INVE

Signed IoT Asset Purchase Agreement with Trackonomy on June 24, 2026; Transaction Expected to Close in Q3 FY 2026, Subject to Closing Conditions Go-Forward Business Strategy Focused on Providing Physical AI Solutions Through Targeted Acquisitions of Compliance SaaS Companies Company Intends to Resume Repurchases of its Common Stock Shortly, and Prior to the Closing of the Asset Sale Transaction SANTA ANA, Calif., Aug. 12, 2026 /PRNewswire/ -- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID- and Bluetooth Low Energy (BLE)-enabled Internet of Things (IoT) solutions, today released its financial results for the second quarter ended June 30, 2026. Financial Results for Fiscal Second Quarter 2026Revenue for the second quarter of 2026 was $5.7 million, compared to $5.0 million in the second quarter of 2025. This year-over-year increase was as expected and due to increased sales of RFID transponder products. Second quarter 2026 GAAP gross margin was 16.1% and non-GAAP gross margin was 24.5%, compared to second quarter 2025 GAAP gross margin of (9.4%) and non-GAAP gross margin of (0.8%). The year-over-year improvement was primarily driven by continued production cost savings and efficiencies driven by the elimination of Singapore manufacturing costs, improved cost utilization at the Thailand facility, and a reduction in inventory obsolescence charges. GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were $6.4 million in the second quarter of 2026, compared to $5.9 million in the second quarter of 2025. The increase in GAAP operating expenses was driven primarily by an increase in strategic review-related costs. Non-GAAP operating expenses were $4.0 million in the second quarter of 2026, compared to $4.5 million in the second quarter of 2025. The decrease in non-GAAP operating expenses reflects management's disciplined spending allocation across its operating expenses. Second quarter 2026 GAAP net loss was ($4.7) million, or ($0.20) per basic and diluted share, compared to GAAP net loss of ($6.0) million, or ($0.26) per basic and diluted share, in the second quarter of 2025. This improvement was primarily due to higher sales in Q2 2026, increased gross margin due to the transition of manufacturing to Thailand, and the impact of charges to cost of revenue related to the write-down of obsolete inventory in the second quarter of 2025. Non-GAAP adjusted EBITDA loss in the second quarter of 2026 was ($2.7) million, compared to ($4.6) million in the second quarter of 2025. This improvement was primarily due to the reduction in fixed manufacturing costs at the now-closed Singapore facility, improved utilization at the Thailand facility, and management's disciplined allocation of operating expenses to support the Company's Perform-Accelerate-Transform (P-A-T) strategic initiatives. Management CommentaryIn the second quarter, Identiv achieved a significant milestone under the Transform pillar of its P-A-T strategy by entering into a definitive agreement to sell its IoT operating assets to Trackonomy Systems, Inc. Product development activities continued with Identiv's strategic programs, while the Thailand manufacturing facility prepared for the expansion of its BLE product portfolio. In July, Identiv launched its expanded ID-Tiny product family, a portfolio of ultra-miniaturized HF/NFC inlays and tags designed to bring secure digital intelligence to compact products.In parallel, broader macroeconomic conditions continued to affect demand in certain consumer-facing applications. In particular, one of Identiv's larger consumer-facing customers built up significant inventory positions over the last three quarters and is pausing new order activity in the coming months to align its inventories with current demand. The customer expects to resume order activity late this year. Furthermore, Identiv is seeing some chip allocation delays for certain products, which is delaying production and shipment of some orders. Update Regarding Stock Repurchase ProgramIdentiv's Board of Directors currently intends to return up to $40 million of capital to stockholders through share repurchases, dividends, and/or other distributions. Identiv intends to resume common stock repurchases under its stock repurchase program shortly, and prior to the closing of the asset sale transaction with Trackonomy. Financial OutlookIdentiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For the third quarter of fiscal 2026, management currently expects net revenue to be in the range of $4.1 million to $4.8 million, without taking into account the closing of the asset sale transaction. Conference CallIn view of Identiv's previously announced asset sale to Trackonomy, the Company will not hold a conference call to discuss its second quarter 2026 financial results. Additional information can be found in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which is expected to be filed on August 13, 2026. About IdentivIdentiv's RFID- and BLE-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 2.0 billion applications worldwide, drive innovation across healthcare, logistics, consumer electronics, luxury goods, smart packaging, and more. For additional information, visit identiv.com | Follow us on LinkedIn @Identiv Non-GAAP Financial Measures This press release includes financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (GAAP), including non-GAAP adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross profit and margin exclude stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net loss, GAAP operating expenses, and GAAP gross margin, and excludes income tax provision, interest income, net, foreign currency losses, net, stock-based compensation, amortization and depreciation, restructuring and severance, and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, and restructuring and severance. The exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release. Note Regarding Forward-Looking Information This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as "anticipate," "believe," "continue," "plan," "will," "intend," "expect," "outlook," and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding: Identiv's expectations regarding its future operating and financial outlook and performance, including 2026 third quarter guidance and outlook; Identiv's beliefs regarding its business and the conditions affecting its business and customers; Identiv's expectations regarding resumption of customer order activity and the timing thereof; Identiv's plans regarding the return of capital to stockholders, including the repurchase of stock, and the nature, timing and amount thereof; Identiv's go-forward strategy, opportunities, focus and goals; and Identiv's beliefs regarding the benefits of its pending asset sale. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv's control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the closing of the asset sale; Identiv's ability to continue the momentum in its business; Identiv's ability to successfully execute its go-forward business strategy; Identiv's ability to capitalize on trends in its business and the continuation of those trends; Identiv's ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; risks associated with development of products; the success of Identiv's products and strategic partnerships; Identiv's ability to successfully enter into definitive agreements for strategic partnerships or collaborations; the effects of the announced asset sale on Identiv's business; the impact of macroeconomic conditions and customer demand, inflation, tariffs and increases in prices; factors affecting consumer demand for Identiv's customers' products; the effects of supply constraints; changes in Identiv's plans regarding return of capital and the forms thereof, including repurchases of its stock, and the timing and amounts thereof, if any; factors affecting Identiv's stock repurchases, including its ability to cease repurchases at any time; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2025, as amended, Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements. Investor Relations Contact:[email protected] Media Contact:[email protected] View original content:https://www.prnewswire.com/news-releases/identiv-reports-second-quarter-2026-financial-results-302850077.html

Image source: The Motley Fool. Wednesday, May 13, 2026, at 5 p.m. ET Chief Executive Officer — Kirsten Newquist Chief Financial Officer — Edward Kirnbauer Kirsten Newquist: Thank you, operator, and thank you all for joining us for our first quarter 2026 earnings conference call. I will begin with a few highlights from the first quarter as we continue to build strong momentum executing against our Perform, Accelerate and Transform strategy. As discussed on our last call, we achieved a significant milestone by signing a long-term agreement with IFCO to exclusively supply BLE smart labels for use on their pool of more than 400 million reusable plastic containers. Since then, we have been focused on development activities and expect to begin production for over 0.5 million pilot units shortly with mass production anticipated to start in the fourth quarter of this year. We also made meaningful progress at our Thailand manufacturing facility, which is now fully transitioned from Singapore. This facility is increasing our ability to serve our customers more efficiently and at lower costs while continuing to deliver high levels of product quality and service, reflected in the positive feedback we are receiving from customers. In addition, we are continuing to grow our opportunity pipeline, particularly for ID Blue, our portfolio of BLE smart labels for asset tracking and logistics applications. We are seeing strong and growing interest across multiple industries, including global logistics, pharmaceuticals and food distributors, and we remain on track to make these products commercially available later in the year. Turning to our first quarter financial performance. I'm pleased to report that first quarter sales of $7.4 million exceeded our guidance with other key financial metrics coming in as expected. As anticipated, we saw a slight decline in gross margin versus the fourth quarter given the product mix and some additional scale-up costs for a new customer. We expect to see some margin improvement throughout the year as our operations become more efficient, but we will also have some offsetting costs in the second half due to the scale-up of IFCO. We are starting to see some impact from the current macroeconomic environment, primarily in our consumer-facing applications where demand for higher-end products has softened. At the same time, certain suppliers have implemented price increases. We are assessing and will be taking pricing actions to offset these costs while continuing to focus on delivering value to our customers and maintaining our margin profile. Our CFO, Ed Kirnbauer, will now provide a detailed review of our first quarter financial performance. And afterwards, I'll share more on our progress across our strategic initiatives. Edward Kirnbauer: Thanks, Kirsten. In the first quarter of 2026, we delivered $7.4 million in revenue, which exceeded our previously announced guidance range compared to $5.3 million in Q1 2025. The year-over-year increase was as expected and included strong demand from current customers, the conversion of new customers and the benefit of one of our larger customers ordering their full year 2026 sales volume in Q1. First quarter GAAP and non-GAAP gross margins were 17.4% and 23.8%, respectively, compared to GAAP and non-GAAP gross margins of 2.5% and 10.8%, respectively, in Q1 2025. The primary factor driving the improvement in gross margin was the transition of production to our state-of-the-art Thailand production facility. This included cost savings and efficiencies achieved in procurement and production, improved facility utilization and the elimination of manufacturing production costs from our Singapore operation in Q1 of 2025. In addition, the gross margin improvement year-over-year also reflected the benefit from charges recorded in the first quarter of 2025 to cost of revenue related to the write-down of obsolete inventory at our Singapore facility of $0.3 million and a warranty claim from one of our customers of $0.2 million. GAAP and non-GAAP operating expenses for the first quarter of 2026, including research and development, sales and marketing, general and administrative expenses and restructuring and severance totaled $5.5 million and $4.4 million, respectively, as compared to $5.6 million and $4.5 million, respectively, in Q1 2025. The year-over-year decrease in GAAP operating expenses was driven primarily by lower restructuring and severance expenses, partially offset by higher strategic review-related costs incurred in Q1 of 2026 compared to the first quarter of 2025. Non-GAAP operating expenses in Q1 2026 were comparable to the prior year period, demonstrating our continued disciplined allocation of operating expenses as we execute on our PAT strategic initiatives. First quarter GAAP net loss was $3.4 million or $0.15 per basic and diluted share compared to GAAP net loss of $4.8 million or $0.21 per basic and diluted share in the first quarter of 2025. This improvement in net loss was primarily due to the increase in sales volume in Q1 2026, lower restructuring and severance costs and as mentioned, the impact of charges to cost of revenue of approximately $0.5 million in the first quarter of 2025. Non-GAAP adjusted EBITDA loss for Q1 2026 was $2.7 million compared to $3.9 million in the first quarter of 2025. As mentioned, the decreased loss was the result of production efficiencies achieved at our Thailand facility, charges to cost of revenue in Q1 of 2025 and the disciplined spending of operating expenses as we continue to execute on our PAT strategic