Impinj Reports Second Quarter 2025 Financial Results

About this update from Impinj, Inc.

SEATTLE --(BUSINESS WIRE)-- Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the second quarter ended June 30, 2025 . “Our second-quarter results were strong, with revenue and adjusted EBITDA exceeding our guidance,” said Chris Diorio , Impinj co-founder and CEO. “We continue managing our business with a steady hand, focused on extending our technology lead, market share, platform adoption and delighting our enterprise customer.” Second Quarter 2025 Financial Summary Revenue of $97.9 million GAAP gross margin of 57.8%; non-GAAP gross margin of 60.4% GAAP net income of $11.6 million , or $0.39 per diluted share using 29.7 million shares Adjusted EBITDA of $27.6 million Non-GAAP net income of $24.5 million , or income of $0.80 per diluted share using 32.2 million shares A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” sections below. Third Quarter 2025 Financial Outlook Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the third quarter of 2025 (in millions, except per share data): Three Months Ending September 30, 2025 Revenue $91.0 to $94.0 GAAP Net loss ( $2.2 ) to ( $0.7 ) Adjusted EBITDA income $15.6 to $17.1 GAAP Weighted-average shares — diluted 29.2 to 29.4 GAAP Net loss per share — diluted ( $0.07 ) to ( $0.02 ) Non-GAAP Net income $14.0 to $15.5 Non-GAAP Weighted-average shares — diluted 32.5 to 32.7 Non-GAAP Net income per share — diluted $0.47 to $0.51 A reconciliation between GAAP and non-GAAP financial measures is provided in the "Non-GAAP Financial Measures" section below. Conference Call Information Impinj will host a conference call and webcast to discuss its second-quarter 2025 results and third-quarter 2025 outlook today, July 30, 2025 at 5:00 p.m. ET / 2:00 p.m. PT . Interested parties may access the call by dialing +1-412-317-1863. A live webcast and replay will also be available on the company’s website at investor.impinj.com . Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 2371125. Management’s prepared written remarks, along with quarterly financial data, will be made available on Impinj’s website at investor.impinj.com along with this release. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, investment plans and prospects, statements regarding conditions in the markets in which we compete as well as the broader economy, and our financial guidance and considerations for the third quarter of 2025 and future periods. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission . All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law. About Impinj Impinj (NASDAQ: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners. IMPINJ, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited) June 30, 2025 December 31, 2024 Assets: Current assets: Cash and cash equivalents $ 42,417 $ 46,053 Short-term investments 150,788 118,661 Accounts receivable, net 55,131 56,802 Inventory 96,210 99,346 Prepaid expenses and other current assets 5,221 5,536 Total current assets 349,767 326,398 Long-term investments 67,332 74,871 Property and equipment, net 52,985 50,610 Intangible assets, net 10,605 10,291 Operating lease right-of-use assets 6,372 7,142 Other non-current assets 996 1,045 Goodwill 20,760 18,723 Total assets $ 508,817 $ 489,080 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 11,989 $ 17,254 Accrued compensation and employee related benefits 9,270 22,309 Accrued and other current liabilities 2,686 2,684 Current portion of operating lease liabilities 3,817 3,589 Current portion of long-term debt — 283,493 Current portion of deferred revenue 2,289 1,848 Total current liabilities 30,051 331,177 Long-term debt 284,321 — Operating lease liabilities, net of current portion 4,263 5,719 Deferred tax liabilities, net 2,271 2,200 Deferred revenue, net of current portion 222 120 Total liabilities 321,128 339,216 Stockholders' equity: Common stock, $0.001 par value 29 29 Additional paid-in capital 571,598 541,090 Accumulated other comprehensive income (loss) 2,273 (1,942 ) Accumulated deficit (386,211 ) (389,313 ) Total stockholders' equity 187,689 149,864 Total liabilities and stockholders' equity $ 508,817 $ 489,080 IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 