Impinj (PI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $74.3 million, nearly flat year-over-year, with adjusted EBITDA of $3.4 million, both exceeding guidance; GAAP net loss was $25.3 million, or $0.83 per diluted share, and non-GAAP net income was $4.4 million, or $0.14 per diluted share.

• Record endpoint IC bookings and strong market share gains support a robust Q2 outlook, with healthy channel inventory and prudent hedging against macro uncertainties.

• Operating expenses increased, especially in R&D and sales and marketing, reflecting continued investment in growth and personnel.

• Completed a $47.0 million repurchase of convertible notes, resulting in an $11.9 million induced conversion expense.

• Cash, equivalents, and investments ranged from $32.3 million to $235.2 million at quarter end, with working capital of $266.5 million.

Financial highlights

• Q1 2026 revenue: $74.3 million, down 20% sequentially and flat year-over-year; endpoint IC revenue was $63.2 million, up 3% year-over-year; systems revenue was $11 million, down 15% year-over-year.

• GAAP gross margin was 49.1%; non-GAAP gross margin was 52.4% for Q1 2026.

• Adjusted EBITDA was $3.4 million (4.5% margin), down from $16.4 million in Q4 2025 and $6.5 million in Q1 2025.

• GAAP net loss was $25.3 million; non-GAAP net income was $4.4 million or $0.14 per diluted share.

• Free cash flow for Q1 2026 was $2.2 million, up from negative $13.0 million in Q1 2025.

Outlook and guidance

• Q2 2026 revenue expected between $103 million and $106 million, a 7% year-over-year increase at midpoint.

• Adjusted EBITDA guidance is $27.8 million to $29.3 million; non-GAAP net income expected between $24.6 million and $26.1 million, or $0.77 to $0.82 per diluted share.

• Sequential increases expected in endpoint IC and systems revenue, as well as product gross margin.

• Management expects continued quarter-to-quarter revenue and gross margin variability due to macroeconomic conditions, program-launch timing, and product mix.

• Existing cash and investments are expected to meet anticipated needs for at least the next 12 months.