Impinj (NASDAQ:PI) Announces Earnings Results

Key Points

• Impinj reported a sharp Q1 miss with EPS of $0.14 versus analysts' $0.64 estimate and revenue of $74.25M vs. an expected $96.63M, producing a negative net margin of 3.0% and essentially flat year‑over‑year revenue.
• Management gave upbeat Q2 guidance—revenue of $103M–$106M, adjusted EBITDA of $27.8M–$29.3M and non‑GAAP EPS of $0.77–$0.82—backed by record endpoint IC bookings and a 1,700 bps market share gain driving expected sequential endpoint IC growth.
• Operationally, Q1 gross margin fell to 52.4% due to higher indirect costs, endpoint IC price declines and a backend production underutilization (now fixed), while the company repurchased $40.2M of convertible notes, leaving $235.2M in cash and investments and modest positive free cash flow.

Impinj (NASDAQ:PI - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.14 EPS for the quarter, missing analysts' consensus estimates of $0.64 by ($0.50), FiscalAI reports. The company had revenue of $74.25 million during the quarter, compared to analysts' expectations of $96.63 million. Impinj had a positive return on equity of 8.49% and a negative net margin of 3.00%.The business's quarterly revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.21 EPS. Impinj updated its Q2 2026 guidance to 0.770-0.820 EPS.

Here are the key takeaways from Impinj's conference call:

• Record endpoint IC bookings and a 1,700 bps market share gain in 2025 fueled demand (including a custom ASIC ramp), with management expecting sequential endpoint IC revenue growth into Q2.
• Management guided Q2 revenue to $103M–$106M (midpoint ~7% YoY growth), adjusted EBITDA of $27.8M–$29.3M, and non‑GAAP EPS of $0.77–$0.82, signaling a strong profitability outlook.
• Q1 gross margin fell to 52.4% due to higher indirect costs, annual endpoint IC price declines, and a backend production tool underutilization (management estimates ~100 bps impact), although the production issue is fixed and product margins are expected to improve in Q2.
• Impinj repurchased $40.2M principal of convertible notes to reduce dilution (~400,000 shares), leaving cash and investments of $235.2M and modest positive free cash flow in the quarter.
• Product and solutions momentum continues—Gen2X and M800 ramp, reader updates (up to 25% tag read‑range improvement), expanded edge ML/software teams, and a potential full‑store European grocery self‑checkout pilot represent sizable long‑term growth opportunities.

Impinj Price Performance

Shares of NASDAQ:PI traded up $1.24 during trading on Wednesday, hitting $120.04. 1,037,506 shares of the company's stock were exchanged, compared to its average volume of 666,081. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.68 and a quick ratio of 2.01. Impinj has a 52-week low of $85.94 and a 52-week high of $247.06. The business's 50-day simple moving average is $108.06 and its 200 day simple moving average is $147.59. The company has a market cap of $3.66 billion, a price-to-earnings ratio of -307.79 and a beta of 1.67.

Institutional Trading of Impinj

Several institutional investors have recently made changes to their positions in the business. T. Rowe Price Investment Management Inc. grew its position in shares of Impinj by 12.3% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 183,669 shares of the company's stock worth $31,961,000 after purchasing an additional 20,178 shares in the last quarter. Invesco Ltd. grew its position in shares of Impinj by 6.5% during the fourth quarter. Invesco Ltd. now owns 1,287,879 shares of the company's stock worth $224,104,000 after purchasing an additional 78,587 shares in the last quarter. Corient Private Wealth LLC grew its position in shares of Impinj by 2.9% during the fourth quarter. Corient Private Wealth LLC now owns 3,808 shares of the company's stock worth $662,000 after purchasing an additional 108 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its position in shares of Impinj by 44.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 3,211 shares of the company's stock worth $559,000 after purchasing an additional 995 shares in the last quarter. Finally, Vident Advisory LLC grew its position in shares of Impinj by 12.0% during the fourth quarter. Vident Advisory LLC now owns 2,364 shares of the company's stock worth $411,000 after purchasing an additional 253 shares in the last quarter.

Analyst Ratings Changes

A number of analysts have commented on the company. Evercore restated an "in-line" rating and issued a $112.00 price target (down from $273.00) on shares of Impinj in a research report on Friday, February 6th. Piper Sandler restated a "mixed" rating and issued a $180.00 price target (down from $230.00) on shares of Impinj in a research report on Friday, February 6th. UBS Group set a $155.00 price target on Impinj in a research report on Friday, February 6th. Zacks Research cut Impinj from a "hold" rating to a "strong sell" rating in a research report on Monday, February 9th. Finally, Susquehanna restated a "positive" rating and issued a $200.00 price target on shares of Impinj in a research report on Friday, February 6th. Five investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Impinj has a consensus rating of "Hold" and an average price target of $167.63.

About Impinj

Impinj, Inc, headquartered in Seattle, Washington, develops Radio Frequency Identification (RFID) solutions designed to connect everyday items to the internet. Founded in 2000, the company pioneered RAIN RFID technology with a focus on transforming supply chain and inventory processes across retail, healthcare, airport baggage handling and manufacturing. Impinj's platform comprises RAIN RFID tag chips, fixed and handheld RFID readers, gateways, antennas and connectivity modules that enable real-time visibility of tagged items.

Impinj's product portfolio is built around its core RAIN RFID ecosystem, offering tag chips for high-volume production (Monza series), reader chips for integration into third-party devices and complete reader and gateway systems (Speedway series and xArray).

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