tiprankstipranks
Trending News
More News >
IMPINJ Inc (PI)
NASDAQ:PI

IMPINJ (PI) AI Stock Analysis

Compare
1,262 Followers

Top Page

PI

IMPINJ

(NASDAQ:PI)

Rating:60Neutral
Price Target:
$113.00
▼(-0.39%Downside)
IMPINJ's overall score is primarily influenced by its strong earnings call outlook and cash flow generation, which are offset by profitability challenges and high leverage. Technical analysis suggests short-term uncertainty, and the valuation is a significant concern due to negative earnings and lack of dividends.
Positive Factors
Financial Performance
Impinj reported better than expected results and guidance on endpoint IC resilience.
Market Opportunity
PI has a long growth runway, including an emerging opportunity in grocery with news of direct engagement with a second grocer for a self-checkout application.
Product Launch
Management highlighted the launch of its Gen2X solution, citing 'overwhelming' interest from customers and deployments in all top 6 reader partners.
Negative Factors
Guidance Uncertainty
The company stopped short of guiding beyond March, creating uncertainty about future performance.
Inventory Management
Impinj reported worse than expected results and guidance, driven by an accumulation of excess endpoint IC inventory at inlay partners and delayed orders as customers sought better prices.
Revenue Expectations
PI guided for Q1 revenues to be down 5%-9% y/o/y vs. Street expectations of 21% growth.

IMPINJ (PI) vs. SPDR S&P 500 ETF (SPY)

IMPINJ Business Overview & Revenue Model

Company DescriptionImpinj, Inc. (PI) is a leading provider of RAIN RFID solutions, enabling businesses to identify, locate, and authenticate items to streamline operations and enhance customer experiences. The company's technology is used in various sectors, including retail, healthcare, logistics, and manufacturing. Impinj's core products and services include endpoint integrated circuits, connectivity devices, and software platforms, which collectively facilitate the tracking and management of goods and assets.
How the Company Makes MoneyImpinj generates revenue primarily through the sale of its RAIN RFID solutions, which include endpoint ICs, connectivity devices, and software. The company sells these products to OEMs, resellers, and end-users across multiple industries. A significant portion of Impinj's revenue comes from the sale of endpoint ICs, which are embedded in tags and labels for tracking purposes. Additionally, Impinj licenses its intellectual property and provides support and maintenance services, contributing to its revenue streams. Strategic partnerships with technology integrators, retailers, and logistics providers further enhance its market reach and revenue potential.

IMPINJ Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 47.19%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong market position and optimistic future outlooks offset by current revenue declines and ongoing tariff and inventory challenges. The company's strategic shifts and technological advancements are promising, but immediate challenges remain significant.
Q1-2025 Updates
Positive Updates
Strong Market Position
Impinj holds the number one endpoint IC market share, capturing 85% of the industry's 2024 unit volume growth, with continued strong engagement from large enterprises.
Above Expectations Financial Performance
First-quarter revenue was $74.3 million, with endpoint IC revenue exceeding expectations. Strong book-to-bill ratio and solid pipeline activity were observed.
Positive Second Quarter Outlook
Impinj expects second-quarter revenue between $91 million and $96 million, a quarter-over-quarter increase of 26% at the midpoint, driven by licensee payments.
Gen2X Technology Success
Gen2X technology demonstrated a 44% increase in overhead reading solution area coverage, leading to a major deployment by a large apparel retailer.
Cash and Investments Position
Impinj ended the first quarter with cash, cash equivalents, and investments of $232.5 million, providing a strong financial backdrop for future investments.
Negative Updates
Revenue Decline
First-quarter revenue was down 19% sequentially and 3% year over year. Endpoint IC revenue also showed a slight year-over-year decline.
Tariff and Inventory Challenges
Ongoing tariff uncertainties and geographic shifts in production have led to inventory challenges and a 'wobble' in the second quarter.
Systems Revenue Decline
First-quarter systems revenue was down 25% sequentially and 15% year over year, with an expected sequential decline in the second quarter.
Negative Free Cash Flow
First-quarter free cash flow was negative $13 million, primarily due to unfavorable working capital timing, though this is expected to reverse in the second quarter.
Adjusted EBITDA Decrease
First-quarter adjusted EBITDA was $6.5 million, down from $15 million in the fourth quarter of 2024, with an EBITDA margin of 8.7%.
Company Guidance
During the Impinj, Inc.'s first quarter 2025 financial results call, the company provided guidance for the second quarter, expecting revenue between $91 million and $96 million, marking a significant quarter-over-quarter increase from the $74.3 million reported in Q1. The anticipated growth includes a notable licensee payment, contributing to the revenue boost. Adjusted EBITDA is projected to range from $23.5 million to $26 million, with non-GAAP net income estimated between $20.8 million, translating to earnings per share between $0.68 and $0.76. Despite a challenging macroeconomic environment influenced by tariffs, Impinj, Inc. remains optimistic about its market position, driven by strong demand for its endpoint ICs and systems. The company is particularly focused on sustaining its growth through strategic investments in enterprise solutions and leveraging opportunities in supply chain logistics and retail, underscoring its robust financial health and operational resilience.

