Impinj Reports Third 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 third quarter ended September 30, 2025 . “Our third-quarter results were strong, with revenue and adjusted EBITDA exceeding our guidance,” said Chris Diorio , Impinj co-founder and CEO. “Our solutions and Gen2X focus continue paying dividends in revenue, adjusted EBITDA, recurring endpoint IC volumes and market leadership. As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead.” Third Quarter 2025 Financial Summary Revenue of $96.1 million GAAP gross margin of 50.3%; non-GAAP gross margin of 53.0% GAAP net loss of $12.8 million , or loss of $0.44 per diluted share using 29.3 million shares Adjusted EBITDA of $19.1 million Non-GAAP net income of $17.7 million , or income of $0.58 per diluted share using 32.7 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. Fourth 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 fourth quarter of 2025 (in millions, except per share data): Three Months Ending December 31, 2025 Revenue $90.0 to $93.0 GAAP Net loss ( $2.6 ) to ( $1.1 ) Adjusted EBITDA income $15.4 to $16.9 GAAP Weighted-average shares — diluted 30.1 to 30.3 GAAP Net loss per share — diluted ( $0.09 ) to ( $0.04 ) Non-GAAP Net income $14.7 to $16.2 Non-GAAP Weighted-average shares — diluted 31.7 to 31.9 Non-GAAP Net income per share — diluted $0.48 to $0.52 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 third-quarter 2025 results and fourth-quarter 2025 outlook today, October 29, 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 8962708. 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 fourth 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) September 30, 2025 December 31, 2024 Assets: Current assets: Cash and cash equivalents $ 51,726 $ 46,053 Short-term investments 138,355 118,661 Accounts receivable, net 61,193 56,802 Inventory 92,638 99,346 Prepaid expenses and other current assets 7,871 5,536 Total current assets 351,783 326,398 Long-term investments 75,036 74,871 Property and equipment, net 52,353 50,610 Intangible assets, net 10,030 10,291 Operating lease right-of-use assets 5,684 7,142 Other non-current assets 870 1,045 Goodwill 20,703 18,723 Total assets $ 516,459 $ 489,080 Liabilities and stockholders’ equity: Current liabilities: Accounts payable $ 16,173 $ 17,254 Accrued compensation and employee related benefits 9,532 22,309 Accrued and other current liabilities 3,338 2,684 Current portion of operating lease liabilities 3,925 3,589 Current portion of long-term debt 96,610 283,493 Current portion of deferred revenue 2,217 1,848 Total current liabilities 131,795 331,177 Long-term debt 183,753 — Operating lease liabilities, net of current portion 3,244 5,719 Deferred tax liabilities, net 2,161 2,200 Deferred revenue, net of current portion 543 120 Total liabilities 321,496 339,216 Stockholders’ equity: Common stock, $0.001 par value 30 29 Additional paid-in capital 591,536 541,090 Accumulated other comprehensive income (loss) 2,418 (1,942 ) Accumulated deficit (399,021 ) (389,313 ) Total stockholders’ equity 194,963 149,864 Total liabilities and stockholders’ equity $ 516,459 $ 489,080 IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) Three Months Ended Nine Months Ended September 30 , September 30 , 2025 2024 2025 2024 Revenue $ 96,055 $ 95,198 $ 268,226 $ 274,518 Cost of revenue 47,727 47,629 126,604 131,885 Gross profit 48,328 47,569 141,622 142,633 Operating expenses: Research and development 25,720 25,492 75,686 72,935 Sales and marketing 9,380 9,888 26,173 29,891 General and administrative 12,035 12,452 36,259 39,040 Amortization of intangibles 537 506 1,543 2,411 Restructuring costs — — — 1,812 Total operating expenses 47,672 48,338 139,661 146,089 Income (loss) from operations 656 (769 ) 1,961 (3,456 ) Other income, net 2,592 2,416 6,705 5,830 Income from settlement of litigation — — — 45,000 Induced conversion expense (15,026 ) — (15,026 ) — Interest expense (1,121 ) (1,219 ) (3,569 ) (3,652 ) Income (loss) before income taxes (12,899 ) 428 (9,929 ) 43,722 Income tax benefit (expense) 89 (207 ) 221 (194 ) Net income (loss) $ (12,810 ) $ 221 $ (9,708 ) $ 43,528 Net income (loss) per share — basic $ (0.44 ) $ 0.01 $ (0.33 ) $ 1.57 Net income (loss) per share — diluted $ (0.44 ) $ 0.01 $ (0.33 ) $ 1.48 (1) Weighted-average shares outstanding — basic 29,338 28,168 28,995 27,805 Weighted-average shares outstanding — diluted 29,338 29,727 28,995 31,918 (1) (1) Diluted net income per share includes the impact of our convertible debt, if dilutive, 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. IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) Nine Months Ended September 30 , 2025 2024 Operating activities: Net income (loss) $ (9,708 ) $ 43,528 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,082 10,155 Stock-based compensation 40,096 41,336 Restructuring equity modification expense — 366 Accretion of discount or amortization of premium on investments (1,860 ) (247 ) Amortization of debt issuance costs 1,274 1,226 Induced conversion expense related to convertible notes 15,026 — Deferred tax expense (297 ) (471 ) Revaluation of acquisition-related contingent consideration