Impinj (PI) Q4 2025 earnings summary

Executive summary

• 2025 was challenging due to tariffs, supply chain disruptions, inventory reductions, and slow adoption in general merchandise, but endpoint IC volumes grew 9% year-over-year and market share increased.

• Achieved record adjusted EBITDA and cash, with successful launches of M800 and Gen2X, and over 150 billion endpoint ICs shipped as of December 31, 2025.

• Focused on developing whole-platform solutions, expanding partnerships, and pivoting to a solutions-focused model.

Financial highlights

• Full-year 2025 revenue was $366.1M, with Q4 revenue at $96.1M; endpoint ICs contributed $78.8M and systems $17.3M in Q4.

• Q4 2025 non-GAAP gross margin was 54.5%, with full-year non-GAAP gross margin at 55.3%; non-GAAP gross margin peaked at 60.4% in Q2.

• Q4 adjusted EBITDA was $16.4M; full-year adjusted EBITDA was $69.6M (19.3% margin).

• Q4 non-GAAP net income was $15.6M ($0.50/share); full-year non-GAAP net income was $64.2M ($2.11/share).

• Free cash flow for 2025 was $45.9M; cash and investments at year-end totaled $279.1M.

Outlook and guidance

• Q1 2026 revenue expected between $71M and $74M, with non-GAAP net income projected at $2.5M to $4M ($0.08–$0.13/share).

• Q1 adjusted EBITDA expected between $1.2M and $2.7M.

• Q1 endpoint IC revenue expected to decline sequentially at a high teens percentage rate due to inventory reductions and price declines.

• Gross margin expected to decline sequentially in Q1 due to lower revenue and annual price reductions.