Impinj (PI) Q4 2025 earnings summary

Executive summary

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

• M800 became the main volume product, Gen2X was launched and adopted by major accounts, and record adjusted EBITDA and cash were achieved.

• Focus accelerated on solutions strategy with new executive leadership and partnerships, aiming to drive IC volumes, reader revenue, and future software revenue.

• Shipped over 150 billion endpoint ICs and 6 million connectivity devices as of December 31, 2025.

• Focused on developing whole-platform solutions for enterprise customers and expanding through partner engagement.

Financial highlights

• Full-year 2025 revenue was $366.1M, up from $361.1M in 2024; Q4 2025 revenue was $96.1M, with endpoint ICs contributing $78.8M and systems $17.7M.

• Q4 gross margin was 54.5%, up from 53% in Q3 and 53.1% in Q4 2024; 2025 gross margin was 55.3%, up from 54% in 2024.

• Q4 adjusted EBITDA was $16.4M (17.7% margin); 2025 adjusted EBITDA was a record $69.6M (19.3% margin).

• Q4 GAAP net loss was $1.1M; Q4 non-GAAP net income was $15.6M ($0.50/share). 2025 GAAP net loss was $10.8M; 2025 non-GAAP net income was $64.2M ($2.11/share).

• Free cash flow for 2025 was $45.9M; Q4 cash, cash equivalents, and investments: $279.1M.

Outlook and guidance

• Q1 2026 revenue expected between $71M and $74M, a 2% year-over-year decrease at midpoint.

• Q1 adjusted EBITDA expected between $1.2M and $2.7M; non-GAAP net income between $2.5M and $4M ($0.08–$0.13/share).

• Sequential declines in endpoint IC and systems revenue anticipated due to inventory reductions, retail weakness, and project timing.

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

• Q1 2026 GAAP net loss projected at $16.6M to $15.1M (loss per share: $0.55 to $0.49).