower wafer costs are driving margin improvements, with expectations for continued benefits in Q3 [30][61] Question: What is the outlook for logistics and food sectors? - Management confirmed that there are more opportunities in logistics and emphasized the importance of supply chain resiliency across various sectors [56][57] Question: What is the status of channel inventory? - Management stated that channel inventory is healthy and expected to remain stable, despite a modest build anticipated in Q2 [49] Question: What are the expectations for food item-level deployments? - Management expressed optimism about food opportunities, particularly in bakery and proteins, but noted that significant adoption will take time [68][80]