Silicon Investor - Impinj, Inc.

[Cooters] Sylebra selling again...... SEC FORM 4

Cooters — 6/3/2026 1:17:23 PM

[Cooters] Evercore issued a report today after the conference. Hold PT 144 but would love ...

Cooters — 6/3/2026 12:38:31 PM

Evercore issued a report today after the conference. Hold PT 144 but would love to see any comments

[Soumaila] Chris broadly addressed this during one of the last couple of earnings calls or ...

Soumaila — 6/2/2026 5:02:58 PM

Chris broadly addressed this during one of the last couple of earnings calls or investor conferences (seems relatively recent). While not dismissive of the value of the technology, he and Impinj are focused on the large volume endpoint ICs and systems. Maybe they could license technology to these device manufacturers?

He described (poorly paraphrasing here) the low energy blue tooth and RFID sensors as enabling technologies or beyond the scope of Impinj currently. He mentioned as you did the areas where Impinj had designed such sensors in the past (same areas you listed). He said, Impinj's effort is solely focused on the tagging every item approach (billions of items, hopefully trillions one day) over an RFID that can report your blood sugar or the temperature of a pallet of lettuce during its journey to the store.

It would be cool if Impinj had technology to license in these scenarios as others go after the high cost, high margin, low volume market that needs sensors.

[Cooters] They mention app development in the context of focus, hiring, and R&D budget. I ...

Cooters — 6/2/2026 1:24:41 PM

They mention app development in the context of focus, hiring, and R&D budget. I expect we'll hear more over time.

[waitwatchwander] Has Impinj explored any RFID sensing applications beyond logistics and perishabl...

waitwatchwander — 6/2/2026 1:22:11 PM

Has Impinj explored any RFID sensing applications beyond logistics and perishable management?

share.google

The domain here appears to be extremely broad and all such applications come with follow along monitoring opportunities. Just wandering.

ps I suspect many of these applications would implemented in a more vertical manner like here with Medtronics or Glucose monitoring via Dexcom or Abbot.

share.google

[Soumaila] Thanks Coot! I agree, the UPS discussion was interesting. I had not thought of ...

Soumaila — 6/2/2026 12:36:31 PM

Thanks Coot!

I agree, the UPS discussion was interesting. I had not thought of "counterfeit" tags flowing through the sytem.

European grocer, I am leaning toward Aldi or Lidl given the private label focus of the stores. If we think we have a labor shortage in the US for grocery jobs, Europe, Japan, etc. would be even worse. This is a longer term play but huge! As in trillions of items for the TAM not billions!

Lots to like beyond the macro headwinds. The question remains...When will the next inflection point hit. I hope before I am too old to enjoy it!

RAIN Alliance says this energy shock is good for logistics adoption: therainalliance.org

Walmart Phase 3, good to here him flat out say they are really excited about it. I think we see cosmetics in the next round, which is significant.

Some day, we will hear them use words like accelerating and expanding versus prudent. Which is not saying prudent is the wrong word given macro headwinds and geopolitics. I am just excited to see the general merch, logistics, and food verticals take hold.

I am starting to understand the "pilot" language, even when a roll out has been announced. It is that first 20% of stores where the learning and training is very steep. I think they keep the pilot language in this phase as the approach may shift and change. This would include training the Walmart staff who will work across stores to bring the staff up to speed.

Best

[Cooters] PI at Evercore - 6/2/26 CFO in a Q&A format. I'll touch on a few highlights and...

Cooters — 6/2/2026 10:58:48 AM

PI at Evercore - 6/2/26

CFO in a Q&A format. I'll touch on a few highlights and new info

- Very good discussion on the custom ASIC at UPS, discussing how they meet with them and giving a good example of a problem with authentication the ASIC was able to solve.

- WMT update - Phases 1 and 2 of the general merch. deployment still have some growth remaining. They expect Phase 3 to be announced this year, 2026. The perishable food deployment is at the multi-store pilot stage and they are waiting for a deployment announcement.

- The grocer that has a lot of private label items and is looking at full store tagging/self checkout has begun a single store pilot.

- Interesting tidbit on how a customer(I think a grocer) might do the actual self checkout, likely sending the items through a tunnel.

Cooters

[Soumaila] Royal Ray, Impinj Target Embedded RFID Growth With Ultra-Compact Ourea Series r...

Soumaila — 5/28/2026 9:18:05 AM

Royal Ray, Impinj Target Embedded RFID Growth With Ultra-Compact Ourea Series

rfidjournal.com

[Cooters] Cary at Evercore next Tuesday morning. Impinj to Participate in Evercore Global...

Cooters — 5/27/2026 2:17:49 PM

Cary at Evercore next Tuesday morning.

Impinj to Participate in Evercore Global TMT Conference

[Soumaila] This article makes me more convinced Uniqlo (Fast Retailing) is the endpoint IC ...

Soumaila — 5/21/2026 10:58:46 AM

This article makes me more convinced Uniqlo (Fast Retailing) is the endpoint IC share gain that Chris was talking about with a large Asian apparel retailer. That is a big win and validation of the Impinj full stack.

Other nice bits from the earnings season

Avery - logistics pilot expansions

UPS - 20% of e-commerce is returned (value of RFID tracking), 5,500 UPS stores to support this part of E-commerce.

[Cooters] How The RFID Industry Is Transforming Supply Chain Logistics How The RFID I...

Cooters — 5/21/2026 9:43:42 AM

How The RFID Industry Is Transforming Supply Chain Logistics

How The RFID Industry Is Transforming Supply Chain Logistics

From today with a nice plug for Impinj and Gen2X, as well the lead in is self checkout at Uniqlo.

And if this snip hits the mainstream......
<snip>
And in the future, AI models could even potentially leverage RFID data to further improve demand forecasting, trend analysis and pricing models.

[Cooters] RFID Mandate By Lowe’s: What Businesses Need to Know RFID Mandate By Lowe's...

Cooters — 5/20/2026 9:35:22 AM

RFID Mandate By Lowe’s: What Businesses Need to Know

RFID Mandate By Lowe's: What Businesses Need to Know - FineLine Tech

This is dated last Wednesday. Not sure if this is old or new but first I've heard of it. Coot

[Cooters] Target Names Jeff England EVP, Chief Global Supply Chain and Logistics Officer ...

Cooters — 5/19/2026 9:40:48 AM

Target Names Jeff England EVP, Chief Global Supply Chain and Logistics Officer

Target Names Jeff England EVP, Chief Global Supply Chain and Logistics Officer

Would love to see them follow WMT in General Merch.

[Cooters] Sylebra selling again.... SEC FORM 4

Cooters — 5/12/2026 12:49:17 PM

[Soumaila] Evercore ISI maintained in-line and raised from 112 to 144 Needham maintained bu...

Soumaila — 4/30/2026 1:01:16 PM

Evercore ISI maintained in-line and raised from 112 to 144
Needham maintained buy and price at 175

[nicewatch] Impinj, Inc., Q1 2026 Earnings Call, Apr 29, 2026 Operator Welome to Impinj's...

nicewatch — 4/29/2026 6:26:55 PM

Impinj, Inc., Q1 2026 Earnings Call, Apr 29, 2026

Operator

Welome to Impinj's First Quarter 2026 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Corporate Finance and Investor Relations. Please go ahead.

Andy Cobb

Thank you, Nick. Good afternoon, and thank you all for joining us to discuss Impinj's First Quarter 2026 results. On today's call, Chris Diorio, Impinj's Co-Founder and CEO, and will provide a brief overview of our market opportunity and performance. Cary Baker, Impinj's CFO, will follow with a detailed review of our first quarter financial results and second quarter outlook. We will then open the call for questions. You can find management's prepared remarks plus trended financial data on the company's Investor Relations website. .

We will make statements in this call about financial performance and future expectations that are based on our outlook as of today.

Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995, whereas we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any such statements are subject to risks and uncertainties.

We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, except as required by law. On today's call, all financial metrics, except for revenue or where we explicitly state otherwise are non-GAAP.

All balance sheet and cash flow metrics, except for free cash flow or GAAP, please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics. Before turning to our results and outlook, Note that we will participate in the 2026 Evercore TMT Global Conference on June 2 in San Francisco. We look forward to connecting with many of you this quarter.

I will now turn the call over to Chris.

Chris Diorio

Thank you, Andy, and thank you all for joining the call. Our first quarter results were solid, with revenue and adjusted EBITDA exceeding the top end of our guide range. NPIC bookings hit an all-time record, driven by the custom ASIC ramp at our second large North American supply chain and logistics end user, our market-leading share position, retailer rebuys and customers booking beyond our standard lead times and mid lengthening competitor lead times.

Looking further out, we're approaching second half 2026 prudently, hedging against multiple possible macro scenarios. Starting with ICs, the RAIN Alliance has now released the 2025 industry volumes and our market share grew 1,700 basis points over 2024.

That share gain is a springboard for strong second quarter demand. We believe we can meet that demand in the multiple scenarios we are modeling.

Looking forward, we are focused on using Gen 2 X and enterprise solutions to spur preference for our endpoint ICs and grow our share further. First quarter inlay partners inventory declined sequentially as expected. So we entered the second quarter with healthy channel inventory and clear air to execute our strategy.

Turning to our opportunities in supply chain and logistics, we shifted meaningful volumes of the custom ASIC in the first quarter and expect those volumes to more than double in the second with the end user on track to fully convert to that ASIC before year-end.

That ASIC opens the door for us to migrate upstream to our customers' customers, delivering IC's readers and solutions software that improve item visibility and traceability at a double-digit number of accounts.

In retail apparel, we expect NPAC demand to increase in the second quarter. Multiple new end users are speaking openly about rain adoption, including a large European brand with whom we are closely engaged, and we are proving the benefits of Gen 2X in retail, for example, by using it to dramatically improve item readability at a large Asia-based lifestyle brand and unlock a significant share shift opportunity.