initiatives. In the appendix of today's presentation, we have provided a full reconciliation of GAAP to non-GAAP financial information, which is also included in our earnings release. Moving now to the balance sheet. We exited Q1 2026 with $124.8 million in cash, cash equivalents and restricted cash. Our balance sheet position remains strong with working capital exiting Q1 of $129.6 million. In our 10-Q filing, we will be providing a full reconciliation of year-to-date cash flows. For completeness, we've included the full balance sheet in the appendix of today's earnings release. Finally, I would like to discuss our financial outlook for the second quarter of 2026. We anticipate sales of $5.4 million to $6.0 million. As discussed, Q1 sales demonstrated strong growth, driven in part by significant full year 2026 customer order placed early to secure product availability. As such, our Q2 sales guidance reflects the pull forward of this volume into Q1. Additionally, the projection incorporates some uncertainty related to softening demand trends among certain consumer-facing customers. As mentioned on our March call, we do expect to see margin improvement throughout 2026 as our operations become more efficient. We do, however, expect some variability in gross margins as we continue scaling production for the IFCO program, which reflects the typical dynamics of ramping production for large programs. Again, it is important to note that the underlying cost structure improvements from our manufacturing transition remain in place. As these programs mature and volume scale, we believe they support attractive long-term margin performance. From a cash usage perspective, we continue to expect to utilize $14 million to $16 million in 2026, excluding strategic review-related costs. This includes the cash required to support ongoing operations plus $3.5 million of capital expenditures primarily related to the IFCO production, a $1 million increase in working capital to support growth and $1.5 million to purchase chips, locking in favorable pricing required to fulfill customer orders, which extend past 2026. This concludes the financial discussion. I'll now pass the call back to Kirsten. Kirsten Newquist: Thanks, Ed. I'm pleased with the progress that we have made while recognizing there is still more work ahead to achieve our financial goals. Our efforts are delivering results as we continue to execute our Perform, Accelerate and Transform strategy. Our Perform pillar is focused on strengthening and scaling our core business while driving operational efficiency and margin expansion to create long-term value for both shareholders and customers. As discussed earlier, we have officially completed the 2-year manufacturing transition to our Thailand facility. This has enabled us to deliver our products to customers faster, decrease costs, improve efficiency and expand margins. Since we last spoke, our Thailand facility has continued to make strong progress in training our employees to operate safely and efficiently while maintaining our high-quality production controls. At the beginning of the year, we implemented new CRM and MRP enterprise systems to better integrate sales, demand planning and operations. We have also introduced quarterly sales and operations planning processes to align our commercial operations and supply chain teams around a unified demand plan and disciplined production execution. Simply put, these new systems enhance our ability to respond to customer needs with greater speed and accuracy while providing improved visibility across our operations and inventory. We remain focused on developing and maintaining strong customer relationships and are encouraged by our progress. In the first quarter, 2 of our 3 top customers extended their supply agreements, reflecting confidence in our performance and service. Overall, customers are responding positively to our continued improvements and commitment to operational excellence. On the marketing front, we are committed to ensuring that our customers, prospects and channel partners fully understand the breadth of our product portfolio and capabilities and how we help solve critical business challenges. In support of this, we launched our new corporate website designed to provide clear, accessible product information, application insights, case studies and an enhanced Investor Relations section. Since our launch in January, we have continued to see increased website visits and click-through rates and a growing number of requests for information via our website contact form. We also continue to strengthen Identiv's thought leadership position through 20 published articles discussing important topics for our customers in the industry, including how NFC is restoring trust for consumers, clinical trials are getting smarter and supply chains and AI. We participated in an AIPIA connected packaging webinar that featured 8 subject matter experts and focused on smart packaging trends driving demand for IoT technologies. Shifting now to our Accelerate pillar. Our focus here is on driving growth in high-value segments through innovation, particularly in BLE technology and advanced multicomponent manufacturing. We are excited about our long-term strategic partnership with IFCO, where our team is making good progress across both product and manufacturing development. We are in the final stages of production site renovations to support the custom manufacturing equipment required for this next-generation BLE label. As noted earlier, we expect to begin production of more than 0.5 million pilot units shortly with mass production planned for the fourth quarter. Development of our proprietary BLE smart label portfolio, ID Blue, is also well underway. We are seeing significant early interest in these solutions, which target logistics, cold chain and asset tracking applications. We remain on track to commercialize this portfolio later this year. We also successfully completed the BLE ambientChat.ai demonstration highlighted on our last call. This showcased the potential of physical AI, demonstrating how connected products can bridge the physical and digital worlds to deliver real-time intelligent insights. Our innovation efforts continue to gain external recognition. During the quarter, we were honored with the IoT Connected Retail Application of the Year Award in the 10th Annual IoT Breakthrough Awards program, underscoring the strength of our technology and market positioning. More broadly, we are seeing tangible results from our innovation pipeline. In April, we launched our expanded ID-Safe inlay portfolio, which enables product authentication, tamper detection and end-to-end traceability across a range of industries, including pharmaceuticals, health care, retail, food and beverage, electronics and smart packaging. We are seeing growing interest for solutions that can verify product authenticity, confirm package integrity and provide visibility across the product life cycle and our ID-Safe product family addresses all of these challenges. Please see the press release about our ID-Safe innate portfolio issued on April 20 on our website. Turning now to our third pillar, Transform. This pillar is focused on expanding the business through strategic M&A to accelerate our path to EBITDA breakeven while broadening our product portfolio and enhancing our technical capabilities. Our Board continues to work closely with our financial adviser, Raymond James, and our legal advisers on strategic alternatives. Before I turn the call over for Q&A, I'd like to update everyone on the new reporting metrics we introduced in 2025 and the results we achieved in quarter 1. First, our new sales pipeline and conversion metric tracks opportunities with new customers or those we have not served in over 2 years. For 2026, our goal is to build a pipeline of 125 opportunities and convert at least 35 into sales by year-end. We exited last year with 101 opportunities. And as of the end of first quarter, our pipeline has grown to 124 opportunities with 8 opportunities converted to sales during quarter 1. Next, our new product development metric tracks the number of our active NPD initiatives. These projects involve the development of entirely new RFID or BLE tags, inlays or labels. At the end of first quarter, we had 18 active NPD projects underway with 3 successfully completed during the quarter, all within high-value segments, including cold chain and consumable authentication. Our NPD completion metric tracks the number of projects delivered within the period. For 2026, we are targeting 7 completed projects by year-end. With 3 projects already completed in the first quarter, we are well on the track to meet this objective. Overall, we are making progress against our key metrics, supported by continued positive momentum across the business. I look forward to updating you on our continued execution throughout the year. Our mission remains clear: to provide digital identities for billions of fiscal objects, enabling real-time intelligence for the world's most demanding industries. Thank you to all of our employees, customers, partners and shareholders for your continued support of Identiv. With that, I'd like to open the call to answer your questions. Operator, please open the question queue. Operator: [Operator Instructions] And the first question today is coming from Anthony Stoss from Craig-Hallum. Anthony Stoss: Three questions actually. The first 2 for you, Kirsten. What percentage of the opportunities are health care related or maybe any detail you can give us on the other industries? I think you've given that in the past. And also for you, Kirsten, with IFCO and you're really getting set up to ramp big time in Q4, do you have the resources necessary to be able to handle any kind of new requests from new customers coming online late in the year? Kirsten Newquist: Yes. Well, thank you. Good question. So I'll start with the health care one. So we have our 2 different pipelines that we're monitoring. So one is our NPD pipeline, so our new product development pipeline. In that pipeline, we have roughly 1/3 of the projects in the pipeline are health care related. As we move over and look at the new opportunity pipeline, which is a combination of some new product development, but more opportunities for standard product or a product that has just some minor customization. And I'd say that's a little bit lower in terms of the health care percentage. That's probably more about 20% health care. So in general, we're kind of overall, I'd say, when we look broadly at our opportunities, probably about 1/4 of them between the NPD pipeline and the sales opportunity pipeline are related to health care. And then your second question... Sorry, go ahead. Anthony Stoss: I was going to say the resources, do you have enough resources to handle new customers when you're ramping IFCO? Kirsten Newquist: Yes. So obviously, IFCO, it is a massive program. And at the moment, it is taking a fair amount of our engineering resources as we're finalizing the design and finalizing the manufacturing process. But as that work as we go through the next couple of quarters and we get to finalize the product spec and the product design, engineering will open up and have a little bit more ability to take on more projects. And really then the effort as we get into the fourth quarter is more on the manufacturing side. So obviously, we'll be hiring in particular, operators to man the production equipment. But outside of hiring new operators to man the production equipment, we actually have all the resources in-house at this point from an engineering perspective. Anthony Stoss: Got you. And if I could ask a question on gross margins. Where do you see gross margins or a range for Q2 and maybe what you expect Q3, Q4? Edward Kirnbauer: Yes. Thank you. As far as -- we don't give guidance out more than a quarter out. But what I can say is that we had a good quarter sales-wise. We did have the benefit of that pull forward from that customer who ordered the full year supply in the first quarter. But from a margin perspective, I would expect margins to continue to improve on our core business, on our core customers with all the benefits that we're receiving from the transition of Thailand and other things. So I would expect margins to continuing to improve. But at the same time, we are scaling for the IFCO project. So I would expect -- we definitely will expect some offset to those benefits as we move into the next quarter and the rest of the year as well. Operator: Your next question is coming from Craig Ellis from B. Riley. Craig Ellis: Kirsten, I wanted to start with just a clarification. We knew that there would be a benefit in the first quarter as we [indiscernible] material that would be used through the year, but it seemed either that or something else was a little bit greater than at least what I was expecting. Can you look back at the first quarter and help us with what it was that drove revenues a little bit better than I think some of us were expecting? Kirsten Newquist: Yes, yes. No. So we were pleased with the sales in first quarter. So as we had previously mentioned and given some guidance last quarter, we did get the benefit of one of our larger customers purchasing their full year in the first quarter. But we also just saw overall strong demand at the beginning of the year. So we had several of our customers come in with slightly higher orders than had been forecast, and we're happy to see that. But at the same time, we are seeing a little bit of softness now with some of the current global economic situations going on, a little bit of where things started off with some nice good orders coming in, in the first quarter. We're seeing a little bit, especially with some of our consumer-facing customers, a little bit of a slowdown potentially