Impinj (PI) Q3 2025 earnings summary

Executive summary

• Third-quarter revenue reached $96.1 million, with both revenue and adjusted EBITDA surpassing guidance, driven by record endpoint IC and strong reader volumes despite weak retailer demand and tariff headwinds.

• Gen2X technology adoption is expanding, solving complex industry use cases and supporting growth in supply chain, logistics, retail, and food sectors.

• Organizational investments include hiring an SVP of SaaS and cloud services and adding a board member with deep supply chain expertise.

• Focused on expanding RAIN-enabled IoT connectivity and platform solutions, with deployments in retail, supply chain, and logistics.

• Shipped over 120B endpoint ICs as of December 31, 2024, with a strong partner ecosystem.

Financial highlights

• Q3 2025 revenue was $96.1 million, up 0.9% year-over-year and down 2% sequentially.

• Endpoint IC revenue was $78.8 million, down 7% sequentially and 3% year-over-year; excluding prior quarter licensing, grew 15% sequentially.

• Systems revenue reached $17.3 million, up 30% sequentially and 21% year-over-year.

• GAAP gross margin was 50.3%, while non-GAAP gross margin was 53.0% for Q3 2025.

• Adjusted EBITDA was $19.1 million (19.8% margin); GAAP net loss was $12.8 million; non-GAAP net income was $17.7 million ($0.58 per diluted share).

• Cash, cash equivalents, and investments totaled $265.1 million; inventory was $92.6 million, down $3.6 million from Q2.

• Free cash flow was $18.0 million, up from $4.7 million year-over-year.

Outlook and guidance

• Q4 2025 revenue expected between $90.0 million and $93.0 million, a 5% sequential decrease at midpoint.

• Adjusted EBITDA guidance for Q4 is $15.4–$16.9 million; non-GAAP net income expected between $14.7 million and $16.2 million ($0.48–$0.52 per diluted share).

• Q4 gross margin expected to increase sequentially by over 100 basis points.

• Q4 operating expense expected to increase sequentially, with continued investment in R&D and software.

• Endpoint IC and systems revenue both expected to decline slightly in Q4 due to project timing and seasonality.