SEATTLE--(BUSINESS WIRE)--
Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the third quarter ended September 30, 2025.
“Our third-quarter results were strong, with revenue and adjusted EBITDA exceeding our guidance,” said Chris Diorio, Impinj co-founder and CEO. “Our solutions and Gen2X focus continue paying dividends in revenue, adjusted EBITDA, recurring endpoint IC volumes and market leadership. As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead.”
Third Quarter 2025 Financial Summary
- Revenue of $96.1 million
- GAAP gross margin of 50.3%; non-GAAP gross margin of 53.0%
- GAAP net loss of $12.8 million, or loss of $0.44 per diluted share using 29.3 million shares
- Adjusted EBITDA of $19.1 million
- Non-GAAP net income of $17.7 million, or income of $0.58 per diluted share using 32.7 million shares
A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” sections below.
Fourth Quarter 2025 Financial Outlook
Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the fourth quarter of 2025 (in millions, except per share data):
| | Three Months Ending |
| | December 31, 2025 |
Revenue | | $90.0 to $93.0 |
GAAP Net loss | | ($2.6) to ($1.1) |
Adjusted EBITDA income | | $15.4 to $16.9 |
GAAP Weighted-average shares — diluted | | 30.1 to 30.3 |
GAAP Net loss per share — diluted | | ($0.09) to ($0.04) |
Non-GAAP Net income | | $14.7 to $16.2 |
Non-GAAP Weighted-average shares — diluted | | 31.7 to 31.9 |
Non-GAAP Net income per share — diluted | | $0.48 to $0.52 |
A reconciliation between GAAP and non-GAAP financial measures is provided in the “Non-GAAP Financial Measures” section below.
Conference Call Information
Impinj will host a conference call and webcast to discuss its third-quarter 2025 results and fourth-quarter 2025 outlook today, October 29, 2025 at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may access the call by dialing +1-412-317-1863. A live webcast and replay will also be available on the company’s website at investor.impinj.com. Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 8962708.
Management’s prepared written remarks, along with quarterly financial data, will be made available on Impinj’s website at investor.impinj.com along with this release.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, investment plans and prospects, statements regarding conditions in the markets in which we compete as well as the broader economy, and our financial guidance and considerations for the fourth quarter of 2025 and future periods.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.
The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.
About Impinj
Impinj (NASDAQ: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com
Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners.
IMPINJ, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited) |
| | | |
| September 30, 2025 | | December 31, 2024 |
Assets: | | | |
Current assets: | | | |
Cash and cash equivalents | $ | 51,726 | | | $ | 46,053 | |
Short-term investments | | 138,355 | | | | 118,661 | |
Accounts receivable, net | | 61,193 | | | | 56,802 | |
Inventory | | 92,638 | | | | 99,346 | |
Prepaid expenses and other current assets | | 7,871 | | | | 5,536 | |
Total current assets | | 351,783 | | | | 326,398 | |
Long-term investments | | 75,036 | | | | 74,871 | |
Property and equipment, net | | 52,353 | | | | 50,610 | |
Intangible assets, net | | 10,030 | | | | 10,291 | |
Operating lease right-of-use assets | | 5,684 | | | | 7,142 | |
Other non-current assets | | 870 | | | | 1,045 | |
Goodwill | | 20,703 | | | | 18,723 | |
Total assets | $ | 516,459 | | | $ | 489,080 | |
Liabilities and stockholders’ equity: | | | |
Current liabilities: | | | |
Accounts payable | $ | 16,173 | | | $ | 17,254 | |
Accrued compensation and employee related benefits | | 9,532 | | | | 22,309 | |
Accrued and other current liabilities | | 3,338 | | | | 2,684 | |
Current portion of operating lease liabilities | | 3,925 | | | | 3,589 | |
Current portion of long-term debt | | 96,610 | | | | 283,493 | |
Current portion of deferred revenue | | 2,217 | | | | 1,848 | |
Total current liabilities | | 131,795 | | | | 331,177 | |
Long-term debt | | 183,753 | | | | — | |
Operating lease liabilities, net of current portion | | 3,244 | | | | 5,719 | |