in the second half. Craig Ellis: And on that point, Kirsten, because that was going to be my second question, is there a regional dynamic to that? Or is it in any particular part of the consumer-facing businesses that you have? Just help us understand how broadly that's being observed within the consumer-facing businesses. Kirsten Newquist: Yes. So we've seen some softening forecasting from several of our customers who are specifically consumer-facing and specifically in higher-end appliances or devices, so higher-end products. So I think it's a little bit around kind of consumer confidence. I think some of these customers of ours, the OEMs, just making sure they're managing their inventory levels and being cautious as we're in this world with perhaps higher inflation than we would like and some of the uncertainty with the geopolitical situation, et cetera. And I think some of the concern around consumer confidence. And I would say kind of these consumer applications that we've seen a little bit of softness, I'd say that's roughly 25% to 30%, 25% of our overall customer base. Craig Ellis: That's really helpful. And I don't think any of us are totally surprised with that because it does seem to be an artifact of what happens in an uncertain macro. My last question before I get back in the queue. Thanks for giving us some of the new metrics. I wanted to understand them a little bit better. I'll start with target 2026 conversion opportunity. So we've converted 8. We have an ambition for 35. Help us understand the visibility you have in getting from 8 to 35. And if you could provide any color on how we should think about the revenue implications of that potential success, it would be helpful. Kirsten Newquist: Yes. No, thank you for the question. So we have the total number in the opportunity pipeline are roughly 124 opportunities. And so our goal -- and obviously, as we convert them, they come off, sometimes we win them, sometimes we lose them. So that number does fluctuate quite a bit. But our ultimate goal is to convert 35 new, and these are brand-new customers, the ones that we haven't sold to before or if we sold to them before, it's been over 2 years. And so we're looking to convert 35 of those by the end of the year. So that's our target for the full year. And those opportunities in our sales pipeline, they really do vary in terms of average size. If it's a standard product that we keep on inventory, it can be as small as $5,000 or $10,000, but it also can represent a custom product of a new customer who is looking to scale in a global way, and those opportunities can be worth [ $500,000 ], a $1 million worth of product within the first 12 months of sales. So it really does vary. And I -- so even an average order price doesn't give you a lot of information, but it really does vary from small to very big. And so ultimately, we're looking to convert sales 10% to 15% of our overall sales value should be coming from some of these new conversions. And obviously, the software does include IFCO. That would be a separate category altogether. Craig Ellis: Sure. Regarding the bigger ones, do you feel like you have line of sight on anything that convert -- that could convert in the large size? Kirsten Newquist: So we certainly are working on larger sized ones. I'd say the majority of the larger sized ones are more on the BLE side. And some of the ones on the BLE side also do need us to get to the commercialization of the ID Blue, which is the portfolio of BLE smart labels that we're working on that we'll be commercializing on later this year. So we definitely are working them. We're in conversation. We're in sampling mode. But it's -- until those go through the whole development proof of concept, we don't have a definitive answer on exactly what the timing will be or what the initial first quarter or 2 volume will be. Operator: Your next question is coming from Jaeson Schmidt from Lake Street. Jaeson Schmidt: I just want to follow up on the commentary surrounding kind of macro concerns, understanding maybe demand forecasts are a little softer than anticipated. But are you seeing any cancellations within your pipeline? Kirsten Newquist: We're not seeing cancellations. I'd say what we're seeing is, as you just mentioned, softening forecasts or interest in perhaps pushing some volume -- some orders out. So that's more what we are seeing as opposed to just outright cancellations. Jaeson Schmidt: Got you. And then just as a follow-up, understanding with the ramp of IFCO, there could be some incremental expenses. But how should we think at a high level of OpEx trending this year? Edward Kirnbauer: Yes, I'll take that question. I would expect OpEx would -- it's relatively consistent with what it had been last year. And we have -- with the cost structure that we have in place, we don't expect to see any significant increases in OpEx in the next quarter or for the rest of the year. Kirsten Newquist: Pretty much flat. Operator: [Operator Instructions] And it appears there are no further questions in queue at this time. I'd now like to pass the floor back to management for any closing remarks. Kirsten Newquist: Well, I want to just thank everyone for joining. We appreciate you spending the time with us this evening, and we're looking forward to another good quarter in quarter 2. So thank you for joining us. Operator: Thank you. This does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day. Thank you once again for your participation. Before you buy stock in Identiv, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Identiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!* Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Identiv (INVE) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Perform-Accelerate-Transform Strategy Continued to Drive Momentum in Sales Growth and Execution of Strategic Development Programs SANTA ANA, Calif., May 13, 2026 /PRNewswire/ -- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID- and BLE-enabled Internet of Things (IoT) solutions, today released its financial results for the first quarter of 2026. "During the recent quarter, I am pleased to share that we delivered results that exceeded our guidance and expectations. Our financial performance reflects strong demand from our customers at the start of the year and our ability to convert our opportunity pipeline into sales," said Identiv CEO Kirsten Newquist. "Our Perform-Accelerate-Transform (P-A-T) strategy continued to drive our momentum in the first quarter and positions us well as we focus on the execution of our most important development programs." Financial Results for Fiscal First Quarter 2026 Revenue for the first quarter of 2026 was $7.4 million, exceeding previously announced guidance, compared to $5.3 million in the first quarter of 2025. This year-over-year increase was slightly higher than expected and included the benefit of one of Identiv's customers ordering their full-year 2026 sales volume in Q1. First quarter 2026 GAAP gross margin was 17.4% and non-GAAP gross margin was 23.8%, compared to first quarter 2025 GAAP gross margin of 2.5% and non-GAAP gross margin of 10.8%. The year-over-year improvement primarily reflects the continued cost savings and efficiencies achieved in Identiv's production processes, improved utilization at the Thailand facility, and the elimination of manufacturing production costs incurred from the Singapore operation in the first quarter of 2025. GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were $5.5 million in the first quarter of 2026, compared to $5.6 million in the first quarter of 2025. Non-GAAP operating expenses were $4.4 million in the first quarter of 2026, compared to $4.5 million in the first quarter of 2025. The management of non-GAAP operating expenses reflects lower restructuring and severance expenses, partially offset by higher strategic review-related costs incurred in the first quarter of 2026. First quarter 2026 GAAP net loss was ($3.4) million, or ($0.15) per basic and diluted share, compared to GAAP net loss of ($4.8) million, or ($0.21) per basic and diluted share, in the first quarter of 2025. This improvement was primarily due to higher sales in Q1 2026, increased gross margin due to the transition of manufacturing to Thailand and the impact of charges to cost of revenue related to the write-down of obsolete inventory and a warranty claim totaling approximately $0.5 million in the first quarter of 2025. Financial Outlook Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For the second quarter of 2026, management currently expects net revenue to be in the range of $5.4 million to $6.0 million. Conference Call Identiv management will hold a conference call today, May 13, 2026, at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss the company's first quarter 2026 financial results. A question-and-answer session will follow management's presentation. Toll-Free: +1 888-506-0062 International Number: +1 973-528-0011 Call ID: 528020 Webcast link: Register and Join The teleconference replay will be available through Wednesday, May 27, 2026, by dialing +1 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 53919. If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at [email protected]. About Identiv Identiv's RFID- and BLE-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 2.0 billion applications worldwide, drive innovation across healthcare, logistics, consumer electronics, luxury goods, smart packaging, and more. For additional information, visit identiv.com | Follow us on LinkedIn @Identiv Non-GAAP Financial Measures This press release includes financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (GAAP), including non-GAAP adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross profit and margin exclude stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net loss, GAAP operating expenses, and GAAP gross margin, and excludes income tax provision, interest income, net, foreign currency gains (losses), net, stock-based compensation, amortization and depreciation, restructuring and severance, and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, and restructuring and severance. The exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release. Note Regarding Forward-Looking Information This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as "anticipate," "believe," "continue," "plan," "will," "intend," "expect," "outlook," and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding Identiv's expectations regarding its future operating and financial outlook and performance, including second quarter 2026 guidance and outlook; Identiv's strategy, opportunities, focus and goals; and Identiv's expectations and beliefs regarding execution of its Perform-Accelerate-Transform (P-A-T) strategy, including the areas of Identiv's expected focus. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv's control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, Identiv's ability to continue the momentum in its business; Identiv's ability to successfully execute its business strategy; the ability to perform under and comply with the provisions of its multi-year supply agreement; the termination of the supply agreement; Identiv's ability to capitalize on trends in its business and the continuation of those trends; Identiv's ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; the success of Identiv's products and strategic partnerships; the impact of manufacturing difficulties or delays; the ability to continue to achieve cost and efficiency gains; Identiv's ability to successfully enter into definitive agreements for strategic partnerships or collaborations; the impact of macroeconomic conditions and customer demand, inflation, tariffs and increases in prices; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2025, as amended, and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements. Investor Relations Contact [email protected] Media Contact [email protected] View original content:https://www.prnewswire.com/news-releases/identiv-reports-first-quarter-2026-financial-results-exceeds-q1-guidance-302770230.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a significant milestone with the IFCO long-term agreement for BLE smart labels, moving from development to imminent pilot production of over 0.5 million units. Completed the two-year manufacturing transition from Singapore to Thailand, resulting in improved facility utilization, lower procurement costs, and enhanced production efficiencies. Attributed Q1 revenue outperformance to strong demand from existing customers and a specific full-year volume pull-forward from a major customer seeking to secure product availability. Implemented new CRM and MRP enterprise systems to integrate sales and demand planning, aimed at improving response speed and inventory visibility. Reported a slight sequential decline in gross margin due to product mix and scale-up costs for a new customer, despite year-over-year improvements from the Thailand transition. Observed softening demand in consumer-facing applications, particularly for high-end appliances, which management attributes to cautious OEM inventory management and inflation concerns. Anticipates Q2 revenue of $5.4 million to $6.0 million, reflecting the impact of the Q1 customer pull-forward and general macroeconomic uncertainty. Expects mass production for the IFCO program to commence in the fourth quarter of 2026, which will introduce some margin variability during the ramp-up phase. Remains on track to commercially launch the ID Blue portfolio of BLE smart labels for logistics and pharmaceuticals later in the year. Projects 2026 cash usage between $14 million and $16 million, including $3.5 million in capital expenditures primarily for IFCO production equipment. Targets the conversion of 35 new customer opportunities by year-end, with a goal of these conversions representing 10% to 15% of overall sales value. Identified pricing pressure from suppliers and plans to implement pricing actions to offset these costs and maintain the current margin profile. Noted that approximately 25% of the customer base is in consumer-facing segments currently experiencing softened demand trends. Allocated $1.5 million for strategic chip purchases to lock in favorable pricing for customer orders extending beyond 2026. Confirmed the Board continues to work with financial and legal advisers to evaluate strategic alternatives under the 'Transform' pillar. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that healthcare projects represent roughly 1/3 of the New Product Development (NPD) pipeline and approximately 20% of the broader sales opportunity pipeline. Overall, healthcare-related opportunities account for about 1/4 of the combined pipeline value. While IFCO is currently consuming significant engineering resources, management expects capacity to open up as the design phase concludes and the focus shifts to manufacturing. The company believes it has sufficient in-house engineering talent and will primarily focus on hiring production operators for the Q4 scale-up. The Q1 beat was driven by several customers ordering above forecast in addition to the known large-customer pull-forward. Management clarified they are seeing 'softening forecasts' and requests to push volume out rather than outright order cancellations. New opportunities range from $5,000 for standard products to over $1 million for custom global scaling projects. Larger opportunities are concentrated in the BLE segment and are dependent on the commercialization of the ID Blue portfolio later this year.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Identiv Inc (NASDAQ:INVE) exceeded its Q1 2026 sales guidance with $7.4 million in revenue, compared to $5.3 million in Q1 2025. The transition to the Thailand manufacturing facility has improved efficiency, reduced costs, and expanded margins. The company signed a long-term agreement with ISCO to supply BLE Smart Labels, with mass production expected to start in Q4 2026. Identiv Inc (NASDAQ:INVE) has a strong cash position with $124.8 million in cash equivalents and restricted cash. The company has launched a new corporate website and increased its thought leadership presence, enhancing customer engagement and brand visibility. Gross margins saw a slight decline due to product mix and scale-up costs for new customers. The macroeconomic environment is impacting consumer-facing applications, with demand for higher-end products softening. Certain suppliers have implemented price increases, which may affect cost management. There is uncertainty in Q2 sales projections due to the pull-forward of a significant customer order and softening demand trends. The ramp-up of the IFCO program may introduce variability in gross margins and require additional resources. Warning! GuruFocus has detected 7 Warning Signs with INVE. Is INVE fairly valued? Test your thesis with our free DCF calculator. Q: What percentage of Identiv's opportunities are healthcare-related, and do you have the resources to handle new customer requests with the IFCO ramp-up? A: Approximately a third of Identiv's new product development pipeline is healthcare-related, while about 20% of the new opportunity pipeline is healthcare-focused. Overall, around a quarter of opportunities are healthcare-related. Regarding resources, Identiv has sufficient engineering resources to handle new customer requests, with plans to hire additional operators for production equipment as needed. (Answered by CEO Kirsten Newquist) Q: What is the expected range for gross margins in Q2, and what are the expectations for Q3 and Q4? A: While specific guidance beyond one quarter is not provided, Identiv expects margins to improve on core business due to benefits from the transition to the Thailand facility. However, scaling for the IFCO project may offset some of these benefits. (Answered by CFO Ed Kernbauer) Q: What drove revenues to exceed expectations in Q1, and is there a regional dynamic to the observed softening in consumer-facing businesses? A: Revenue exceeded expectations due to a large customer purchasing their full-year supply in Q1 and overall strong demand. The softening is primarily seen in higher-end consumer products, likely due to consumer confidence concerns and inventory management by OEMs. This softness affects about 25% of Identiv's customer base. (Answered by CEO Kirsten Newquist) Q: Can you provide more details on the new sales pipeline and conversion metrics, and what are the revenue implications of achieving the target conversions? A: Identiv aims to convert 35 new customers by year-end from a pipeline of 124 opportunities. These conversions could range from small orders to significant contracts worth up to $1 million within the first 12 months. The goal is for 10% to 15% of overall sales value to come from these new conversions. (Answered by CEO Kirsten Newquist) Q: Are there any cancellations within the pipeline due to macroeconomic concerns, and how should we think about OpEx trends this year? A: There are no cancellations, but there is a trend of softening forecasts and interest in pushing some orders out. Operating expenses are expected to remain relatively consistent with last year, with no significant increases anticipated. (Answered by CFO Ed Kernbauer) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Identiv, Inc.? Here are five stocks we like better. Identiv beat Q1 revenue guidance, reporting $7.4 million in sales versus $5.3 million a year earlier, while gross margins improved sharply as the Thailand manufacturing transition reduced costs and improved efficiency. The company is making progress on its IFCO Bluetooth Low Energy smart-label program, expecting pilot production to start shortly and mass production in Q4 2026, while also seeing growing interest in its broader BLE Smart Labels and ID-Safe product lines. Management flagged softer demand among some consumer-facing customers and said Q2 revenue is likely to come in at $5.4 million to $6.0 million, reflecting orders pulled into Q1 and macro uncertainty, even as Identiv continues its strategic review. 3 Small-Cap Stocks to Watch After the Fed’s Rate Cuts Identiv (NASDAQ:INVE) reported first-quarter 2026 revenue ahead of its prior guidance and outlined progress on its manufacturing transition, Bluetooth Low Energy smart-label initiatives and strategic review, while also noting emerging pressure from softer demand among some consumer-facing customers. Chief Executive Kirsten Newquist said the company is continuing to execute its “perform, accelerate and transform” strategy, highlighted by the ramp-up of a long-term agreement with IFCO to exclusively supply BLE Smart Labels for use on IFCO’s pool of more than 400 million reusable plastic containers. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Why This Small Cap Company Will Blow Past Computer Giants Identiv expects to begin production for more than 500,000 pilot units “shortly,” with mass production anticipated to start in the fourth quarter of 2026, Newquist said. She added that the company has made progress preparing its production site for the custom manufacturing equipment required for the IFCO program. Chief Financial Officer Ed Kirnbauer said first-quarter revenue was $7.4 million, up from $5.3 million in the first quarter of 2025 and above the company’s previously announced guidance range. The increase reflected strong demand from existing customers, conversion of new customers and the benefit of one large customer placing its full-year 2026 order in the first quarter, he said. → MP Materials Is Quietly Building a Rare Earth Powerhouse GAAP gross margin improved to 17.4% from 2.5% in the prior-year period, while non-GAAP gross margin rose to 23.8% from 10.8%. Kirnbauer attributed the improvement primarily to the transition of production to Identiv’s Thailand facility, including procurement and production efficiencies, improved facility utilization and the elimination of manufacturing production costs from the company’s Singapore operation. The comparison also benefited from prior-year charges tied to a $0.3 million write-down of obsolete inventory at the Singapore facility and a $0.2 million customer warranty claim. → MercadoLibre Boldly Invests in Growth: Discount Deepens GAAP operating expenses totaled $5.5 million, down slightly from $5.6 million a year earlier, while non-GAAP operating expenses were $4.4 million compared with $4.5 million in the first quarter of 2025. Kirnbauer said lower restructuring and severance expenses were partly offset by higher strategic review-related costs. The company reported a GAAP net loss of $3.4 million, or $0.15 per basic and diluted share, compared with a net loss of $4.8 million, or $0.21 per share, in the first quarter of 2025. Non-GAAP adjusted EBITDA loss narrowed to $2.7 million from $3.9 million. Newquist said Identiv has completed its two-year manufacturing transition to Thailand, which she said has helped the company deliver products faster, lower costs, improve efficiency and expand margins. She also noted the company implemented new CRM and MRP enterprise systems at the beginning of the year to better integrate sales, demand planning and operations. However, management said the company is seeing some impact from the macroeconomic environment, especially among consumer-facing applications where demand for higher-end products has softened. Newquist said certain suppliers have also raised prices, and Identiv is evaluating pricing actions to offset those costs while seeking to maintain its margin profile. During the question-and-answer portion of the call, Newquist said the softness is showing up in forecasts from customers tied to higher-end appliances or devices. She estimated that consumer applications showing some softness represent roughly 25% of Identiv’s overall customer base. In response to a question from Lake Street Capital Markets analyst Jaeson Schmidt, she said the company is not seeing cancellations, but rather softer forecasts or interest in pushing some orders out. For the second quarter of 2026, Identiv guided for revenue of $5.4 million to $6.0 million. Kirnbauer said the outlook reflects the pull-forward of volume into the first quarter from a customer that placed its full-year order early, along with uncertainty tied to softer demand trends among certain consumer-facing customers. Kirnbauer said the company still expects margin improvement through 2026 as operations become more efficient, though he cautioned that gross margins may vary as Identiv scales production for the IFCO program. He said the company’s underlying cost-structure improvements from the manufacturing transition remain in place. Identiv ended the quarter with $124.8 million in cash, cash equivalents and restricted cash, and working capital of $129.6 million. The company continues to expect to use $14 million to $16 million in cash during 2026, excluding strategic review-related costs. That estimate includes ongoing operations, $3.5 million of capital expenditures primarily related to IFCO production, a $1 million working capital increase to support growth and $1.5 million to purchase chips at favorable pricing for customer orders extending beyond 2026. Newquist said Identiv is seeing growing interest in ID-BLU, its portfolio of BLE Smart Labels for asset tracking and logistics applications, across industries including global logistics, pharmaceuticals and food distributors. The company remains on track to make those products commercially available later in 2026. She also highlighted the April launch of Identiv’s expanded ID-Safe inlay portfolio, which supports product authentication, tamper detection and end-to-end traceability across industries including pharmaceuticals, healthcare, retail, food and beverage, electronics and smart packaging. Identiv is tracking several internal metrics tied to new opportunities and product development. Newquist said the company exited 2025 with 101 opportunities in its new sales pipeline and had grown that figure to 124 by the end of the first quarter, with eight converted to sales. For 2026, Identiv is targeting a pipeline of 125 opportunities and at least 35 conversions by year-end. The company also had 18 active new product development projects underway at quarter-end, with three completed during the quarter in high-value segments including cold chain and consumable authentication. Its 2026 target is seven completed projects. Under its “transform” pillar, Identiv is continuing to evaluate strategic alternatives. Newquist said the company’s board is working with financial adviser Raymond James and legal advisers on potential options, including strategic M&A aimed at accelerating the path to EBITDA breakeven, broadening the product portfolio and enhancing technical capabilities. In response to a question from Craig-Hallum analyst Anthony Stoss about resources needed for IFCO and other customer opportunities, Newquist said the IFCO program is currently taking “a fair amount” of engineering resources as the company finalizes design and manufacturing processes. She said engineering capacity should open up over the next few quarters, and that the fourth-quarter effort will shift more toward manufacturing, including hiring operators for production equipment. Identiv, Inc (NASDAQ: INVE) is a global provider of physical security and secure identification solutions, delivering hardware and software platforms that protect people, property and assets. Founded in 1969 through the establishment of Hirsch Electronics and later rebranded as Identiv in 2008, the company has evolved to address the convergence of physical and digital security in an increasingly connected