Financial Data and Key Metrics Changes - Q4 revenue was $92.8 million, down 3% sequentially from $96.1 million in Q3 2025, and up 1% year-over-year from $91.6 million in Q4 2024 [13] - 2025 revenue was $361.1 million, down 1% year-over-year compared to $366.1 million in 2024 [13] - Q4 Adjusted EBITDA was $16.4 million, compared to $19.1 million in Q3 2025, and $15 million in Q4 2024 [17] - 2025 Adjusted EBITDA was a record $69.6 million, compared to $65.9 million in 2024 [18] - Q4 GAAP net loss was $1.1 million, while 2025 GAAP net loss was $10.8 million [18] Business Line Data and Key Metrics Changes - Q4 endpoint IC revenue was $75.2 million, down 5% sequentially from $78.8 million in Q3 2025, and up 2% year-over-year from $74.1 million in Q4 2024 [13] - Q4 systems revenue was $17.7 million, up 2% sequentially from $17.3 million in Q3 2025, and up 1% year-over-year from $17.5 million in Q4 2024 [15] - 2025 endpoint IC revenue declined 2% year-over-year, while systems revenue grew 2% year-over-year [14][15] Market Data and Key Metrics Changes - The company noted a downward trend in apparel imports and inventory reductions across retail markets, impacting the RAIN market [6] - The company expects endpoint IC demand for apparel to normalize as soon as Q2 2026 [10] - Food volumes remain modest in Q1, but the company anticipates expansion in food rollouts to more stores [10] Company Strategy and Development Direction - The company is focusing on custom-built endpoint ICs to meet specific customer needs, which is expected to drive future growth [9] - The introduction of Gen2X is seen as a key enabler for solutions, enhancing performance and creating new opportunities [10] - The company aims to shift its selling model to focus on solution value rather than individual components [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a growth year for 2026, citing improvements in endpoint IC volumes and new account opportunities [8] - The company anticipates a decline in Q1 revenue due to inventory burn down and project timing, but expects conditions to improve thereafter [8][10] - Management highlighted the importance of maintaining strong relationships with end customers and adapting to their needs [58] Other Important Information - The company ended Q4 with record cash and cash equivalents of $279.1 million, compared to $265.1 million in Q3 2025 [19] - Free cash flow for 2025 was $45.9 million, indicating strong cash generation capabilities [19] Q&A Session Summary Question: Can you break down the Q1 guidance miss? - Management explained that the sequential decline in endpoint IC revenue is primarily due to inventory burn down and retail weakness, with strong January turn orders indicating potential recovery [21][23] Question: What gives confidence that the situation will improve by Q2? - Management noted that they see positive signals from new accounts and inventory normalization based on retailer feedback [26][28] Question: Will logistics normalize in Q2 as well? - Management indicated that while apparel is expected to normalize, logistics may take longer due to ongoing inventory corrections [32][33] Question: How does the custom chip impact pricing? - Management stated that the custom chip is priced to market, aiming to drive ROI for both the customer and the company [112] Question: What is the competitive landscape against non-RFID components? - Management remains confident in RAIN RFID as a long-term solution, viewing other technologies as complementary rather than competitive [104][106]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $92.8 million, down 3% sequentially from $96.1 million in Q3 2025, and up 1% year-over-year from $91.6 million in Q4 2024 [12] - 2025 revenue totaled $361.1 million, down 1% year-over-year compared to $366.1 million in 2024 [12] - Fourth quarter gross margin was 54.5%, compared to 53% in Q3 2025 and 53.1% in Q4 2024, driven by higher endpoint IC direct margins [14] - 2025 adjusted EBITDA was a record $69.6 million, compared to $65.9 million in 2024, with an adjusted EBITDA margin of 19.3% [17] Business Line Data and Key Metrics Changes - Fourth quarter Endpoint IC revenue was $75.2 million, down 5% sequentially from $78.8 million in Q3 2025, and up 2% year-over-year from $74.1 million in Q4 2024 [12] - Fourth quarter systems revenue was $17.7 million, up 2% sequentially from $17.3 million in Q3 2025, and up 1% year-over-year from $17.5 million in Q4 2024 [13] - 2025 systems revenue grew 2% year-over-year, with reader and gateway growth offsetting declines in reader ICs and test and measurement solutions [13] Market Data and Key Metrics Changes - The company noted a downward trend in apparel imports and inventory reductions across retail markets, impacting the RAIN market [5] - The company anticipates that apparel retailers will normalize their Endpoint IC demand as early as Q2 2026 [9] Company Strategy and Development Direction - The company is focusing on custom-built Endpoint ICs to meet specific customer needs, which is expected to drive future growth [8] - The strategy includes a shift towards solutions-focused selling rather than individual component sales, leveraging Gen2X as a key enabler [10] - The company plans to expand its presence in the food sector, with expectations of significant growth in 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a rebound in Endpoint IC volumes and overall growth in 2026, despite challenges faced in 2025 [6] - The company expects first quarter revenue to decline sequentially due to inventory burn down and retail weakness, but anticipates improvement as the year progresses [6][18] - Management highlighted the importance of maintaining strong relationships with end users and adapting to their needs through custom solutions [60] Other Important Information - The company ended Q4 with record cash and cash equivalents of $279.1 million, up from $265.1 million in Q3 2025 [18] - Free cash flow for 2025 was $45.9 million, indicating strong financial health [18] Q&A Session Summary Question: Can you break down the first quarter guidance miss? - Management explained that the decline in Endpoint IC revenue is primarily due to lower volume as partners reduce inventory, with a significant impact from retail weakness [20][21] Question: What gives confidence that the situation will improve quickly? - Management noted that they see positive signs in order trends and inventory corrections, expecting normalization in apparel demand by Q2 [21][26] Question: Will logistics normalize in Q2 as well? - Management indicated that while apparel may normalize, logistics inventory corrections could extend beyond Q1 [32][33] Question: How does the custom chip impact pricing? - Management stated that the custom chip will be priced to market, aiming to drive ROI for both the company and the customer [111] Question: What is the competitive landscape regarding non-RFID components? - Management remains confident in RAIN RFID as a long-term solution, viewing other technologies as complementary rather than competitive [102][103]