In general merchandise, we're focused on cosmetics, personal care and health with the goal of unlocking significant incremental M&A opportunities and again demonstrating the benefits of Gen 2X. Food volumes are growing modestly as expected with the bakery rollout on track to double the number of deployed stores this year.

Also in food, we and our partners beat the self-checkout readability targets set by the European grocer to progress to a store pilot. Although solely, cool store grocery self-checkout enabled by our endpoint ICs and software is a massive opportunity.

Overall, we are making strong progress advancing supply chain and logistics, general merchandise and food to fill in behind retail apparel, which is now in mainstream adoption. On the development front, we're growing our software and solutions teams to help solve end-to-end enterprise systems problems.

We upgraded the processor and memory and our flagship reader to better support machine learning at the edge, helping us address those enterprise systems problems. And because the solutions almost invariably need Gen 2X, we drive preference for our endpoint ICs at the same time. We also continue advancing Gen 2x.

For example, with the forthcoming update to our reader ICs and readers that improve M800 TAG read range by up to 25%. The -- in closing, we have an enviable market position and less opportunities in front of us, good product supply and a strong wind at our backs.

As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead. But faced with today's unpredictable macro, we're approaching the second half prudently even as we pursue market share, solutions, successes and growth. As always, before I turn the call over to Cary for our financial review and second quarter outlook. I'd like to again thank every member of the Impinj team for your tireless effort. I feel honored by my incredible good fortune to work with you. Cary?

Cary Baker

Thank you, Chris, and good afternoon, everyone. First quarter revenue was $74.3 million, down 20% sequentially from $92.8 million in fourth quarter 2025 and and flat year-over-year from $74.3 million in first quarter 2025. First quarter endpoint IC revenue was $63.2 million, down 16% sequentially from $75.2 million in fourth quarter 2020 and and up 3% year-over-year from $61.2 million in first quarter 2025.

Endpoint IC revenue exceeded our expectations, driven by turns orders. Looking forward, we expect second quarter endpoint IC product revenue to increase sequentially on the favorable side of normal seasonality. First quarter systems revenue was $11 million, down 37% sequentially from $17.7 million in fourth quarter 2025 and down 15% year-over-year from $13.1 million in first quarter 2025.

Systems revenue fell short of our expectations due primarily to the timing of Lighthouse enterprise CapEx spend. Looking forward, we expect second quarter systems revenue to increase sequentially. First quarter gross margin was 52.4% compared with 54.5% in fourth quarter 2025 and 52.7% in first quarter 2025. The sequential decline was driven primarily by higher indirect costs, annual endpoint IC price declines and revenue mix.

The year-over-year decline was driven primarily by higher indirect costs and revenue mix partially offset by the continued M800 ramp. Looking forward, we expect second quarter product gross margin to increase sequentially. Total first quarter operating expense was $35.5 million compared with $34.2 million in fourth quarter 2025 and $32.6 million in first quarter 2025.

Operating expense was below our expectations, driven primarily by good fiscal discipline and timing of spend. Research and development expense was $20.4 million. Sales and marketing expense was $7.3 million. General and administrative expense was $7.8 million. Looking to second quarter, we expect similar operating expense to first quarter.

First quarter adjusted EBITDA was $3.4 million compared with $16.4 million in fourth quarter 2025 and $6.5 million in first quarter 2025. First quarter adjusted EBITDA margin was 4.5%. The First quarter GAAP net loss was $25.3 million. First quarter non-GAAP net income was $4.4 million or $0.14 per share on a fully diluted basis.

Turning to the balance sheet. We ended the first quarter with cash, cash equivalents and investments of $235.2 million compared with $279.1 million in fourth quarter 2025 and $232.5 million in first quarter 2025. The Inventory totaled $86.3 million, up $1.3 million from the prior quarter.

First quarter capital expenditures totaled $1.7 million. Free cash flow was $2.2 million. Before turning to our guidance, I want to highlight a few items specific to our results and outlook. First, in March, we opportunistically repurchased 40.2 million aggregate principal of our 1.125% convertible notes due May 2027, using cash on hand.

This repurchase highlights our commitment to minimize dilution in this case, by roughly 400,000 shares as we manage our convertible debt. Second, our indirect cost of goods sold increased in the first quarter driven by a short-term endpoint IC production issue that reduced our back-end capacity utilization. That issue is fixed and behind us.

Third, as Chris highlighted, our inlay partners exited first quarter with healthy endpoint IC channel inventory. In second quarter, we anticipate strong sequential endpoint IC product revenue growth. driven primarily by underlying demand and to a lesser extent, by no channel inventory burn down.

Turning to our outlook. We expect second quarter revenue between $103 million and $106 million compared with revenue of $97.9 million in second quarter 2025, a year-over-year increase of 7% at the midpoint. We expect adjusted EBITDA between $27.8 million and $29.3 million. On the bottom line, we expect non-GAAP net income between $24.6 million and $26.1 million, reflecting non-GAAP fully diluted earnings per share between $0.77 and $0.82.

In closing, I want to thank the Impinj team, our customers, our suppliers and you, our investors, for your ongoing support. I will now turn the call to the operator to open the question-and-answer session. Nick?

Operator

[Operator Instructions] And the first question will come from Timothy Arcuri with UBS.

Timothy Arcuri

UBS Investment Bank, Research Division

This is Naval Weber for Kieser. -- first 1 was on the record bookings. Congratulations on that. Just wanted to understand if that kind of offers you guys incrementally more visibility into September quarter?

And I think, specifically, you're calling out, having a little bit more of a conservative stance in the second half. So how should we kind of think about the visibility that you guys have?

Cary Baker

Yes, this is Cary. Thanks for the question. I'll take it first. There are a variety of factors that drove our strong Q1 bookings. First, our ecosystem is aggressively ramping the custom ASIC to support our North American supply chain and logistics customer.

And second, we're beginning to see retail rebus after a prolonged period of destocking -- within those 2 trends, we did see ENA partner request times move from the lower end of our standard to the higher end of our standard lead times.

And then finally, to a lesser extent, we saw some customers book beyond our standard lead times likely in response to lengthening lead times from our competitor.

At this point, we believe that the orders match the demand. And in fact, our 2Q bookings are off to a good start, and they're right within our standard lead times.

Timothy Arcuri

And I guess a follow-up, Karen, probably to you as well on the gross margin. It sounds like in March quarter, there were a few factors affecting the onetime back-end capacity should a mix. And then I think usually goes through the annual kind of pricing negotiations in this quarter as well. Can you kind of help us maybe decide for how these factors are they have expired in the first quarter? And how should we should think about them in the second quarter?

Cary Baker

Yes. I'll start first with annual price negotiations. Those were largely complete entering the first quarter. There were a little bit of a couple of laggards, but mostly complete entering the quarter. We didn't exactly size it other than to say it was within our normal expectations. .

Maybe a little bit on the aggressive side as we were driving pricing to support the food ramp that we expect to begin this year. On the capacity utilization issue, we had an issue with 1 of our production tools that drove that capacity under utilization -- as I mentioned, that issue is now behind us, and we expect to have full production in Q2.

If I were to size it, I would say that the underutilization charge was roughly 100 basis points impact to Q1. And we expect in the second quarter on a product basis, our gross margin to increase sequentially. Of course, in second quarter, recall, we had the $17 million license revenue, so that will drive an outsized gross margin increase.

But if I strip that out and I look at just the product, we expect a sequential increase in product gross margin.

Operator

Next question will come from Jim Ricchiuti with Needham & Company.

Jim Jungjohann

Needham & Company, LLC, Research Division

And Carey, just a follow-up to that is the improvement that you're anticipating in Q2 product gross margin. Is that mainly that 100 basis points? Or are there some other factors that will drive additional improvement to product gross margins in Q2?

Cary Baker

Yes. The 100 basis points is obviously sizable. So yes, that's driving a lot of it, but in addition, the M800 continues to ramp, that drives gross margin accretion. We're getting our lost revenue scale back in Q2, which will drive leverage against our fixed operating costs. And we also expect higher systems revenue in the second quarter. All of those factors will contribute to the sequential increase in product gross margin.

Julian Rajan

And the 3 factors that you cited beyond the production issue, would you say that they're total and combined would be a bigger tailwind than just recapturing that 100 basis points?

Cary Baker

Probably not, Jim. I think the 100 basis points will be the largest even when comparing the rest as a collective.

Julian Rajan

Okay. And just a quick follow-up just on OpEx. I wondering if -- how we might be thinking about OpEx in the second half just given some of the puts and takes around demand and also some of the conservatism that you talked about just in light of the macro.

Cary Baker

Yes. We expect our OpEx to follow normal seasonal patterns. So we'll see similar OpEx in the second quarter and then the back half steps up. That is a combination of us continuing to invest in our business, primarily in the engineering line and offset by the seasonal pressure -- upward pressure on OpEx that we see in the first half of the year. .

Matthew Farrell

Congrats on just another great quarter and great results here. So Chris, I guess for you, I thought coming into the quarter, retail might have been at risk a little bit given the high gas prices, but you seem bullish and ever on retail. So can you just talk a little bit? Is this Obviously, it seems like it's expanding SKUs and new customers, but any more detail would be great.

Chris Diorio

Yes. So we do see some retail strength. We see retail rebuys especially helped by the tariff clarity and essentially the tariff whipsaws are done, and there's more certainty in the markets associated with tariffs. We see new program growth at any accounts, avacopan Fitch, Aritzia, Fabletics, Old Navy, just many others.

And so when you combine those factors together, we feel good about the retail situation in the market. And on top of that retail growth, we feel good about what's falling and behind, which is supply chain and logistics, retail, general merchandise and food, so I think those factors are contributing to our -- some of the strength we saw in the first quarter and the very strong bookings we saw in the first quarter leading into the second quarter.

