Impinj Reports Fourth Quarter and Full Year 2025 Financial Results

SEATTLE--( BUSINESS WIRE)-- Impinj, Inc. (Nasdaq: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the fourth quarter and year ended December 31, 2025.

“2025 was a transition year for Impinj. We grew year-over-year endpoint IC volumes, made M800 our volume runner, launched Gen2X and exited the year with record adjusted EBITDA and cash,” said Chris Diorio, Impinj co-founder and CEO. “As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead.”

Fourth Quarter 2025 Financial Summary

Full Year 2025 Financial Summary

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.

First 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 first quarter of 2026 (in millions, except per share data):

Three Months Ending

March 31, 2026

Revenue

$71.0 to $74.0

GAAP Net loss

($16.6) to ($15.1)

Adjusted EBITDA income

$1.2 to $2.7

GAAP Weighted-average shares — diluted

30.3 to 30.5

GAAP Net loss per share — diluted

($0.55) to ($0.49)

Non-GAAP Net income

$2.5 to $4.0

Non-GAAP Weighted-average shares — diluted

31.3 to 31.5

Non-GAAP Net income per share — diluted

$0.08 to $0.13

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 fourth-quarter and full-year 2025 results and first-quarter 2026 outlook today, February 5, 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 1284856.

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, and prospects, statements regarding conditions in the markets in which we compete as well as the broader economy, our market position, and our financial guidance and considerations for the first 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.

IMPINJ, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value, unaudited)

December 31, 2025

December 31, 2024

Current assets:

Cash and cash equivalents

48,206

46,053

Short-term investments

127,130

118,661

Accounts receivable, net

70,785

56,802

Inventory

84,961

99,346

Prepaid expenses and other current assets

8,135

5,536

Total current assets

339,217

326,398

Long-term investments

103,766

74,871

Property and equipment, net

50,290

50,610

Intangible assets, net

9,501

10,291

Operating lease right-of-use assets

20,896

7,142

Other non-current assets

795

1,045

Goodwill

20,721

18,723

Total assets

545,186

489,080

Liabilities and stockholders’ equity:

Current liabilities:

Accounts payable

13,614

17,254

Accrued compensation and employee related benefits

9,936

22,309

Accrued and other current liabilities

3,664

2,684

Current portion of operating lease liabilities

776

3,589

Current portion of long-term debt

96,745

283,493

Current portion of deferred revenue

1,791

1,848

Total current liabilities

126,526

331,177

Long-term debt

184,141

—

Operating lease liabilities, net of current portion

22,536

5,719

Deferred tax liabilities, net

2,062

2,200

Deferred revenue, net of current portion

690

120

Total liabilities

335,955

339,216

Stockholders’ equity:

Common stock, $0.001 par value

Additional paid-in capital

606,852

541,090

Accumulated other comprehensive income (loss)

2,509

(1,942

)

Accumulated deficit

(400,160

)

(389,313

)

Total stockholders’ equity

209,231

149,864

Total liabilities and stockholders’ equity

545,186

489,080

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Revenue

92,849

91,569

361,075

366,087

Cost of revenue

44,794

45,347

171,398

177,232

Gross profit

48,055

46,222

189,677

188,855

Operating expenses:

Research and development

26,929

25,894

102,615

98,829

Sales and marketing

10,357

10,688

36,530

40,579

General and administrative

12,933

12,762

49,192

51,802

Amortization of intangibles

534

491

2,077

2,902

Restructuring costs

—

1,812

Total operating expenses

50,753

49,835

190,414

195,924

Loss from operations

(2,698

)

(3,613

)

(737

)

(7,069

)

Other income, net

2,509

2,107

9,214

7,937

Income from settlement of litigation

—

45,000

Induced conversion expense

—

(15,026

)

—

Interest expense

(798

)

(1,221

)

(4,367

)

(4,873

)

Income (loss) before income taxes

(987

)

(2,727

)

(10,916

)

40,995

Income tax benefit (expense)

(152

)

(157

)

Net income (loss)

(1,139

)

(2,690

)

(10,847

)

40,838

Net income (loss) per share — basic

(0.04

)

(0.09

)

(0.37

)

1.46

Net income (loss) per share — diluted

(0.04

)

(0.09

)

(0.37

)

1.39

Weighted-average shares outstanding — basic

30,148

28,398

29,283

27,953

Weighted-average shares outstanding — diluted

30,148

28,398

29,283

29,471

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

Year Ended

December 31,

2025

2024

Operating activities:

Net income (loss)

(10,847

)

40,838

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

15,040

13,588

Stock-based compensation

55,263

56,546

Restructuring equity modification expense

—

366

Accretion of discount or amortization of premium on investments

(2,339

)

(1,122

)

Amortization of debt issuance costs

1,797

1,638

Induced conversion expense related to convertible notes

15,026

—

Deferred tax expense

(396

)

(567

)

Revaluation of acquisition-related contingent consideration liability

—

986

Changes in operating assets and liabilities, net of amounts acquired:

Accounts receivable

(13,726

)

(1,999

)

Inventory

14,488

(2,220

)

Prepaid expenses and other assets

(727

)

227

Accounts payable

(3,376

)

9,270

Accrued compensation and employee related benefits

(12,512

)

13,855

Accrued and other liabilities

984

244

Acquisition-related contingent consideration liability

—

(2,556

)

Operating lease right-of-use assets

2,510

2,560

Operating lease liabilities

(2,812

)

