Impinj, Inc.

What they do

Impinj designs silicon radios, reading systems and tag production systems, and licenses intellectual property, selling primarily through a partner ecosystem of OEMs, tag service bureaus, ODMs, systems integrators, VARs and ISVs. Its endpoint ICs store a serialized number (and sometimes a cryptographic key) that partners embed into items or packaging, while reader ICs and finished readers discover and engage those ICs. Products follow the RAIN air-interface standard, plus Impinj's Gen2X extensions. The company says it has enabled connectivity for more than 160 billion items to date.

Revenue drivers

• Endpoint ICs — The largest revenue source: silicon radios embedded by partners into items or packaging for serialized identification and optional authentication, consumed one per tagged item.
• Reading systems — High-performance finished readers and gateways, used primarily in autonomous reading solutions, sold with or through the partner ecosystem.
• Tag production systems and IP licensing — Systems for tag design, manufacturing, test, encoding and commissioning, plus licensing of Impinj intellectual property to partners.
• Software and cloud services — Described as nascent from a standalone revenue perspective; intended to enable other product offerings and expand as part of the growth strategy.

Recent performance

Second-quarter 2026 revenue was $108.4 million, with GAAP gross margin of 58.6% and non-GAAP gross margin of 60.9%. GAAP net income was $12.2 million, or $0.39 per diluted share on 31.0 million shares, and adjusted EBITDA was $30.7 million. Non-GAAP net income was $27.0 million, or $0.86 per diluted share on 32.2 million shares. Management said revenue, adjusted EBITDA and non-GAAP EPS set new quarterly records. Full-year 2025 revenue was $361.1 million with a net loss of $10.8 million, versus 2024 revenue of $366.1 million and net income of $40.8 million.

Strategy

The stated vision is a Boundless IoT in which every item is wirelessly connected to the cloud and has a cloud-based digital twin. Impinj aims to extend item connectivity from tens of billions to trillions of items and to deliver item data to people as well as enterprises. It competes by adding differentiated features to its radios, supporting them across the platform and licensing them, and by promoting Gen2X extensions to the RAIN standard. It intends to expand software and cloud services, which currently enable rather than drive standalone revenue.

Risks

• Concentrated RAIN adoption — The company states RAIN adoption is concentrated in key markets and the extent and pace of adoption beyond those markets is uncertain.
• Nascent enterprise solutions at scale — Impinj states its ability to deliver enterprise solutions at scale is nascent, and the CEO said the company is still in the early days of solutions delivery.
• Trade measures and tariffs — Because most revenue comes from endpoint ICs embedded into items, tariffs or trade measures affecting those items could negatively affect Impinj's business and results.
• Limited channel visibility and competition — Impinj sells mostly through partners and distributors, limiting visibility into actual demand, and operates in a very competitive market.

Outlook

For the third quarter of 2026, Impinj guides revenue of $105.5 million to $108.5 million. GAAP net income is guided to $2.2 million to $3.7 million, or $0.07 to $0.12 per diluted share, and adjusted EBITDA to $20.7 million to $22.2 million. Non-GAAP net income is guided to $18.5 million to $20.0 million, or $0.59 to $0.63 per diluted share on 32.5 million to 32.7 million shares.