Impinj, Inc. Q4 FY2025 earnings call

• 2025 was a challenging year for the industry due to tariffs, supply chain issues, retail inventory reductions, and slow general merchandise adoption. However, Impinj grew endpoint IC volumes by 9% year-over-year, gained market share, made M800 the volume runner, launched Gen2X, and had record adjusted EBITDA and cash.
• In 2026, first quarter revenue is expected to be lower due to supply chain shifts, retail weakness, and food volume modestness, but conditions are expected to improve later with endpoint IC volume rebound, apparel demand normalizing, general merchandise growth, food rollout expansion, and solutions efforts driving new accounts.
• Added Chris Hundley as executive vice president for enterprise solutions to speed solutions pivot, doubled down on Gen2X as a solutions enabler, added EM Microelectronic as a Gen2X licensee, and has a growing solutions pipeline.

Fourth quarter endpoint IC revenue was $75.2 million, down 5% sequentially from $78.8 million in the third quarter of 2025 but up 2% year-over-year from $74.1 million in the fourth quarter of 2024. Systems revenue in the fourth quarter was $17.7 million, up 2% sequentially from $17.3 million in the third quarter of 2025 and up 1% year-over-year from $17.5 million in the fourth quarter of 2024. For 2025, endpoint IC revenue declined 2% year-over-year, while systems revenue grew 2% year-over-year, with reader and gateway growth offsetting declines in reader ICs and test and measurement solutions.

• First quarter 2026 revenue is expected to be between $71 million and $74 million, a year-over-year decrease of 2% at the midpoint.
• Adjusted EBITDA is expected to be between $1.2 million and $2.7 million.
• Non-GAAP net income is expected to be between $2.5 million and $4 million, reflecting non-GAAP fully diluted earnings per share between $0.08 and $0.13.

• Supply chain disruptions and tariff-related issues could impact revenue and operations.
• Retail inventory reductions and under-buying by apparel retailers can affect first quarter performance.
• Competition from other technologies (e.g., BLE) and potential partner inventory adjustments pose risks to market share.

Q: How long until full penetration with the custom chip at the logistics customer?

A: Chris Diorio said the customer plans to fully switch to the custom chip in 2026. Cary Baker noted pricing is to market to drive ROI for both the customer and Impinj.

Q: Risk of competitors using BLE and other protocols?

A: Chris Diorio stated RFID is seen as a long-term solution, with BLE and other protocols being complementary rather than competitive, given large volume differences and different use cases.