Deferred tax liabilities, net | | 2,161 | | | | 2,200 | |
Deferred revenue, net of current portion | | 543 | | | | 120 | |
Total liabilities | | 321,496 | | | | 339,216 | |
Stockholders’ equity: | | | |
Common stock, $0.001 par value | | 30 | | | | 29 | |
Additional paid-in capital | | 591,536 | | | | 541,090 | |
Accumulated other comprehensive income (loss) | | 2,418 | | | | (1,942 | ) |
Accumulated deficit | | (399,021 | ) | | | (389,313 | ) |
Total stockholders’ equity | | 194,963 | | | | 149,864 | |
Total liabilities and stockholders’ equity | $ | 516,459 | | | $ | 489,080 | |
IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) |
| | | | | |
| | Three Months Ended | | Nine Months Ended | |
| | September 30, | | September 30, | |
| | 2025 | | 2024 | | 2025 | | 2024 | |
Revenue | | $ | 96,055 | | | $ | 95,198 | | | $ | 268,226 | | | $ | 274,518 | | |
Cost of revenue | | | 47,727 | | | | 47,629 | | | | 126,604 | | | | 131,885 | | |
Gross profit | | | 48,328 | | | | 47,569 | | | | 141,622 | | | | 142,633 | | |
Operating expenses: | | | | | | | | | |
Research and development | | | 25,720 | | | | 25,492 | | | | 75,686 | | | | 72,935 | | |
Sales and marketing | | | 9,380 | | | | 9,888 | | | | 26,173 | | | | 29,891 | | |
General and administrative | | | 12,035 | | | | 12,452 | | | | 36,259 | | | | 39,040 | | |
Amortization of intangibles | | | 537 | | | | 506 | | | | 1,543 | | | | 2,411 | | |
Restructuring costs | | | — | | | | — | | | | — | | | | 1,812 | | |
Total operating expenses | | | 47,672 | | | | 48,338 | | | | 139,661 | | | | 146,089 | | |
Income (loss) from operations | | | 656 | | | | (769 | ) | | | 1,961 | | | | (3,456 | ) | |
Other income, net | | | 2,592 | | | | 2,416 | | | | 6,705 | | | | 5,830 | | |
Income from settlement of litigation | | | — | | | | — | | | | — | | | | 45,000 | | |
Induced conversion expense | | | (15,026 | ) | | | — | | | | (15,026 | ) | | | — | | |
Interest expense | | | (1,121 | ) | | | (1,219 | ) | | | (3,569 | ) | | | (3,652 | ) | |
Income (loss) before income taxes | | | (12,899 | ) | | | 428 | | | | (9,929 | ) | | | 43,722 | | |
Income tax benefit (expense) | | | 89 | | | | (207 | ) | | | 221 | | | | (194 | ) | |
Net income (loss) | | $ | (12,810 | ) | | $ | 221 | | | $ | (9,708 | ) | | $ | 43,528 | | |
| | | | | | | | | |
Net income (loss) per share — basic | | $ | (0.44 | ) | | $ | 0.01 | | | $ | (0.33 | ) | | $ | 1.57 | | |
Net income (loss) per share — diluted | | $ | (0.44 | ) | | $ | 0.01 | | | $ | (0.33 | ) | | $ | 1.48 | | (1) |
| | | | | | | | | |
Weighted-average shares outstanding — basic | | | 29,338 | | | | 28,168 | | | | 28,995 | | | | 27,805 | | |
Weighted-average shares outstanding — diluted | | | 29,338 | | | | 29,727 | | | | 28,995 | | | | 31,918 | | (1) |
(1) Diluted net income per share includes the impact of our convertible debt, if dilutive, using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion. |
IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
| | |
| | Nine Months Ended |
| | September 30, |
| | 2025 | | 2024 |
Operating activities: | | | | |
Net income (loss) | | $ | (9,708 | ) | | $ | 43,528 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
Depreciation and amortization | | | 11,082 | | | | 10,155 | |
Stock-based compensation | | | 40,096 | | | | 41,336 | |
Restructuring equity modification expense | | | — | | | | 366 | |
Accretion of discount or amortization of premium on investments | | | (1,860 | ) | | | (247 | ) |
Amortization of debt issuance costs | | | 1,274 | | | | 1,226 | |
Induced conversion expense related to convertible notes | | | 15,026 | | | | — | |
Deferred tax expense | | | (297 | ) | | | (471 | ) |
Revaluation of acquisition-related contingent consideration liability | | | — | | | | 986 | |
Changes in operating assets and liabilities, net of amounts acquired: | | | | |
Accounts receivable | | | (4,153 | ) | | | (9,438 | ) |
Inventory | | | 6,806 | | | | 8,825 | |
Prepaid expenses and other assets | | | (1,409 | ) | | | (610 | ) |
Accounts payable | | | (977 | ) | | | 12,056 | |
Accrued compensation and employee related benefits | | | (12,906 | ) | | | 9,515 | |
Accrued and other liabilities | | | 659 | | | | 1,268 | |
