Identiv, Inc. Q3 FY2025 earnings call

• Perform: Focused on core channel business, prioritizing higher margin opportunities, 100% production now in Thailand facility, completed manufacturing transformation, launched CRM and MRP automation initiatives, expanded new opportunity pipeline with 18% conversion to sales year-to-date, participated in trade shows generating customer engagement. • Accelerate: Advancing BLE technology and multicomponent manufacturing, made progress with IFSCO BLE prototype and Williot partnership, R&D work with Lilly highlighted in white paper, advanced healthcare and consumer/logistics partnerships, announced commercial partnership with Duke for children's books. • Transform: Working with financial adviser on strategic alternatives, reported metrics like new sales pipeline conversion rate, NPD projects, and NPD project completion.

In 2025, Identiv delivered $5 million in revenue, within guidance range, down from $6.5 million in Q3 2024 due to exiting lower margin business. Q3 2025 GAAP gross margin was 10.7% and non-GAAP was 19.1%, compared to GAAP 3.6% and non-GAAP 60.3% in Q3 2024. Factors for gross margin increase included reduced fixed manufacturing overhead and direct labor costs from Singapore operation, utilization of Thailand facility, and sales of fully reserved inventory. GAAP operating expenses in 2025 totaled $6.1 million, down from $9.8 million in 2024, driven by reduced strategic review-related costs. Non-GAAP operating expenses were $4.5 million vs $5.1 million in 2024. Q3 2025 GAAP net loss from continuing operations was $3.5 million, down from $9.3 million in 2024. Cash, cash equivalents, and restricted cash at end of Q3 2025 were $126.6 million.

• Q4 2025 net revenue expected in range of $5.4 million to $5.9 million. • Singapore site shutdown expected to be substantially completed by year-end. • Thailand team expected to reach full productivity, with further margin expansion expected in next few quarters.

• Potential delays in completing Singapore site shutdown. • Slower than expected adoption of BLE projects and other high-value segment initiatives. • Macroeconomic conditions impacting customer demand and revenue.

Q: About 21 opportunities converting to customers, when they show up in P&L and gross margin?

A: Roughly 18% of new opportunity pipeline converted year-to-date, scaling into 2026. Two-thirds of converted opportunities have higher than 30% gross margin, third slightly lower.

Q: Healthcare opportunities update?

A: Still see opportunity in healthcare, with roughly a third of NPD pipeline being healthcare-related, but longer to commercialize compared to logistics/consumer products.