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IMPINJ Inc (PI)
NASDAQ:PI
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IMPINJ (PI) AI Stock Analysis

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PI

IMPINJ

(NASDAQ:PI)

Rating:70Outperform
Price Target:
$205.00
▲(8.97% Upside)
IMPINJ's overall stock score is driven by strong technical momentum and positive earnings call highlights, including record EBITDA margins and product performance. However, the high P/E ratio and challenges in achieving consistent profitability and managing leverage weigh on the score.
Positive Factors
Financial Performance
Impinj reported better than expected results and guidance on strength in Endpoint ICs and new project wins.
Market Demand
PI continues to chalk up new wins and benefit from new use cases, on the strength of market demand for its M800 endpoint IC family and Gen2x technology.
Negative Factors
Gross Margin
GMs declined sequentially due to lower Systems revenue mix.
Revenue Guidance
PI guided for Q3 revenues to be down 2.5% y/o/y at the midpoint of guidance, which was better than consensus -10%.

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

IMPINJ Business Overview & Revenue Model

Company DescriptionIMPINJ, Inc. is a leading provider of RAIN RFID solutions that enable businesses to identify, locate, and authenticate items in real-time. Operating primarily in the technology sector, IMPINJ's core products include RAIN RFID readers, chips, and software that facilitate the tracking of inventory and assets across various industries such as retail, healthcare, logistics, and manufacturing. The company's innovative technology enhances supply chain efficiency, improves operational visibility, and enables better customer experiences.
How the Company Makes MoneyIMPINJ generates revenue through multiple streams primarily focused on the sale of RAIN RFID products, including integrated circuits (ICs), readers, and software solutions. The company sells its chips to manufacturers who embed them in items for tracking purposes, while their readers are utilized by businesses to scan and process RAIN RFID tags. Additionally, IMPINJ offers software solutions that help manage and analyze the data collected through their RFID systems. Significant partnerships with key players in various sectors, including retail giants and logistics providers, bolster their market presence and drive sales. The recurring revenue model is further supported by service agreements and maintenance contracts, providing ongoing support and updates for their technology.

IMPINJ Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in revenue and EBITDA, with strong product performance and gross margins. However, challenges persist with year-over-year revenue declines and tariff-related uncertainties affecting future guidance.
Q2-2025 Updates
Positive Updates
Revenue Exceeds Expectations
Second quarter revenue was $97.9 million, up 32% sequentially and exceeded the upper end of the guide range.
Record Quarterly Adjusted EBITDA
Adjusted EBITDA was $27.6 million, marking a new quarterly record with a margin of 28.2%.
Strong Endpoint IC Performance
Second quarter endpoint IC revenue was $84.6 million, up 38% sequentially. The book-to-bill ratio was strong, exceeding expectations.
Innovative Product Adoption
Gen2X and M800 are driving demand, with significant adoption in retail loss analytics and inventory management, particularly in apparel and food sectors.
Improved Gross Margin
Second quarter gross margin was 60.4%, driven by licensing revenue and a richer mix of M800 products.
Negative Updates
Year-Over-Year Revenue Decline
Second quarter revenue was down 4% year-over-year, and endpoint IC revenue declined 5% year-over-year.
Challenges from Tariffs and Supply Chain
Headwinds from tariffs and supply chain disruptions continue to pose challenges, although they were offset by demand drivers.
Sequential Decline in Reader IC Revenue
Second quarter reader IC revenue declined sequentially due to significantly lower indie shipment volumes.
Minimal Turns Assumed in Guidance
Due to continuing tariff-related uncertainty and volatility, minimal turns are assumed at the midpoint of third-quarter revenue guidance.
Company Guidance
In the Impinj Second Quarter 2025 Financial Results Conference Call, the company provided comprehensive guidance and metrics for the upcoming quarters. Impinj reported second-quarter revenue of $97.9 million, a 32% sequential increase, but a 4% decrease year-over-year. For the third quarter, the company expects revenue to range between $91 million and $94 million, with an adjusted EBITDA between $15.6 million and $17.1 million. The second quarter saw an adjusted EBITDA of $27.6 million, marking a record quarterly margin of 28.2%. Impinj's endpoint IC revenue rose to $84.6 million, up 38% sequentially, although down 5% year-over-year. Systems revenue increased slightly to $13.3 million. The company achieved a gross margin of 60.4%, attributed to licensing revenue and a richer M800 product mix. Looking ahead, Impinj anticipates further gross margin improvements driven by M800 mix and lower-cost wafer sell-through, expecting third-quarter product gross margin to rise sequentially. The company also underscored the ongoing strength in their solutions strategy and the promising outlook for endpoint IC product revenue growth, further supported by robust demand in the food and supply chain logistics sectors.