Obviously, macro uncertainties is staring us in the face behind that. And so we're being prudent and cautious as we look forward. But we feel good about 2026, absent that macro uncertainty and it's a big if associated with it. But if consumer demand holds up through that macro, we feel good about 2026 overall.

Matthew Farrell

Maybe 1 quick follow-up to. Can we just dive into a little bit on the NXP royalty, just the longevity of that? Do you guys feel like the new chip has longer violates your guys' IP and -- if so, how long would it take them to try to like design out and if designing out, is that an opportunity for you guys to get more share here, but in the insight would be great.

So yes, it's -- there's a limited amount of information that we have right now because NXP's new IC is, of course, new. I'll just say that we don't know yet if they have designed out or not to sign out our intellectual property. .

Chris Diorio

We do know, of course, that the older ICs, which are still in market, use our intellectual property because there were court rulings and juries decided that they did use our intellectual property. So NXP needs to either sunset those existing ICs or redesign them as well.

We don't know if the time frame for them doing so. We obviously got the payment this year. Can't speak to next year, but we're guardedly optimistic that we'll get another payment next year, and then we'll see what happens after that. Obviously, time will tell. And as we learn more and are able to report things out, we will.

And Troy, just to be clear, the payment that we received this year was $17 million, up from $16 million last year.

Operator

Next question will come from Blayne Curtis with Jefferies. .

Jim Jungjohann

Andrew Wiener on for Ben. Just wanted to follow up on the European grocery opportunity. I know the current food opportunity bakery moving into protein this seems like it would be a little bit more encompassing. Can you talk about kind of the sizing that opportunity and the time line? And then I have a follow-up after.

Cary Baker

So yes. So it is a very large opportunity. It is really for us the first meaningful opportunity that is a full store, every item tagging and consumer self-checkout opportunity. To date, the testing has been all lab testing. European Grocer set certain readability targets for them to make an internal decision to transition to a live store pilot.

And not only did we and our partners meet those readability targets, but we exceeded them, and we're waiting for the decision for them to go forward with a store pilot. So we're excited about that opportunity. We continue to be. We have a very close relationship with that grocer.

And looking forward to being able to continue to report positive results there. But to answer your question, very large, all items, they do control a lot of their own supply. So they're one of the grocers that would be an idea that are an ideal candidate for tagging all items because they can get the tags on because they have significant control over their own supply chain.

Jim Jungjohann

Got it. And then a follow-up question. You talked about with the ASIC opportunity moving upstream at a double-digit number of accounts. Can you talk a little bit about that process and what that looks like?

Chris Diorio

Yes. So our second large North American supply chain and logistics end user has done just an amazing job driving operational efficiencies across their organization using an RFID. The custom IC is a further step down that path for them and also for us, both they and we see opportunities for them to use their prowess and their learnings, basically what they've done, what they've learned to help their customers in the same way.

It's not just about package shipping. It's about driving operational efficiencies at their customers and leveraging their learnings to improve their customers' operations. So it's a big opportunity for them. It's also a big opportunity for us. And I guess the way I think you should -- you really should think about it is that end user that we've been- where are you planning to invest or reinvest? Do you just see many more organic opportunities? Or do you think there could be some organic opportunities here to whether they're bolt-ons or adjacencies something else to do in this market?

Cary Baker

Yes. So I'll take that one also. So invest we continue investing in our existing product lines and expect us to continue doing so. We've got a lot of improvements and changes in overall positive things we can make.

Equally importantly, perhaps more important is separate, we're putting into enterprise solutions, making our products and the enterprise benefit from those products be seamless for the enterprise and driving partner replication of those solutions.

So we can expand the pace or both expanded adoption and increased the pace of adoption. So in response to the last question, I talked about our second large North American supply chain and logistics end user as a partner and we truly see them as a partner because with their prowess and know-how and our technology underpinning, I believe we can drive solutions out into the market broadly.

In terms of other opportunities for us, inorganic opportunities, obviously, we keep our eyes open. And if an opportunity arises, we'll be looking. The next question will come from Guy Hardwick of Barclays. Just a quick easy 1 for you, Chris. I mean you said you feel good about 2026. The first are you to order rank in all of the factors which make you feel good about 26%. What would you start with? And what are the other ones. Well, I'm going to have to think about that 1 for a second, guys. So I'm excited about a lot of things. Number one, I'd start with our opportunities around enterprise solutions. -- us bringing ML to bear at the edge on the reader to confine read zones, to identify items that are transitioning, whether it's through a doctor, store exit, front store, back store, any of these transitions and is providing us some very significant benefits, and I believe will transform the industry and our ability to drive those solutions in the market and provide enterprise benefits.

So that'd be number one.

Number two, after that would be Gen 2X and what we're doing in Gen 2x to enable those ML solutions, again, to spur enterprise adoption. We're going to see that adoption happening in the areas that I mentioned already, supply chain and logistics, I'll put that 1 first because that's where we believe we can first and best apply our ML techniques in Gen 2X.

And obviously, there's a lot of transitions, and readability needs to be incredibly high for those use cases. They don't want to make any package. So supply chain and logistics and us falling in behind our key end user there and helping them and us and their customers in the market. So I'd probably put that 1 number one.

And then, of course, we have general merchandise and food, which are the other 2 that I mentioned. We are waiting on some of the key end users to choose what categories they'll be going forward with in the latter part of 2026 across general merchandise.

We mentioned some categories, of course, health, cosmetics, beauty, and then there's obviously food there, food ramp and proteins and bakery. So all of those are out there. We're being a little bit prudent in terms of us taking and choosing simply because we're going to wait to see what the customer analysis but we do expect a growth in general merchandise and food this year, and we'll be pushing on both of them. So that's how I ordered them.

I ordered them and basically the order in which I spoke to them rather than calling 1, 2 and 3, but that's how I see things. secular growth in retail, of course. Supply chain logistics, Enterprise Solutions, huge opportunity and then food and general merchandise coming up behind.

Jim Jungjohann

And just as a follow-up, just after 5 consecutive months of double-digit declines in U.S. apparel imports. Just wondering how you feel about the the status of apparel inventories amongst your largest customers here in the U.S.

Cary Baker

We see apparel inventories picking up, both because they're incredibly lean right now. And you can listen to some of the retailers are actively talking about growing some inventories. So we see inventories picking up. And it's also the tariff side. tariff certainty has contributed to increased orders.

Operator

The next question will come from Scott Sara with Roth Capital. .

Scott Searle

Great job on the quarter and the outlook. Chris, you've referenced a couple of times concerned from a macro standpoint. I wonder if you could flush that out a little bit. Are you seeing any of that in terms of order patterns from your customer base?

And then as we look into the second half of this year, and you kind of answered this indirectly in a couple of earlier questions. But should we be expecting normal seasonality, all things equal? And what are you baking in, in terms of your expectations for a large general merchandise customer moving into the next phase of development and food.

Given yesterday's comments from Avery Dennison, it sounds like they're expecting those to move pretty aggressively in the second half. I'm wondering if you could kind of gauge the range of outcomes on what you guys are building into your baseline expectations?

Cary Baker

Okay. I'm going to try and take those questions. There's a lot of questions in there, and I'm going to try and take them, but I'm going to tag team with Kerry and you'll catch me on the parts that I mix. So to to start with.

No, we are not seeing anything currently from the macro perspective. However, we look at the clouds on the horizon and we want to be prudent. Our hope and expectation is that consumer demand will hold. And if it does, as I said, we expect 2026 to be a good year.

But I can't predict the future and the things that are going on right now are way out of our control. And so that's where our prudence comes in.

So we're just being careful and we're modeling a bunch of different scenarios. But as of right now, do we see anything any pullbacks or anything impact right now? Nothing of consequence. Second, in the categories, let me speak to food a little bit because, yes, Avery Dennison did make those comments the other day and -- or yesterday. And we obviously are of those -- or now of that account and specifically the accounts that they're talking about and are in there and trying to drive the use case in those accounts.

Our preference here is to wait for the enterprise end user to make a statement in terms of what they're going to do. And that's just a preference just as the way they are.

And I'm not saying anything negative there just we're going to wait and see until they make an announcement, and then we'll speak a bit more about it. So don't view our reticence to speak a lot as anything negative on the opportunity there. It is a real opportunity, and we're excited about it. We only guide 1 quarter at a time.

Customer hasn't made an announcement yet. So when they make an announcement, we'll speak more about it. And that also covers the general merchandise categories. I alluded to some of the general merchandise categories, as I spoke just a minute ago about, we see significant opportunities in those categories. health, beauty, cosmetics, personal care, and we're putting effort into those categories to make them go. When the customer makes an announcement, we'll be as excited as you are. or maybe the other -- we'll be more excited than you are. I'll put it that way. So what did I miss? Carry, what did I miss? Then great.

That was perfect, first. And I'll hopefully make this -- the follow-up quick. But in terms of the European food opportunity, given the magnitude of the items there, you have to push down across the entire supply chain and vendor vendor supply chain. Is that something that requires DPP? And maybe just some quick updated thoughts on that and timing?

Scott Searle

Is it is not -- it doesn't really require DPP. DPP is rolling out a category that impacts us in terms of the DPP rollout is textiles. And this is a grocery opportunity. The other studies, batteries and tires and stuff, which is kind of not really relevant. .

The difference between this grocer and many others is that they control the significant majority of their own supply chain. So if they want to get tagging, they can do it themselves. Of course, they sell some categories as well. But they're in a very good position in order to drive the tagging when they say go.

