PI

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the analog semiconductors industry, including Impinj (NASDAQ:PI) and its peers. Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years. The 14 analog semiconductors stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 4.9% above. While some analog semiconductors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results. Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software. Impinj reported revenues of $108.4 million, up 10.7% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a stunning quarter for the company with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates. Interestingly, the stock is up 25.3% since reporting and currently trades at $174.50. Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free. Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Monolithic Power Systems reported revenues of $980.6 million, up 47.6% year on year, outperforming analysts’ expectations by 8.6%. The business had an incredible quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates. Monolithic Power Systems achieved the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $1,218. Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it’s free. Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones. Himax reported revenues of $227.4 million, up 5.9% year on year, exceeding analysts’ expectations by 2%. Still, it was a slower quarter as it posted EPS in line with analysts’ estimates. The stock is flat since the results and currently trades at $13.34. Read our full analysis of Himax’s results here. Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors. Texas Instruments reported revenues of $5.46 billion, up 22.8% year on year. This number topped analysts’ expectations by 3.8%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates. The stock is down 13.5% since reporting and currently trades at $254.40. Read our full, actionable report on Texas Instruments here, it’s free. A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion. Power Integrations reported revenues of $118.9 million, up 2.7% year on year. This result beat analysts’ expectations by 1.3%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates. The stock is down 19.9% since reporting and currently trades at $49.65. Read our full, actionable report on Power Integrations here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

In recent weeks, Impinj experienced a “golden cross,” with its 50-day simple moving average crossing above the 200-day average, coinciding with upward revisions to its near-term earnings outlook. This combination of a widely watched technical signal and improving earnings expectations has drawn fresh attention to how investors assess Impinj’s momentum and fundamentals. We’ll now examine how the golden cross and upgraded earnings outlook may influence Impinj’s existing investment narrative and risk profile. We've uncovered the 11 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Impinj, you need to believe RAIN RFID adoption across retail, logistics, and emerging areas like food can support sustained revenue growth and eventually consistent profitability. The recent golden cross and upgraded near term earnings outlook highlight improved sentiment but do not materially change the key near term catalyst, which is broader item level deployments, or the primary risk around customer concentration and potential revenue volatility if large pilots or partners pause or slow orders. The most relevant recent announcement for this technical breakout is Impinj’s Q2 2026 report, where revenue reached US$108.37 million, up from US$97.89 million a year earlier, and management guided Q3 2026 revenue to US$105.5 million to US$108.5 million with expected GAAP profitability. This earnings trajectory and guidance refinement help frame how much of the stock’s recent move reflects improving fundamentals versus sentiment, and how durable the current momentum may be if end market demand normalizes. Yet beneath the positive signals, investors should be aware that concentrated exposure to retail and logistics customers could still... Read the full narrative on Impinj (it's free!) Impinj's narrative projects $630.0 million revenue and $75.9 million earnings by 2029. This requires 20.4% yearly revenue growth and a $103.6 million earnings increase from -$27.7 million today. Uncover how Impinj's forecasts yield a $175.00 fair value, in line with its current price. While the golden cross and upgraded outlook hint at improving momentum, the most optimistic analysts were already assuming revenue could reach about US$677.5 million and earnings about US$113.1 million by 2029, which paints a far more aggressive path than consensus and could be reconsidered as channel inventory and customer concentration risks evolve. Explore 3 other fair value estimates on Impinj - why the stock might be worth as much as $176.00! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Impinj research is our analysis highlighting 1 key reward that could impact your investment decision. Our free Impinj research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Impinj's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. AI is about to change healthcare. These 44 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, July 29, 2026 at 5:00 p.m. ET Co-Founder and Chief Executive Officer - Chris Diorio Chief Financial Officer - Cary Baker Vice President, Corporate Finance and Investor Relations - Andy Cobb Operator: Welcome to Impinj's Second Quarter 2026 Financial Results Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Corporate Finance and Investor Relations. Please go ahead. Andy Cobb: Thank you, Nick. Good afternoon, and thank you all for joining us to discuss Impinj's second quarter 2026 results. On today's call, Chris Diorio, Impinj's Co-Founder and CEO, will provide a brief overview of our market opportunity and performance. Cary Baker, Impinj's CFO, will follow with a detailed review of our second quarter financial results and third quarter outlook. We will then open the call for questions. You can find management's prepared remarks plus trended financial data on the company's Investor Relations website. We will make statements in this call about financial performance and future expectations that are based on our outlook as of today. Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. Whereas we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any such statements are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, except as required by law. On today's call, all financial metrics, except for revenue or where we explicitly state otherwise, are non-GAAP. All balance sheet and cash flow metrics, except for free cash flow, are GAAP. Please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics. Before turning to our results and outlook, note that we will participate in the 2026 Jefferies Semiconductor IT Hardware and Communications Technology Conference on August 25 in Chicago; and the Piper Sandler Growth Frontiers Conference on September 15 in Nashville. We look forward to connecting with many of you this quarter. I will now turn the call over to Chris. Chris Diorio: Thank you, Andy, and thank you all for joining the call. Our second quarter results were strong with revenue, adjusted EBITDA and earnings per share setting new quarterly records. For the second consecutive quarter, endpoint IC bookings also hit an all-time high, driven by strong demand across retail apparel, general merchandise and supply chain and logistics. Looking to the third quarter, we see accelerating demand and strong product revenue growth. Starting with silicon. Second quarter endpoint IC product revenue exceeded our expectations with unit volumes setting a new quarterly record. In supply chain and logistics, the custom ASIC ramp at our second large North American supply chain and logistics end user is ahead of schedule with our inlay partners rapidly filling their supply chain and full conversion expected in the third quarter. In retail apparel and general merchandise, stronger-than-expected demand drove outsized revenue even as channel inventory declined. We believe market expansion, retailer pull-ins before temporary tariffs expired last week, and consumer resilience drove the demand strength. Looking forward, strong bookings suggest continued market expansion and demand on top of our inlay partners rebuilding their IC inventory back to normal levels. Reader IC revenue also beat our expectations, driven by strong enterprise demand. Looking to the third quarter, we expect reader ICs to be our fastest-growing