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 Company ParticipantsAndy Cobb - VP, Corporate Finance and IRCary Baker - CFOChris Diorio - CEOConference Call ParticipantsDylan Oliver - AnalystEzra Weener - AnalystGuy Hardwick - AnalystHarsh V. Kumar - Managing Director and Senior Research AnalystJames Andrew Ricchiuti - Managing Director and Senior Equity Research AnalystNatalia Winkler - AnalystScott Wallace Searle - Managing Director and Senior Research AnalystTroy Donavon Jensen ...

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 ...

Summary of Impinj Conference Call Company Overview - **Company**: Impinj - **Event**: 28th Annual Medium Growth Conference - **Key Speakers**: CEO Chris Diorio, CFO Cary Baker, VP Andy Cobb Key Industry Insights - **Industry**: RAIN RFID technology in retail and logistics - **Event Highlights**: - NRF trade show showcased significant activity around RAIN RFID technology - Gen2X enhancements were prevalent, improving readability and performance in the field [4][7] - Increased focus on food retail adoption, with notable advancements in tagging perishable items [8][51] Financial Performance - **Q4 2025 Revenue Guidance**: Expected near the high end of $90-$93 million, with Adjusted EBITDA above the midpoint of $15.4-$16.9 million [4] - **Gross Margin**: Non-GAAP gross margin increased by over 125 basis points sequentially [4] Product Developments - **Gen2X Technology**: - Enhances communication reliability between readers and tags, improving inventory accuracy and reducing labor costs [63] - Adoption by multiple partners, including EM Microelectronic as a strategic partner for endpoint ICs [17][66] - **M800 IC**: - Key driver for revenue growth, contributing to improved gross margins [67] Market Trends - **Retail Adoption**: - Transition from handheld to fixed reading opportunities in retail stores, enhancing inventory management [29][30] - Strong engagement with lighthouse enterprises, driving innovation and adoption [32][34] - **Logistics Sector**: - Active pipeline with multiple pilots underway, indicating strong interest in RAIN RFID solutions [42] Strategic Partnerships - **Collaboration with EM Microelectronic**: - Licensing of Gen2X technology to enhance product offerings and ensure multiple sources of supply for endpoint ICs [17][21] - **Walmart and Kroger Initiatives**: - Walmart's phased approach to RAIN RFID adoption across various categories, with significant potential for endpoint IC sales [46][49] - Kroger's successful implementation of RAIN RFID in bakery departments, significantly reducing inventory time [60] Future Outlook - **Food Category**: - Slow but steady adoption expected, with significant long-term potential as economics improve [54][56] - **Long-term Financial Goals**: - Revenue targets of $500 million to $750 million with gross margins of 55%-57% and operating margins of 19%-25% [73][74] - **Capital Allocation**: - Focus on reducing convertible debt and exploring M&A opportunities, with a high threshold for potential acquisitions [76][77] Conclusion - Impinj is positioned strongly within the RAIN RFID market, with promising developments in technology and strategic partnerships. The company is focused on driving adoption in retail and logistics, particularly in the food sector, while maintaining a clear path towards achieving long-term financial goals.