IMPINJ Financial Statement Overview

Summary
IMPINJ shows strengths in cash flow generation and gross profit margins, but struggles with profitability due to negative net profit and EBIT margins. High leverage and inconsistent revenue growth pose additional risks. Improvements in equity and cash flow ratios are positive but need to be matched by addressing profitability issues.
Income Statement
65
Positive
IMPINJ's financial performance shows a strong gross profit margin of 51.6% in TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the company faces challenges with negative net profit and EBIT margins of -0.3% and -1.3% respectively, suggesting struggles in achieving profitability. Revenue growth has been positive over the years, with a 41.8% growth from 2021 to 2022, but the recent TTM figures show a slight decline of 0.7% from the previous year, highlighting potential challenges in maintaining growth momentum.
Balance Sheet
55
Neutral
IMPINJ's balance sheet reveals a high debt-to-equity ratio of 1.82 in TTM, which indicates significant leverage and potential financial risk. The equity ratio has improved to 33.5% in TTM, reflecting better capital structure management compared to previous years. However, the return on equity is negative at -0.6%, pointing to difficulties in generating returns for shareholders despite improvements in equity levels.
Cash Flow
70
Positive
IMPINJ shows a robust free cash flow of $44.25 million in TTM, with a positive free cash flow to net income ratio, demonstrating effective cash generation relative to net income. The operating cash flow to net income ratio of 59.6 in TTM highlights efficient operations. Nevertheless, the free cash flow growth rate saw a decline from the previous year, necessitating attention to sustaining positive cash flow trends.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue363.54M366.09M307.54M257.80M190.28M138.92M
Gross Profit187.49M188.85M151.98M137.88M98.95M65.14M
EBITDA14.54M59.86M-26.83M-13.54M-43.95M-41.92M
Net Income-957.00K40.84M-43.37M-24.30M-51.26M-51.92M
Balance Sheet
Total Assets479.82M489.08M359.41M349.74M315.54M207.62M
Cash, Cash Equivalents and Short-Term Investments147.92M164.71M113.23M173.75M193.35M106.09M
Total Debt292.35M292.80M294.59M294.43M304.37M73.46M
Total Liabilities319.26M339.22M325.28M334.15M326.61M98.50M
Stockholders Equity160.56M149.86M34.13M15.59M-11.08M109.12M
Cash Flow
Free Cash Flow44.25M111.20M-68.22M-11.44M-9.77M-19.95M
Operating Cash Flow57.03M128.31M-49.38M641.00K6.46M-16.88M
Investing Cash Flow-176.39M-192.57M115.81M-102.80M-18.64M-36.29M
Financing Cash Flow13.82M15.68M8.74M-2.15M112.44M9.90M

IMPINJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price113.44
Price Trends
50DMA
107.62
Positive
100DMA
98.34
Positive
200DMA
138.41
Negative
Market Momentum
MACD
0.56
Negative
RSI
57.77
Neutral
STOCH
76.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PI, the sentiment is Positive. The current price of 113.44 is above the 20-day moving average (MA) of 110.02, above the 50-day MA of 107.62, and below the 200-day MA of 138.41, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 76.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PI.

IMPINJ Risk Analysis

IMPINJ disclosed 54 risk factors in its most recent earnings report. IMPINJ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

IMPINJ Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$3.99B33.1124.82%1.52%32.63%46.16%
76
Outperform
$4.24B55.775.02%11.65%
75
Outperform
$2.51B23.1815.97%14.86%-0.94%
69
Neutral
$3.04B-11.33%26.55%38.37%
PIPI
60
Neutral
$3.29B58.72-0.78%21.80%89.21%
59
Neutral
€3.21B12.60-9.91%2.78%2.38%-49.53%
PAPAR
58
Neutral
$2.72B-13.65%-8.82%90.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PI
IMPINJ
113.44
-48.16
-29.80%
CAMT
Camtek
87.52
-44.73
-33.82%
PAR
Par Technology
67.06
21.48
47.13%
TTMI
TTM Technologies
41.76
21.97
111.02%
PAYO
Payoneer
6.93
1.47
26.92%
ALKT
Alkami Technology
29.23
-1.22
-4.01%

IMPINJ Corporate Events

Executive/Board ChangesFinancial Disclosures
Impinj COO Resignation Amid Stable Earnings Outlook
Neutral
May 22, 2025

On May 22, 2025, Impinj, Inc. announced the resignation of its Chief Operating Officer, Hussein Mecklai, effective May 20, 2025. Despite this leadership change, the company affirmed that there would be no alterations to its previously disclosed earnings guidance, indicating stability in its operational outlook.

The most recent analyst rating on (PI) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on IMPINJ stock, see the PI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025