IMPINJ (PI) AI Stock Analysis

• Market Cap: $3.72B
• Dividend Yield: N/A
• Average Volume (3M): 792.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: 4.24%
• EPS Growth: -141.83%
• Country: US
• Employees: 451
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.50
• Shares Outstanding: 30,231,686
• 10 Day Avg. Volume: 771,139
• 30 Day Avg. Volume: 792,586
• PEG Ratio: 3.75
• Price to Book (P/B): 24.35
• Price to Sales (P/S): 14.11
• P/FCF Ratio: 111.05
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 11.48
• Enterprise Value/Gross Profit: 21.92
• Enterprise Value/Ebitda: 946.95
• 1Y Price Target: $173.38
• Price Target Upside: 35.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.87
• Revenue Forecast (FY): $363.77M

• Rating: 50 Neutral
• Price Target: $128.00 ▲(0.06% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held back primarily by weak technicals (price below major moving averages with negative MACD) and GAAP-loss valuation (negative P/E), while financial performance is mixed—good growth/margins and improved cash generation but inconsistent profitability and meaningful leverage. The latest earnings call adds moderate support from strong cash/strategy, tempered by cautious near-term guidance and expected margin pressure.

Positive Factors

Free Cash Flow Generation

Impinj produced materially positive operating and free cash flow in 2024–2025 (operating cash flow and FCF figures show multi-year recovery). Durable cash generation provides funding for R&D, product rollouts, inventory management and debt servicing, increasing resilience through demand cycles.

High Margins and Record EBITDA

Record adjusted EBITDA and sustained ~55% gross margins indicate strong product economics driven by favorable SKU mix (M800). High structural margins support reinvestment into solutions, buffer pricing pressure, and create operating leverage that can translate to durable profitability as volumes normalize.

Product & Solutions Momentum

Gen2X adoption, licensing deals, M800 volume traction and a shipped custom ASIC for a large logistics customer show product leadership and ecosystem scaling. A stronger solutions focus and enterprise hire suggest expanding higher‑margin software/NRE revenue and stickier, integrated customer relationships over time.

Negative Factors

Elevated Leverage

The company’s leverage (debt materially above equity) constrains financial flexibility and raises refinancing and interest-rate risk. In an environment of earnings volatility, higher leverage limits capacity for opportunistic investment, M&A or shareholder returns and increases downside risk if cash flow weakens.

Profitability Volatility / GAAP Loss

Earnings have been inconsistent: a GAAP loss in 2025 despite positive non‑GAAP metrics signals operating leverage and margin sensitivity. This volatility complicates forecasting, can pressure covenants or credit metrics, and reduces confidence in sustained cash generation absent stable revenue recovery.

Channel Inventory & Near-Term Demand Weakness

Management expects meaningful endpoint IC declines as logistics partners destock and retail demand softens, plus modest annual price reductions. Prolonged destocking and price erosion reduce revenue visibility and can compress margins over several quarters, slowing the path to consistent unit growth.

IMPINJ Business Overview & Revenue Model

Company Description

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform, which comprises multiple product families, wirelessly connects individual items and delivers data about the connected items to business and consumer applications. The company's platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that comprise reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enables its partners to deliver use cases, such as retail self-checkout and loss prevention, and warehouse pallet and carton tracking to end-users. The company primarily serves retail, supply chain and logistics, aviation, automotive, healthcare, industrial and manufacturing, sports, food, datacenter, travel, banking, and linen and uniform tracking sectors through distributors, system integrators, value-added resellers, and software solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

How the Company Makes Money

IMPINJ generates revenue primarily through the sale of its RAIN RFID products, which include integrated circuits (ICs), RFID readers, and software solutions. The company has established key revenue streams from direct sales to manufacturers, distributors, and end-users in multiple sectors. Additionally, IMPINJ benefits from recurring revenue through subscription-based software services and maintenance contracts. Significant partnerships with global companies in retail and logistics contribute to its earnings, as they leverage IMPINJ's technology to enhance operational efficiency and inventory management.

IMPINJ Financial Statement Overview

Summary

Strong revenue scaling and consistently healthy gross margins, plus solid recent operating/free cash flow. Offsetting this are volatile profitability (GAAP loss in 2025 after a profitable 2024) and an elevated leverage profile (debt-heavy versus equity), which increases risk given uneven earnings.