Impinj FY Conference Summary Company Overview - Impinj is a leading developer and enabler of RAIN RFID technology, providing item-level visibility and real-time information to businesses about the items they create, manage, transport, and sell [1][4] Financial Performance - Strong Q3 results with record endpoint IC volumes and a 30% quarter-over-quarter increase in systems business revenue [4][12] - Operating margin reached 19.8%, a record on a product revenue basis excluding license revenue [4] - Anticipated gross margin increase of over 100 basis points sequentially in Q4, driven by the M800 as the volume runner [4][36] Seasonal Trends - Retail apparel, the largest vertical, accounts for over 60% of IC shipments, with typical Q4 revenue down 5%-10% sequentially [6][12] - Endpoint IC volumes are expected to rise in Q1, but annual average selling prices (ASPs) typically decline by low to mid-single digits [6][7] Project Dynamics - Customer timing influenced project flows, with strong Q3 performance leading to a slight decline in Q4 systems revenue due to project phasing [10][12] - Logistics sector showed strength, with large systems deployments benefiting future endpoint IC volumes [14] Food Market Opportunity - Significant growth potential in the food sector, with Kroger and Walmart leading deployments in bakery and proteins [15][19] - Food market is larger than apparel, general merchandise, and logistics combined, with strong activity in the pipeline [19][20] Technology and Product Development - M800 and Gen2X technology expected to enhance performance in challenging categories like food, improving read range and efficiency [26][30] - Gen2X features allow for increased read speed and range, providing a competitive advantage [30][32] Market Penetration and Growth - Retail apparel market penetration is approximately 40% by volume, with over 90% by brand [38] - Logistics sector is actively pursuing 100% tagging, with complex deployments requiring time [42] - General merchandise rollout by Walmart is ongoing, with additional phases expected [44] Challenges and Opportunities - Smaller retailers may face distinct challenges in adopting RFID compared to larger players like Walmart [46] - Impinj is exploring AI for product enhancement rather than operational efficiency [49] Future Investments - Planned investments in software and cloud solutions to facilitate easier deployments and better device management [51] - Focus on expanding partner networks and simplifying product usability to drive adoption [53] Competitive Positioning - Impinj is recognized as an innovator in the RFID market, offering the most performant and cost-effective ICs [54]

Financial Data and Key Metrics Changes - Third quarter revenue was $96.1 million, down 2% sequentially from $97.9 million in the second quarter 2025, and up 1% year-over-year from $95.2 million in the third quarter 2024 [13] - Third quarter endpoint IC revenue was $78.8 million, down 7% sequentially from $84.6 million in the second quarter 2025, and down 3% year-over-year from $81 million in the third quarter 2024 [13] - Third quarter systems revenue was $17.3 million, up 30% sequentially from $13.3 million in the second quarter 2025, and up 21% year-over-year from $14.2 million in the third quarter 2024 [13] - Third quarter adjusted EBITDA was $19.1 million, compared to $27.6 million in the second quarter 2025 and $17.3 million in the third quarter 2024 [16] - Third quarter GAAP net loss was $12.8 million, while non-GAAP net income was $17.7 million, or $0.58 per share on a fully diluted basis [16] Business Line Data and Key Metrics Changes - Endpoint IC revenue decreased sequentially but grew 15% when excluding the $16 million second quarter licensing revenue [13] - Systems revenue exceeded expectations, driven by reader strength in supply chain and logistics [14] - Gross margin for the third quarter was 53%, down from 60.4% in the second quarter 2025 but up from 52.4% in the third quarter 2024 [14] Market Data and Key Metrics Changes - Retail volumes grew modestly, influenced by the upcoming holiday season, but with cautious buying patterns from partners and end users [5] - The company expects a modest decline in fourth quarter volumes for both supply chain and logistics and retail endpoint ICs [5] Company Strategy and Development Direction - The company is focusing on expanding its market opportunities in retail, supply chain and logistics, food, and other applications [11] - The introduction of Gen2X is aimed at solving industry challenges and enhancing product offerings, with a focus on customization for various market verticals [10] - The company is aggressively hiring technical and business talent to develop software solutions and capitalize on recurring revenue opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is dynamic, with adjustments in project timing and delivery requests from partners [20] - The company expects fourth quarter revenue to decline slightly, with guidance between $90 million and $93 million [18] - Management expressed confidence in the long-term growth potential, particularly in the food sector, with expectations for modest volumes in the first half of 2026 and acceleration thereafter [26] Other Important Information - The company issued $190 million of 0% convertible notes while repurchasing $190 million of its 1.125% convertible notes, aimed at reducing interest expense and improving balance sheet flexibility [17] - The company ended the third quarter with cash, cash equivalents, and investments totaling $265.1 million, an increase from $260.5 million in the second quarter 2025 [16] Q&A Session Summary Question: What does the timing mean for Q4 revenue? - Management indicated that Q3 revenue was stronger than anticipated, leading to a natural step down in Q4, with some project timing shifting to the right [20][22] Question: Can you discuss the Walmart announcement? - Management expressed excitement about the Walmart announcement, emphasizing the importance of product freshness and customer experience, with expectations for modest food volumes through the first half of 2026 [25][27] Question: Is there a fundamental problem in tagging produce? - Management clarified that there are no fundamental limits to tagging produce, but challenges exist in the tagging process, which may require innovation in packaging [30] Question: How does Gen2X impact gross margins? - Management stated that Gen2X is expected to help drive adoption of the M800 but does not directly increase gross margins beyond what was already anticipated [51] Question: What are the expectations for operating expenses? - Management expects operating expenses to increase in the fourth quarter, consistent with seasonal patterns, while maintaining fiscal discipline [68]

