IMPINJ Inc ((PI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Impinj Inc. painted a mixed picture, with both positive and challenging elements. On the upside, the company celebrated record endpoint IC volumes and robust systems revenue growth, supported by strategic hires and a strong financial footing. However, these achievements were balanced by a sequential revenue decline, a cautious outlook for the fourth quarter, and difficulties with Chinese partner orders.
Record Endpoint IC Volumes
The third quarter results for Impinj Inc. showcased record endpoint IC volumes, which contributed to achieving a new quarterly product revenue record. This was accomplished despite facing weak retailer buying patterns and tariff headwinds, highlighting the company’s resilience in navigating challenging market conditions.
Strong Systems Revenue Growth
Impinj reported a significant boost in systems revenue, reaching $17.3 million in the third quarter. This marks a 30% sequential increase from the second quarter of 2025 and a 21% year-over-year growth from the third quarter of 2024, underscoring the company’s strong performance in this segment.
New Leadership in SaaS and Cloud Services
In a strategic move to enhance its software capabilities, Impinj has hired a Senior Vice President of SaaS and Cloud Services. This addition aims to develop software and capture recurring revenue opportunities, aligning with the company’s strategic focus on software development.
Positive Cash Flow and Financial Position
The company reported a positive cash flow of $18 million, a significant increase from $4.7 million in the third quarter of 2024. Additionally, Impinj’s cash, cash equivalents, and investments totaled $265.1 million, reflecting a solid financial position.
Sequential Revenue Decline
Despite the positive developments, Impinj experienced a slight sequential revenue decline, with third-quarter revenue at $96.1 million, down 2% from the second quarter of 2025. This decline highlights the challenges the company faces in maintaining its growth trajectory.
Endpoint IC Revenue Drop
The third quarter saw a 7% sequential decrease in endpoint IC revenue, dropping to $78.8 million. This represents a 3% year-over-year decline from $81 million in the third quarter of 2024, indicating a need for strategic adjustments in this area.
Lower Fourth Quarter Outlook
Looking ahead, Impinj anticipates a modest sequential decline in fourth-quarter revenue, projected to be between $90 million and $93 million. Adjusted EBITDA is also expected to decline, reflecting a cautious outlook for the upcoming quarter.
Conservative Ordering by Chinese Partners
The company noted that conservative ordering by Chinese reader IC partners is expected to contribute to lower revenue in the fourth quarter. This cautious approach by partners adds to the challenges Impinj faces in sustaining its growth.
Forward-Looking Guidance
Impinj’s forward-looking guidance indicates a modest sequential decline in fourth-quarter revenue, with expectations set between $90 million and $93 million. The company projects adjusted EBITDA to range from $15.4 million to $16.9 million. Despite these challenges, Impinj is committed to investing in Gen2X technology and software innovations to capitalize on emerging market opportunities, particularly in sectors like food and e-commerce.
In summary, the Impinj Inc. earnings call presented a balanced view of the company’s current standing and future prospects. While the record endpoint IC volumes and strong systems revenue growth are commendable, the sequential revenue decline and cautious fourth-quarter outlook highlight the challenges ahead. Nevertheless, with strategic leadership hires and a robust financial position, Impinj remains poised to navigate these challenges and explore new growth avenues.