Acquisition-related contingent consideration liability | | | — | | | | (2,556 | ) |
Operating lease right-of-use assets | | | 2,019 | | | | 1,921 | |
Operating lease liabilities | | | (2,699 | ) | | | (2,542 | ) |
Deferred revenue | | | 657 | | | | 369 | |
Net cash provided by operating activities | | | 43,610 | | | | 115,687 | |
Investing activities: | | | | |
Purchases of investments | | | (146,293 | ) | | | (154,331 | ) |
Proceeds from sales of investments | | | 12,937 | | | | — | |
Proceeds from maturities of investments | | | 115,480 | | | | 18,605 | |
Purchases of property and equipment | | | (11,343 | ) | | | (12,979 | ) |
Net cash used in investing activities | | | (29,219 | ) | | | (148,705 | ) |
Financing activities: | | | | |
Proceeds from issuance of 2025 Notes, net of issuance costs | | | 183,658 | | | | — | |
Premiums paid for capped call transactions | | | (11,210 | ) | | | — | |
Payment of 2021 Notes | | | (190,000 | ) | | | — | |
Proceeds from exercise of stock options and employee stock purchase plan | | | 11,025 | | | | 16,499 | |
Payments of taxes on restricted stock units | | | (2,550 | ) | | | — | |
Payment of acquisition-related contingent consideration | | | — | | | | (4,602 | ) |
Net cash provided by (used in) financing activities | | | (9,077 | ) | | | 11,897 | |
Effect of exchange rate changes on cash and cash equivalents | | | 359 | | | | 32 | |
Net increase (decrease) in cash and cash equivalents | | | 5,673 | | | | (21,089 | ) |
Cash and cash equivalents | | | | |
Beginning of period | | | 46,053 | | | | 94,793 | |
End of period | | $ | 51,726 | | | $ | 73,704 | |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, our key non-GAAP performance measures include adjusted EBITDA, non-GAAP net income (loss), free cash flow and adjusted free cash flow as defined below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We use free cash flow and adjusted free cash flow as key measures when assessing our sources of liquidity, capital resources, and quality of earnings. We believe these measures provide useful information for period-to-period comparisons of our business to allow investors and others to understand and evaluate our operating results in the same manner as our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from similarly termed non-GAAP measures used by other companies.
Adjusted EBITDA
We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; other income, net; interest expense; acquisition related expense and related purchase accounting adjustments; and income tax benefit (expense).
Non-GAAP Net Income (Loss)
We define non-GAAP net income as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; acquisition related expense and related purchase accounting adjustments; and the corresponding income tax impacts of adjustments to net income (loss).
Free cash flow
We define free cash flow as net cash provided by (used in) operating activities, determined in accordance with GAAP, less purchases of property and equipment. We define adjusted free cash flow as free cash flow less cash received from gain on litigation settlement.
IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) |
| | | | | |
| | Three Months Ended | | Nine Months Ended | |
| | September 30, | | September 30, | |
| | 2025 | | 2024 | | 2025 | | 2024 | |
GAAP Gross margin | | | 50.3 | % | | | 50.0 | % | | | 52.8 | % | | | 52.0 | % | |
Adjustments: | | | | | | | | | |
Depreciation and amortization | | | 2.1 | % | | | 1.9 | % | | | 2.2 | % | | | 1.8 | % | |
Stock-based compensation | | | 0.5 | % | | | 0.5 | % | | | 0.6 | % | | | 0.5 | % | |
Non-GAAP Gross margin | | | 53.0 | % | | | 52.4 | % | | | 55.6 | % | | | 54.3 | % | |
Certain amounts may be off due to rounding |
| | | | | | | | | |
GAAP Net income (loss) | | $ | (12,810 | ) | | $ | 221 | | | $ | (9,708 | ) | | $ | 43,528 | | |
Adjustments: | | | | | | | | | |
Depreciation and amortization | | | 3,852 | | | | 3,247 | | | | 11,082 | | | | 10,155 | | |
Stock-based compensation | | | 14,551 | | | | 14,841 | | | | 40,096 | | | | 41,336 | | |
Restructuring costs | | | — | | | | — | | | | — | | | | 1,812 | | |
Acquisition related expenses | | | — | | | | — | | | | — | | | | 986 | | |
Other income, net | | | (2,592 | ) | | | (2,416 | ) | | | (6,705 | ) | | | (5,830 | ) | |
