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]