Impinj Inc. Reports Strong Growth Amid Challenges

IMPINJ Inc ((PI)) has held its Q2 earnings call. Read on for the main highlights of the call.

Impinj Inc. Reports Strong Growth Amid Challenges in Q2 Earnings Call

Impinj Inc.’s second quarter earnings call revealed a generally positive sentiment, driven by strong sequential growth in revenue and adjusted EBITDA. Despite facing year-over-year revenue declines and challenges in the reader IC segment, the company expressed optimism for the third quarter, backed by a robust cash position and improved gross margins.

Revenue and Adjusted EBITDA Exceed Expectations

In the second quarter, Impinj reported a revenue of $97.9 million, marking a 32% sequential increase from the first quarter of 2025. This impressive growth was complemented by a record-setting adjusted EBITDA of $27.6 million, highlighting the company’s ability to exceed market expectations.

Strong Performance in Endpoint ICs

The endpoint IC segment was a standout performer, with revenue reaching $84.6 million, up 38% sequentially. The growth was primarily driven by the M800 and Gen2X products, which contributed to a 12% increase in sequential endpoint IC product revenue.

Record Gross Margin Achieved

Impinj achieved a record gross margin of 60.4% in the second quarter, a significant improvement from 52.7% in the first quarter of 2025. This achievement was attributed to licensing revenue and a richer mix of M800 products.

Cash Position and Free Cash Flow

The company ended the quarter with a strong cash position, holding $260.5 million in cash, cash equivalents, and investments. Additionally, Impinj generated a free cash flow of $27.3 million, underscoring its financial stability.

Positive Outlook for Third Quarter

Looking ahead, Impinj provided a positive revenue guidance for the third quarter, expecting between $91 million and $94 million. The company anticipates continued sequential growth in endpoint IC and systems revenue, reflecting its confidence in sustaining momentum.

Year-Over-Year Revenue Decline

Despite the positive sequential growth, the second quarter revenue was down 4% year-over-year, from $102.5 million in the second quarter of 2024. This decline highlights the challenges the company faces in maintaining year-over-year growth.

Challenges in Reader IC Segment

The reader IC segment experienced a sequential revenue decline due to significantly lower indie shipment volumes as the product line approaches its end of life. This challenge underscores the need for strategic adjustments in this segment.

Tariff and Supply Chain Headwinds

Impinj faced headwinds from tariffs and supply chain disruptions, which impacted delivery timing and necessitated location adjustments. These challenges are part of the broader industry issues affecting many companies.

Forward-Looking Guidance

For the third quarter, Impinj anticipates revenue between $91 million and $94 million, with adjusted EBITDA expected to range from $15.6 million to $17.1 million. The company projects non-GAAP net income between $14 million and $15.5 million, translating to earnings per share of $0.47 to $0.51. Impinj expects a sequential increase in product gross margin, driven by a higher mix of M800 products and sell-through of lower-cost wafers.

In summary, Impinj’s second quarter earnings call conveyed a positive outlook despite some challenges. The strong sequential growth in revenue and adjusted EBITDA, coupled with a robust cash position, positions the company well for future growth. However, year-over-year revenue decline and challenges in the reader IC segment highlight areas for improvement. Overall, Impinj remains optimistic about its prospects, with a focus on leveraging its strengths in the endpoint IC market.