Impinj (PI) Q2 2025 earnings summary

Executive summary

• Second-quarter revenue reached $97.9M, with both revenue and adjusted EBITDA surpassing guidance and setting new records, driven by strong performance across endpoint ICs, reader ICs, and readers/gateways, as well as category expansion, M800 adoption, and Gen2X demand.

• New use case wins with major European and North American retailers and logistics end users contributed to results and future pipeline.

• Management emphasized continued focus on technology leadership, market share, and customer satisfaction, with enterprise customers expanding RAIN deployments despite macro headwinds.

Financial highlights

• Q2 2025 revenue was $97.9M, up 32% sequentially and down 4–4.5% year-over-year; endpoint IC revenue was $84.6M, up 38% sequentially and down 5% year-over-year; systems revenue was $13.3M, up 2% sequentially and 1% year-over-year.

• Gross margin reached 60.4% (non-GAAP) and 57.8% (GAAP), both up year-over-year, driven by licensing revenue and favorable product mix.

• Adjusted EBITDA was $27.6M (28.2% margin), a new record; GAAP net income was $11.6M ($0.39 per share), non-GAAP net income was $24.5M ($0.80 per share).

• Licensing revenue was $16M, up from $15M last year, significantly contributing to gross margin.

• Cash, cash equivalents, and investments totaled $260.5M at quarter-end; free cash flow was $27.3M; capital expenditures were $6.5M.

Outlook and guidance

• Q3 2025 revenue expected between $91M and $94M, with adjusted EBITDA guidance of $15.6M to $17.1M and non-GAAP net income projected between $14M and $15.5M ($0.47–$0.51 per share).

• Product gross margin anticipated to increase in Q3 and Q4, driven by higher M800 mix and lower wafer costs.

• Operating expense expected to increase sequentially in Q3.

• Guidance reflects current market conditions and includes forward-looking risk considerations.