product line. For both endpoint and reader ICs, we have sufficient wafers to support the demand with strong support from our foundry partner. Turning to food. A few weeks ago, another large U.S. grocer publicly cited their ongoing bakery pilot using RAIN to track in-store inventory and product expiration dates. Three of the 5 largest U.S. grocers have now announced pilots or deployments across bakery, deli or meats. I'll take a moment to give some color on the food opportunity. We are currently supporting 4 distinct types of food programs. First, store replenishment, led by quick-serve restaurants and focused on availability and freshness. Second, in-store inventory, led by supermarkets and focused on stocking and product expiration. Third, loss identification, also led by supermarkets and focused on flagging unscanned items at point of sale. And fourth, automated self-checkout, led by the large vertically integrated European grocer we've discussed previously. A few enterprises in the first and second categories have progressed to chain-wide rollouts, consuming a modest number of endpoint ICs relative to current RAIN industry volumes, but still small relative to the total opportunity. The third and fourth categories are still in proof of concept with encouraging results to date. Notably, the opportunity breadth and sheer number of large engaged enterprises, so early in the market cycle is far larger and faster than anything I've seen in our industry's history. With all the excitement around food, I need to encourage you not to lose sight of the opportunities in the supply chain and logistics and general merchandise markets. The former is poised to expand from shipments to e-commerce and third-party logistics. The latter continues its inexorable growth and expansion with many large categories such as OTC pharmaceuticals, cosmetics and health and beauty not yet deployed. Given their head start, both markets today are consuming significantly more endpoint ICs than food. Also, both offer significant solutions opportunities for us. Touching on those solutions, despite only modest second quarter reader and gateway shipments to our lighthouse enterprises, our solutions engagements with those enterprises continue advancing. We're focused on 2 enterprise pain points, replenishment and point of sale using our endpoint and reader ICs, readers, gateways and software to provide real-time event data around supply chain transitions and at front of store. And we are engaging partners to sell and deploy those solutions. We believe the event data our solutions deliver, for example, a 100% certain event that a store received an item, will dramatically improve AI models that analyze and automate enterprise operations. We're incredibly well positioned to lead and win in solutions using machine learning to find moving items and confined read zones, Gen2X to improve item readability, label production systems to ensure label quality and reliability, custom ASICs as needed and solutions engineering and sales to truly deliver the use case. Although we are still in the early days of solutions delivery, my focus is expanding our company from being primarily a component seller to also being a solution provider. I'm confident we can do so. And given our solutions demand, I have never been more excited about our future than I am today. In closing, this month marks our 10-year anniversary as a public company, and our timing couldn't be better. Our market opportunity is expanding rapidly with the growth rate in supply chain and logistics, general merchandise and food outpacing retail apparel, which is in mainstream adoption. We delivered a quarter with record revenue, adjusted EBITDA, earnings per share and endpoint IC volumes and look to another strong quarter ahead. And we have a stellar team, energized by the opportunities in front of us and driving forward with pace and conviction. As always, before I turn the call over to Cary for our financial review and third quarter outlook, I'd like to thank every member of the Impinj team for your tireless effort. I feel honored by my incredible good fortune to work with you. Cary? Cary Baker: Thank you, Chris, and good afternoon, everyone. Second quarter revenue was a record $108.4 million, up 46% sequentially from $74.3 million in first quarter 2026 and up 11% year-over-year from $97.9 million in second quarter 2025. Second quarter endpoint IC revenue was a record $96.4 million, up 53% sequentially from $63.2 million in first quarter 2026 and up 14% year-over-year from $84.6 million in second quarter 2025. Excluding licensing revenue, endpoint IC product revenue grew 26% sequentially and 16% year-over-year, significantly exceeding our expectations. Looking forward, we expect third quarter endpoint IC product revenue to increase sequentially, above the high end of typical seasonal growth. Second quarter systems revenue was $12 million, up 8% sequentially from $11 million in first quarter 2026 and down 10% year-over-year from $13.3 million in second quarter 2025. Systems revenue met expectations with reader IC strength offsetting label production systems weakness. Looking forward, we expect a strong sequential third quarter systems revenue increase. Second quarter gross margin was a record 60.9% compared with 52.4% in first quarter 2026 and 60.4% in second quarter 2025. The sequential increase was driven primarily by licensing revenue. The year-over-year increase was driven primarily by endpoint IC product mix, specifically a richer mix of M800, partially offset by lower systems revenue mix. Excluding licensing revenue, second quarter product gross margin was 53.6% compared with 52.6% in second quarter 2025. Looking forward, we expect third quarter product gross margin to increase sequentially. Total second quarter operating expense was $35.3 million compared with $35.5 million in first quarter 2026 and $31.5 million in second quarter 2025. Operating expense met expectations. Research and development expense was $20.2 million. Sales and marketing expense was $7.1 million. General and administrative expense was $8.1 million. Looking to the third quarter, we expect third quarter operating expense to increase sequentially. Second quarter adjusted EBITDA was a record $30.7 million compared with $3.4 million in first quarter 2026 and $27.6 million in second quarter 2025. Second quarter adjusted EBITDA margin was a record 28.3%. Excluding licensing revenue, adjusted EBITDA margin was 15%. Second quarter GAAP net income was $12.2 million. Second quarter non-GAAP net income was a record $27 million or $0.86 per share on a fully diluted basis. Turning to the balance sheet. We ended the second quarter with cash, cash equivalents and investments of $263.7 million compared with $235.2 million in first quarter 2026 and $260.5 million in second quarter 2025. Inventory totaled $91.5 million, up $5.2 million from the prior quarter. Second quarter capital expenditures totaled $2.4 million. Free cash flow was $29.2 million. Turning to our outlook. We expect third quarter revenue between $105.5 million and $108.5 million compared with $91.4 million product revenue in second quarter 2026, a quarter-over-quarter increase of 17% at the midpoint. We expect adjusted EBITDA between $20.7 million and $22.2 million. On the bottom line, we expect non-GAAP net income between $18.5 million and $20 million, reflecting non-GAAP fully diluted earnings per share between $0.59 and $0.63. In closing, I want to thank the Impinj team, our customers, our suppliers and you, our investors, especially those of you still holding IPO shares today at our 10-year listing anniversary for your ongoing support. I will now turn the call to the operator to open the question-and-answer session. Operator: The first question will come from Harsh Kumar with BMO Capital Markets. Harsh Kumar Chris and the entire Impinj team, I guess, congratulations on 2 distinct things, your 10-year anniversary and the biggest quarter you guys put up and also the biggest guide from what I believe, not including royalties. So to that end, Chris, I wanted to ask you, the third quarter guide is quite a bit of a surprise to me. And I was curious if you could provide us with some color on where you are seeing outsized strength relative to your previous expectations. Chris Diorio: Okay. Harsh, thank you for your kind words. And so to answer your question, where we're seeing strength. As I said in our prepared remarks, we're seeing pull in general merchandise, supply chain and logistics and food. Obviously, there's also continued expansion in retail apparel. There