world. The company's product portfolio spans RFID and NFC reader modules, smart card and credential technologies, access control hardware, secure IoT connectivity, and contactless identification solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Identiv Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Identiv (NASDAQ:INVE) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://ir.identiv.com/webcast-registration?event_id=35548 Identiv Inc reported first quarter 2026 sales of $7.4 million, exceeding guidance and showing strong demand from existing and new customers. The company completed the transition to its Thailand manufacturing facility, improving gross margins significantly from the previous year. Strategic initiatives include the exclusive supply agreement with IFCO and the development of BLE Smart Labels, with mass production expected in Q4 2026. Identiv Inc's outlook for Q2 2026 anticipates sales between $5.4 to $6.0 million, reflecting a pull-forward of orders and some demand softening in consumer-facing sectors. Management highlighted strong progress in strategic initiatives, including a robust pipeline for new product developments and a targeted approach to expanding customer relationships. Tom (Operator) Good afternoon. Welcome to Identiv's presentation of its first quarter 2026 earnings call. My name is Tom and I will be your operator this afternoon. Joining us for today's presentation are the Company's CEO Kirsten Newquist and CFO Ed Kernbauer. Following Management's remarks, we will open the call for questions. Before we begin, please note that during this call management may be making references to non-GAAP financial measures or guidance including non-GAAP adjusted ebitda, non-GAAP gross profit, non-GAAP gross Margin and non-GAAP operating expenses. In addition, during the call Management will be making forward looking statements. Any statement that refers to expectations, projections or other characteristics of future events, including future financial results, future business and market conditions and opportunities, strategic partnerships and collaborations, and any related benefits and attributes and future plans, strategies, opportunities and goals is a forward looking statement. Actual results may differ materially from those expressed in these forward looking statements. For more information, please refer to the risk factors discussed in documents filed from time to time with the SEC, including the company's 2025 Annual Report on Form 10-K as amended and the first quarter 2026 Form 10-Q which will be filed with the SEC in the future. Identiv Inc assumes no obligation to update these forward looking statements. I will now turn the call over to CEO Kirsten Newquist for her comments. Ms. Newquist, please proceed. Kirsten Newquist (Chief Executive Officer) Thank you operator and thank you all for joining us for our first quarter 2026 earnings conference call. I will begin with a few highlights from the first quarter as we continue to build strong momentum executing against our perform, accelerate and Transform strategy. As discussed on our last call, we achieved a significant milestone by signing a long term agreement with IFCO to exclusively supply BLE Smart Labels for use on their pool of more than 400 million reusable plastic containers. Since then we have been focused on development activities and expect to begin production for over half a million pilot units shortly with mass production anticipated to start in the fourth quarter of this year. We also made meaningful progress at our Thailand Manufacturing facility which is now fully transitioned from Singapore. This facility is increasing our ability to serve our customers more efficiently and at lower costs while continuing to deliver high levels of product quality and service reflected in the positive feedback we are receiving from customers. In addition, we are continuing to grow our opportunity pipeline, particularly for Identiv ID Blue, our portfolio of BLE Smart Labels for asset tracking and logistics applications. We are seeing strong and growing interest across multiple industries including global logistics, pharmaceuticals and food distributors, and we remain on track to make these products commercially available later in the year. Turning to our first quarter financial performance, I'm pleased to report that first quarter sales of 7.4 million exceeded our guidance with other key financial metrics coming in as expected. As anticipated, we saw a slight decline in gross margin versus the fourth quarter given the product mix and some additional scale up costs for a new customer. We expect to see some margin improvement throughout the year as our operations become more efficient, but we will also have some offsetting costs in the second half due to the scale up of IFCO. We are starting to see some impact from the current macroeconomic environment, primarily in our consumer facing applications where demand for higher end products has softened. At the same time certain suppliers have implemented price increases. We are assessing and will be taking pricing actions to offset these costs while continuing to focus on delivering value to our customers and maintaining our margin profile. Our CFO Ed Kernbauer will now provide a detailed review of our first quarter financial performance and afterwards I'll share more on our progress across our strategic initiatives. Ed Kernbauer (Chief Financial Officer) Thanks Kirsten in the first quarter of 2026 we delivered $7.4 million in revenue which exceeded our previously announced guidance range compared to $5.3 million in Q1 2025. The year over year increase was as expected and included strong demand from current customers, the conversion of new customers and the benefit of one of our larger customers ordering their full year 2026 sales volume in Q1 first quarter GAAP and non GAAP gross margins were 17.4% and 23.8% respectively compared to GAAP and non GAAP gross margins of 2.5% and 10.8% respectively in Q1 2025. The primary factor driving the improvement in gross margin was the transition of production to our state of the art Thailand production facility. This included cost savings and efficiencies achieved in procurement and production, improved facility utilization and the elimination of manufacturing production costs from our Singapore operation in Q1 of 2025. In addition, the gross margin improvement year over year also reflected the benefit from charges recorded in Q1 2020 to cost of revenue related to the write down of obsolete inventory at our Singapore facility of 0.3 million and a warranty claim from one of our customers of 0.2 million. GAAP and non GAAP operating expenses for the first quarter of 2026 including research and development, sales and marketing, general and administrative expenses and restructuring and severance totaled 5.5 million 4.4 million respectively as compared to 5.6 million and 4.5 million respectively in Q1 2025. The year over year decrease in GAAP operating expenses was driven primarily by lower restructuring and severance expenses, partially offset by higher strategic review related costs incurred in Q1 of 2026 compared to the first quarter of 2025. Non GAAP operating expenses in Q1 2026 were comparable to the prior year period, demonstrating our continued disciplined allocation of operating expenses as we execute on our PAT strategic initiatives. First quarter GAAP net loss was 3.4 million or $0.15 per basic and diluted share compared to GAAP Net loss of 4.8 million or $0.21 per basic and diluted share in the first quarter of 2025. This improvement in net loss was primarily due to the increase in sales volume in Q1 2026, lower restructuring and severance costs and as mentioned, the impact of charges to cost of revenue of approximately 0.5 million in the first quarter of 2025. Non GAAP adjusted EBITDA loss for Q1 2026 was $2.7 million compared to 3.9 million in the first quarter of 2025. As mentioned, the decreased loss was the result of production efficiencies achieved at our Thailand facility, charges to cost of revenue in Q1 of 2025 and the disciplined spending of operating expenses as we continue to execute on our PAT strategic initiatives. In the appendix of today's presentation, we have provided a full reconciliation of GAAP to non GAAP financial information which is also included in our earnings release. Moving now to the balance sheet, we exited Q1 2026 with $124.8 million in cash, cash equivalents and restricted cash. Our balance sheet position remains strong with working capital exiting Q1 of 1. $29.6 million. In our 10-Q filing, we will be providing a full reconciliation of year to date cash flows for completeness, we've included the full balance sheet in the appendix of today's earnings release. Finally, I would like to discuss our financial outlook for the second quarter of 2026. We anticipate sales of 5.4 to 6.0 million. As discussed, Q1 sales demonstrated strong growth driven in part by a Significant Full Year 2026 Customer Order placed early to secure product availability. As such, our Q2 sales guidance reflects the pull forward of this volume into Q1. Additionally, the projection incorporates some uncertainty related to softening demand trends among certain consumer facing customers. As mentioned on our March call, we do expect to see margin improvement throughout 2026 as our operations become more efficient. We do however expect some variability in gross margins as we continue scaling production for the IFCO program which reflects the typical dynamics of ramping production for large programs. Again, it is important to note that the underlying cost structure improvements from our manufacturing transition remain in place. As these programs mature in volume scale, we believe they support attractive long term margin performance. From a cash usage perspective, we continue to expect to utilize 14 to 16 million in 2026 excluding strategic review related costs. This includes the cash required to support ongoing operations plus 3.5 million of capital expenditures primarily related to the ifco production, a $1 million increase in working capital to support growth and 1.5 million to purchase chips locking in favorable pricing required to fulfill customer orders which extend past 2026. This concludes the financial discussion. I'll now pass the call back to Kirsten. Kirsten Newquist (Chief Executive Officer) Thanks Ed. I am pleased with the progress that we have made while recognizing there is still more work ahead to achieve our financial goals. Our efforts are delivering results as we continue to execute our Perform, accelerate and Transform strategy. Our PERFORM pillar is focused on strengthening and scaling our core business while driving operational efficiency and margin expansion to create long term value for both shareholders and customers. As discussed earlier, we have officially completed the two year manufacturing transition to our Thailand facility. This has enabled us to deliver our products to customers faster, decrease costs, improve efficiency and expand margins. Since we last spoke, our Thailand facility has continued to make strong progress in training our employees to operate safely and efficiently while maintaining our high quality production controls. At the beginning of the year, we implemented new CRM and MRP enterprise systems to better integrate sales, demand planning and operations. We have also introduced quarterly sales and operations planning processes to align our commercial operations and supply chain teams around a unified demand plan and disciplined production execution. Simply put, these new systems enhance our ability to respond to customer needs with greater speed and accuracy while providing improved visibility across our operations and inventory. We remain focused on developing and maintaining strong customer relationships and are encouraged by our Progress. In the first quarter, 2 of our 3 top customers extended their supply agreements, reflecting confidence in our performance and service overall. Customers are responding positively to our continued improvements and commitment to operational excellence. On the marketing front, we are committed to ensuring that our customers, prospects and channel partners fully understand the breadth of our product portfolio and capabilities and how we help solve critical business challenges. In support of this, we launched our new corporate website designed to provide clear, accessible product information, application insights, case studies and an enhanced investor relations section. Since our launch in January, we have continued to see increased website visits and click through rates and a growing number of requests for information via our website contact form. We also continue to strengthen identiv's thought leadership position through 20 published articles discussing important topics for our customers and the industry including how NFC is restoring trust for consumers, clinical trials are getting smarter and supply chains and AI. We participated in an AIPIA Connected Packaging webinar that featured eight subject matter experts and focused on smart packaging trends driving demand for IoT technologies shifting now to our Accelerate pillar, our focus here is on driving growth in high value segments through innovation, particularly in BOE technology and advanced multi component manufacturing. We are excited about our long term strategic partnership with IFCO where our team is making good progress across across both product and manufacturing development. We are in the final stages of production site renovations to support the custom manufacturing equipment required for this next generation BLE label. As noted earlier, we expect to begin production of more than half a million pilot units shortly with mass production planned for the fourth quarter. Development of