liability — 986 Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (4,153 ) (9,438 ) Inventory 6,806 8,825 Prepaid expenses and other assets (1,409 ) (610 ) Accounts payable (977 ) 12,056 Accrued compensation and employee related benefits (12,906 ) 9,515 Accrued and other liabilities 659 1,268 Acquisition-related contingent consideration liability — (2,556 ) Operating lease right-of-use assets 2,019 1,921 Operating lease liabilities (2,699 ) (2,542 ) Deferred revenue 657 369 Net cash provided by operating activities 43,610 115,687 Investing activities: Purchases of investments (146,293 ) (154,331 ) Proceeds from sales of investments 12,937 — Proceeds from maturities of investments 115,480 18,605 Purchases of property and equipment (11,343 ) (12,979 ) Net cash used in investing activities (29,219 ) (148,705 ) Financing activities: Proceeds from issuance of 2025 Notes, net of issuance costs 183,658 — Premiums paid for capped call transactions (11,210 ) — Payment of 2021 Notes (190,000 ) — Proceeds from exercise of stock options and employee stock purchase plan 11,025 16,499 Payments of taxes on restricted stock units (2,550 ) — Payment of acquisition-related contingent consideration — (4,602 ) Net cash provided by (used in) financing activities (9,077 ) 11,897 Effect of exchange rate changes on cash and cash equivalents 359 32 Net increase (decrease) in cash and cash equivalents 5,673 (21,089 ) Cash and cash equivalents Beginning of period 46,053 94,793 End of period $ 51,726 $ 73,704 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 Nine Months Ended September 30 , September 30 , 2025 2024 2025 2024 GAAP Gross margin 50.3 % 50.0 % 52.8 % 52.0 % Adjustments: Depreciation and amortization 2.1 % 1.9 % 2.2 % 1.8 % Stock-based compensation 0.5 % 0.5 % 0.6 % 0.5 % Non-GAAP Gross margin 53.0 % 52.4 % 55.6 % 54.3 % Certain amounts may be off due to rounding GAAP Net income (loss) $ (12,810 ) $ 221 $ (9,708 ) $ 43,528 Adjustments: Depreciation and amortization 3,852 3,247 11,082 10,155 Stock-based compensation 14,551 14,841 40,096 41,336 Restructuring costs — — — 1,812 Acquisition related expenses — — — 986 Other income, net (2,592 ) (2,416 ) (6,705 ) (5,830 ) Income from settlement of litigation — — — (45,000 ) Induced conversion expense 15,026 — 15,026 — Interest expense 1,121 1,219 3,569 3,652 Income tax benefit (expense) (89 ) 207 (221 ) 194 Adjusted EBITDA $ 19,059 $ 17,319 $ 53,139 $ 50,833 GAAP Net income (loss) $ (12,810 ) $ 221 $ (9,708 ) $ 43,528 Adjustments: Depreciation and amortization 3,852 3,247 11,082 10,155 Stock-based compensation 14,551 14,841 40,096 41,336 Restructuring costs — — — 1,812 Acquisition transaction expenses — — — 986 Income from settlement of litigation — — — (45,000 ) Induced conversion expense 15,026 — 15,026 — Income tax effects of adjustments (1) (2,918 ) (1,410 ) (7,975 ) (4,434 ) Non-GAAP Net income $ 17,701 $ 16,899 $ 48,521 $ 48,383 Non-GAAP Net income per share — diluted $ 0.58 (2) $ 0.56 (2) $ 1.61 (2) $ 1.63 (2) GAAP Weighted-average shares — diluted 29,338 29,727 28,995 31,918 (3) Dilutive shares from stock plans 1,000 — 818 — Dilutive shares from convertible debt 2,339 2,589 2,506 — Non-GAAP Weighted-average shares — diluted 32,677 (2) 32,316 (2) 32,319 (2) 31,918 (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, if dilutive, 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. (3) 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 Nine Months Ended September 30 , September 30 , 2025 2024 2025 2024 GAAP Net cash provided by operating activities $ 20,893 $ 10,068 $ 43,610 $ 115,687 Adjustments: Purchases of property and equipment (2,940 ) (5,411 ) (11,343 ) (12,979 ) Free cash flow $ 17,953 $ 4,657 $ 32,267 $ 102,708 Adjustments: Income from settlement of litigation — — — (45,000 ) Adjusted free cash flow $ 17,953 $ 4,657 $ 32,267 $ 57,708 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 December 31 , 2025 GAAP Net loss $ (1,868 ) Adjustments: Forecasted Depreciation and amortization 3,930 Forecasted Stock-based compensation 15,750 Forecasted Interest expense 798 Forecasted Other income, net (2,550 ) Forecasted Income tax expense 100 Adjusted EBITDA $ 16,160 GAAP Net loss $ (1,868 ) Adjustments: Forecasted Depreciation and amortization 3,930 Forecasted Stock-based compensation 15,750 Forecasted Income tax effects of adjustments (2,368 ) Non-GAAP Net income $ 15,444 GAAP Net loss per share — diluted $ (0.06 ) Non-GAAP Net income per share — diluted(1) $ 0.50 GAAP Weighted-average shares — diluted 30,200 Dilutive shares 1,600 Non-GAAP Weighted-average shares — diluted(1) 31,800 (1) Non-GAAP diluted net income per share includes the impact of our convertible debt, if dilutive, 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. View source version on businesswire.com : https://www.businesswire.com/news/home/20251029492975/en/ For more information, contact: Investor Relations Andy Cobb , CFA Vice President, Corporate Finance & Investor Relations +1-206-315-4470 [email protected] Media Relations Emily Schauer Senior Corporate Communications Manager +1 206-209-2923 [email protected] Source: Impinj, Inc.

View stock analysis, news, and events for Impinj, Inc.