Impinj (PI) investor relations material

Market trends and end market penetration

• Endpoint IC market volatility moderated from Q1 to Q2, with more stable order patterns expected into Q3.

• Retail apparel remains the most penetrated vertical, with 50–60% of shipments and 40% volume penetration, but over 90% brand penetration.

• General merchandise and logistics are emerging verticals, each with low single-digit penetration but large addressable markets and major players like Walmart and UPS leading adoption.

• Food is in early pilot stages, with Kroger leading public deployments and most of the top 10 grocers piloting or exploring RAIN RFID.

• Food represents the largest long-term opportunity, with a potential market size exceeding a trillion units annually.

Product innovation and technology advancements

• The M800 endpoint IC is the smallest, most sensitive chip in the portfolio, enabling smaller antennas and lower costs.

• M800 offers a 25% die-per-wafer advantage over its predecessor, driving significant cost savings and expected to deliver 300 basis points of gross margin accretion as it ramps.

• Gen2X, native to the M800, enhances readability, speed, range, and authenticity, and is especially suited for autonomous reading environments.

• Gen2X requires both endpoint and reader ICs from the same provider, with the company holding over 50% share in the reader IC market.

• The company has licensed Gen2X technology to partners like Zebra, broadening ecosystem support.

Industry trends and regulatory developments

• Digital Product Passport (DPP) in Europe aims to track items from manufacture to recycling, with consumer reading capabilities being developed.

• DPP is being phased in, starting with batteries and moving to textiles, aligning with apparel market strengths.

• Qualcomm is enabling RAIN reading in mobile devices, opening new consumer and retailer use cases.