continue to be new programs that are coming online as well as growth in existing programs. So although retail apparel is in mainstream adoption and therefore, its pace of growth has slowed in terms of an overall volume number, it's still contributing significant volume growth to us. On top of that, we saw share gains last year in the overall market, and those share gains are giving us momentum in 2026. You put all those pieces together, strong market demand, market pull for solutions, multiple verticals going on our strength in the market, and they all contribute to a strong Q2 and a strong Q3. Harsh Kumar And then I think you spent quite a bit of time on food and laying out how you will play it. I know that the largest retailer in the United States is implementing food tracking or food -- yes, food tracking for deli and bakery. I was curious about how that is going because it wasn't announced by you, it was announced by one of your inlay partners. And then also, are you concerned about tariffs at all? Or are you seeing anything? It doesn't seem like you're seeing anything, but I'd be curious if that's something in the back of your mind. Okay. Two questions. First on food and then the second one on tariffs. In the food space, Harsh, we as a company, tend to let our partners and customers speak for themselves. I devoted a significant portion of my script to the food opportunity overall because, like I said, I'm truly excited about this opportunity. The number of large enterprises that are engaged is far greater than anything I've seen in our history. I mean just think about it. If you look at supply chain and logistics, it was led primarily by one enterprise. You look at some of the growth in retail apparel in the old days was led by a very small number of enterprises. Here, we've got 3 of the 5 largest U.S. grocers jumping in at the beginning. So just that the demand and the pace is something I haven't experienced. So I'm very excited about food. We're working with those grocers, including the one you mentioned, I'm supporting them as we can. Very much as we can. But I'll let them speak for themselves in terms of where their program is. And then regarding tariffs, as I said in my prepared remarks, we did see some pull ahead in the second quarter before the prior tariffs expired a week ago. And we did see some channel inventory burn down as our inlay and label partners filled into the demand to -- for product inventory before those tariffs expired. That said, we still see strength in the market built on consumer resilience and ongoing category expansion and market expansion. And as Cary said in his prepared remarks, we see very strong demand for our endpoint ICs. So yes, pull ahead for tariffs, yes, continued strength in the market. And on top of that, we expect our inlay and label partners to rebuild their inventories in the back half of the year. Operator: The next question will come from Christopher Rolland with Susquehanna. Christopher Rolland: Mine is around -- and Chris, you mentioned logistics on your main partner there. They had some very positive comments about RFID and an increased deployment there, basically going from a scanner world to RFID world. And then also and perhaps most significantly, an expansion internationally as well. So on this, if you could talk about what that means for you guys and any other movement on other logistics potential engagements and customer opportunities. Chris Diorio: Yes. Thank you, Chris. I'll do my best here. Obviously, I could talk a long time on that topic. We do our very best to support that customer. I call them a customer, but they're really a partner of ours. We do our very best to support them with all their initiatives. We work closely together. We support each other and that we are -- we at Impinj on the Impinj side are very thrilled about what they've got going on. They spoke a little bit about AI and the opportunities with AI. And the one thing I'd like to say there is that we deliver what I like to call hard event data. I made a point in my prepared remarks about 100% certainty that item arrived at a certain location. When we read it, we have certainty that's the item. It arrives at that time and that location. And that kind of hard data is a boon to AI models because you don't have to create synthetic data. There's no inference or anything on what's going on with the underlying data for the model. The data are real. The AI model has the job of optimizing the enterprise's operations. So that partner's ability to ingest the real hard event data, optimize their operations and then take their learnings to their customers who then become our customers is where I want to take the company and deliver solutions to that partner's customers. And that's why I talk about third-party logistics opportunities. So huge opportunity with them, we will support them. We never let them down. And I am incredibly excited about the future in supply chain and logistics. Now of course, there are other companies in the supply chain and logistics space. We are supporting them as well, supporting them through partners. And we're doing what we can to drive the whole overall industry forward. But of course, the partner we work with is well ahead of everybody else. Christopher Rolland: Excellent. Additionally, you're great at kind of looking ahead at some of these trends. So I guess, first of all, if you could talk about any new opportunities, end markets or opportunities you see on the horizon? And then circling back on one that has some potential is the digital passport product passport opportunity. Can you talk about any progress we might have seen there? Chris Diorio: Yes, I'll do my best. New opportunities on the horizon outside of supply chain and logistics and food. I think you should just take note of the categories I mentioned around retail general merchandise. The 3 categories I mentioned, OTC, pharma, health and beauty and cosmetics are all gigantic. They would all benefit significantly from tagging, whether it's for expiration, guarantees of product, availability on a shelf, stock accuracy. And so those categories, we believe, hold a significant potential volume -- future volume opportunity for us. If I just look across that set, retail apparel, retail general merchandise, especially those 3 categories on top of everything that's been tagged already, supply chain and logistics and food, that's enough to propel us on our industry forward. Now turning to DPP. I've been pushing forward this vision for a long time of getting readers in the hands of consumers and the DPP benefit as part of that, but it's really more than a DPP benefit. It's giving consumers the ability to get information about items they own and recycling at end of life. The Qualcomm announcement a while back that they're embedding RAIN RFID reading in their mobile phone chipsets, at least initially for industrial devices, but they said also that it can be ported to a consumer devices. The progress at the regulatory side around DPP, I see all of that coming to a confluence by the end of this decade and DPP helping to drive the consumer use case and consumers helping to drive the DPP use case. So a little bit early to post results there because both of those things are in the early days. But in the out years here, they hold huge promise for our future. Operator: The next question will come from Jim Ricchiuti with Needham & Company. James Ricchiuti: Chris, just with respect to OTC, cosmetics and health and beauty, I'm not aware of the large general merchandise retailer moving forward with that phase of deployment. Do you anticipate this potentially being a driver in 2027? And if you can't comment directly on that, can you give us a sense that if we do see a retailer like this customer moving forward, how would you think about this scaling versus some of the other general merchandise categories in the past? Chris Diorio: So Jim, so let me be clear. I mentioned those categories because I see the opportunity there. And obviously, there's been broad interest in the past, if you really want to look at it, it was the cosmetics use case that got this whole industry going in the first place back 25 years ago. So it's because those categories haven't gone yet. I see the opportunity there. I know from history about the opportunity there. And we are doing work internally to enable those categories. That said, there's been no announcement that I know of by any retailer that they're moving forward with those categories. So I'm not trying to put words in anybody's mouth. It's just where I see the opportunity. As I think