Impinj’s second quarter was marked by stronger-than-anticipated financial results, with management attributing the outperformance to broad-based demand across endpoint ICs, reader ICs, and gateway products, as well as a richer product mix favoring its M800 chip. CEO Chris Diorio emphasized that new use cases with major apparel and logistics customers, along with expansion into food tracking, offset macroeconomic headwinds and supply chain disruptions. Management noted that the solutions-oriented strategy, particularly the adoption of Gen2X extensions, helped drive sequential growth in core product categories.
Is now the time to buy PI? Find out in our full research report (it’s free).
Impinj (PI) Q2 CY2025 Highlights:
- Revenue: $97.89 million vs analyst estimates of $93.86 million (4.5% year-on-year decline, 4.3% beat)
- Adjusted EPS: $0.80 vs analyst estimates of $0.70 (13.6% beat)
- Adjusted EBITDA: $27.61 million vs analyst estimates of $23.45 million (28.2% margin, 17.7% beat)
- Revenue Guidance for Q3 CY2025 is $92.5 million at the midpoint, above analyst estimates of $86.14 million
- Adjusted EPS guidance for Q3 CY2025 is $0.49 at the midpoint, above analyst estimates of $0.35
- EBITDA guidance for Q3 CY2025 is $16.35 million at the midpoint, above analyst estimates of $9.83 million
- Operating Margin: 11.1%, up from 8.8% in the same quarter last year
- Inventory Days Outstanding: 212, down from 238 in the previous quarter
- Market Capitalization: $4.73 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Impinj’s Q2 Earnings Call
- Harsh V. Kumar (Piper Sandler) asked about the contribution of 'turns' orders to the quarterly beat and how much is assumed in upcoming guidance. CFO Cary Baker replied that more turns than expected contributed to the quarter, but guidance assumes minimal additional turns, providing room for order timing adjustments.
- Harsh V. Kumar (Piper Sandler) also inquired about the drivers of margin improvement—whether it was more due to M800 mix or wafer cost reductions. Baker explained that both factors contributed, with the ramp of M800 and the sell-through of lower-cost wafers expected to benefit margins further in Q3.
- Christopher Rolland (Susquehanna) questioned management on end market trends, referencing slower apparel growth and stronger food and logistics demand. CEO Chris Diorio agreed with the observations, noting close alignment with channel partners and optimism for continued strength.
- Ezra Weener (Jefferies) asked about the impact of overhead reading deployments on both reader and endpoint IC sales, and about channel inventory trends. Diorio said overhead reading is primarily a reader IC opportunity but also helps drive endpoint IC share, while Baker described channel inventory as healthy and stable.
- Scott Wallace Searle (ROTH Capital) pressed for a timeline on item-level food tracking adoption and the evolution of big box retail expansion. Diorio characterized food pilots as large but still early, expecting meaningful volumes to materialize next year, and noted continued progress in general merchandise rollouts at major retailers.
Catalysts in Upcoming Quarters
In the coming quarters, our team will track (1) the pace and breadth of enterprise adoption in logistics and food markets, (2) the continued ramp of M800 chip sales and related margin benefits, and (3) the evolution of channel inventory levels as a sign of end-market health. Additional focus will be on the transition of food pilots into commercial deployments and the impact of Gen2X upgrades on customer adoption.
Impinj currently trades at $160.10, up from $122.46 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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