our proprietary BLE smart label portfolio ID Blue is also well underway. We are seeing significant early interest in these solutions which target logistics, cold chain and asset tracking applications. We remain on track to commercialize this portfolio later this year. We also successfully completed the bleambientchat AI demonstration highlighted on our last call. This showcased the potential of physical AI demonstrating how connected products can bridge the physical and digital worlds to deliver real time intelligent insights. Our innovation efforts continue to gain external recognition during the quarter. We were honored with the IoT Connected Retail Application of the Year Award in the 10th annual IoT Breakthrough Awards Program. Underscoring the strength of our technology and market positioning more broadly, we are seeing tangible results from our innovation pipeline. In April, we launched our expanded ID Safe Inlay portfolio which enables product authentication, tamper detection and end to end traceability across a range of industries including pharmaceuticals, healthcare, retail, food and beverage, electronics and smart packaging. We are seeing growing interest for solutions that can verify product authenticity, confirm package integrity and provide visibility across the product life cycle. And our ID Safe Product family addresses all of these challenges. Please see the press release about our ID safe inlaid portfolio issued on April 20th on our website. Turning now to our third pillar transformation. This pillar is focused on expanding the business through strategic MA to accelerate our path to EBITDA Breakeven while broadening our product portfolio and enhancing our technical capabilities. Our Board continues to work closely with our Financial advisor Raymond Jaynes and our legal advisors on strategic alternatives. Before I turn the call over for Q and A, I'd like to update everyone on the new reporting metrics we introduced in 2025 and and the results we achieved in quarter one. First, our new sales pipeline and conversion metric tracks opportunities with new customers or those we have not served in over two years. For 2026 our goal is to build a pipeline of 125 opportunities and convert at least 35 into sales by year end. We exited last year with 101 opportunities and as of the end of first quarter our pipeline has grown to 124 opportunities with 8 opportunities converted to sales during quarter one. Next our new Product Development metric tracks the number of our active NPD initiatives. These projects involve the development of entirely new RFID or BLE tags, inlays or labels. At the end of first quarter we had 18 active NPD projects underway with three successfully completed during the quarter, all within high value segments including cold chain and consumable authentication. Our MPD Completion Metric tracks the number of projects delivered within the period. For 2026, we are targeting 7 completed projects by year end. With 3 projects already completed in the first quarter, we are well on the track to meet this objective. Overall, we are making progress against our key metrics, supported by continued positive momentum across the business. I look forward to updating you on our continued execution throughout the year. Our mission remains clear to provide digital identities for billions of physical objects enabling real time intelligence for the world's most demanding industries. Thank you to all of our employees, customers, partners and shareholders for your continued support of Identiv. With that I'd like to open the call to answer your questions. Operator, please open the question queue. Tom (Operator) Thank you. The floor is now open for questions if you wish to join the queue to ask a question at this time, please press star1 on your telephone keypad. We do ask if listening on speakerphone this afternoon that you pick up your handset or while asking your question to provide optimal sound quality. Once again, that'll be Star one on your keypad at this time. If you wish to join queue to ask a question. Please hold a moment while we poll for questions and the first question today is coming from Anthony Stoss from Craig Hallam. Anthony, your line is live. Please go ahead. Anthony Stoss (Equity Analyst) Thanks. Good afternoon Kirsten and Ed. Three questions. Actually the first two for you Kirsten, what percentage of the opportunities are healthcare related? Or maybe any detail you can give us on the other industries. I think you've given that in the past and also for you Kirsten with IFCO and you're really getting set up to ramp big time in Q4. Do you have the resources necessary to be able to handle any kind of new requests from new customers coming online late in the year? Kirsten Newquist (Chief Executive Officer) Yeah. Well thank you. Good question. So I'LL start with the healthcare one. So we have are two different pipelines that we're monitoring. So one is our NPD pipeline. So our new product development pipeline. In that pipeline we have roughly a third of the projects in the pipeline are healthcare related. As we move over and look at the new opportunity pipeline, which is a combination of some new product development, but more opportunities for standard product or product that has just some minor customization and I'd say that's a little bit lower in terms of the healthcare percentage. That's probably more about 20% healthcare. So in general we're kind of overall, I'd say when we look broadly at our opportunities, probably about a quarter of them between the NPD pipeline and the sales opportunity pipeline are related to healthcare. Oh, and then your second question. Anthony Stoss (Equity Analyst) Oh, sorry, go ahead. I was going to say the resources. Do you have enough resources to handle new customers when you're wrapping ifco? Kirsten Newquist (Chief Executive Officer) Yeah. So obviously ifco, it is a massive program and at the moment it is taking a fair amount of our engineering resources as we are finalizing the design and finalizing the manufacturing process. But as that work as we go through the next couple of quarters and we get to finalize the product spec and the product design, engineering will open up and have a little bit more ability to take on more projects. And really then the effort as we get into the fourth quarter is more on the manufacturing side. So obviously we'll be hiring in particular operators to man the production equipment. But outside of hiring new operators to man the production equipment, we actually have all the resources in house at this point from an engineering perspective. Ed Kernbauer (Chief Financial Officer) Gotcha. If I get asked Ed a question on gross margins, where do you see gross margins are arranged for Q2 and, and maybe what you expect? Q3? Q4? Yes, thank you. As far as we don't give guidance out more than a quarter out. But what I can say is that, you know, we had a good quarter sales wise. We did have the benefit of that pull forward from that customer who ordered their full year supply in the first quarter. But from a margin perspective, I would expect margins to continue to improve in our core business, our core customers, with all the benefits that we're receiving from the transition of Thailand and other things. So I would expect margins to continue to improve, but at the same time we are scaling for the IFCO project. So I would expect we definitely will expect some offset to those benefits as we move into the next quarter and the rest of the year as well. Tom (Operator) Okay, thank you. Thank you. Your next question is coming from Craig Ellis from B. Riley. Craig, your line is live. Please go ahead. Craig Ellis (Equity Analyst) Yeah, Kirsten, Ed, thanks for taking the questions. I wanted to start with just a clarification. We knew that there would be a benefit in the first quarter as we refract material that would be used through the year. But it seemed either that or something else was a little bit greater than at least what I was expecting. Can you look back at the first quarter and help us with what it was that drove revenues a little bit better than I think some of us were expecting? Kirsten Newquist (Chief Executive Officer) Yeah, yeah, no. So we were pleased with the sales in first quarter. So as we had previously mentioned and given some guidance last quarter, we did get the benefit of one of our larger customers purchasing their full year in the first quarter. But we also just saw overall strong demand at the beginning of the year. So we had several of our customers come in with slightly higher orders than had been forecast. And we're happy to see that. But at the same time, we are seeing a little bit of softness now with some of the current global economic situations going on. A little bit of where things started off with some nice good orders coming in in the first quarter. We're seeing a little bit, especially with some of our consumer facing customers, a little bit of a slowdown potentially in the second half. Craig Ellis (Equity Analyst) And on that point, Kirsten, because that was going to be my second question. Is there a regional dynamic to that or is it in any particular part of the consumer facing businesses that you have? Just help us understand how broadly that's being observed within the consumer facing businesses. Kirsten Newquist (Chief Executive Officer) Yeah, so we've seen some softening from forecasting from several of our customers who are specifically consumer facing and specifically in higher end appliances or devices, so higher end product. So I think it's a little bit around kind of consumer confidence. I think some of these customers of ours, the OEMs, just making sure they're managing their inventory levels and being cautious as we're in this world with, you know, perhaps higher inflation than we would like and some of the uncertainty with the geopolitical situation, et cetera. And I think some of the concern around consumer confidence, and I would say, you know, kind of these consumer applications that we've seen a little bit of softness. I'd say that's roughly 25 to 30%, 25% of our overall customer base. Craig Ellis (Equity Analyst) That's really helpful and I don't think any of us are totally surprised with that because it does seem to be an artifact of what happens in an uncertain macro. My last question before I get back in the queue. Thanks for giving us some of the new metrics. I wanted to understand them a little bit better. I'll start with target 2026 conversion opportunity. So we've converted 8. We have an ambition for 35. Help us understand the visibility you have in getting from 8 to 35. And if you could provide any color on how we should think about the revenue implications of that potential success, it would be helpful. Kirsten Newquist (Chief Executive Officer) Thanks, Kirsten. Yeah, no, thank you for the question. So we have the total number in the opportunity pipeline are roughly 124 opportunities. And so our goal, and obviously as we convert them, they come off. Sometimes we win them, sometimes we lose them. So that number does fluctuate quite a bit. But our ultimate goal is to convert 35 new. And these are brand new customers. The ones that we haven't sold to before or if we sold to them before, it's been over two years. So we're looking to convert 35 of those by the end of the year. So that's our target for the full year. And those opportunities in our sales pipeline, they really do vary in terms of average size. If it's a standard product that we keep on inventory, it can be as small as 5,000 or $10,000. But it also can represent a custom product of a new customer who is looking to scale in a global way. And those opportunities can be worth 500,000, a million dollars worth of product within the first 12 months of sale. So it really does vary. And so even an average order price doesn't give you a lot of information, but really does vary from small to very big. And so ultimately we're looking to convert sales. 