Investor Presentation Fourth Quarter 2025 Forward Looking Statement & Non-GAAP Financial Measures This presentation and the accompanying oral commentary contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any statements about or relating to expectations, projections, trends, plans, ambitions, strategies, and objectives of managemen ...

Financial Performance - Impinj, Inc. announced preliminary unaudited financial information for Q4 2025, with revenue expected to exceed previous estimates[5] - Actual results for Q4 2025 are still being finalized, suggesting potential adjustments to preliminary figures[5] Investor Engagement - The company is set to participate in the 28th Annual Needham Growth Conference, indicating ongoing investor engagement[5]

Company Overview - Impinj, Inc. is a significant player in the Internet of Things (IoT) sector, providing a cloud connectivity platform for industries such as retail, supply chain, and healthcare, with components that enable efficient item tracking and data delivery [1] Analyst Sentiment - The consensus price target for Impinj has decreased from an average of $226.38 to $190 over the past year, indicating a more cautious outlook from analysts [2][6] - Piper Sandler's analyst Harsh Kumar has set a notably lower price target of $80, reflecting a pessimistic view on the company's performance [2][6] Financial Performance - Impinj has raised its profit and revenue forecasts, yet its stock has declined, suggesting that investor expectations may have been higher than the guidance provided [3][6] - Despite a 28.6% decline in stock price over the past four weeks, the company is now considered technically oversold, indicating a potential easing of selling pressure and a possible trend reversal [5][6] Market Challenges - The company has released research on global supply chain challenges, highlighting the tension between rising consumer expectations and supply chain capabilities, which is crucial for understanding its strategic direction [4]