So that's why we see a significant opportunity there. In terms of the DPP overall, the delegated act or textiles will come into force in 2027. There will be a grace period currently estimated to be about 18 months. We'll have to wait and see how that goes. On my best estimate, I'd say will be meaningful near the end of this decade. We are participating in many of those DPP efforts.

Rand is now approved as a data carrier for DPP. We are doing some work on the MPC side, on the data side on our ICs to support the DPP. And so expect us to be a key part of it. But at a measured pace because the actual implementation is still several years away.

Operator

This concludes our question-and-answer session. I would like to turn the conference back over to Christie Orio, Co-Founder and CEO, for any closing remarks. .

Chris Diorio

Thank you, Nick, and I'd like to thank you all for joining the call today. Thank you very much for your ongoing support. Bye-bye.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

[Soumaila] Agreed! All you need to know from the release: "Our first-quarter results were ...

Soumaila — 4/29/2026 4:36:34 PM

Agreed!

All you need to know from the release: "Our first-quarter results were solid, with revenue and adjusted EBITDA exceeding the top end of our guide range," said Chris Diorio, Impinj co-founder and CEO. "Endpoint IC bookings hit an all-time record, engendering a strong second-quarter revenue outlook"

I am interested in what systems guide will be and discussion of 2H.

Enjoy, this is a huge relief.

[Cooters] I'm in Mexico, guidance and record ic bookings look really good. They get the ro...

Cooters — 4/29/2026 4:29:38 PM

I'm in Mexico, guidance and record ic bookings look really good. They get the royalty pmt in q2 so sequential revenue is really good but not out of the park. Really developing nice earnings leverage. I'll check in later need a drink. Cabo Cooters

[Soumaila] Here is a commercial from UPS. Nothing new here, Chris has been talking about 3P...

Soumaila — 4/26/2026 11:59:05 AM

Here is a commercial from UPS. Nothing new here, Chris has been talking about 3PL, e-commerce, new solutions opportunities etc. But this shows the marketing behind the strategy. Pretty cool!

LINK

[Soumaila] This has a little more info on the R700 and at least mentions its use in retail ...

Soumaila — 4/20/2026 9:44:49 PM

This has a little more info on the R700 and at least mentions its use in retail along with the logistics focus of the press release. rfidjournal.com

[Soumaila] While nothing new in that UPS is deployed/deploying, there is spending in this a...

Soumaila — 4/17/2026 5:25:30 AM

While nothing new in that UPS is deployed/deploying, there is spending in this announcement. Not clear how much but the placing of readers in the middle mile is an expansion of the capabilities of the UPS network and should include reader revenue. The timing here with the R700 announcement probably not a coincidence.

The company plans to add the sensors to its middle-mile sortation facilities beginning later this year, according to a report from The Wall Street Journal.

Here is the official press release from UPS

about.ups.com

[Cooters] Upgraded Impinj R700 Reader Delivers Enterprise-Grade Edge Intelligence for Auto...

Cooters — 4/16/2026 2:31:27 PM

Upgraded Impinj R700 Reader Delivers Enterprise-Grade Edge Intelligence for Autonomous Reading Solutions

Upgraded Impinj R700 Reader Delivers Enterprise-Grade Edge Intelligence for Autonomous Reading Solutions

[Cooters] There have been quite a few articles out this week on the UPS RFID rollout. Noth...

Cooters — 4/16/2026 9:48:37 AM

There have been quite a few articles out this week on the UPS RFID rollout. Nothing we don't know but I can't imagine it doesn't pressure other parcel delivery companies to follow suit.

Example:

UPS Rolls Out RFID Tracking to Improve Delivery Accuracy, WSJ Reports

[waitwatchwander] Qualcomm's future runs well beyond anything Apple these days. It's the next App...

waitwatchwander — 4/5/2026 1:16:54 PM

Qualcomm's future runs well beyond anything Apple these days.

It's the next Apple that worries me but they always do seem to learn ... eventually.

Analysts not so much

[Soumaila] RAIN Alliance finally published the 2025 RFID data. therainalliance.org Clearly...

Soumaila — 4/5/2026 11:46:02 AM

RAIN Alliance finally published the 2025 RFID data. therainalliance.org

Clearly a difficult year with overall RAIN shipments dropping to 42.7M.

RFID market (shipments):

2024: 52.8B tag chips (record year)
2025: 42.7B tag chips
˜ -19% YoY decline

Impinj performance:

Endpoint IC volumes grew ~9% YoY

Impact on market share:

PI gained significant share in a sharply declining market
Ready for a recovery if the macro and geopolitics would calm down
- meaningful competitor displacement
- strong product/positioning advantage (M800, Gen2X)
- outsized leverage into recovery

[Soumaila] From FedEx earnings transcript. They do not discuss RFID but play up Network 2.0...

Soumaila — 3/20/2026 9:56:36 AM

From FedEx earnings transcript. They do not discuss RFID but play up Network 2.0, RFID is totally operational to them, they prefer to play up blue tooth and premium services. Connect this with the podcast statements from FedEx, and I am feeling a bit better about the future of the logistics vertical.

Given the strength of our consolidated Q3 results and updated assumptions for Q4, we are raising our FY 2026 adjusted earnings outlook to $19.30-$20.10 per diluted share. Brie and John will detail the outlook assumptions shortly. Revenue share gains in our priority B2B verticals were an important driver of our Q3 performance. Similar to Q2, nearly half our revenue growth were driven by B2B services, an important enabler of increased profitability. Our transformation to one integrated intelligent network is well underway. By the end of this month, about 35% of eligible volume will flow through nearly 400 Network 2.0 optimized facilities. We remain on track for about 65% of our eligible volume to be flowing through Network 2.0 facilities by next peak.

[Soumaila] From Zebra Blog and Podcast: Beyond Barcodes: How FedEx is Solving for Billions ...

Soumaila — 3/19/2026 5:35:58 PM

From Zebra Blog and Podcast: Beyond Barcodes: How FedEx is Solving for Billions of Blind Spots in the Supply Chain, Feb 3, 2026
podcasts.apple.com
This material may be protected by copyright.

There is a transcript also if you prefer to read it.

[Soumaila] PI cleaning up the balance sheet. finance.yahoo.com

Soumaila — 3/16/2026 5:40:09 PM

[waitwatchwander] Apparel is not fancied much these days ... share.google Accumulation opportunit...

waitwatchwander — 3/16/2026 2:32:57 PM

Apparel is not fancied much these days ... share.google

Accumulation opportunities here seem long lived.

[Soumaila] Roth Capital maintained and lowered from 220 to 180. Based on the lowers after...

Soumaila — 3/16/2026 2:25:55 PM

Roth Capital maintained and lowered from 220 to 180.

Based on the lowers after the third investor conference where they could have spoken with PI to glean how the quarter is progressing.

News was not terrible, but not great either. Possible read is further digestion of the channel inventory and rebound for apparel. The fact the did not pull an Evercore on and downgrade and cut their target massively suggest they still believe in PI's promise, just it might be pushed out a bit.

I will say both came in significantly above the current price, which suggests growth will return.

[Cooters] Barclays maintains Overweight(buy) and lowers target to 169 from 175, this morni...

Cooters — 3/16/2026 11:53:38 AM

Barclays maintains Overweight(buy) and lowers target to 169 from 175, this morning.

[waitwatchwander] Sports Direct is a significant JD Sports competitor and guess what ... share.go...

waitwatchwander — 3/12/2026 8:36:07 PM

Sports Direct is a significant JD Sports competitor and guess what ...

share.google

JD is twice the size but focuses upon more premium (lower volume) lines.

share.google

I suspect where one finds one, one also finds the other.

[Soumaila] Checkpoint is rolling out JD sports. They are actually pretty large, if it expan...

Soumaila — 3/12/2026 7:29:32 PM

Checkpoint is rolling out JD sports. They are actually pretty large, if it expands beyond Europe. One other interesting bit is the Checkpoint referring to SaaS. My guess is there is enough room for PI to compete with their partners in the SaaS space.

rfidjournal.com

[Cooters] They are presenting at Cantor today, but haven't webcast the last 3.

Cooters — 3/11/2026 11:39:24 AM

[Soumaila] impinj.com

Soumaila — 2/26/2026 4:34:27 PM

[Cooters] I can't argue with the comments on business volatility and inventory cycles. Not...

Cooters — 2/6/2026 10:36:42 AM

I can't argue with the comments on business volatility and inventory cycles. Not on board with all of 2026 being a down year. That would be disappointing. They have 3 presentations coming up hopefully they can explain things a little better.
Coot

[Selectric II] PI's website says Chris Diorio is an "affiliate" college professor. I wonder ho...

Selectric II — 2/6/2026 10:28:37 AM

PI's website says Chris Diorio is an "affiliate" college professor. I wonder how he evaluates students who consistently miss deadlines and ask for extensions.

It also says he has the "biggest smile" on his face when he's racing his race car. How would he react if Impinj's earnings blew out everyone's expectations?

Impressive resume.

Chris Diorio

Chief Executive Officer, Vice Chair, and Co-Founder

Chris is the CEO, vice chair, and co-founder at Impinj and an affiliate professor at the University of Washington. Passionate about technology, Chris is a leading pioneer of RAIN RFID who spearheaded the development of the RAIN RFID radio standard and cofounded the RAIN Alliance. He has more than 200 issued patents, 69 scholarly publications, and has received numerous awards including EY Entrepreneur Of The Year Pacific Northwest, Geekwire CEO of the Year, EE Times/EDN Innovator of the Year, AIM Global Ted Williams Award, RFID Journal Special Achievement Award, and the IEEE Paul Rappaport Award. He has also received Packard, Sloan, Presidential, and ONR fellowships. Chris earned his Ph.D. from Caltech and has over 30 years’ experience in computer and radio engineering. A fan of all things fast, Chris has the biggest smile on his face when racing his car around a track.

impinj.com

[Soumaila] I agree. On X Dan is sticking with PI. Long post out this AM

Soumaila — 2/6/2026 9:51:12 AM

[Soumaila] Snips from what I found on Investing.com (that is the source) re Evercore. Perha...

