Impinj’s third quarter results were met with a significant negative market reaction, reflecting investor concerns despite the company surpassing revenue and adjusted profit expectations. Management cited record endpoint IC volumes and stronger-than-expected reader sales—particularly for its Gen2X platform—as key drivers, but also acknowledged that retailer demand remained cautious and tariff pressures persisted. CEO Chris Diorio described the performance as “outperformance despite weak retailer buying patterns and tariff headwinds,” emphasizing that logistics and supply chain deployments offset softer retail trends. Notably, management highlighted the company’s ability to execute in a challenging environment without attributing the quarter’s success to broad-based demand.
Is now the time to buy PI? Find out in our full research report (it’s free for active Edge members).
Impinj (PI) Q3 CY2025 Highlights:
- Revenue: $96.06 million vs analyst estimates of $92.76 million (flat year on year, 3.6% beat)
- Adjusted EPS: $0.58 vs analyst estimates of $0.50 (16.8% beat)
- Adjusted EBITDA: $19.06 million vs analyst estimates of $15.69 million (19.8% margin, 21.5% beat)
- Revenue Guidance for Q4 CY2025 is $91.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for Q4 CY2025 is $0.50 at the midpoint, above analyst estimates of $0.45
- EBITDA guidance for Q4 CY2025 is $16.15 million at the midpoint, above analyst estimates of $13.97 million
- Operating Margin: 0.7%, up from -0.8% in the same quarter last year
- Inventory Days Outstanding: 177, down from 212 in the previous quarter
- Market Capitalization: $5.29 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Impinj’s Q3 Earnings Call
- Ezra Weener (Jefferies) asked about the sequential step-down in reader revenue for Q4. CFO Cary Baker explained that Q3 revenue was stronger than anticipated due to project timing, leading to a “natural step down” in Q4 as deployments phase into next year.
- Harsh Kumar (Piper Sandler) asked about tagging challenges in produce and the meaning behind increased mention of e-commerce. CEO Chris Diorio clarified that produce tagging is feasible but mechanically challenging, and the focus on e-commerce reflects growing enterprise customer demand for direct-to-consumer and third-party logistics solutions.
- Christopher Rolland (Susquehanna) questioned the competitive risk from Bluetooth-based alternatives to RFID. Diorio responded that while complementary technologies may fill some gaps, Impinj remains focused on high-volume opportunities where RAIN RFID offers clear advantages.
- Scott Searle (ROTH Capital) inquired about the impact of Gen2X on share and margin, and the potential for recurring software revenue. Baker said it is too early to comment on share gains but emphasized that Gen2X and software investments are central to long-term differentiation and value capture.
- James Ricchiuti (Needham & Company) asked how software and food initiatives would affect operating expense. Baker confirmed that operating expense will rise as the company invests in R&D and go-to-market capabilities, particularly in engineering, while maintaining fiscal discipline elsewhere.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will watch (1) the pace and scale of food and grocery sector deployments, particularly for large grocers; (2) execution on SaaS and cloud software initiatives aimed at recurring revenue; and (3) stabilization of project timing in retail and logistics, which will affect near-term growth predictability. Expansion into e-commerce and successful integration of new technical talent will also be important milestones for tracking progress.
Impinj currently trades at $175.10, down from $242.87 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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