Impinj, Inc. (PI) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

We grew year-over-year endpoint AC volumes by 9%, believe we gained endpoint AC market share, made M800 our volume runner, launched Gen2x and proved it to be a must-have for solution success, drove Gen2x-enabled solutions at multiple Lighthouse accounts, helped plant the seeds for accelerating food adoption, and exited the year with record-adjusted EBITDA and cash. I am very pleased with how our team rose to meet the challenge. Looking into 2026, we see, in the first quarter, a confluence of order timing, ongoing retailer inventory burndown, product transitions, and a super seasonal systems decline due to project timing, driving revenue lower. Looking just a bit further out, we see conditions improving as N.2C volumes rebound, and growth returning as our investments in feeding new opportunities and our solutions focus pay off. Starting with first quarter endpoint ICs, like last year, our second large North American supply chain and logistics end user significantly shifted their label supplier allocations. Partners that anticipated share gains ordered ahead in the fourth quarter, whereas those with share losses are reducing inventory in the first. Additionally, we are quickly pivoting to a custom-built endpoint IC for that end user, which I'll describe shortly, causing a further temporary dip in endpoint IC orders as partners reduce prior product inventory while we ramp volumes of the new IC. Second, we see apparel retailers reducing stock and underbuying demand, impacting our first quarter outlook. And finally, food volumes remain modest in the first quarter. Turning to our expectations as we exit the first quarter, I'll start with that custom endpoint IC. Think of it as an ASIC developed with the end user, tightly linked to their and our platforms, with added featur...