Summary of Impinj Conference Call Company Overview - **Company**: Impinj - **Event**: 28th Annual Medium Growth Conference - **Key Speakers**: CEO Chris Diorio, CFO Cary Baker, VP Andy Cobb Key Industry Insights - **Industry**: RAIN RFID technology in retail and logistics - **Event Highlights**: - NRF trade show showcased significant activity around RAIN RFID technology - Gen2X enhancements were prevalent, improving readability and performance in the field [4][7] - Increased focus on food retail adoption, with notable advancements in tagging perishable items [8][51] Financial Performance - **Q4 2025 Revenue Guidance**: Expected near the high end of $90-$93 million, with Adjusted EBITDA above the midpoint of $15.4-$16.9 million [4] - **Gross Margin**: Non-GAAP gross margin increased by over 125 basis points sequentially [4] Product Developments - **Gen2X Technology**: - Enhances communication reliability between readers and tags, improving inventory accuracy and reducing labor costs [63] - Adoption by multiple partners, including EM Microelectronic as a strategic partner for endpoint ICs [17][66] - **M800 IC**: - Key driver for revenue growth, contributing to improved gross margins [67] Market Trends - **Retail Adoption**: - Transition from handheld to fixed reading opportunities in retail stores, enhancing inventory management [29][30] - Strong engagement with lighthouse enterprises, driving innovation and adoption [32][34] - **Logistics Sector**: - Active pipeline with multiple pilots underway, indicating strong interest in RAIN RFID solutions [42] Strategic Partnerships - **Collaboration with EM Microelectronic**: - Licensing of Gen2X technology to enhance product offerings and ensure multiple sources of supply for endpoint ICs [17][21] - **Walmart and Kroger Initiatives**: - Walmart's phased approach to RAIN RFID adoption across various categories, with significant potential for endpoint IC sales [46][49] - Kroger's successful implementation of RAIN RFID in bakery departments, significantly reducing inventory time [60] Future Outlook - **Food Category**: - Slow but steady adoption expected, with significant long-term potential as economics improve [54][56] - **Long-term Financial Goals**: - Revenue targets of $500 million to $750 million with gross margins of 55%-57% and operating margins of 19%-25% [73][74] - **Capital Allocation**: - Focus on reducing convertible debt and exploring M&A opportunities, with a high threshold for potential acquisitions [76][77] Conclusion - Impinj is positioned strongly within the RAIN RFID market, with promising developments in technology and strategic partnerships. The company is focused on driving adoption in retail and logistics, particularly in the food sector, while maintaining a clear path towards achieving long-term financial goals.

Core Viewpoint - Impinj's stock fell 7% despite the company hinting it might exceed analyst expectations for Q4 sales, with guidance suggesting sales between $90 million and $93 million, while analysts expect less than $92 million [1][3]. Group 1: Sales and Earnings Guidance - Impinj updated its Q4 sales guidance, indicating it expects to report revenue towards the high end of its range [1][7]. - The company noted that its adjusted EBITDA will be above the midpoint of its previous guidance of $15.4 million to $16.9 million, but did not provide a GAAP earnings figure [4]. Group 2: Analyst Expectations and Stock Valuation - Analysts predict a GAAP loss of $0.35 per share for 2025, with a non-GAAP profit expected. They forecast a return to positive earnings of $0.62 per share this year, which would be less than half of what Impinj earned in 2024 [5]. - The stock is projected to be valued at more than 300 times forward earnings, which analysts suggest is excessively high, leading to a recommendation for investors to sell [5].

Core Insights - The Internet of Things (IoT) player has raised its profit and revenue forecasts, indicating positive growth expectations, but investors were anticipating even higher results [1] Group 1 - The company has increased its profit forecast, reflecting confidence in its operational performance [1] - Revenue projections have also been raised, suggesting a strong demand for its IoT products and services [1] - Despite the positive adjustments, investor sentiment remains cautious as they were looking for more substantial growth figures [1]

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Core Viewpoint - Impinj, Inc. has announced a licensing agreement with EM Microelectronic to integrate Impinj Gen2X into future EM endpoint integrated circuits, aiming to enhance the ecosystem of product and technology providers [1] Company Summary - Impinj, Inc. is a leading provider of RAIN RFID technology and a pioneer in the Internet of Things [1] - EM Microelectronic specializes in the design and production of ultra-low power, low voltage integrated circuits [1] Industry Summary - The collaboration between Impinj and EM Microelectronic is expected to deliver powerful solutions across various markets, indicating a commitment to expanding the RAIN RFID ecosystem [1]