about the size of those categories, obviously, they're smaller than food, but they're gigantic, and they drive sales uplift for enterprises. So health and beauty, huge, cosmetics and the need there. Like I said, it drove our industry in the first case. And OTC pharma would be the first step towards prescription pharma. And I can't cite the numbers. I don't have them off the top of my head, but the OTC market is also gigantic. All of those categories are taggable. They take work, but it can be done. So I'm excited about those categories to the point where we, as a company, are putting some effort into helping them go. Did that answer your question? James Ricchiuti: Yes. And I knew it would be a tough to answer directly, but you did, I think, provide some good color on the market opportunity. I wanted to switch gears a little bit on the competitive environment. Your major competitor has introduced a new endpoint IC. I'm wondering whether this might impact some of the share gains that you've made in recent years. Curious how you see the competitive landscape at the moment? And then if I could just ask a quick one to Cary, just with respect to gross margin improvement in Q3 on the product side, how much of that is this full conversion of the ASIC ramp logistics side of the business? Two questions, I apologize. Cary Baker: Okay. I can go first. Chris Diorio: Okay. You want to go first? Go ahead, Cary. Cary Baker: So on the gross margin side, Jim, it's really our continued ramp with the M800. So think of the custom ASIC as part of the M800 platform and contributing to the 300 basis points of gross margin accretion that the M800 will eventually deliver. So in Q2, on a product gross margin basis, we saw gross margin increase by about 120 basis points sequentially. I expect a roughly similar increase sequentially in Q3, again, on a product margin -- gross margin basis. Chris, I'll hand it over to you. Chris Diorio: Yes. And Jim, to your question, obviously, our key competitor highlighted strong demand for their products. We see strong demand as well, evidenced by our second quarter results and third quarter guide and propelled by our last year's share gains. So they saw strong demand. We see strong demand, and that strong demand is driven by market growth. We feel good about our share position today. They have introduced a new product. We have not seen it significantly in market yet. And I think you know from our M800 ramp prior product ramps that introducing new product in our industry, given that the end customers need to qualify them and a lot of those products go through the -- through our testing takes a while. So we feel good about our share position now. We feel good about where we are driving forward. And we have very high-performing products in market that are meeting end customers' needs. We're driving forward with Gen2X to improve readability, machine learning to do the things we said around solutions, confined read zones and identify transitions. And we'll be driving forward in the solution space, winning our fair share of the market. Operator: The next question will come from Scott Searle with ROTH Capital. Scott Searle: Congrats on the anniversary and congrats on the quarter. Chris, maybe quickly to follow up on your comments with Gen2X, significant in terms of throughput and readability. I'm wondering if you could extrapolate a little bit on that in terms of market share potential, kind of what you're seeing in terms of engagement with customers. Gen2X, as I understand it, huge performance advantages when you're using endpoint ICs from Impinj. So how is that impacting the share outlook when you're talking to existing and new customers? I'm wondering if you could factor in or kind of fold in the custom ASIC development as well. You gave an update in terms of where that was with the pre-existing customer, but you had referenced earlier that we might see additional customers moving into that direction. So kind of wondering how that's playing out. Chris Diorio: Yes. I'll do my best here. So on the Gen2X front, the vast majority of labels today are still read with handheld readers. It's for inventory visibility. We see and have been able to demonstrate a material benefit from Gen2X in that handheld reading scenario, which is especially in some of the more difficult to read categories like food, which is giving us a leg up in the market. And we have partners like Zebra and Qualcomm and others who are pushing forward with Gen2X because of its readability benefits. So in the base market, handheld-driven inventory counting, we see a benefit from Gen2X with our endpoint ICs. And you don't have to have 100% Impinj endpoint ICs out there. You get the benefit from the Impinj side with Gen2X. If I then turn to the rapidly growing part of the market, at least on a percentage basis, which is fixed reading for transitions, point-of-sale, store exits -- there, Gen2X has an outsized benefit because we've tailored the capabilities of Gen2X to enable the ML enhancements we're driving to the solution that literally make the solution go. So for us, those Gen2X enhancements are critical to our solutions efforts, evidenced by the fact that our 2 very high share enterprise end users in supply chain and logistics and retail apparel are both using Gen2X to enhance the readability or essentially to enable their use cases. And what you'll see us doing going forward is using Gen2X more and more to enable solutions we literally otherwise could not do. So Gen2X, in my mind, is key to fixed reading solutions, which is where the market is heading and where we're taking the company. I mean, the second part of the question because I forgot it already. Custom ASIC. So we've obviously already delivered one custom ASIC. We will -- we don't have anything else to report right now on the custom ASIC side. We will do custom ASICs as needed. And I use that word carefully because when you do a custom ASIC, you also have the operations issues around just having a custom product. So where we need a custom ASIC and the customers can use it, we'll build it. And where we don't need a custom ASIC, if they can just get by with base Gen2X, we will do that. So we don't expect us to push everything to a custom ASIC because it creates a kind of overall operations headache. And it provides -- we have to manage through it. But as needed, we need to do something special for an enterprise, we will do so. Scott Searle: And Chris, if I could, just to follow-up on the food front. A lot of progress on that front, both within North America and it sounds like as well within the European marketplace, but we're in the pilot phase. So could you provide a little bit of color as we're starting to look into '27? Is the expectation now that these will convert from pilots into full-fledged deployments? And with that backdrop, given where the market is, given the growth that you're seeing now and the unit opportunity that just exists within those existing pilot customers, right, of the 3 of the top 5 in North America and Europe, are we due for an inflection point now in terms of RAIN RFID ICs as we go into '27 and '28? Chris Diorio: That's a hard question for me to answer because we don't guide out into 2027. And when you're talking about programs this size, the -- obviously, there's a huge commitment on the part of the end user to go forward. We do have at least one enterprise that has already deployed many hundreds of stores and is continuing with that -- the store rollout as well as talking about moving to additional categories. We've got the other grocers in there. So I think I'm just going to have to revert back to what I said, the pace of the adoption and the number of end users here is unlike anything I've seen. And because we're generating positive results for the enterprises, I do expect rapid growth on a percentage basis. Now the other retail apparel, supply chain and logistics, retail general merchandise are far ahead in terms of volumes. So it's going to take a good bit of time until food volumes cross over because those other categories are still growing. But in terms of excitement, I'm incredibly excited about food. Operator: The next question will come from Troy Jensen with Cantor Fitzgerald. Troy Jensen: Congrats also. Maybe a question for both of you guys. Chris, for you first, I'd love you just to expand a little bit on your comments about being a solution provider or focusing more on that. And what do you have to do? Does this compete at all with some of your partners? Just to expand would be great. Chris Diorio: Troy, I'm going to start with the partner