Income from settlement of litigation | | | — | | | | — | | | | — | | | | (45,000 | ) | |
Induced conversion expense | | | 15,026 | | | | — | | | | 15,026 | | | | — | | |
Interest expense | | | 1,121 | | | | 1,219 | | | | 3,569 | | | | 3,652 | | |
Income tax benefit (expense) | | | (89 | ) | | | 207 | | | | (221 | ) | | | 194 | | |
Adjusted EBITDA | | $ | 19,059 | | | $ | 17,319 | | | $ | 53,139 | | | $ | 50,833 | | |
| | | | | | | | | |
GAAP Net income (loss) | | $ | (12,810 | ) | | $ | 221 | | | $ | (9,708 | ) | | $ | 43,528 | | |
Adjustments: | | | | | | | | | |
Depreciation and amortization | | | 3,852 | | | | 3,247 | | | | 11,082 | | | | 10,155 | | |
Stock-based compensation | | | 14,551 | | | | 14,841 | | | | 40,096 | | | | 41,336 | | |
Restructuring costs | | | — | | | | — | | | | — | | | | 1,812 | | |
Acquisition transaction expenses | | | — | | | | — | | | | — | | | | 986 | | |
Income from settlement of litigation | | | — | | | | — | | | | — | | | | (45,000 | ) | |
Induced conversion expense | | | 15,026 | | | | — | | | | 15,026 | | | | — | | |
Income tax effects of adjustments(1) | | | (2,918 | ) | | | (1,410 | ) | | | (7,975 | ) | | | (4,434 | ) | |
Non-GAAP Net income | | $ | 17,701 | | | $ | 16,899 | | | $ | 48,521 | | | $ | 48,383 | | |
| | | | | | | | | |
Non-GAAP Net income per share — diluted | | $ | 0.58 | | (2) | $ | 0.56 | | (2) | $ | 1.61 | | (2) | $ | 1.63 | | (2) |
| | | | | | | | | |
GAAP Weighted-average shares — diluted | | | 29,338 | | | | 29,727 | | | | 28,995 | | | | 31,918 | | (3) |
Dilutive shares from stock plans | | | 1,000 | | | | — | | | | 818 | | | | — | | |
Dilutive shares from convertible debt | | | 2,339 | | | | 2,589 | | | | 2,506 | | | | — | | |
Non-GAAP Weighted-average shares — diluted | | | 32,677 | | (2) | | 32,316 | | (2) | | 32,319 | | (2) | | 31,918 | | (2) |
(1) The tax effects of the adjustments are calculated using the statutory rate, taking into consideration the nature of the item and relevant taxing jurisdictions. |
(2) Diluted net income per share includes the impact of our convertible debt, if dilutive, using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion. |
(3) GAAP Weighted average shares — diluted includes the impact of dilutive shares from convertible debt. |
IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) |
| | | | |
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| | 2025 | | 2024 | | 2025 | | 2024 |
GAAP Net cash provided by operating activities | | $ | 20,893 | | | $ | 10,068 | | | $ | 43,610 | | | $ | 115,687 | |
Adjustments: | | | | | | | | |
Purchases of property and equipment | | | (2,940 | ) | | | (5,411 | ) | | | (11,343 | ) | | | (12,979 | ) |
Free cash flow | | $ | 17,953 | | | $ | 4,657 | | | $ | 32,267 | | | $ | 102,708 | |
Adjustments: | | | | | | | | |
Income from settlement of litigation | | | — | | | | — | | | | — | | | | (45,000 | ) |
Adjusted free cash flow | | $ | 17,953 | | | $ | 4,657 | | | $ | 32,267 | | | $ | 57,708 | |
IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK (in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range) |
| | |
| | Three Months Ending |
| | December 31, |
| | 2025 |
GAAP Net loss | | $ | (1,868 | ) |
Adjustments: | | |
Forecasted Depreciation and amortization | | | 3,930 | |
Forecasted Stock-based compensation | | | 15,750 | |
Forecasted Interest expense | | | 798 | |
Forecasted Other income, net | | | (2,550 | ) |
Forecasted Income tax expense | | | 100 | |
Adjusted EBITDA | | $ | 16,160 | |
| | |
GAAP Net loss | | $ | (1,868 | ) |
Adjustments: | | |
Forecasted Depreciation and amortization | | | 3,930 | |
Forecasted Stock-based compensation | | | 15,750 | |
Forecasted Income tax effects of adjustments | | | (2,368 | ) |
Non-GAAP Net income | | $ | 15,444 | |
| | |
GAAP Net loss per share — diluted | | $ | (0.06 | ) |
Non-GAAP Net income per share — diluted(1) | | $ | 0.50 | |
| | |
GAAP Weighted-average shares — diluted | | | 30,200 | |
Dilutive shares | | | 1,600 | |
Non-GAAP Weighted-average shares — diluted(1) | | | 31,800 | |
(1) Non-GAAP diluted net income per share includes the impact of our convertible debt, if dilutive, using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion. |
Source: Impinj, Inc.