(3,392

)

Deferred revenue

373

Net cash provided by operating activities

58,746

128,310

Investing activities:

Purchases of investments

(202,771

)

(202,063

)

Proceeds from sales of investments

12,937

—

Proceeds from maturities of investments

154,680

26,605

Purchases of property and equipment

(12,861

)

(17,112

)

Net cash used in investing activities

(48,015

)

(192,570

)

Financing activities:

Proceeds from issuance of 2025 Notes, net of issuance costs

183,658

—

Premiums paid for capped call transactions

(11,210

)

—

Payment of 2021 Notes

(190,000

)

—

Proceeds from exercise of stock options and employee stock purchase plan

11,795

20,281

Payments of taxes on restricted stock units

(3,171

)

—

Payment of acquisition-related contingent consideration

—

(4,602

)

Net cash provided by (used in) financing activities

(8,928

)

15,679

Effect of exchange rate changes on cash and cash equivalents

350

(159

)

Net increase (decrease) in cash and cash equivalents

2,153

(48,740

)

Cash and cash equivalents

Beginning of period

46,053

94,793

End of period

48,206

46,053

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), free cash flow and adjusted 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 and adjusted free cash flow as key measures 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). We have excluded these items because we do not believe they reflect our core operations and us excluding them enables more consistent evaluation of our operating performance. The revision to our definition of adjusted EBITDA did not impact adjusted EBITDA for any previously reported periods because there was no impact of a similar nature in such prior periods affecting comparability.

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. We define adjusted free cash flow as free cash flow less cash received from gain on litigation settlement.

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except percentages, unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

GAAP Gross margin

51.8

50.5

52.5

51.6

Adjustments:

Depreciation and amortization

2.3

2.1

2.2

1.9

Stock-based compensation

0.5

0.6

Non-GAAP Gross margin

54.5

53.1

55.3

54.0

Certain amounts may be off due to rounding

GAAP Net income (loss)

(1,139

)

(2,690

)

(10,847

)

40,838

Adjustments:

Depreciation and amortization

3,958

3,433

15,040

13,588

Stock-based compensation

15,167

15,210

55,263

56,546

Restructuring costs

—

1,812

Acquisition related expenses

—

986

Other income, net

(2,509

)

(2,107

)

(9,214

)

(7,937

)

Income from settlement of litigation

—

(45,000

)

Induced conversion expense

—

15,026

—

Interest expense

798

1,221

4,367

4,873

Income tax benefit (expense)

152

(37

)

(69

)

157

Adjusted EBITDA

16,427

15,030

69,566

65,863

GAAP Net income (loss)

(1,139

)

(2,690

)

(10,847

)

40,838

Adjustments:

Depreciation and amortization

3,958

3,433

15,040

13,588

Stock-based compensation

15,167

15,210

55,263

56,546

Restructuring costs

—

1,812

Acquisition transaction expenses

—

986

Income from settlement of litigation

—

(45,000

)

Induced conversion expense

—

15,026

—

Income tax effects of adjustments (1)

(2,347

)

(1,426

)

(10,322

)

(5,860

)

Non-GAAP Net income

15,639

14,527

64,160

62,910

Non-GAAP Net income per share — diluted

0.50

(3)

0.48

(2)

2.11

(2)

2.11

(2)

GAAP Weighted-average shares — diluted

30,148

28,398

29,283

29,471

(4)

Dilutive shares from stock plans

947

1,500

850

—

Dilutive shares from convertible debt

878

2,589

2,055

2,589

Non-GAAP Weighted-average shares — diluted

31,973

(3)

32,487

(2)

32,188

(2)

32,060

(2)

(1) The tax effects of the adjustments are calculated using the statutory rate, taking into consideration the nature of the item and relevant taxing jurisdictions.

(2) Diluted net income per share includes the impact of all convertible debt outstanding at period end, using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion.

(3) Diluted net income per share includes the impact of a portion of our convertible debt (2021 Notes) using the if-converted method, which assumes full share settlement. Interest expense related to the 2021 Notes of $0.4 million is added back to net income and weighted average shares includes total shares issuable at conversion.

(4) GAAP Weighted average shares — diluted includes the impact of dilutive shares from convertible debt.

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except percentages, unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

GAAP Net cash provided by operating activities

15,136

12,623

58,746

128,310

Adjustments:

Purchases of property and equipment

(1,518

)

(4,133

)

(12,861

)

(17,112

)

Free cash flow

13,618

8,490

45,885

111,198

Adjustments:

Income from settlement of litigation

—

(45,000

)

Adjusted free cash flow

13,618

8,490

45,885

66,198

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK

(in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range)

Three Months Ending

March 31,

2026

GAAP Net loss

(15,819

)

Adjustments:

Forecasted Depreciation and amortization

3,960

Forecasted Stock-based compensation

15,560

Forecasted Interest expense

799

Forecasted Other income, net

(2,700

)

Forecasted Income tax expense

100

Adjusted EBITDA

1,900

GAAP Net loss

(15,819

)

Adjustments:

Forecasted Depreciation and amortization

3,960

Forecasted Stock-based compensation

15,560

Forecasted Income tax effects of adjustments

(424

)

Non-GAAP Net income

3,277

GAAP Net loss per share — diluted

(0.52

)

Non-GAAP Net income per share — diluted

0.10

GAAP Weighted-average shares — diluted

30,400

Dilutive shares

1,000

Non-GAAP Weighted-average shares — diluted

31,400