2025 2024 Revenue $ 97,894 $ 102,495 $ 172,171 $ 179,320 Cost of revenue 41,281 44,979 78,877 84,256 Gross profit 56,613 57,516 93,294 95,064 Operating expenses: Research and development 24,652 24,924 49,966 47,443 Sales and marketing 8,738 9,827 16,793 20,003 General and administrative 11,828 13,223 24,224 26,588 Amortization of intangibles 521 496 1,006 1,905 Restructuring costs — — — 1,812 Total operating expenses 45,739 48,470 91,989 97,751 Income (loss) from operations 10,874 9,046 1,305 (2,687 ) Other income, net 2,053 2,122 4,113 3,414 Income from settlement of litigation — — — 45,000 Interest expense (1,225 ) (1,217 ) (2,448 ) (2,433 ) Income before income taxes 11,702 9,951 2,970 43,294 Income tax benefit (expense) (149 ) 12 132 13 Net income $ 11,553 $ 9,963 $ 3,102 $ 43,307 Net income per share — basic $ 0.40 $ 0.36 $ 0.11 $ 1.57 Net income per share — diluted $ 0.39 $ 0.34 $ 0.10 $ 1.44 (1) Weighted-average shares outstanding — basic 29,008 27,889 28,824 27,623 Weighted-average shares outstanding — diluted 29,655 29,422 29,550 31,718 (1) (1) Diluted net income per share includes the impact of our convertible debt using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion of 2.6 million. IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) Six Months Ended June 30 , 2025 2024 Operating activities: Net income $ 3,102 $ 43,307 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7,230 6,908 Stock-based compensation 25,545 26,495 Restructuring equity modification expense — 366 Accretion of discount or amortization of premium on investments (1,117 ) (109 ) Amortization of debt issuance costs 830 815 Deferred tax expense (192 ) (372 ) Revaluation of acquisition-related contingent consideration liability — 986 Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable 1,930 699 Inventory 3,241 16,378 Prepaid expenses and other assets 808 1,461 Accounts payable (5,416 ) 6,996 Accrued compensation and employee related benefits (13,173 ) 4,056 Accrued and other liabilities 7 290 Acquisition-related contingent consideration liability — (2,556 ) Operating lease right-of-use assets 1,333 1,293 Operating lease liabilities (1,792 ) (1,706 ) Deferred revenue 381 312 Net cash provided by operating activities 22,717 105,619 Investing activities: Purchases of investments (107,105 ) — Proceeds from maturities of investments 83,820 13,033 Purchases of property and equipment (8,403 ) (7,568 ) Net cash provided by (used in) investing activities (31,688 ) 5,465 Financing activities: Proceeds from exercise of stock options and employee stock purchase plan 6,734 13,446 Payment of acquisition-related contingent consideration — (4,602 ) Payments of taxes on restricted stock units (1,771 ) — Net cash provided by financing activities 4,963 8,844 Effect of exchange rate changes on cash and cash equivalents 372 (68 ) Net increase (decrease) in cash and cash equivalents (3,636 ) 119,860 Cash and cash equivalents Beginning of period 46,053 94,793 End of period $ 42,417 $ 214,653 Non-GAAP Financial Measures To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, our key non-GAAP performance measures include adjusted EBITDA, non-GAAP net income (loss), free cash flow and adjusted free cash flow as defined below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We use free cash flow and adjusted free cash flow as key measures when assessing our sources of liquidity, capital resources, and quality of earnings. We believe these measures provide useful information for period-to-period comparisons of our business to allow investors and others to understand and evaluate our operating results in the same manner as our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from similarly termed non-GAAP measures used by other companies. Adjusted EBITDA We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; other income, net; interest expense; acquisition related expense and related purchase accounting adjustments; and income tax benefit (expense). Non-GAAP Net Income (Loss) We define non-GAAP net income as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; acquisition related expense and related purchase accounting adjustments; and the corresponding income tax impacts