IMPINJ Financial Statement Overview

Summary
IMPINJ is on a growth trajectory with significant revenue increases and improvements in cash flow generation. While the company has made strides in reducing losses and increasing stockholders' equity, challenges remain in achieving consistent profitability and managing leverage. Continued focus on cost management and capital structure optimization will be crucial to enhancing financial health.
Income Statement
72
Positive
IMPINJ has demonstrated strong revenue growth, with a TTM revenue of $358.94M, up significantly from $138.92M in 2020. The gross profit margin is healthy at 52.11% for the TTM, reflecting effective cost management. However, the company has struggled with profitability at the operating level, as indicated by negative EBIT and modest net profit margin of 0.18% in the TTM period. Despite improvements, maintaining consistent profitability remains a challenge.
Balance Sheet
65
Positive
The balance sheet indicates a high leverage, with a debt-to-equity ratio of 1.56 in the TTM, suggesting potential risk in financial stability. Stockholders' equity has improved significantly to $187.69M from a deficit in 2021, reflecting a positive trajectory in equity growth. However, the equity ratio is still moderate at 36.87%, indicating room for strengthening the capital structure.
Cash Flow
68
Positive
IMPINJ has shown improvement in cash flow, with operating cash flow to net income ratio at 71.75 in the TTM, indicating strong cash generation relative to net income. Free cash flow has grown, with a TTM free cash flow of $27.46M, up from negative values in earlier years. Despite this progress, cash flow stability could be enhanced further.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue358.94M366.09M307.54M257.80M190.28M138.92M
Gross Profit187.09M188.85M151.98M137.88M98.95M65.14M
EBITDA17.82M57.82M-26.83M-13.54M-43.95M-41.92M
Net Income633.00K40.84M-43.37M-24.30M-51.26M-51.92M
Balance Sheet
Total Assets508.82M489.08M359.41M349.74M315.54M207.62M
Cash, Cash Equivalents and Short-Term Investments193.21M164.71M113.23M173.75M193.35M106.09M
Total Debt292.40M292.80M294.59M294.43M304.37M73.46M
Total Liabilities321.13M339.22M325.28M334.15M326.61M98.50M
Stockholders Equity187.69M149.86M34.13M15.59M-11.08M109.12M
Cash Flow
Free Cash Flow27.46M111.20M-68.22M-11.44M-9.77M-19.95M
Operating Cash Flow45.41M128.31M-49.38M641.00K6.46M-16.88M
Investing Cash Flow-229.72M-192.57M115.81M-102.80M-18.64M-36.29M
Financing Cash Flow11.80M15.68M8.74M-2.15M112.44M9.90M

IMPINJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price188.13
Price Trends
50DMA
143.07
Positive
100DMA
122.75
Positive
200DMA
124.80
Positive
Market Momentum
MACD
13.49
Negative
RSI
68.36
Neutral
STOCH
82.89
Negative
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 188.13 is above the 20-day moving average (MA) of 172.80, above the 50-day MA of 143.07, and above the 200-day MA of 124.80, indicating a bullish trend. The MACD of 13.49 indicates Negative momentum. The RSI at 68.36 is Neutral, neither overbought nor oversold. The STOCH value of 82.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PI.

IMPINJ Risk Analysis

IMPINJ disclosed 55 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.27B29.907.21%-2.37%147.46%
74
Outperform
$5.13B23.0218.34%0.15%12.93%17.64%
70
Outperform
$5.47B26,129.170.42%13.96%-96.21%
67
Neutral
$2.97B-16.44%2.05%91.37%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
58
Neutral
$3.53B17.08%-11.03%91.98%
58
Neutral
$2.57B74.874.76%8.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PI
IMPINJ
188.13
15.85
9.20%
BDC
Belden
129.83
30.55
30.77%
DGII
Digi International
34.10
6.90
25.37%
EXTR
Extreme Networks
21.70
8.08
59.32%
COMM
CommScope Holding
16.26
11.77
262.14%
VIAV
Viavi Solutions
11.66
3.69
46.30%

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: Aug 28, 2025