Soumaila — 2/6/2026 9:44:25 AM

Snips from what I found on Investing.com (that is the source) re Evercore. Perhaps change in thesis is the wrong term, but Evercore is not modeling growth for 2026. The stock is priced for growth, it is not growing, the story keeps pushing out if you believe the Evercore model. The TAM is real if PI can deliver on it.

Evercore ISI cited two key concerns in its downgrade rationale: higher volatility in Impinj’s business model than previously assessed and slower near-term growth prospects, with the firm now modeling a 4% revenue decline for calendar year 2026 versus its previous 26% growth projection.

The research firm noted that while it still views Impinj as well-positioned in the RAIN RFID market, which it considers less than 1% penetrated with multi-trillion unit potential, the company faces challenges with supply chain inventory cycles that appear more pronounced than typical semiconductor firms.

Evercore ISI expects Impinj stock to "mark time" until there is improved visibility into near-term growth and more consistent forecasting, adding that while a new large program announcement could serve as a positive catalyst, such an event seems unlikely in the next 6-12 months.

[Selectric II] The quarter and the call were underwhelming. I had that feeling last quarter, t...

Selectric II — 2/6/2026 9:41:22 AM

The quarter and the call were underwhelming. I had that feeling last quarter, too, but decided to give it time. Was unimpressed by management's communications and explanations yesterday, and apparently not alone.

I wonder whether Dan Niles has changed his view. Late last year he thought PI could be '26's best performer, iirc.

[Cooters] Can't believe we have to endure this again. I'll be interested in any thesis cha...

Cooters — 2/6/2026 9:20:36 AM

Can't believe we have to endure this again. I'll be interested in any thesis changes from the analysts, because I didn't hear anything that changed mine.

[Soumaila] Here comes the reset: Evercore, downgrade to in-line, price cut from 273 to 112 ...

Soumaila — 2/6/2026 8:37:57 AM

Here comes the reset:
Evercore, downgrade to in-line, price cut from 273 to 112 (they changed their thesis)
Needham, maintains, price cut 255 to 175

[nicewatch] Impinj (PI) Q4 2025 Earnings Call Transcript My usual source has yet to post so...

nicewatch — 2/5/2026 8:22:58 PM

Impinj (PI) Q4 2025 Earnings Call Transcript

My usual source has yet to post so pasting from here for now. fwiw.

Thursday, February 5, 2026 at 5:00 p.m. ET

CALL PARTICIPANTS
Founder and Chief Executive Officer — Chris Diorio

Chief Financial Officer — Cary Baker

Vice President, Investor Relations — Andy Cobb

Full Conference Call Transcript
Andy Cobb: Thank you, Nick. Good afternoon, and thank you all for joining us to discuss Impinj, Inc.'s fourth quarter and full year 2025 results. On today's call, Chris Diorio, Impinj, Inc.'s founder and CEO, will provide a brief overview of our market opportunity and performance. Cary Baker, Impinj, Inc.'s CFO, will follow with a detailed review of our fourth quarter and full year 2025 financial results and first quarter 2026 outlook. We will then open the call for questions. You can find management's prepared remarks, plus trended financial data on the Investor Relations section of the company's website. We will make statements in this call about financial performance and future expectations that are based on our outlook as of today.

Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. Whereas we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any such statements are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements except as required by law. On today's call, all financial metrics, except for revenue, or where we explicitly state otherwise, are non-GAAP. All balance sheet and cash metrics, except for free cash flow, are GAAP.

Please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics. Before turning to our results and outlook, note that we will participate in the Barclays 43rd Annual Industrial Select Conference on February 17 in Miami, Susquehanna's 15th Annual Technology Conference on February 26 in New York, and the 2026 Tanner Global Technology and Industrial Growth Conference on March 11, in New York. We look forward to connecting with many of you at those events. I will now turn the call over to Chris.

Chris Diorio: Thank you, Andy. And thank you all for joining the call. 2025 was a tough year for our industry. Tariffs, and tariff-related supply chain whipsaws, inventory reductions at every layer of our retail markets, a downward trend in apparel imports, and protracted general merchandise adoption all weighed heavily on the RAIN market. It was also a transition year for us. We grew year-over-year endpoint IC volumes by 9%, believe we gained endpoint IC market share, made M800 our volume runner, launched Gen2X, and proved it to be a must-have for solution success. We drove Gen2X-enabled solutions at multiple Lighthouse accounts, helped plant the seeds for accelerating food adoption, and exited the year with record adjusted EBITDA and cash.

I am very pleased with how our team rose to meet the challenge. Looking into 2026, we see in the first quarter, a confluence of order timing, ongoing retailer inventory burn-down, product transitions, and a super seasonal systems decline due to project timing, driving revenue lower. Looking just a bit further out, we see conditions improving as endpoint IC volumes rebound, and growth returning as our investments in seeding new opportunities and our solutions focus pay off. Starting with first quarter endpoint ICs, like last year, our second large North American supply chain and logistics end user significantly shifted their label supplier allocations.

Partners that anticipated share gains ordered ahead in the fourth quarter, whereas those with share losses are reducing inventory in the first. Additionally, we are quickly pivoting to a custom-built endpoint IC for that end user which I'll describe shortly, causing a further temporary dip in endpoint IC orders as partners reduce prior product inventory while we ramp volumes of the new IC. Second, we see apparel retailers reducing stock and under-buying demand, impacting our first quarter outlook. And finally, food volumes remain modest in the first quarter. Turning to our expectations as we exit the first quarter, I'll start with that custom endpoint IC.

Think of it as an ASIC, developed with the end user tightly linked to their and our platforms, with added features like label authentication, that solve key business needs, while also eliminating unneeded features. They plan to fully switch to it this year. The EIC also opens new opportunities for them to unlock and for us to participate in new outward-facing customer accounts. Second, we see endpoint IC demand for apparel normalizing as soon as the second quarter. Third, we see general merchandise growing as existing categories add SKUs, and new categories get added. Fourth, we see food rollouts expanding to more stores. And finally, we see our solutions efforts opening major new accounts.

To speed our pivot to solutions, we recently added Chris Hundley as an executive vice president for enterprise solutions. Chris adds significant software and solutions talent to our team. We are also doubling down on Gen2X as a solutions enabler. Added EM Microelectronic as a Gen2X licensee, and are forging close Gen2X partnerships with leading ecosystem players. We not only see Gen2X increasing the performance and feature gap between M800 and its competition, but also see it as an essential toolkit for enterprise solutions. And we have a growing pipeline of solutions opportunities. We expect our solutions efforts to drive endpoint IC volumes and share, reader and reader IC revenue growth, and in time, meaningful software revenue.

And perhaps most importantly, a selling model that focuses on solution value rather than individual components. Of course, even as we pursue solutions, we remain keenly focused on our current products. In retail apparel, multiple new end users are talking openly about RAIN adoption. We are pursuing wins with them as well as further share shifts with existing retailers. In general merchandise, we see 2026 as the year that unlocks key new logos and current use cases, add significant new ones, and drive the IC volume goals. On the competitive front, we see Gen2X driving additional opportunities to us. In food, we see a ramp through 2026 led by bakery with proteins to follow.

And although food volumes remain modest, the opportunity is staggeringly large and we intend to lead and win it. Overall, we see industry endpoint IC volumes rebounding from an uninspiring 2025 as these growth factors layer on with our leading market share driving an outsized portion of those volumes to us. We see our solutions revenue expanding, notably as our Lighthouse end users outperform their peers, and pull us into opportunities. And in all, we expect our focus on hitting solution price points where the ROI pencils out for the end user to pay off handsomely.

Before I turn the call over to Cary for our financial review and first quarter outlook, I'd like to again thank every member of the Impinj, Inc. team for your constant effort driving our bold vision. As always, I feel honored by my incredible good fortune to work with you. Cary?

Cary Baker: Thank you, Chris, and good afternoon, everyone. Fourth quarter revenue was $92.8 million, down 3% sequentially compared with $96.1 million in third quarter 2025, and up 1% year-over-year from $91.6 million in fourth quarter 2024. 2025 revenue was $361.1 million, down 1% year-over-year compared with $366.1 million in 2024. Fourth quarter endpoint IC revenue was $75.2 million, down 5% sequentially compared with $78.8 million in third quarter 2025 and up 2% year-over-year from $74.1 million in fourth quarter 2024. Endpoint IC revenue slightly exceeded our expectations driven by Pern's orders. M800 was the volume runner with unit volumes increasing sequentially. 2025 endpoint IC revenue declined 2% year-over-year driven by the factors Chris already noted.

Looking to first quarter, we expect endpoint IC revenue to decline sequentially at a high teens percentage rate driven primarily by supply chain and logistics channel inventory reductions, retail weakness, and to a lesser extent by annual endpoint IC price reductions. Fourth quarter systems revenue was $17.7 million, up 2% sequentially compared with $17.3 million in third quarter 2025, and up 1% year-over-year from $17.5 million in fourth quarter 2024. Systems revenue exceeded our expectations driven by NRE revenue, while reader and gateway revenue and reader IC revenue declined as anticipated. 2025 systems revenue grew 2% year-over-year with reader and gateway growth more than offsetting declines in both reader ICs and test and measurement solutions.

Looking to first quarter, we expect systems revenue to decline more than seasonally, primarily due to project timing at our enterprise customers. Fourth quarter gross margin was 54.5%, compared with 53% in third quarter 2025 and 53.1% in fourth quarter 2024. The year-over-year increase was driven by higher endpoint IC direct margins, specifically from a richer mix of M800. The quarter-over-quarter increase was driven primarily by higher systems direct margins, specifically higher NRE revenue, and to a lesser extent, higher endpoint IC direct margins. 2025 gross margin was 55.3%, compared with 54% in 2024 with the increase due primarily to a richer mix of M800 endpoint ICs.