of adjustments to net income (loss). Free cash flow We define free cash flow as net cash provided by (used in) operating activities, determined in accordance with GAAP, less purchases of property and equipment. We define adjusted free cash flow as free cash flow less cash received from gain on litigation settlement. IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 2025 2024 GAAP Gross margin 57.8 % 56.1 % 54.2 % 53.0 % Adjustments: Depreciation and amortization 2.0 % 1.6 % 2.2 % 1.7 % Stock-based compensation 0.6 % 0.5 % 0.6 % 0.6 % Non-GAAP Gross margin 60.4 % 58.2 % 57.0 % 55.3 % Certain amounts may be off due to rounding GAAP Net income $ 11,553 $ 9,963 $ 3,102 $ 43,307 Adjustments: Depreciation and amortization 3,709 2,999 7,230 6,908 Stock-based compensation 13,023 14,705 25,545 26,495 Restructuring costs — — — 1,812 Acquisition related expenses — 79 — 986 Other income, net (2,053 ) (2,122 ) (4,113 ) (3,414 ) Income from settlement of litigation — — — (45,000 ) Interest expense 1,225 1,217 2,448 2,433 Income tax expense (benefit) 149 (12 ) (132 ) (13 ) Adjusted EBITDA $ 27,606 $ 26,829 $ 34,080 $ 33,514 GAAP Net income $ 11,553 $ 9,963 $ 3,102 $ 43,307 Adjustments: Depreciation and amortization 3,709 2,999 7,230 6,908 Stock-based compensation 13,023 14,705 25,545 26,495 Restructuring costs — — — 1,812 Acquisition transaction expenses — 79 — 986 Income from settlement of litigation — — — (45,000 ) Income tax effects of adjustments (1) (3,769 ) (2,433 ) (5,057 ) (3,024 ) Non-GAAP Net income $ 24,516 $ 25,313 $ 30,820 $ 31,484 Non-GAAP Net income per share — diluted $ 0.80 (2 ) $ 0.83 (2 ) $ 1.04 (2 ) $ 1.07 (2) GAAP Weighted-average shares — diluted 29,655 (3 ) 29,422 29,550 (3 ) 31,718 (3)(4) Dilutive shares from stock plans — — — — Dilutive shares from convertible debt 2,589 2,589 2,589 — Non-GAAP Weighted-average shares — diluted 32,244 (2 ) 32,011 (2 ) 32,139 (2 ) 31,718 (2) (1) The tax effects of the adjustments are calculated using the statutory rate, taking into consideration the nature of the item and relevant taxing jurisdictions. (2) Diluted net income per share includes the impact of our convertible debt using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion of 2.6 million. (3) GAAP Weighted average shares — diluted includes the impact of dilutive shares from stock plans. (4) GAAP Weighted average shares — diluted includes the impact of dilutive shares from convertible debt. IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 2025 2024 GAAP Net cash provided by operating activities $ 33,860 $ 45,479 $ 22,717 $ 105,619 Adjustments: Purchases of property and equipment (6,540 ) (1,366 ) (8,403 ) (7,568 ) Free cash flow $ 27,320 $ 44,113 $ 14,314 $ 98,051 Adjustments: Income from settlement of litigation — — — (45,000 ) Adjusted free cash flow $ 27,320 $ 44,113 $ 14,314 $ 53,051 IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK (in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range) Three Months Ending September 30 , 2025 GAAP Net loss $ (1,397 ) Adjustments: Forecasted Depreciation and amortization 3,700 Forecasted Stock-based compensation 14,670 Forecasted Interest expense 1,227 Forecasted Other income, net (2,000 ) Forecasted Income tax expense 100 Adjusted EBITDA $ 16,300 GAAP Net loss $ (1,397 ) Adjustments: Forecasted Depreciation and amortization 3,700 Forecasted Stock-based compensation 14,670 Forecasted Income tax effects of adjustments (2,253 ) Non-GAAP Net income $ 14,720 GAAP Net loss per share — diluted $ (0.05 ) Non-GAAP Net income per share — diluted(1) $ 0.49 GAAP Weighted-average shares — diluted 29,300 Dilutive shares 3,300 Non-GAAP Weighted-average shares — diluted(1) 32,600 (1) Non-GAAP diluted net income per share includes the impact of our convertible debt using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion of 2.6 million. View source version on businesswire.com : https://www.businesswire.com/news/home/20250730671325/en/ Investor Relations Andy Cobb , CFA Vice President, Strategic Finance +1-206-315-4470 [email protected] Media Relations Emily Schauer Senior Corporate Communications Manager +1 206-209-2923 [email protected] Source: Impinj, Inc.

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