10 to 15% of our overall sales value should be coming from some of these new conversions. And obviously this also doesn't include ipsco. That would be a separate category altogether. Craig Ellis (Equity Analyst) Sure. Regarding the bigger ones, do you feel like you have line of sight on anything that could convert in the large size? Kirsten Newquist (Chief Executive Officer) So we certainly are working on larger sized ones. I'd say the majority of the larger size ones are more on the BLE side and some of the ones on the BLE side also do need us to get to the commercialization of the ID Blue, which is the portfolio of BLE smart labels that we're working on that we'll be commercializing on later this year. So we definitely are working them. We're in conversation, we're in sampling mode. But it's, you know, until those go through the whole development proof of concept, you know, we don't have a definitive answer on exactly what the timing will be or what the initial, the initial first quarter to volume will be. Got it. Thanks for all the help. Thank you. Tom (Operator) Thank you. Your next question is coming from Jason Schmidt from Lake Street. Jason, your line is live. Please go ahead. Jason Schmidt (Equity Analyst) Hey guys, thanks for taking my questions. Just want to follow up on the commentary surrounding kind of macro concern concerns, understanding maybe demand forecasts are a little softer than anticipated. But are you seeing any cancellations within your pipeline? Kirsten Newquist (Chief Executive Officer) We're not seeing cancellations. I'd say what we're seeing is, as you just mentioned, softening forecasts or interest in perhaps pushing some orders out. So that's more what we are seeing Jason Schmidt (Equity Analyst) as opposed to just outright cancellations. Gotcha. And then just as a follow up understanding with the ramp of ifco, there could be some incremental expenses. But how should we think at a high level of OPEX trending this year? Ed Kernbauer (Chief Financial Officer) Yeah, I'll take that question. I would expect OPEX would. It's relatively consistent with, with what it had been last year and we have, with the cost structure that we have in place, we don't expect to see any significant increases in OPEX in the next quarter or for the rest of the year as well. Jason Schmidt (Equity Analyst) Pretty much flat. Okay, perfect. Thanks a lot, guys. Tom (Operator) Thank you. And as a reminder, if anyone wishes to join the queue at this time, you May press star1 on your telephone keypad. Once again, it will be star one if you wish to join Q to ask a question. And it appears there are no further questions in queue at this time. I'll now like to pass the floor back to management for any closing remarks. Kirsten Newquist (Chief Executive Officer) Well, I wanted to thank everyone for joining. We appreciate you spending the time with us this evening and we're looking forward to another good quarter in quarter two. So thank you for joining us. Tom (Operator) Thank you. This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: IDENTIV (INVE): Free Stock Analysis Report This article Identiv Q1 2026 Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Logitech (LOGI) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.1 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.73%. A quarter ago, it was expected that this maker of keyboards, webcams and other computer accessories would post earnings of $1.79 per share when it actually produced earnings of $1.93, delivering a surprise of +7.82%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Logitech, which belongs to the Zacks Computer - Peripheral Equipment industry, posted revenues of $1.09 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.10%. This compares to year-ago revenues of $1.01 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Logitech shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 5.2%. While Logitech has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Logitech was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.30 on $1.17 billion in revenues for the coming quarter and $5.66 on $4.92 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Peripheral Equipment is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Identiv, Inc. (INVE), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 13. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Identiv, Inc.'s revenues are expected to be $6.9 million, up 30.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Logitech International S.A. (LOGI) : Free Stock Analysis Report Identiv, Inc. (INVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, March 12, 2026 at 5 p.m. ET Chief Executive Officer — Kirsten Newquist Chief Financial Officer — Edward Kirnbauer Need a quote from a Motley Fool analyst? Email [email protected] Kirsten Newquist: Thank you, operator, and thank you all for joining our quarter 4 and fiscal year 2025 earnings call. During the fourth quarter, we made meaningful progress across each pillar of our Perform, Accelerate and Transform strategy. Of particular note, we made significant advancements in the development of the specialized Bluetooth Low Energy, BLE, smart label in collaboration with IFCO, a leading global provider of reusable packaging solutions for fresh food. As announced on Tuesday, we signed a multiyear agreement with IFCO to manufacture and supply the specialized next-generation BLE smart label. This agreement represents a major milestone in our high-growth BLE strategy and reinforces Identiv's leadership in scalable BLE-enabled solutions for complex global industries. Our BLE smart label will be a key component of IFCO's digital platform designed to transform the global fresh grocery supply chain by delivering enhanced visibility, reducing waste and supporting a more sustainable circular food system. Under the multiyear agreement, Identiv will serve as exclusive supplier for committed manufacturing volumes. Following the development phase, IFCO will maintain exclusivity for these customized BLE labels as they are deployed across its global network of more than 400 million reusable packaging containers. Full-scale mass production is expected to begin later this year, subject to achieving final development milestones. Turning to our quarter 4 financial performance. I'm pleased to report that fourth quarter sales of $6.2 million exceeded our guidance with all other key financial metrics also coming in ahead of expectations. We saw continued strength in gross profit margin, reflecting the successful completion of our 2-year transition of production from Singapore to our new state-of-the-art manufacturing facility in Thailand. With the Singapore shutdown now complete, we have completed our second full quarter of operations entirely out of Thailand, which has structurally reduced our cost profile while increasing manufacturing efficiency and scalability. Our CFO, Ed Kirnbauer, will now provide a detailed review of our quarter 4 financial performance, and I'll return afterwards to share more on how we're progressing across our strategic initiatives. Edward Kirnbauer: Thanks, Kirsten. In the fourth quarter of 2025, we delivered $6.2 million in revenue, which exceeded our previously announced guidance range compared to $6.7 million in Q4 2024. The year-over-year decrease was as expected and due to the exit of lower-margin business, which we did not transfer to Thailand. Fourth quarter GAAP and non-GAAP gross margins were 18.1% and 25.6%, respectively, compared to GAAP and non-GAAP gross margins of negative 14.9% and negative 5.2%, respectively, in Q4 2024. Factors driving the expansion of gross margin included the elimination of direct labor and fixed manufacturing overhead costs associated with our discontinued Singapore operations and improved utilization of our manufacturing production facility in Thailand. As we mentioned on our November call, we stopped production of RFID inlays and labels in Singapore at the end of Q2 2025. Singapore facility shutdown activities continued through the fourth quarter of 2025. And as of December 31, 2025, it's now complete. GAAP and non-GAAP operating expenses for the fourth quarter of 2025, including research and development, sales and marketing, general and administrative and restructuring and severance totaled $5.8 million and $4.1 million, respectively, as compared to $5.6 million and $4.1 million, respectively, in Q4 2024. The year-over-year increase in GAAP operating expenses was driven primarily by higher strategic review-related costs incurred in Q4 2025 compared to the fourth quarter of 2024. Non-GAAP operating expenses in Q4 2025 were comparable to the prior year period as we continue a careful allocation of operating expenses as we execute on our P-A-T strategic initiatives. Fourth quarter GAAP net loss from continuing operations was $3.7 million or $0.16 per basic and diluted share compared to GAAP net loss from continuing operations of $4.3 million or $0.19 per basic and diluted share in the fourth quarter of 2024. This reduction in net loss was due to lower direct labor and overhead costs following the shutdown of our Singapore operations as well as $1.1 million of charges to cost of revenues recorded in the fourth quarter of 2024. These charges were primarily related to inventory written off after a customer phase out a legacy program earlier than expected. These cost improvements were partially offset by strategic review-related expenses incurred in the fourth quarter of 2025. Non-GAAP adjusted EBITDA loss for Q4 2025 was $2.5 million compared to $4.5 million in the fourth quarter of 2024. The decreased loss was a result from the production transition to our Thailand facility in 2025, the charge to cost of revenue in Q4 2024 and the disciplined spending of operating expenses as we executed on our P-A-T strategic initiatives, as mentioned earlier. In the appendix of today's presentation, we have provided a full reconciliation of GAAP to non-GAAP financial information, which is also included in our earnings release. Turning now to our fiscal year 2025 financials. Fiscal year 2025 revenue was $21.5 million, a decrease of $5.1 million compared to the prior year period, primarily the result of the intentional exit of certain lower-margin legacy business. Fiscal year 2025 GAAP and non-GAAP gross margin was 6.1% and 14.3%, respectively, compared to GAAP and non-GAAP gross margin of 1.3% and 8%, respectively, in fiscal year 2024. This year-over-year margin expansion reflects a more favorable product mix and significant operational efficiencies following the successful completion of our manufacturing transition to Thailand. GAAP and non-GAAP operating expenses for fiscal year 2025, including research and development, sales and marketing, general and administrative and restructuring and severance, totaled $23.5 million and $17.6 million, respectively, as compared to $28.3 million and $17.9 million, respectively, in fiscal year 2024. Fiscal year 2024 GAAP operating expenses included $5.3 million of incremental strategic review-related costs compared to 2025. Fiscal year GAAP net loss from continuing operations was $18 million or $0.79 per basic and diluted share compared to GAAP net loss from continuing operations of $25.9 million or $1.14 per basic and diluted share in fiscal year 2024. Non-GAAP adjusted EBITDA loss for fiscal year 2025 was $14.5 million compared to $15.8 million in fiscal year 2024. This relative stability in adjusted EBITDA despite lower year-over-year revenues was primarily driven by the reduction in manufacturing overhead and targeted allocation of operating expenses as we execute on our P-A-T strategic initiatives. Moving now to the balance sheet. We exited Q4 2025 with $128.9 million in cash, cash equivalents and restricted cash, which is a sequential increase of $2.3 million over the third quarter of 2025. This increase included an income tax refund of $2.9 million and a prepayment of $2.8 million from a new customer to procure product for their full 2026 projected sales volumes. Excluding these items, operating cash usage net of interest income for the fourth quarter was approximately $3.4 million. Our working capital exiting Q4 was $133.3 million. Our balance sheet remains strong as we move into 2026. In our 10-K filing, we will be providing a full reconciliation of full year cash flows. For completeness, we have included the full balance sheet in the appendix of today's earnings release. As we look ahead into 2026, we anticipate Q1 sales of $6.7 million to $7.2 million, which includes the benefit of one of our new customers ordering their full year volume in Q1. This would be an anticipated increase of 26% to 35% over the $5.3 million in sales that we reported for Q1 of 2025. Throughout 2026, we do expect some near-term variability in gross margins as we begin scaling production for the IFCO program and for another new customer in Q1. This reflects the typical dynamics of ramping production for large programs. It's important to note that the underlying cost structure improvements from our manufacturing transition remain in place. As these programs mature and volume scale, we believe they will support attractive long-term margin performance. From a cash usage perspective, we expect to use $14 million to $16 million in 2026, excluding strategic review-related costs. This includes the cash required to support ongoing operations, plus $3.5 million of capital expenditures primarily related to the IFCO production, $1 million increase in working capital to support growth and $1.5 million to purchase chips, locking in favorable pricing required to fulfill orders, which extend past 2026. This concludes the financial discussion. I'll now pass the call back to Kirsten. Kirsten Newquist: Thanks, Ed. As you just heard, we delivered results that exceeded our guidance and expectations, a solid step forward as we continued executing against our Perform, Accelerate and Transform strategy. Our mission is clear. We provide digital identities for billions of fiscal objects, enabling real-time intelligence for the world's most demanding industries. While there is more work ahead to reach our long-term financial goals, we are encouraged by the tangible progress we made in 2025. Perform. Under the Perform pillar, our focus is on strengthening and growing our core business while driving operational efficiency, scalability and margin expansion to create stronger long-term value for both our customers and our shareholders. In 2025, we achieved several important milestones that directly enhance the value we deliver. First, we completed a major 2-year manufacturing transformation. We moved production of all RFID tags, inlays and labels to our Thailand facility and fully shut down the Singapore site. This transition has lower costs and improved efficiency, increased margins and is enabling faster, more reliable product delivery. We also implemented new enterprise software systems, including a CRM platform and an MRP system to better integrate sales, demand planning and operations. These enhanced capabilities will increase visibility across the business and enable faster responses to customer needs, produce more accurate demand forecasting and generate higher product availability. As a result, we expect more efficient planning of raw materials and production, driving lower operating costs and supporting continued margin expansion. In addition, we completed our transition to a pure-play IoT company, fully separating from the physical security business sold to Vitaprotech after a 12-month transition period. This strategic focus allows us to concentrate all of our resources, innovation and capital on high-value IoT opportunities where we see the strongest