Income Statement

Revenue has scaled meaningfully over the period (from ~$139M in 2020 to ~$361M in 2025), with strong recent growth in 2025 (+35.6%). Gross margins are consistently healthy (~49–53%), indicating solid product economics. The key weakness is profitability volatility: after a profitable 2024 (net margin ~11.2%), the company slipped back to a small loss in 2025 (net margin ~-3.0%) and has a history of losses in prior years, suggesting operating leverage is not yet consistent.

Balance Sheet

Leverage remains elevated: debt is ~$304M versus equity of ~$209M in 2025 (debt-to-equity ~1.45), and the company previously operated with extremely thin (and even negative) equity, which amplifies financial risk. While equity has rebuilt substantially since 2021–2023, returns to shareholders are currently negative in 2025 due to the net loss, and the capital structure is still more debt-heavy than typical for a company with uneven profitability.

Cash Flow

Cash generation is a relative strength. The business produced strong positive operating cash flow in 2024–2025 (~$128M and ~$59M) and positive free cash flow in both years (~$111M and ~$46M), with free cash flow up again in 2025. The main concern is volatility: cash flow was negative in 2023 and free cash flow was negative in 2020–2022, indicating the cash profile can swing materially with operating conditions and investment levels.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	361.07M	366.09M	307.54M	257.80M	190.28M
Gross Profit	187.60M	188.85M	151.98M	137.88M	98.95M
EBITDA	8.49M	10.32M	-26.59M	-13.54M	-30.93M
Net Income	-10.85M	40.84M	-43.37M	-24.30M	-51.26M
Balance Sheet
Total Assets	545.19M	489.08M	359.41M	349.74M	315.54M
Cash, Cash Equivalents and Short-Term Investments	175.34M	164.71M	113.23M	173.75M	193.35M
Total Debt	326.73M	298.52M	294.59M	294.43M	308.51M
Total Liabilities	335.95M	339.22M	325.28M	334.15M	326.61M
Stockholders Equity	209.23M	149.86M	34.13M	15.59M	-11.08M
Cash Flow
Free Cash Flow	45.88M	111.20M	-68.22M	-11.44M	-9.77M
Operating Cash Flow	58.75M	128.31M	-49.38M	641.00K	6.46M
Investing Cash Flow	-48.02M	-192.57M	115.81M	-102.80M	-18.64M
Financing Cash Flow	-8.93M	15.68M	8.74M	-2.15M	112.44M

IMPINJ Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PI, the sentiment is Negative. The current price of 127.92 is below the 20-day moving average (MA) of 136.02, below the 50-day MA of 158.71, and below the 200-day MA of 155.18, indicating a bearish trend. The MACD of -12.41 indicates Negative momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PI.

IMPINJ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	76 Outperform	$1.87B	45.69	6.84%	―	1.46%	78.77%
BDC	67 Neutral	$5.69B	24.84	18.56%	0.17%	13.42%	31.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VIAV	60 Neutral	$6.09B	―	-5.54%	―	15.60%	―
EXTR	54 Neutral	$1.90B	210.18	12.43%	―	14.31%	―
PI	50 Neutral	$3.72B	-324.59	-6.04%	―	4.24%	-141.83%

IMPINJ Corporate Events

Impinj Enhances Executive Severance and Change-in-Control Protections

On December 19, 2025, Impinj, Inc. amended the executive employment agreement of Chief Executive Officer Chris Diorio, revising his eligibility for severance benefits in the event of certain qualifying terminations, both in connection with and outside a change of control. The amendment increases Diorio’s potential severance protections, including enhanced cash severance, accelerated vesting of time-based equity awards, extended health insurance reimbursement, and a longer post-termination stock option exercise period, while maintaining that no tax gross-up will be provided and conditioning all benefits on a release of claims. On the same date, the company’s Compensation Committee adopted a new Executive Change in Control and Severance Policy that standardizes severance and change-of-control benefits for designated senior executives, including CFO Cary Baker and Chief Innovation Officer Cathal Phelan, offering defined cash payments, COBRA coverage, equity vesting and option exercise extensions tied to whether a termination occurs in a change-of-control window or outside it, thereby strengthening retention incentives and providing clearer treatment of leadership in potential corporate transactions.

The most recent analyst rating on (PI) stock is a Buy with a $211.00 price target. To see the full list of analyst forecasts on IMPINJ stock, see the PI Stock Forecast page.