side. This opportunity is so big and our opportunity to grow the pie is so large that outside of our endpoint IC competitor, I view everybody else as a partner. I mean there's no reason for us to compete with anybody out in this space, including in solutions delivery because the opportunities are so compelling. I mentioned the opportunities just on the food side. It's just one of them. The loss identification at point of sale -- we had one grocer come to us and say they lose $100 million a year from theft at point of sale, primarily proteins and liquor products, wines and beers and alcohol. I mean that's a huge number for a grocer. So the opportunities are there. The opportunities are for fixed-reading, and yet you can't just go in with a handheld and solve the thing. So we are developing solutions that include every layer of our platform, plus a huge push on the software side to do the ML part, the device management part, the solutions management part. So rather than serving up raw data to the enterprise, we serve up events and working closely with our partners to deliver those solutions to an enterprise. Impinj by itself cannot go out and deploy 5,000 stores. We don't have -- I mean, we have to partner. And there's huge opportunities for us and the partner, including ERP partners, WMS partners as well as other RAIN RFID partners. So the opportunity is there, fixed-reading solutions to drive a new chapter in this industry beyond just inventory accounting. And I am incredibly excited about it, and it's where I'm pushing the company. Did I answer your question? Troy Jensen: Yes, very much so. I love the passion here. But maybe just a follow-up for Cary. Just on the inlay partners that are handling the IC transition with your logistics customer. I mean thoughts on -- do you have good visibility on that? Is there any kind of risk of getting surprised on channel inventory during that transition? Cary Baker: Yes. It's a good question, Troy. After missteps in the last couple of Q1s, yes, we're very alert to this because those missteps have been centered around that second large supply chain and logistics customer. Now, both years were for different reasons, but the crux of the issue was our inability to see the channel inventory that our partners held in support of that customer. So until this year, our second large supply chain and logistics customer used our general purpose M800. That SKU can go into any apparel, general merchandise or food application, which made it difficult for us to understand and have visibility into just how much inventory they were holding for supply chain versus what they were holding for the rest of their market. And because this end customer typically does a share reallocation at the end of the year, we found ourselves in the early part of the next year navigating some channel inventory noise. But with the transition to a custom IC, we have much better visibility. We know what we ship into the channel. We know what gets pulled from the channel, and therefore, we know what is left in the channel when the day is done. One of the things that we've learned from having this better visibility is that the purchasing seasonality of our inlay partners in support of this customer is dislocated from the seasonality of the package volume of this customer. So our peak season supporting this customer is 2Q into Q3 with a steeper decline in the fourth quarter consumption as the ecosystem prepares for that annual RFP process. So we feel good that our visibility into this channel is much improved versus the prior 2 years, but we understand that we have to prove it to you in Q1 of '27. Operator: The next question will come from Guy Hardwick with Barclays. Nicholas Igneri: This is Nick Igneri on for Guy. So you guys mentioned endpoint IC bookings reached another all-time high. Maybe if you can just discuss the composition of those bookings by vertical and how much visibility they provide into 4Q and early 2027 demand? Cary Baker: Yes. So Nick, thanks for the question. As you know, we delivered record bookings in Q2, and that was after posting record bookings, what were previously record bookings in Q1. We see several drivers of that booking strength. Kind of first and foremost, after a prolonged period of softness, we are starting to see encouraging signs from retail apparel and general merchandise. There continues to be market expansion in both of those verticals and the consumer remains very resilient. We also saw some pull-ins from the retailers ahead of the tariff -- the July tariff reset. Now fortunately, that reset wasn't a large reset and the rates aren't that different than the expiring rates. Then second, in supply chain and logistics, the custom ASIC ramp at our second large North American retail supply chain and logistics customer is ahead of schedule. Our inlay partners are filling their channel and filling their supply chain, and we expect full conversion at some point in the third quarter. And then finally, as you noted, some of those bookings or some of our customers are booking into the fourth quarter, which is a little further out than our standard 6- to 8-week lead time. But if I were to break it down, it's those 3 categories -- or those 3 factors in that order that are driving the booking strength. Nicholas Igneri: Okay. Great. And just maybe to put a finer point on the retailer pull-ins. Can you help quantify the impact? Was this a modest boost or a meaningful portion of the endpoint IC upside in the quarter? And then maybe what assumptions are embedded in 3Q guidance around that? Cary Baker: It was a small benefit to the quarter. That's why I listed it as third on that list. We -- it's hard to quantify specifically, but we know that retailers have signaled that. We know that some of our partners in our ecosystem have said they think it's happening, but we don't think it was a meaningful driver of the growth. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Chris Diorio, Co-Founder and CEO, for closing remarks. Chris Diorio: Thank you, Nick. I'd like to thank everybody for joining the call today, and a special thanks for your ongoing support. Thank you very much. Bye-bye. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Impinj, 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 Impinj wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 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 recommends Impinj. The Motley Fool has a disclosure policy. Impinj (PI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Impinj, Inc.? Here are five stocks we like better. Impinj reported record second-quarter results: Revenue rose 46% sequentially and 11% year over year to $108.4 million, while adjusted EBITDA reached $30.7 million and non-GAAP earnings totaled $0.86 per diluted share. Endpoint IC revenue climbed 53% sequentially, driven by demand across retail, supply chain, logistics and food applications. Growth opportunities are expanding beyond core retail: A custom ASIC ramp for a major supply-chain customer is ahead of schedule, while food-related RAIN RFID pilots and deployments are growing among major U.S. grocers. Reader ICs are also expected to be the company’s fastest-growing product line in the third quarter. Management expects continued sequential growth in Q3: Impinj forecast revenue of $105.5 million to $108.5 million and non-GAAP earnings of $0.59 to $0.63 per share, citing strong bookings, inventory rebuilding by partners and improved product margins. Insiders Are Selling These 3 Stocks—Should Investors Be Concerned? Impinj (NASDAQ:PI) reported record second-quarter revenue, adjusted EBITDA and earnings per share, supported by demand for its RAIN RFID Endpoint IC products across retail, supply chain and logistics markets. Management also projected strong sequential growth in the third quarter, citing bookings strength, an accelerating custom ASIC ramp and expected inventory rebuilding by inlay and label partners. Second-quarter revenue rose 46% sequentially and 11% year over year to a record $108.4 million. GAAP net income totaled $12.2 million, while non-GAAP net income reached a record $27 million, or $0.86 per diluted share. Adjusted EBITDA was a record $30.7 million, representing a 28.3% margin. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Shares Down, Price Targets Up: 3 Stocks Upgraded After +10% Drops Endpoint IC revenue reached a record $96.4 million, up 53% from the first quarter and 14% from a year earlier. Excluding licensing revenue, Endpoint IC product revenue increased 26% sequentially and 16% year over year, exceeding the company’s expectations. Chris Diorio, Impinj’s co-founder and CEO, said Endpoint IC unit volume also set a quarterly record. He attributed the demand to retail apparel, general merchandise, supply chain and logistics, and food-related applications. Diorio said retail apparel remains in mainstream adoption and continues to add volume, while supply chain and logistics, general merchandise and food are growing more rapidly on a percentage basis. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? 4 Semiconductor Stocks Earning Fresh Wall Street Upgrades “For the second consecutive quarter, Endpoint IC bookings also hit an all-time high,” Diorio said, adding that the company sees continued market expansion as well as demand from inlay partners rebuilding IC inventories toward normal levels. Systems revenue was $12 million, up 8% sequentially but down 10% from the prior-year period. The company said strength in Reader IC revenue offset weakness in label production systems. Diorio said enterprise demand lifted Reader IC performance above expectations and that Reader ICs are expected to be Impinj’s fastest-growing product line in the third quarter. → Innovative ETF Strategies That Are Paying Off This Summer Impinj said a custom ASIC program for its second-largest North American supply chain and logistics end user is progressing ahead of schedule. Diorio said inlay partners are filling their supply chains and that full conversion to the custom IC is expected during the third quarter. CFO Cary Baker said the custom IC transition gives the company better visibility into channel inventory than it had when the customer used Impinj’s general-purpose M800 product. That general-purpose product could be used across several end markets, complicating efforts to distinguish inventory intended for supply chain customers from inventory held for apparel, general merchandise and food applications. Baker said the company has learned that inlay-partner purchasing for this customer tends to peak from the second quarter into the third quarter, followed by a steeper fourth-quarter decline as the ecosystem prepares for an annual request-for-proposal process. He said the company’s improved channel visibility will need to be demonstrated through the first quarter of 2027. Diorio also highlighted the potential for fixed-reading solutions in supply chain operations, point-of-sale settings and store exits. He said the company’s technology can deliver “hard event data,” such as confirmation that a specific item reached a specific location at a certain time, which could improve enterprise AI models. Management emphasized the food market as an emerging opportunity. Diorio said three of the five largest U.S. grocers have publicly announced pilots or deployments involving RAIN RFID technology across bakery, deli or meat categories. The company is supporting four types of food programs: Store replenishment programs led by quick-service restaurants, focused on product availability and freshness. In-store inventory programs at supermarkets, focused on stocking and expiration dates. Loss-identification programs designed to flag unscanned items at point of sale. Automated self-checkout initiatives, including one involving a large vertically integrated European grocer. Diorio said some enterprises in store replenishment and in-store inventory have progressed to chain-wide deployments, although their Endpoint IC consumption remains modest relative to current RAIN industry volumes. Loss-identification and automated self-checkout programs remain in proof-of-concept stages, according to the company. Beyond food, Diorio cited over-the-counter pharmaceuticals, cosmetics, and health and beauty as sizable general-merchandise categories that have not yet been broadly deployed. He said Impinj is conducting internal work to support those applications, while noting that no retailer had announced plans to proceed with those categories. Second-quarter gross margin was a record 60.9%, compared with 52.4% in the first quarter and 60.4% a year earlier. The sequential improvement was primarily driven by licensing revenue. Excluding licensing revenue, product gross margin was 53.6%, compared with 52.6% in the second quarter of 2025. Baker said the year-over-year product-margin improvement reflected a richer mix of Impinj M800 products, partially offset by lower systems revenue mix. He expects product gross margin to improve sequentially again in the third quarter, driven in part by the continued M800 ramp. Operating expenses totaled $35.3 million in the second quarter, roughly flat sequentially and up from $31.5 million a year earlier. Impinj ended the quarter with $263.7 million in cash equivalents and investments, inventory of $91.5 million, and free cash flow of $29.2 million. For the third quarter, Impinj forecast revenue of $105.5 million to $108.5 million. The company expects adjusted EBITDA of $20.7 million to $22.2 million and non-GAAP net income of $18.5 million to $20 million, or $0.59 to $0.63 per diluted share. Management said temporary tariff-related pull-ins contributed to second-quarter demand but were not a meaningful driver of growth. Baker said bookings strength reflected broad retail apparel and general-merchandise expansion, the supply chain custom IC ramp, and some customer orders extending into the fourth quarter beyond the company’s typical six-to-eight-week lead times. Impinj, Inc, headquartered in Seattle, Washington, develops Radio Frequency Identification (RFID) solutions designed to connect everyday items to the internet. Founded in 2000, the company pioneered RAIN RFID technology with a focus on transforming supply chain and inventory processes across retail, healthcare, airport baggage handling and manufacturing. Impinj's platform comprises RAIN RFID tag chips, fixed and handheld RFID readers, gateways, antennas and connectivity modules that enable real-time visibility of tagged items. Impinj's product portfolio is built around its core RAIN RFID ecosystem, offering tag chips for high-volume production (Monza series), reader chips for integration into third-party devices and complete reader and gateway systems (Speedway series and xArray). 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 "Impinj Q2 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record revenue, adjusted EBITDA, and earnings per share in Q2 2026, driven by strong demand across retail apparel, general merchandise, and supply chain and logistics. Endpoint IC product revenue set a new quarterly record, with unit volumes exceeding expectations and strong sequential growth. Custom ASIC ramp for a second large North American supply chain and logistics end user is ahead of schedule, with full conversion expected in Q3. Strong bookings hit an all-time high for the second consecutive quarter, indicating continued market expansion and demand. Gross margin reached a record 60.9%, driven by licensing revenue and a richer mix of M800 endpoint ICs. Systems revenue declined 10% year-over-year, with weakness in label production systems partially offset by reader IC strength. Operating expenses are expected to increase sequentially in Q3, potentially pressuring margins. The company experienced some pull-in demand ahead of tariff expirations, which may create volatility in future quarters. Channel inventory for the second large supply chain logistics customer remains a risk, with past missteps in Q1 due to visibility issues. Food market adoption, while promising, is still in early pilot phases and represents a small portion of overall volumes compared to other verticals. Here are the key highlights from the Impinj Inc (NASDAQ:PI) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 3 Warning Sign with PI. Is PI fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide color on where you are seeing outsized strength driving the strong Q3 guide? A: (Chris Diorio, CEO) We are seeing strength across general merchandise, supply chain logistics, and food, in addition to continued expansion in retail apparel. While retail apparel is in mainstream adoption and its pace of growth has slowed, it still contributes significant volume. On top of that, share gains from last year are giving us momentum in 2026. The combination of strong market demand, multiple verticals going, and our market strength all contribute to a strong Q2 and Q3. Q: Can you discuss the progress with the large US grocer pilot for food (bakery/deli) and your thoughts on tariffs? A: (Chris Diorio, CEO) On food, we let our partners speak for themselves, but I am incredibly excited. The number of large enterprises engaged is far greater