long-term growth potential. On the commercial side, we completed the build-out of our team, adding market development and business development capabilities and reoriented the company around a stronger customer-centric operating mode. Throughout the year, we converted 29 new pipeline opportunities into sales, which generated $1.2 million in revenue with continued growth expected as these customers reach steady-state adoption. Our marketing communications function was rebuilt following the separation, culminating in the launch of our new corporate website in January, which more clearly communicates our technology leadership, market positioning and value proposition. I encourage all of you to check it out if you have not already done so. Looking ahead to 2026, our focus is on translating the stronger operational foundation into profitable growth. We are shifting to a make-to-forecast production model for key customers, supported by predictive demand planning that better aligns inventory with customer demand, lowers raw material costs through higher volume purchasing and improved factory utilization. Quarterly sales and operations planning sessions will align our sales operations and supply chain teams around a single demand plan and disciplined production execution, enabling better overall service for our customers. These capabilities position us to support large deployment customer programs such as IFCO and scale them more rapidly. With improved forecasting, shorter lead times and a more flexible manufacturing platform, we can respond more quickly to new sales opportunities and bring new products to market more efficiently. This combination of operational discipline and commercial focus enables us not only to operate more efficiently, but also to pursue growth opportunities more aggressively. We will also launch targeted cost reduction initiatives on key products and deepen engagement with key customers through strategic business reviews. Together, these initiatives will strengthen execution and ensure the operational investments of the past 2 years translate directly into faster growth and long-term value creation. Accelerate. Under the Accelerate pillar, our focus is on driving growth in high-value segments through innovation, particularly in BLE technology and multi-component manufacturing. In 2025, we made meaningful progress across our innovation pipeline. We advanced our BLE smart label programs, producing the first 30,000 units for IFCO proof-of-concept trials. These trials provided valuable feedback that is helping us refine the product design ahead of scale-up and mass production. We also shipped our first orders of Wiliot's next-generation Pixel. In addition, we completed 5 customer-driven new product development projects that are shifting to commercialization, including applications in wine authentication, medication compliance and water safety. We expanded our partner ecosystem through strategic agreements, including with InPlay, Tag-N-Trac, Novanta, Narravero, IFCO and Wiliot. These partnerships are a key component of our Accelerate strategy, aligning us closely with organizations building complementary elements of IoT-enabled solutions. We also finalized detailed BLE and high-value segment RFID road maps to closely align our innovation efforts with market opportunities, our core competencies and customer priorities. In 2026, we are working to build on this momentum. A major focus will be completing development for the IFCO BLE smart label program and ramping production to support more than 100 million units per year. In partnership with IFCO, we are expanding our capacity in multicomponent manufacturing to support these volumes. This program represents a transformational opportunity for both our business and the fresh food logistics industry as IFCO works to bring unprecedented digital visibility to the global fresh food supply chain, reducing waste and supporting a more sustainable circular food system. In terms of artificial intelligence, we are developing a BLE AmbientChat.ai demonstration platform to showcase the value of connecting the physical and digital worlds enhanced by real-time intelligence powered by AI. In addition, several programs from our BLE road map will advance this year, focusing on high-value applications across health care, industrial and logistics markets. In particular, we expect to commercialize our ID-BLU smart label, utilizing the next-generation InPlay chip later this year. Together, these initiatives are designed to accelerate growth in our high-value segments and maximize the commercial impact of our BLE and IoT innovation platforms. Transform. Our third pillar, Transform, focuses on expanding the business through strategic M&A that accelerates EBITDA breakeven, broadens our product portfolio, enhances technical capabilities and seeks to increase shareholder value. We have a dedicated team working with our financial advisor, Raymond James, to evaluate our strategic alternative. Transform remains a top priority this year. Our metrics. In 2025, we began reporting several new metrics to monitor our progress against strategic objectives. We learned a lot, made some refinements and have established targets for 2026. First, new sales pipeline and conversion rate. This metric tracks opportunities with new customers or customers we haven't sold to in over 2 years. By year-end, the pipeline included 101 opportunities, up 35% from the start of the year. As mentioned, throughout the year, we converted 29 of the opportunities totaling $1.2 million in sales. This represents a 28% conversion rate of the current pipeline or 16% when including opportunities that were lost or removed during the year. Our 2026 goal is to grow the pipeline to 125 opportunities and convert at least 35 by the end of the year. Second, new product development projects. This metric tracks the number of active NPD initiatives. These projects involve the development of entirely new RFID or BLE tags inlays or labels. As of the end of quarter 4, there were 18 active NPD projects, 10 customer-driven and 8 internally driven. We will continue to measure our NPD pipeline, but will not be setting a 2026 target as our focus will be to ensure enough resources are allocated to producing the multimillion volumes needed by IFCO. Third, NPD project completion. This metric captures the number of NPD projects completed within the quarter. In quarter 4, we completed 1 customer-driven project, bringing us to a total of 5 for the full year. The project completed in quarter 4 is for mass transit application. Our target for 2026 is to complete 5 to 7 NPD projects, including IFCO. We are pleased with the progress we made in 2025 advancing our Perform, Accelerate and Transform strategy. Our fourth quarter results show encouraging momentum, including gross margin improvement following the completion of our production transition to Singapore. In addition, the advancements that the Board has overseen in 2025 are not only related to operational and financial improvements, but it has also taken several shareholder-friendly actions to improve our governance profile over the past 12 months. Such actions include the declassification of the Board with each of the directors now being annually elected and enhancing the Board's collective expertise with the addition of Mick Lopez, a seasoned financial expert and former CFO. As we move into 2026, we are focused on building on the operational foundation established last year, scaling production for IFCO, expanding our customer base and launching new products. With our strategy in place and strong execution ahead, we believe we are well positioned to capture opportunities in the rapidly growing global IoT market. I want to thank our employees, customers, partners and shareholders for their continued trust and support. We are encouraged by our progress and excited about the opportunities ahead in the RFID and BLE markets. With that, I'd like to open the call for your questions. Operator, please open the question queue. Operator: [Operator Instructions] The first question comes from Jaeson Schmidt with Lake Street. Jaeson Schmidt: Just want to dig in a bit more on the IFCO opportunity. Obviously, it's noted that they have over 400 million units out there, and you guys are obviously scaling in anticipation to support a large number. But how should we think about this revenue opportunity from an ASP and gross margin profile standpoint? Kirsten Newquist: Yes, sure. So we're very excited about the IFCO project. We've been working on development for the past year, and so very thrilled that we were able to announce the signing of the agreement. We are scaling up to 100 million units of capacity per year and they do want to tag their full 400 million and growing plus of reusable plastic containers. They also have to replace approximately 10% of those per year. So there's the ongoing opportunity to continue to support their full pool of plastic containers. So we aren't talking specifically about the pricing or specific gross margin, but it is a higher price point than our average price per product, which I think we've previously told around $0.15. And it's also a lower price than we anticipate our standard BLE label, which we've publicly announced is going to be less than $1. So somewhere in that range. And obviously, gross margins, it is a true partnership with IFCO. They are investing CapEx along with us to scale up. They are committing to a certain volume. And so with that, we are -- the gross margin will be less than our target gross margin of 30%, but still a very, very great opportunity for us. Jaeson Schmidt: Got you. That's helpful. And just to clarify, are you guys sole sourced here? How many potential suppliers are there? Kirsten Newquist: It's an exclusive agreement. So this is an exclusive agreement. We will be developing this product exclusively for them, and then we will be the exclusive supplier for them over the term of the agreement. Jaeson Schmidt: Okay. Perfect. And then just the last one for me, and I'll jump back in the queue. When you think about your new opportunity pipeline, can you give us a rough sense of, sort of, how that breaks down by end market? Kirsten Newquist: Yes. So kind of in our current pipeline, so the customer-driven opportunities that we have in our pipeline, it's roughly 25% of them are for health care. I would say another probably 25% for logistics, probably another 25% for food and beverage and then the rest is a variety of applications. Operator: The next question comes from Tony Stoss with Craig-Hallum. Rian Bisson: It's Rian on for Tony Stoss. Just following up on the last question about your pipeline. I think last quarter, you said about 2/3 is at or above your 30% gross margin target. Any changes there? And if you could, what percentage of revenue in the December quarter were from these new opportunities? Kirsten Newquist: So anything that's in our NPD pipeline, those are being developed. So there would be nothing in our quarter 4 that is in our NPD pipeline. Those are new product development, they're in process. And I would still say that roughly 2/3 of the opportunities in the NPD pipeline would be in higher margin targets because these are more specialized, highly engineered products that we're developing. They're not from our standard product portfolio. So in order to accept them into the pipeline, we would want to see that margins would be slightly higher than average. Rian Bisson: Okay. Got it. And then one more on the IFCO deal. It was nice to see that supply agreement come in. It said there was a development phase that needed completion. I'm curious what kind of that looks like throughout the year. And it seems like the plan is still to ramp towards the end of the year towards the larger volumes. Kirsten Newquist: Yes. So we will be -- we are still in product development. We are still making final design changes to it. We will continue to be producing in lower volumes throughout the year for pilots and testing and so on. But the significant ramp-up will be at the end of the year, quarter 4. Operator: The next question comes from [ Rebecca Zamsky ] with B. Riley Securities. Unknown Analyst: I'm on for Craig Ellis. Could you provide some color on the relative contribution and the visibility of the gross margin drivers in 2026, whether that be the Singapore cost elimination, Thailand yield improvements, NPD mix shift and the IFCO ramp? Kirsten Newquist: I'm sorry. So just trying to clarify the question. So are you asking just about our kind of gross margin expectations as we go into 2026? Unknown Analyst: Yes. Like could you just like provide some color on the relative contribution of the gross margin drivers? Edward Kirnbauer: So you're asking about what we're expecting from a gross margin perspective as we move into 2026 as compared to... Unknown Analyst: Yes. Edward Kirnbauer: Okay. Thank you. Okay. Yes. So as we mentioned earlier on the call, we did finish the year at a non-GAAP 25.6% margin. But as we move into 2026, we do anticipate near-term variability as we start scaling for the IFCO project and as well as we have a -- we're onboarding a new customer in Q1. So that will -- in the near term, we're expecting some variability. But if you look at our current customer base, we're definitely seeing strength and improvement, and we expect expansion of the margin as we progress through 2026 with our current customer base. Operator: I'd like to turn the floor back to Kirsten Newquist for closing remarks. Kirsten Newquist: Okay. Well, thank you. Thank you, everyone, for joining. We are pleased to share our fourth quarter results and summarize our full year 2025. So thank you for joining us today, and we'll talk to you next quarter. Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. 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