Looking to first quarter, we expect gross margin to decline sequentially driven primarily by lower revenue on fixed cost and annual endpoint IC price reductions. Total fourth quarter operating expense was $34.2 million compared with $31.8 million in third quarter 2025, and $33.6 million in fourth quarter 2024. Research and development expense was $18.6 million. Sales and marketing expense was $8.2 million. General and administrative expense was $7.4 million. 2025 operating expense totaled $130.1 million compared with $131.9 million in 2024. We expect total first quarter 2025 operating expense to increase sequentially, driven primarily by normal seasonal factors. Fourth quarter adjusted EBITDA was $16.4 million compared with $19.1 million in third quarter 2025 and $15 million in fourth quarter 2024.

Fourth quarter adjusted EBITDA margin was 17.7%. 2025 adjusted EBITDA was a record $69.6 million compared with $65.9 million in 2024. 2025 adjusted EBITDA margin was a record 19.3% in line with the long-term model we shared at our 2023 Investor Day. Fourth quarter GAAP net loss was $1.1 million. Fourth quarter non-GAAP net income was $15.6 million or $0.50 per share on a fully diluted basis. 2025 GAAP net loss was $10.8 million. 2025 non-GAAP net income was $64.2 million or $2.11 per share on a fully diluted basis. Turning to the balance sheet.

We ended the fourth quarter with record cash, cash equivalents, and investments of $279.1 million compared with $265.1 million in third quarter 2025 and $239.6 million in fourth quarter 2024. Inventory totaled $85 million, down $7.7 million from the prior quarter. Fourth quarter capital expenditures totaled $1.5 million. Free cash flow was $13.6 million. 2025 capital expenditures totaled $12.9 million. Free cash flow was $45.9 million. Turning to our outlook. We expect first quarter revenue between $71 million and $74 million compared with $74.3 million in first quarter 2025, a year-over-year decrease of 2% at the midpoint. We expect adjusted EBITDA between $1.2 million and $2.7 million.

On the bottom line, we expect non-GAAP net income between $2.5 million and $4 million reflecting non-GAAP fully diluted earnings per share between $0.08 and $0.13. In closing, I want to thank the Impinj, Inc. team, our customers, our suppliers, and you, our investors, for your ongoing support. I will now turn the call to the operator to open the question and answer session. Nick?

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, a courtesy to others, we ask that you limit yourself to one question and one follow-up. You have additional questions, please requeue, and we will take as many questions as time allows. At this time, we will pause momentarily to assemble our roster. And the first question will come from Harsh Kumar with Piper Sandler. Please go ahead.

Harsh Kumar: I wanted to hit upon the first quarter guidance a little bit. I think you're off something like $17 million to $18 million relative to the expectation on the street. I know you've got a shift at EPA. I'm sorry. A shift at your second customer in logistics. And you've also got some sort of a custom chip that you're developing and also seems like some excess inventory. So I was hoping that you could break down for us this miss between the impact from orders from the custom ship and the timing associated with it. Versus how much excess you have. And I'll ask my second question at the same time.

It seems like there's a lot of stuff moving around. You talked about food, sort of moving around, apparel moving around. But then you seem pretty confident that all of this will fix itself fairly fast, like in the second quarter. These are large end markets, and I'm curious what gives you the confidence that this will swing around in a better situation as quickly as the second quarter.

Chris Diorio: Okay. Thank you, Harsh. This is Chris. There's a lot to unpack in this question. I think Cary and I will tag team it here. So I'm going to start by saying that despite the starting points looking the same, we see 2026 very differently from 2025. 2025, we took a competitive lead and held our own, in what was an otherwise pretty tough year. In 2026, we're gonna press that lead in what we believe is shaping up to be a growth year for the reasons that we cited in our prepared remarks.

Relative to those prepared remarks, Cary and I will both go through some of the details on why we see things turning around and actually why I talked about exiting the quarter on an upward swing. Just before I hand over to Cary to add a few points, I will say that custom chip for our second large American supply chain and logistics end user is not just in design. We are currently shipping it. And so it is in production now. Cary, why don't I turn over to you for a bit, and then we can go back and forth?

Cary Baker: Thanks, Chris. First, let me break down the Q1 revenue guide and how we built it. So as I noted, we're expecting endpoint IC revenue to decline sequentially at a high teens percentage. That's primarily on lower volume as our inlay partners supporting our logistics customers burned down a few weeks of inventory. Think of each week of burn-down approximating about $5 million of impact. To a much lesser degree, yearly price reductions and product mix are also impacting our first quarter. We're modeling pricing at a couple million bucks, and the mix impact is smaller than that. There's also some retail weakness that we're factoring through our guide.

Now as we built our guide we wanted to be prudent in doing so. So there's a couple of things to consider in our guidance. First, the January turn orders have been strong. They're already double what Q4 was at the same point in the quarter and they're up more than 50% than they were last January. The second piece I would highlight is that the elevated rescheduling behavior that we saw all of last year has significantly moderated and is approaching a return to normal levels right now.

And then finally, I would add, our endpoint IC business is nearly 100% booked to the midpoint of the guide, despite there being a few weeks left to turn business in the quarter. So Harsh, we'll pause there. Why don't you follow on and we answer your question adequately, or did we leave parts of it open?

Harsh Kumar: No. No. Super helpful. I just wanted to follow-up on the second question that I asked, which was you've got a lot of end markets moving around food, apparel, all of which is getting hit seems like in 1Q, you mentioned. But then you're pretty confident that all of this will turn around. I was curious. Are you just looking at your orders and saying this will turn around for you, or is there something happening within the end markets that is causing the orders to have come in into the 1Q and you're expecting something to happen in the end market to drive that business up?

Chris Diorio: Yeah. So there's no easy answer to your question because the answer depends on the particular aspects of the end markets. In food, as I said in my prepared remarks, we see modest volumes but inexorable growth. And we remain incredibly excited about that food opportunity. We see the number of stores expanding, especially in bakery. And we see opportunities in the food space. In retail apparel, as we said, we see ongoing retailer inventory burn-down. We saw some of it in the latter part of the fourth quarter now that we finally have the data. And we see it continuing in the first quarter.

We expect that inventory burn-down to normalize based on input from the retailers themselves as well as from our partners. And we've seen new accounts coming online. For example, Abercrombie and Fitch, Aritzia, Old Navy, Academy Sports, and others. We see new accounts coming online. And then in the supply chain and logistics space, of course, as Cary noted, we see the inventory burn-down correcting as well as the new IC added volumes to us. So overall, we think we've got good visibility into the end opportunities that you've been you just raised here. And the reasons we feel positive about the situation exiting the quarter is that we see positive news there.

Harsh Kumar: Thank you, you guys.

Chris Diorio: Thank you.

Operator: The next question will come from Blayne Curtis with Jefferies. Please go ahead.

Ezra Weener: Guys. Ezra Weener on for Blayne. Thanks for taking my questions. Just first, wanna make sure I understand this correctly. You said apparel is gonna normalize in Q2. Do you also expect the logistics to normalize in Q2, or do you think that's take a little bit longer?

Chris Diorio: We said that we see apparel overall normalizing as early as the second quarter. We're not going to actually project the actual date. In the supply chain and logistics space, as Cary said just a minute ago and Cary, I'll have you ahead again. We see the inventory correction happening in the first quarter. Cary, anything you'd add there?

Cary Baker: Yeah. Ezra, I would say, you know, we're entering the quarter with a few extra weeks of channel inventory related to supply chain and logistics. We're gonna work very hard to burn that down in Q1. But we know from history that it's difficult to contain a correction to a single quarter, and it may spill over into the second quarter. You'll have to wait for us to give an update as we exit Q1 on how successful we are at burning that inventory down.

Ezra Weener: Got it. And then my follow-up would be in terms of ASIC, talked a little bit about pricing and solutions. Can you talk a little bit about how you view that and that solution for the customer and how you think about kind of pricing and value? Going forward with that?

Chris Diorio: Yes. I'm this is Chris. I'm happy to. You know, we've been focused for a while on understanding end-user problems designing customizations through our platform, that address the customer needs. We did Protected Mode for a visionary European retailer and brought that broadly to market, and it's being used by them and many others. If you think overall of Gen2X, it's the same idea. Custom features that we're broadly to market, and both of them see market success. In this case, you can think of the custom IC as being tailored to the specific needs of that end user. And it is an IC customized for them.

And we see it as not only meeting their critical needs and helping their business go forward, but also giving them the opportunity to drive operational efficiencies across their organization, and for them to expand their prowess in RAIN RFID to win new customer business, including with that IC. So we, as a company, are focused on working directly with those end users and truly enabling them to drive forward with their business and to expand it. And then for us to basically partner with them along the way. So expect us to do more of those kinds of opportunities.

And as we build more and more whole solutions to tie that customized endpoint IC and a radio link that supports it features in our reader ICs into an overall solutions offering more and more and less just an IC offering. So we're early in that stage where we focus on a solution sale rather than an individual IC sale. But expect us to drive in that direction.

Cary Baker: Ezra, this is Cary. The only other thing I would add is we'll price that IC to market.

Ezra Weener: Awesome. Thank you.

Operator: The next question will come from Jim Ricchiuti with Needham and Company. Please go ahead.

Jim Ricchiuti: I just want to follow-up on this. This new chip. Is this for a subset of applications with this customer?

Chris Diorio: No, Jim. It's for all applications with the It's they're gonna switch to that chip. They plan to fully switch to that chip in 2026. Okay. Customized for them, for their needs.

