Identiv, Inc. Q4 FY2025 earnings call

Under perform: Completed manufacturing transformation to Thailand, shut down Singapore site. Implemented new enterprise software systems. Transitioned to pure-play IoT company. Rebuilt marketing communications. In 2026, shifting to make-to-forecast production model, launching targeted cost reduction initiatives. Under accelerate: Advanced BLE Smart Label programs, shipped first orders of Williots Next Generation Pixel, completed new product development projects. Expanded partner ecosystem. Finalized BLE and RFID roadmaps. In 2026, completing development for IFCO BLE Smart Label Program, ramping production, developing BOE AmbientChat.ai, commercializing ID Blue smart label. Under transform: Dedicated team evaluating strategic alternative. New metrics reported in 2025 including new sales pipeline and conversion rate, new product development projects, NPD project completion.

Fourth quarter 2025 sales were $6.2 million, exceeding guidance. Revenue in Q4 2025 was $6.2M vs $6.7M in Q4 2024. Fourth quarter gap and non-gap gross margins were 18.1% and 25.6% respectively, compared to -14.9% and -5.2% in Q4 2024. Fiscal year 2025 revenue was $21.5M, a decrease of $5.1M from prior year. Fiscal year 2025 gap and non-gap gross margin was 6.1% and 14.3% respectively, compared to 1.3% and 8% in fiscal year 2024. Fourth quarter gap net loss from continuing operations was $3.7M, or $0.16 per basic and diluted share, compared to $4.3M, or $0.19 per share in Q4 2024. Fiscal year GAAP net loss from continuing operations was $18M, or 79 cents per basic and diluted share, compared to $25.9M, or $1.14 per share in fiscal year 2024. Non-GAAP adjusted EBITDA loss for Q4 2025 was $2.5M compared to $4.5M in Q4 2024. Non-GAAP adjusted EBITDA loss for fiscal year 2025 was $14.5M compared to $15.8M in fiscal year 2024. Exited Q4 2025 with $128.9M in cash, cash equivalents, and restricted cash.

Anticipate Q1 2026 sales of 6.7 to 7.2 million, an increase of 26% to 35% over Q1 2025. Expect near-term variability in gross margins in 2026 as scaling production for IFCO program and new customer. Expect to use $14 to $16 million in 2026, excluding strategic review-related costs, including cash for ongoing operations, capital expenditures for IFCO production, increase in working capital, and purchasing chips.

Q: Hey guys, thanks for taking my questions. Just want to dig in a bit more on the IFCO opportunity. Obviously, it's noted that they have over 400 million units out there and you guys are obviously scaling in anticipation to support a large number. But how should we think about this revenue opportunity from an ASP and gross margin profile standpoint?

A: So, we're very excited about the IFCO project. We've been working on development for the past year and so very thrilled that we were able to announce the signing of the agreement. We are scaling up to 100 million units of capacity per year, and they do want to tag their full 400 million and growing plus of reusable plastic containers. They also have to replace approximately 10 percent of those per year. So there's the ongoing opportunity to continue to support their full pool of plastic containers. So we aren't talking specifically about the pricing or specific gross margin, but it is a higher price point than our average price per product, which I think we've previously told around 15 cents. And it's also a lower price than we anticipate our standard BLE label, which we've publicly announced is going to be less than a dollar. So somewhere in that range. And obviously, gross margins, it is a true partnership with ISCO. They are investing CapEx along with us to scale up. They are committing to a certain volume. And so with that, we are, you know, the growth margin will be less than our target growth margin of 30%, but still a very, very great opportunity for us.

Q: Gotcha. That's helpful. And just to clarify, are you guys sole sourced here? How many potential suppliers are there?

A: It's an exclusive agreement. So this is an exclusive agreement. We will be developing this product exclusively for them, and then we will be the exclusive supplier for them over the term of the agreement.

Q: Okay, perfect. And then just the last one from me, and I'll jump back into Q. When you think about your new opportunity pipeline, can you give us a rough sense of sort of how that breaks down by end market?

A: Yeah, so kind of in our current pipeline, so the customer-driven opportunities that we have in our pipeline, it's roughly 25% of them are for healthcare. I would say another probably 25% for logistics, probably another 25% for food and beverage, and then the rest is a variety of applications.

Q: Gotcha. I appreciate that. Thanks a lot.

A: You're welcome.

Q: Hey, it's Ryan on for County Sauce. Thanks for taking my questions. Just following up on the last question about your pipeline, I think last quarter you said about two-thirds is at or above your 30% gross margin target. Any changes there? And if you could, what percentage of revenue in the December quarter were from these new opportunities?

A: So anything that's in our NPD pipeline, those are being developed. So there would be nothing in our quarter four that is in our NPD pipeline. Those are new product development, they're in process. And I would still say that roughly two-thirds of the opportunities in the NPD pipeline would be in higher margin targets, because these are more specialized, highly engineered products that we're developing. They're not from our standard product portfolio. So, in order to accept them into the pipeline, we would want to see that margins would be slightly higher than average.

Q: Okay. Got it. And then one more on the, uh, if code deal, you know, it was nice to see that by agreement come in. Um, you know, it said there was a, you know, a development phase that needed completion. I'm curious what kind of that looks like throughout the year. And if, you know, it seems like the plan is still the ramp towards the end of the year, towards the larger volumes.

A: Yep. So we are still in product development. We are still making final design changes to it. We will continue to be producing in lower volumes throughout the year for pilots and testing and so on, but the significant ramp-up will be at the end of the year, quarter four.

Q: Got it. Thank you.

Q: Hello, thank you for taking my question. I'm on for Craig Ellis. Could you provide some color on the relative contribution and the visibility of the gross margin drivers in 2026, whether that be the Singapore cost elimination, silent yield improvement, NPD, Nick Schiff, and the IFCORAMP?

A: Yeah, so as we mentioned earlier on the call, you know, we did finish the year at a non-GAAP 25.6% margin. But as we move into 2026, we do anticipate near-term variability as we start scaling for the EFCO project. And as well as we're onboarding a new customer in Q1. So in the near term, we're expecting some variability. But if we look at our current customer base, we're definitely seeing strength and improvement. And we expect expansion of the margin as we progress through 2026 with our current customer base.