Impinj’s fourth quarter results were met with a significant negative market reaction, reflecting investor concerns over both the quality of performance and the underlying drivers. Management cited ongoing supply chain and inventory corrections within key retail and logistics markets, as well as slower-than-expected adoption in general merchandise and food categories. CEO Chris Diorio characterized 2025 as a “tough year for our industry,” attributing softness to tariffs, inventory reductions at multiple retail layers, and a lag in new account ramp-ups. The company also noted that a temporary inventory build in logistics had masked retail weakness, which only became apparent after a detailed review of channel data.
Is now the time to buy PI? Find out in our full research report (it’s free for active Edge members).
Impinj (PI) Q4 CY2025 Highlights:
- Revenue: $92.85 million vs analyst estimates of $92.44 million (1.4% year-on-year growth, in line)
- Adjusted EPS: $0.50 vs analyst estimates of $0.51 (in line)
- Adjusted EBITDA: $16.43 million vs analyst estimates of $18.14 million (17.7% margin, 9.4% miss)
- Revenue Guidance for Q1 CY2026 is $72.5 million at the midpoint, below analyst estimates of $90.56 million
- Adjusted EPS guidance for Q1 CY2026 is $0.11 at the midpoint, below analyst estimates of $0.39
- EBITDA guidance for Q1 CY2026 is $1.95 million at the midpoint, below analyst estimates of $12.78 million
- Operating Margin: -2.9%, up from -3.9% in the same quarter last year
- Inventory Days Outstanding: 173, down from 177 in the previous quarter
- Market Capitalization: $3.23 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 Q4 Earnings Call
-
Harsh Kumar (Piper Sandler): Asked for a breakdown of Q1 revenue shortfall between custom chip order timing and excess inventory. CFO Cary Baker explained that most of the impact came from inventory burn-down, with each week of inventory representing about $5 million. Management clarified that order timing and pricing had smaller effects.
-
Ezra Weener (Jefferies): Inquired whether logistics inventory correction would normalize in Q2 and about pricing for the new custom chip. CEO Chris Diorio stated that inventory burn-down may spill into Q2, but the new custom chip is already in production. Baker added that custom chip pricing will be set to market, balancing customer ROI and company margins.
-
Jim Ricchiuti (Needham & Company): Questioned whether the custom chip for logistics is dedicated to all applications and raised concerns about customer supply security and related partnerships. Diorio confirmed it is for all applications at that customer and noted that Impinj retains intellectual property, allowing potential future licensing.
-
Scott Searle (ROTH Capital): Asked if the custom chip would lead to 100% share at the logistics customer and whether similar opportunities exist elsewhere. Diorio responded that Impinj already holds high share at the account and is pursuing similar engagements with other enterprises, focusing on tailored solution development.
-
Dylan Olivier (Susquehanna): Asked about competitive risks from BLE (Bluetooth Low Energy) and other protocols. Diorio replied that BLE and RFID serve mostly complementary use cases, with RFID’s volume advantage and infrastructure making it the preferred choice for high-throughput tracking.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be focused on (1) how quickly Impinj and its partners can clear excess inventory in retail and logistics channels, (2) the rate of adoption and rollout for the new custom endpoint IC among major logistics customers, and (3) progress in expanding Gen2X partnerships and enterprise solutions. Additionally, we will monitor early signals of recovery in apparel and food markets as key indicators for a return to growth.
Impinj currently trades at $106.50, down from $153.83 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.