Impinj’s first quarter results landed above Wall Street expectations, with revenue and non-GAAP profitability both surpassing consensus estimates. The positive market reaction reflected management’s ability to navigate ongoing macroeconomic pressures—particularly tariff-related disruptions and shifting geographic sourcing—while maintaining demand for its RFID platform. CEO Chris Diorio attributed the solid outcome to steady endpoint IC volumes, strong reader IC sales, and active enterprise engagement, noting, "our execution was solid despite the uncertain environment." Additionally, CFO Cary Baker highlighted that cost discipline and higher-than-expected product gross margins contributed to profitability.
Is now the time to buy PI? Find out in our full research report (it’s free).
Impinj (PI) Q1 CY2025 Highlights:
- Revenue: $74.28 million vs analyst estimates of $71.6 million (3.3% year-on-year decline, 3.7% beat)
- Adjusted EPS: $0.21 vs analyst estimates of $0.08 (significant beat)
- Adjusted EBITDA: $6.47 million vs analyst estimates of $2.48 million (8.7% margin, significant beat)
- Revenue Guidance for Q2 CY2025 is $93.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for Q2 CY2025 is $0.72 at the midpoint, above analyst estimates of $0.57
- EBITDA guidance for Q2 CY2025 is $24.75 million at the midpoint, above analyst estimates of $21.38 million
- Operating Margin: -12.9%, up from -15.3% in the same quarter last year
- Inventory Days Outstanding: 238, up from 199 in the previous quarter
- Market Capitalization: $3.02 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 Impinj’s Q1 Earnings Call
- Harsh Kumar (Piper Sandler) asked about the impact of tariffs and past precedent for such disruptions. CEO Chris Diorio acknowledged that the situation is unprecedented and emphasized that strong enterprise demand and a diverse product portfolio position the company to weather volatility.
- Scott Searle (Roth Capital) sought clarification on inventory equilibrium and product mix exposure. CFO Cary Baker responded that current inventory levels are not excessive, and most endpoint ICs are now used on staple goods, reducing exposure to discretionary spending cycles.
- Jim Ricchiuti (Needham and Company) questioned the sequential decline in reader IC revenue and the timeline for M800 margin benefits. Baker explained that timing of orders and end-of-life inventory drove Q1 strength, while the M800 ramp is expected to boost margins later this year.
- Christopher Rolland (Susquehanna) asked if higher inventory levels are the new normal and about share dynamics post-legal settlement. Diorio said some partners will maintain higher inventory due to tariffs, and Impinj captured the majority of industry unit growth in 2024.
- Troy Jensen (Cantor Fitzgerald) inquired about gross margin trends and the convertible debt structure. Baker confirmed that gross margins should improve with the M800 ramp and detailed the convertible notes’ terms and potential cap call benefit.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will watch (1) how quickly channel inventories normalize as enterprises adapt to new sourcing geographies, (2) the pace and scale of the M800 product ramp and its impact on gross margins, and (3) progress in expanding major deployments in supply chain logistics and non-apparel retail segments. We will also monitor tariff developments and their influence on partner inventory strategies.
Impinj currently trades at $104.48, up from $77.06 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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