Impinj (PI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $74.3M, with adjusted EBITDA of $3.4M, both exceeding guidance, driven by record endpoint IC bookings and strong market share gains.

• GAAP net loss was $25.3M, or $0.83 per diluted share; non-GAAP net income was $4.4M, or $0.14 per diluted share.

• Healthy channel inventory and strong demand position the company for sequential growth in Q2, with prudent hedging against macro uncertainties for the second half of 2026.

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

• Record bookings for endpoint ICs support a strong revenue outlook for the second quarter.

Financial highlights

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

• Gross margin was 52.4% (non-GAAP) and 49.1% (GAAP), down from Q4 2025, impacted by higher indirect costs and revenue mix.

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

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

• Cash, equivalents, and investments at quarter-end ranged from $32.3M to $235.2M, with inventory at $86.3M.

Outlook and guidance

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

• Adjusted EBITDA guidance for Q2 is $27.8M–$29.3M; non-GAAP net income expected between $24.6M and $26.1M ($0.77–$0.82 per share).

• Sequential increases expected in endpoint IC and systems revenue, as well as product gross margin, with a $17M license revenue contributing to outsized 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.