Jim Ricchiuti: Got it. Chris, will this, I don't recall you guys ever going down this path with a customer. What kind of concerns could this customer have about back-end sourcing being able to source the chip from someone other than you just to protect themselves. Wondering, does this have anything to do with the relationship perhaps with EM Microelectronics?

Chris Diorio: Good question and good connecting the dots, Jim. Not far enough along to speak to any possibilities along the about the relationship with EM, but you're thinking in the right direction. Right now, we're focused on delivering to the customer's needs, ensuring they have adequate supply and giving them commitments of supply so they have confidence in this chip and their ability to rely on it. As the future evolves and we do more of these things, and I wanna do more custom shifts because we've got other enterprise customers with key needs that aren't addressed without customizations. We will be looking to ensure for them that they have added support adequate supply of chips.

Labels, reader ICs, and everything else so they can feel confident moving down this path.

Jim Ricchiuti: Got it. One final question. I'll jump back in the queue. You suggested that Integu gain market share in endpoint ICUs. The major competitor has introduced a new chip. And I'm wondering how you're thinking about market share particularly with this new chip that you're introducing, and in a related question, it sounds like this competitor is still talking about a license payment in the June. So, Cary, maybe you could help me out. With is that something we should be thinking about as well for Q2?

Cary Baker: The way some Demotation you should expect the license payment in Q2, Jim. You should expect it.

Chris Diorio: We do. So, yes, we'll get the license payment. To the other part of your question, Jim. You know, we're focused on enabling solutions for enterprise end users. Those solutions are just not a are not just a chip. It's not just a chip and an antenna. It's a chip and an antenna and the AirLink supporting it and the reader IC supporting that and the firmware on the reader IC supporting it, the readers and gateway supporting it and the partnership supporting it and then and then solution software. We're focused on driving the entirety of those pieces to create an enterprise solution. And we firm and you see Gen2X as a key part of that initiative.

And we firmly believe that by delivering whole solutions, and optimizing so that the solution for the end user we can outperform mix and match efforts using competitor products. And that's our focus.

Jim Ricchiuti: Thank you.

Chris Diorio: Thank you.

Operator: The next question will come from Scott Searle with ROTH Capital. Please go ahead.

Scott Searle: Maybe to start, I just wanted to get a couple of clarifications on some of your comments and some of the initial questions. For starters, on the logistics softness, I want to clarify, is the customer that you're designing a custom chip for, are they in then working down inventory to zero from legacy M700, M800 chips and that's part of the pressure as well. And then as it relates specifically to the custom ASIC, I think you got asked the market share question, but I'll ask it maybe a different way. Know, I would imagine if they're moving in this direction, it should deliver higher share as opposed to splitting the business historically with NXP.

Should we be assuming though that you're going to be gaining 100% share with these types of customers? And it sounds like there's more custom opportunities in the pipeline. So how is this going to transition then over the course of 2026 and 2027? And then I had a follow-up.

Chris Diorio: Yeah, Scott. I'll do my best to those questions. First, we're not just designing the chip. It's in production now. Second, it's dedicated to a single customer, which is our second large North American supply chain and logistics customer. It is targeted at addressing their specific needs, and it is a chip specific to them. We already have high share at that account. It will maintain that share. And we are exploring customizations for other enterprises, that aren't as far down the path as we are this particular instance where we actually have the IC or the chip in production.

But more importantly, I view this chip as us engaging closely enough with the enterprise where they can share their needs we can share what we can do, and we can together build a chip. It's not just Impinj, Inc. chip, build a chip for them. It's we work together on it. They came forward with what they needed, and we built it for them. And they're gonna be using it and we intend to keep doing so. You know, I have a mantra in the company. And I push it at every meeting we have, which is we support our end customers. We never let an end customer down. And you should expect that us to do that here.

Cary, what did NSC Scott, let me unpack the oh,

Scott Searle: well, just one clarification. Inventory bill is just oh, sorry. Before the inventory bill, just, Chris, to clarify then, do you retain the IP and the ability then to license it to additional customers within that same sub-vertical or no?

Chris Diorio: Yes. We do in this particular instance retain the IP. I can imagine other scenarios where there might be some shared IP in this instance, we retain the IP. But our focus first and foremost, is supporting that customer. They're a lighthouse customer to us. I consider them a close partner. You should expect us to focus first on them, with this particular chip, and we built it for them specific to them.

Cary Baker: And, Scott, I'll just unpack the inventory build a little bit. Today, parcel tracking deployment uses the M800 exclusively. The M800 is our general-purpose SKU, meaning it can also support virtually any retail, apparel, or general merchandise application. And that application fungibility gave some of our partners the confidence to lean in build supply ahead of actually winning the award knowing that they can move those ICs through other applications if necessary. So when we were looking at our fourth quarter and we were building our fourth quarter, it came together as we expected.

But when we unpacked it unpacked the quarter in mid-January we matched that with our channel inventory reports from our inlay partners, we realized that the logistics-related build had masked the weakness in retail. Now this will get better. With our logistics customer now ramping to the new custom IC that Chris just described, we will have better visibility into logistics-related inventory. We'll be able to match our shipments of that custom IC directly to that end customer's monthly consumption reports. We have to prove it to you, certainly, but we think this gets better going forward.

Scott Searle: Okay. Very helpful. And if I could just as a follow-up, another market share question. Chris, you've referenced it a lot of times in your opening remarks. But Gen2X provides significant benefits and advantages. It only works with your endpoint IC. So I'm wondering as you look out over the next couple of quarters in '26 and '27, is this the primary driver, of incremental share out there? And will you start to run the table a little bit more in terms of meaningful market share within your existing accounts? Thanks.

Chris Diorio: I'm gonna yes. I'm gonna answer the question yes. I believe that Gen2X will be the significant driver of our market share gains. But you should think of Gen2X as a toolbox that we can bring to bear, for enterprise customers who have an unmet need and allow us to solve their problem. So to the extent that we have significant enterprise accounts, which we do, we need a way to solve them. Consider Gen2X to be the way we're gonna be driving the solution and going forward, even adding more features and capabilities to Gen2X as we learn and do more.

So, essentially, you should think of Gen2X as a way to improve the readability overall performance, and protection capabilities provided by RAIN RFID. To reduce labor cost to speed inventory, to provide readability work, you wouldn't have it otherwise, to localize where items are, to identify exits and theft. And many we have protect consumer privacy in many other areas where we put that whole toolbox together it's the driver of our differentiation in the market. It's kind of manifestation it, but it's also a manifestation of our overall solution strategy. For the two together, they're gonna be the drivers of our success.

Scott Searle: Hey. Great. Thanks so much. I'll get back in the queue.

Operator: The next question will come from Natalia Winkler with UBS. Please go ahead.

Natalia Winkler: Hi. Thank you so much for taking my question. I just wanted to ask one more on the fourth quarter kind of outlook for you guys. So if I understood Cary correctly, Cary, you mentioned several weeks of inventory burn for retail. Right? And it sounds like each week is $5 million. So if I'm thinking, you know, even of a sequential, you know, reduction of $20 million, it sounds like you know, more than half of that is probably related to the retail inventory burn-down. Is that kind of a fair way to think about it? Or is it more nuanced?

Cary Baker: I think that's a fair way to think about it. It's a few weeks of inventory, not several. It's primarily related to supply chain logistics for the reasons I just described. You're correct in that the impact is about $5 million per week of burn-down. And then the other factors, are far less impactful, are pricing and mix, a sized pricing at a couple million dollars, and mix of less than that.

Natalia Winkler: Awesome. Thank you so much. And then I guess a follow-up. Can you guys help us understand, you know, clearly, it's a highly complex supply chain for retail, right, with kind of multiple different steps and stages in it. Can you walk us through your, you know, forecasting process and maybe part of the reason, like, why we're seeing such a strong kind of corrections and burnout that may be a little bit less predictable than for some of the other end markets you guys cover?

Cary Baker: Yeah. So the inventory build was related to logistics. We had a similar logistics build last year at the same time, but for different reasons. It's nonetheless frustrating. This year's build is a result of our partners leaning in ahead of winning the supply rep supply or supply awards or label awards following the label reallocation process. They were comfortable leaning in because up until the custom IC ships, the M800 goes into the package the tracking deployment. The M800 is a fungible SKU across the industry in that its general purpose. It can support retail apparel. It can support general merchandise. It can support logistics.

That fungibility gave our partners the confidence to lean in build extra inventory in hopes of winning an award. Because if they didn't win the award or didn't win as much of an award as they thought, they would be able to burn that inventory down through the rest of their market opportunities. We didn't realize that in the fourth quarter as it was happening. Because our fourth quarter from a unit volume perspective was coming in right as we expected.

When we began unpacking the fourth quarter volumes in mid-January, and we matched that with the channel inventory reports we received around that same time, we realized that the logistics build had masked some weakness in retail apparel that we didn't anticipate and wasn't obvious to us until that point. Now I think next year, this gets better. And I know we have to prove that first given the last two years of channel inventory builds. But I think it gets better because we will only ship one SKU to that customer.

It's only usable by that customer, and we will be able to match our shipments with their monthly consumption reports and the difference between the two is the inventory that will be in the channel. So again, we have to prove it to you. But I think we get better next year at that.

Operator: The next question will come from Troy Jensen with Cantor Fitzgerald. Please go ahead.

Troy Jensen: Hey, gentlemen. Thanks for taking my questions. Maybe for Chris, I guess either one of you guys, you know, these customers that were leaning in, right, in the hopes for the awards, sounds like they went to a competitor. So I'm just curious why do you think we had this share loss the quarter? Was running No. They didn't go to our competitors. Right. No. No. That wasn't part of it. There was no none of that moving to a competitor. So just a awards awarded They there's a new IC coming? They, anticipated some wins. They started building to the new IC, At the same time, they know their existing inventory is gonna it needs to get burned down.