than anything I've seen in our history. Three of the five largest US grocers are jumping in at the beginning, which is unprecedented. Regarding tariffs, we did see some pull-aheads in Q2 before the prior tariffs expired. However, we still see strength in the market built on consumer resilience and category expansion. We also expect our inlay and label partners to rebuild their inventories in the back half of the year. Q: Can you talk about the supply chain and logistics opportunity, especially regarding your main partner's expansion and AI? A: (Chris Diorio, CEO) We are thrilled about what our partner has going on. We deliver "hard event data"100% certainty that an item arrived at a specific location and time. This kind of real data is a boon to AI models, which can then optimize enterprise operations. Our partner's ability to ingest this data and take their learnings to their customers is where we want to take the company. The opportunity in supply chain and logistics is huge, and we are also supporting other companies in the space. Q: How do you see the competitive landscape, especially with a major competitor introducing a new endpoint IC? A: (Chris Diorio, CEO) We see strong demand, as evidenced by our results, which is driven by market growth. We feel good about our share position today. While our competitor has introduced a new product, we have not seen it significantly in market yet. Given that end customers need to qualify new products, which takes time, we feel good about our current position. We are driving forward with high-performing products like the M800 and Gen2X, and we will win our fair share in the solution space. Q: Can you expand on your comments about becoming a solution provider? Does this compete with your partners? A: (Chris Diorio, CEO) The opportunity is so big that I view everyone outside of our endpoint IC competitor as a partner. There is no reason to compete. We are developing solutions that include every layer of our platform, with a huge push on the software side to serve up events rather than raw data. We have to partner to deploy at scale, and there are huge opportunities for partners, including ERP and WMS partners. This is a new chapter for the industry beyond just inventory counting. Q: What is the composition of the record endpoint IC bookings by vertical, and how much visibility do they provide into Q4 and early 2027? A: (Carrie Baker, CFO) The record bookings are driven by several factors. First, we are seeing encouraging signs from retail apparel and general merchandise after a period of softness, including some pull-ins ahead of tariffs. Second, the custom ASIC ramp at our second large supply chain and logistics customer is ahead of schedule. Finally, some customers are booking into Q4, which is further out than our standard lead time. These three factors, in that order, are driving the booking strength. Q: Can you quantify the impact of retailer pull-ins ahead of tariffs in Q2? A: (Carrie Baker, CFO) It was a small benefit to the quarter. It is hard to quantify specifically, but we do not think it was a meaningful driver of the growth. Q: What is driving the sequential gross margin improvement expected in Q3 on the product side? A: (Carrie Baker, CFO) The improvement is driven by the continued ramp of the M800 platform, which includes the custom ASIC. The M800 is expected to deliver 300 basis points of gross margin accretion. In Q2, we saw product gross margin increase by about 120 basis points sequentially, and we expect a roughly similar increase in Q3. Q: With the transition to a custom IC for the second large supply chain and logistics customer, do you have better visibility into channel inventory to avoid past surprises? A: (Carrie Baker, CFO) Yes, we have much better visibility now. We know what we ship into the channel, what gets pulled, and what is left. We have learned that the purchasing seasonality of our inlay partners for this customer is dislocated from the customer's package volume seasonality. Our peak season is Q2 into Q3, with a steeper decline in Q4. We feel good about this improved visibility but understand we must prove it in Q1 of 2027. Q: Can you discuss the potential for new markets like digital product passports (DPP) and other opportunities on the horizon? A: (Chris Diorio, CEO) Beyond supply chain and food, categories like OTC pharmaceuticals, cosmetics, and health and beauty in general merchandise are gigantic opportunities. Regarding DPP, I have been pushing for readers in consumers' hands. The Qualcomm announcement about embedding RAIN R50 reading in mobile chipsets and regulatory progress on DPP are all converging. This is a bit early to post results, but it holds huge promise for the future by the end of this decade. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Record quarterly performance was driven by accelerating demand across retail apparel, general merchandise, and supply chain and logistics, alongside market share gains realized in 2025. The custom ASIC ramp for a second major North American supply chain and logistics customer is ahead of schedule, with full conversion expected in the third quarter. Management is strategically evolving the company from a component seller to a solution provider, focusing on high-value event data to enhance enterprise AI models. The food vertical is experiencing unprecedented early-cycle engagement, with 3 of the 5 largest U.S. grocers now piloting or deploying RAIN RFID technology. Demand strength in retail apparel and general merchandise exceeded expectations despite channel inventory declines, supported by consumer resilience and retailer pull-ins prior to tariff expirations. Strategic focus is shifting toward fixed-reading solutions for replenishment and point-of-sale, utilizing Gen2X technology to enable machine learning capabilities that raw data cannot provide. Third quarter endpoint IC product revenue is projected to grow sequentially above the high end of typical seasonal patterns, supported by record bookings. Reader ICs are expected to be the fastest-growing product line in the third quarter, driven by robust enterprise demand for fixed-reading infrastructure. Product gross margins are anticipated to expand sequentially in the third quarter, primarily due to the continued mix shift toward the higher-margin M800 platform. Management expects inlay and label partners to rebuild IC inventory levels in the second half of the year following recent channel inventory burn-downs. Long-term growth is predicated on the 'hard event data' provided by RFID, which management believes will become a critical, non-synthetic input for enterprise AI optimization. The transition to custom ASICs for logistics customers has significantly improved channel visibility, mitigating the risk of inventory surprises that impacted previous first-quarter results. Recent retailer pull-ins occurred ahead of the July tariff reset; however, management characterized this impact as small relative to broader market expansion. Systems revenue met expectations as strength in reader ICs successfully offset temporary weakness in label production systems. The company maintains sufficient wafer supply from foundry partners to support accelerating demand across both endpoint and reader IC product lines. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is fueled by a combination of new program launches, continued expansion in mainstream retail apparel, and momentum from 2025 share gains. Management noted that while retail apparel growth has slowed in percentage terms due to its scale, it remains a massive volume contributor alongside emerging verticals. Gen2X provides material benefits for handheld reading in difficult categories like food and is essential for the machine learning enhancements required for fixed-reading solutions. Custom ASICs will be developed selectively where specific enterprise needs justify the operational complexity of managing unique product SKUs. The shift to custom ICs allows Impinj to track specific shipments and pulls, revealing that partner purchasing peaks in Q2 and Q3, ahead of the customer's package volume peak. Management acknowledged the need to prove this improved visibility during the Q1 2027 period, which has historically been prone to inventory dislocations. Management identified OTC pharmaceuticals, cosmetics, and health and beauty as massive, untapped categories that are ripe for tagging due to expiration and stock accuracy needs. The Digital Product Passport (DPP) and consumer RFID reading are expected to reach a regulatory and technological confluence by the end of the decade.