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]

Financial Data and Key Metrics Changes - First quarter revenue was $74.3 million, down 19% sequentially from $91.6 million in Q4 2024 and down 3% year over year from $76.8 million in Q1 2024 [16] - First quarter endpoint IC revenue was $61.2 million, down 17% sequentially from $74.1 million in Q4 2024 and slightly down year over year from $61.5 million in Q1 2024 [16] - First quarter systems revenue was $13.1 million, down 25% sequentially from $17.5 million in Q4 2024 and down 15% year over year from $15.3 million in Q1 2024 [17] - First quarter adjusted EBITDA was $6.5 million, compared to $15 million in Q4 2024 and $6.7 million in Q1 2024 [19] - First quarter GAAP net loss was $8.5 million, while non-GAAP net income was $6.3 million or $0.21 per share on a fully diluted basis [19] Business Line Data and Key Metrics Changes - Endpoint IC revenue exceeded expectations driven by turns orders, with a forecast for an increase in Q2 [16] - Systems revenue exceeded expectations due to strength in both reader and reader IC sales, but a decline is expected in Q2 driven by lower reader IC revenue [17] - First quarter gross margin was 52.7%, compared to 53.1% in Q4 2024 and 51.5% in Q1 2024, with expectations for similar margins in Q2 [17][18] Market Data and Key Metrics Changes - The company holds the number one endpoint IC market share, capturing 85% of the industry's 2024 unit volume growth [10] - A geographic shift in sourcing products from China to other regions represents roughly 15% of endpoint ICs, with the company’s exposure being much less [12] Company Strategy and Development Direction - The company aims to extend its technology lead, market share, and platform adoption while managing business with a steady hand [15] - The focus remains on investing in enterprise solutions that transform the industry, particularly in retail, supply chain, and logistics [7][14] - The company is strategically shifting investments away from China towards the U.S. and Europe to mitigate tariff impacts [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges extraordinary macro uncertainty but believes the long-term growth opportunity remains intact [7] - The company expects a modest increase in channel inventory in Q2 as partners build optionality, but anticipates normalization and bookings growth if consumer demand holds [12][22] - Management remains optimistic about the enterprise end customer base and believes that those leveraging the platform will outperform competitors [7][28] Other Important Information - The company ended Q1 with cash, cash equivalents, and investments of $232.5 million, down from $239.6 million in Q4 2024 [19] - Free cash flow was negative $13 million, driven primarily by unfavorable working capital timing, which is expected to reverse in Q2 [20] Q&A Session Summary Question: How are you thinking about the impact of tariffs on demand? - Management indicated that they are navigating the tariff situation and believe that enterprises are undershipping consumer demand due to geographic shifts in sourcing [28][30] Question: What is the outlook for inventory levels? - Management stated that channel inventory is not high relative to consumer demand and that partners are adjusting their inventory strategies due to tariffs [44][70] Question: What are the growth opportunities for 2025 and beyond? - Management highlighted food as a significant opportunity but noted that it would be more material in 2026 and beyond, with a focus on fixed reading solutions in supply chains [74][76] Question: How is the M800 ramp progressing? - The M800 is expected to ramp nicely, with anticipated gross margin benefits as it becomes a volume runner later in the year [58][93] Question: What is the status of the large logistics customer? - Management reported continued support and growth with the logistics customer, despite inventory issues at the channel partner level [86]