So they started buying ahead. The ones who as we said in our prepared remarks, the ones who didn't win as much now need to burn down their inventory in the first quarter.

Cary Baker: So, Troy, the only thing I'd add to Chris is that our logistics customer rebids their label suppliers each year. It's still the M800, for all labels, but the mix of inlay partners that support them each year can change. Based on that rebidding process. And that rebidding process here this year coupled with the fungibility of the M800 that I just described, gave them the confidence to lean in and buy more supplies so they could be more responsive if they won the award or to win a greater share of the award.

Troy Jensen: Gotcha. And they knew that if they didn't win as much, they would be able to take that inventory out through virtually any other retail apparel or general merchandise application.

Chris Diorio: Yep. Okay. Understood. So several partners probably thought they're gonna win the award and went to one. Exactly. It was oversubscribed. The award was oversubscribed. Exactly. And the we compound it with a new chip entering the market, and there still needs to be a further burn down of the existing M800 product.

Troy Jensen: Yep. Okay. Understood. And then, maybe just to follow-up with the, you talked about retail SKU growth you're seeing. I'm curious if that's broad-based or is that just limited to a couple of your bigger customers?

Chris Diorio: It was a SKU growth in general merchandise. You mean retail apparel? Growth?

Troy Jensen: I think it means SKU growth in general. On SKU Just the common SKU growth, was that just based on a few large customers, or is it more broad-based?

Chris Diorio: The comment on SKU growth in existing categories as well as the potential for new categories was related to a small number a pretty small number of customers in the general merchandise space.

Troy Jensen: Gotcha. Okay. Good luck this year, guys.

Operator: The next question will come from Guy Hardwick with Barclays. Please go ahead.

Guy Hardwick: Hi, good evening. Hi, guys. Hi, guys. Just a couple of questions. So I think a year ago, when you had an inventory overhang in the T&L space, you said some similar comments that it could take more than a quarter to clear the inventory, but I think you actually cleared the inventory in just one quarter. What's different this time? And then as a follow-up, it looks like you have pretty good visibility on the endpoint IC business that you're pretty much already booked for Q1 within the midpoint of your guidance, looking at your comments.

So what does that tell you or tell us in terms of what's the underlying growth in the endpoint IC market of 2025 levels?

Cary Baker: Guy, this is Cary. I'll try to take both of those questions. So, yes, it is the same in that it's the supply chain logistics space. There are a variety of different reasons, which I've already covered. We last year, we were successful in burning all that channel inventory out in the first quarter. We are attempting to do the exact same thing this year. However, we know that inventory corrections are seldom contained to one quarter and we just wanna be cautious with our guidance so that if it does spill into the second quarter, we have room to do that.

As it relates to our guidance, we are seeing strong signals from our bookings and our turns order in quarter to date. So think of January through February. That is turns at a higher rate than it was at the same time in fourth quarter more than double, and 50% up from last year January. That has put us in a position where we are 100% booked to the midpoint of our guide for our endpoint IC business or nearly 100% booked. We're giving ourselves a little bit of room because we aren't done with the annual price negotiations. We still have a couple that are outstanding there.

And also, the Chinese New Year occurs later this year than it did last year, and we typically see a low in bookings during those three weeks.

Guy Hardwick: Thank you. Good day.

Operator: The next question will come from Christopher Rolland with Susquehanna. Please go ahead.

Dylan Olivier: Hi there. This is Dylan Olivier on for Chris. Thanks for taking my question. Maybe pivoting away a bit from this inventory situation and sort of bigger picture question. I wanted to ask about sort of the competitive landscape, particularly against non-RFID components. We've heard some news flow of some end users kind of pivoting away to some more BLE and, you know, other protocols. Is that something that you consider a risk? Or do you remain confident in RFID as a long-term solution?

Chris Diorio: Dylan, this is Chris. The simple answer is we remain confident to bring our RFID as a long-term solution. The just two different technologies. And active BLE with batteries has a particular use case. For tracking things like temperature and other kind of stuff against continuous data logging. That's complementary. Passive BLE for beaconing operates in a narrow window of use cases. And again, with some different features and capabilities that I also view as mostly complementary. The volume differences between the two are gigantic. I mean, you know, our industry delivered 52.8 billion ICs last in 2024. And volume differences are gigantic. The infrastructure is different. I view them as mostly complementary.

Of course, with every complementary thing, there's a bit of overlap. But I don't really look at the competitiveness. I look at complementary things. And trying to enable the end customer with a solution that meets their needs.

Dylan Olivier: Thanks. Appreciate the color here. And then maybe more of a housekeeping question for my second for my follow-up. But, yeah, you had that EM Microelectronics license announcement in the quarter. Just wondering if Yeah. How we think about that impacting the model, if there's gonna be a recurring revenue and if that's gonna be consistent through the year.

Chris Diorio: Yeah. There's an immaterial impact to revenue in 2026. We're still working on what that first chip might be, likely a dual-frequency IC. Likely not available this year. It just view it as a strategic partnership. And then just think that it so the answers that we gave to Ed Jim's question, you know, view the strategic partnership as a way for us to deliver confidence to our end users.

Dylan Olivier: Great. Thank you.

Operator: The next question is a follow-up from Harsh Kumar of Piper Sandler. Please go ahead.

Harsh Kumar: Yeah. Hey, guys. So I was curious how long do you think it would take for you to be fully penetrated at your second largest logistics customer with the custom chip. And am I correct in assuming that custom chips typically mean better pricing than a normal chip?

Chris Diorio: So I'll take the first answer. So the customer plans to fully switch over to that ship this year. That's what I said in my prepared remarks. And as Cary said, are pricing the chip to market. Cary, anything you wanna add?

Cary Baker: Nope.

Harsh Kumar: Did I answer your question, Harsh?

Harsh Kumar: Well, I guess there is no market for a custom chip. Right? The standard in RFID, and you've got a custom product. I would suspect So are you saying that your pricing is similar to M800? Or more than that?

Chris Diorio: I'm gonna say that we're pricing it to as I also said in some of the prepared remarks, a little bit further down. To drive an ROI for the end customer and for us.

Harsh Kumar: Okay. Fair enough. Fair enough. Thank you.

Chris Diorio: Thank you.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Chris Diorio, Co-Founder and CEO, for any closing remarks.

Chris Diorio: Thank you, Nick. I'd like to thank you all for joining the call today. And thank you for your ongoing support. Bye-bye.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

finance.yahoo.com

[waitwatchwander] $99 AH, yet another round trip.

waitwatchwander — 2/5/2026 5:30:53 PM

[Soumaila] Turning to our outlook, we expect first-quarter revenue between $71.0 and $74.0 ...

Soumaila — 2/5/2026 4:39:47 PM

Turning to our outlook, we expect first-quarter revenue between $71.0 and $74.0 million, compared

with $74.3 million in first-quarter 2025, a year-over-year decrease of 2% at the midpoint. We expect

adjusted EBITDA between $1.2 and $2.7 million. On the bottom line, we expect non-GAAP net

income between $2.5 and $4.0 million, reflecting non-GAAP fully diluted earnings-per-share between

8¢ and 13¢.

[Soumaila] Avery Dennison earnings out: Key take aways for PI - combo of press release an...

Soumaila — 2/4/2026 8:15:30 AM

Avery Dennison earnings out:

Key take aways for PI - combo of press release and investor presentation slides
1. Intelligent labels up high single digits (closest proxy for endpoint IC demand from Avery)
2. Enterprise-wide Intelligent Labels
a. Q4 up mid single digits
b. Apparel/General merch down LSD
c. Other categories up high teens
3. FY sales up LSD - apparel flat yoy
4. Key End Market Insights for 2026
a. Apparel and General Merch - tariff uncertainty still impacting, expect return to growth in 2026
b. Food - adoption to accelerate, program contribution to 2026 revenue heavily weighted to 2H
c. Logistics - Outsized growth and share in 2025: expanding pilots with additional customers in 2026

My take:
Logistics is still pilots and not rollouts (look forward to the day when the language is expanding rollouts to additional customers and not pilots).

You can really see the difference in how the verticals are discussed, apparel is not about pilots, it is about adoption/rollouts, expansion of current deployment, new use case adoption. It is business as usual, RFID is the standard in the industry. Logistics an food are still in the prove it phase, even with UPS full deployment in the US as well as the Kroger/Walmart rollouts in fresh grocery.

UPS glide down, will it impact 1H and thus Q1 glide (it did last time and details came out in the back half of hte year).

Hoping for a positive guide, my bar is pretty low, hopefully PI leaps right over it!

[Soumaila] UPS - highlighted full deployment of RFID in package cars and shipping centers i...

Soumaila — 1/28/2026 8:28:43 AM

UPS
- highlighted full deployment of RFID in package cars and shipping centers in slide deck
- revenue per package up
- expects growth in back half of 2026

First half of 2026 to wrap up Amazon glide down started last year, will reduce Amazon shipping by 1 million packages per day in first half.

nbcnews.com

[Soumaila] UBS maintained neutral lowered target $10 to $190

Soumaila — 1/27/2026 8:46:06 AM

[Cooters] How to Tag Liquids, Metals, and Small Items for Walmart’s RFID Mandate How ...

Cooters — 1/23/2026 12:54:16 PM

How to Tag Liquids, Metals, and Small Items for Walmart’s RFID Mandate

How to Tag Liquids, Metals, and Small Items for Walmart’s RFID Mandate

[Soumaila] Amazon Walkout Stores - final paragraph has some really strong data rfidjournal...

Soumaila — 1/23/2026 11:24:29 AM

Amazon Walkout Stores - final paragraph has some really strong data

rfidjournal.com