SEATTLE, July 29, 2026--(BUSINESS WIRE)--Impinj, Inc. (Nasdaq: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the second quarter ended June 30, 2026. "Our second-quarter results were strong, with revenue, adjusted EBITDA and non-GAAP earnings-per-share setting new quarterly records," said Chris Diorio, Impinj co-founder and CEO. "Although we are still in the early days of solutions delivery, we are incredibly well positioned to lead and win, and I have never been more excited about our future than I am today." Second Quarter 2026 Financial Summary Revenue of $108.4 million GAAP gross margin of 58.6%; non-GAAP gross margin of 60.9% GAAP net income of $12.2 million, or income of $0.39 per diluted share using 31.0 million shares Adjusted EBITDA of $30.7 million Non-GAAP net income of $27.0 million, or income of $0.86 per diluted share using 32.2 million shares A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the "Non-GAAP Financial Measures" sections below. Third Quarter 2026 Financial Outlook Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the third quarter of 2026 (in millions, except per share data): A reconciliation between GAAP and non-GAAP financial measures is provided in the "Non-GAAP Financial Measures" section below. Conference Call Information Impinj will host a conference call and webcast to discuss its second-quarter 2026 results and third-quarter 2026 outlook today, July 29, 2026 at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may access the call by dialing +1-412-317-1863. A live webcast and replay will also be available on the company’s website at investor.impinj.com. Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 6801707. Management’s prepared written remarks, along with quarterly financial data, will be made available on Impinj’s website at investor.impinj.com along with this release. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, our competitive position and conditions in the markets in which we compete, as well as financial guidance and considerations for the third quarter of 2026 and future periods. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law. About Impinj Impinj (Nasdaq: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, our key non-GAAP performance measures include adjusted EBITDA, non-GAAP net income (loss) and free cash flow as defined below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We use free cash flow as a key measure when assessing our sources of liquidity, capital resources, and quality of earnings. We believe these measures provide useful information for period-to-period comparisons of our business to allow investors and others to understand and evaluate our operating results in the same manner as our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from similarly termed non-GAAP measures used by other companies. Adjusted EBITDA We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; other income, net; interest expense; acquisition related expense and related purchase accounting adjustments; and income tax benefit (expense). Non-GAAP Net Income (Loss) We define non-GAAP net income as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; acquisition related expense and related purchase accounting adjustments; and the corresponding income tax impacts of adjustments to net income (loss). Free cash flow We define free cash flow as net cash provided by (used in) operating activities, determined in accordance with GAAP, less purchases of property and equipment. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729214424/en/ Contacts For more information, contact: Investor RelationsAndy Cobb, CFAVice President, Corporate Finance & Investor [email protected] Media RelationsEmily SchauerSenior Corporate Communications Manager+1 [email protected]

Impinj (PI) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.8 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.17%. A quarter ago, it was expected that this provider of radio frequency identification products would post earnings of $0.11 per share when it actually produced earnings of $0.14, delivering a surprise of +27.27%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Impinj, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $108.37 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.71%. This compares to year-ago revenues of $97.89 million. 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. Impinj shares have lost about 23.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Impinj 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 Impinj 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 $0.57 on $99.5 million in revenues for the coming quarter and $1.96 on $376.8 million 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, Electronics - Semiconductors is currently in the top 21% 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. Lattice Semiconductor (LSCC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This chipmaker is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +83.3%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level. Lattice Semiconductor's revenues are expected to be $185.07 million, up 49.3% 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 Impinj, Inc. (PI) : Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Over the past six months, Impinj’s stock price fell to $144.76. Shareholders have lost 15.7% of their capital, which is disappointing considering the S&P 500 has climbed by 8.2%. This may have investors wondering how to approach the situation. Is there a buying opportunity in Impinj, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free. Even though the stock has become cheaper, we’re sitting this one out for now. Here are three reasons we avoid PI, plus one stock we’d rather own. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Impinj’s revenue to rise by 9.3%, close to its 21.5% annualized growth for the past five years. This projection is underwhelming and indicates its newer products and services will not accelerate its top-line performance yet. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Impinj’s high expenses have contributed to an average operating margin of negative 1.6% over the last two years. Unprofitable semiconductor companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle. Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Impinj’s five-year average ROIC was negative 17.3%, meaning management lost money while trying to expand the business. Its returns were among the worst in the semiconductor sector. Impinj isn’t a terrible business, but it doesn’t pass our bar. Following the recent decline, the stock trades at 68.9× forward P/E (or $144.76 per share). This multiple tells us a lot of good news is priced in - you can find more timely opportunities elsewhere. We’d recommend looking at one of our top digital advertising picks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.