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Impinj (PI) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· Apr 29, 2026

Source: earnings call transcript

Executive summary

Impinj Q1 FY26 — Record Endpoint IC Bookings and Strong Q2 Outlook

Impinj delivered solid Q1 FY26 results, surpassing revenue and adjusted EBITDA guidance, fueled by record Endpoint IC bookings and significant market share gains. While gross margin faced headwinds from a temporary production issue and pricing, the company anticipates strong sequential growth in Q2, driven by underlying demand and custom ASIC ramps. Management remains confident in its market position and opportunities but maintains a prudent stance on the second half due to macro uncertainties, focusing on enterprise solutions and Gen2X advancements.

Highlights

5

  • First quarter revenue and adjusted EBITDA exceeded the top end of guidance, with revenue at $74.3 million and adjusted EBITDA at $3.4 million.

  • Endpoint IC bookings hit an all-time record, driven by custom ASIC ramp, retailer rebuys, and customers booking beyond standard lead times.

  • Market share grew 1,700 basis points over 2024, providing a springboard for strong Q2 demand.

  • Inlay partner inventory declined sequentially, entering Q2 with healthy channel inventory.

  • Custom ASIC volumes are expected to more than double in Q2, with full conversion before year-end.

Concerns

3

  • Gross margin declined sequentially to 52.4% due to higher indirect costs, annual endpoint IC price declines, and revenue mix, with a 100 basis point impact from a production issue.

  • Systems revenue fell short of expectations at $11 million, down 37% sequentially, due to timing of Lighthouse enterprise CapEx spend.

  • Management is approaching H2 2026 prudently, hedging against multiple possible macro scenarios due to unpredictable macro uncertainties.

Guidance & targets

CategoryTargetConfidence
Revenue
$103 million and $106 million
high materiality
High
Adjusted EBITDA
$27.8 million and $29.3 million
high materiality
High
Non-GAAP Net Income
$24.6 million and $26.1 million
medium materiality
High
Non-GAAP Fully Diluted EPS
$0.77 and $0.82
high materiality
High
Endpoint IC Product Revenue Growth
increase sequentially
medium materiality
High
Systems Revenue Growth
increase sequentially
medium materiality
High
Product Gross Margin
increase sequentially
medium materiality
High
Operating Expense
similar to first quarter
medium materiality
High
H2 2026 Macro Stance
approaching prudently, hedging against multiple possible macro scenarios
high materiality
Medium
Custom ASIC Conversion
fully convert before year-end
medium materiality
High
Bakery Rollout
double the number of deployed stores this year
low materiality
High
Operating Expense
steps up
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Endpoint IC
Exceeded expectations, driven by turns orders. Expected to increase sequentially in Q2 FY26.
$63.2 million3%-16%—
Systems
Fell short of expectations due to timing of Lighthouse enterprise CapEx spend. Expected to increase sequentially in Q2 FY26.
$11 million-15%-37%—

Orderbook & backlog

Endpoint IC bookings all-time record Q1 FY26

Driven by custom ASIC ramp, retailer rebuys, and customers booking beyond standard lead times amid lengthening competitor lead times. Q2 bookings are off to a good start and within standard lead times.

Product announcements

ProductTypeDetails
Flagship reader processor and memory upgradeupdate
Gen2X update to reader ICs and readersupdate

Risks & headwinds

Unpredictable macro scenarios second half 2026

hedging against multiple possible macro scenarios

Mitigation:approaching prudently; modeling a bunch of different scenarios

Gross margin pressure from indirect costs, pricing, and mix Q1 FY26

Gross margin was 52.4%, down from 54.5% in Q4 2025 and 52.7% in Q1 2025

Mitigation:production issue fixed; M800 ramp; revenue scale; higher systems revenue expected to drive Q2 product gross margin increase

Systems revenue timing Q1 FY26

Systems revenue was $11 million, down 37% sequentially, fell short of expectations

Mitigation:expected to increase sequentially in Q2 FY26

What to watch in Q2 FY26

Custom ASIC volume ramp

Q2 FY26
Current meaningful volumes shipped in Q1
Target more than double in Q2

Why it matters

This ramp is a key driver for Endpoint IC revenue growth and opens doors for upstream migration to customers' customers.

In supply chain and logistics, we shipped meaningful volumes of the custom ASIC in the first quarter and expect those volumes to more than double in the second with the end user on track to fully convert to that ASIC before year-end.

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Q&A highlights

How do record Q1 bookings impact Q3 visibility, especially given the conservative H2 stance?

Q1 bookings were driven by custom ASIC ramp, retail rebuys, and some customers booking beyond standard lead times due to competitor lead times. Orders match demand, and Q2 bookings are also off to a good start within standard lead times.

“There are a variety of factors that drove our strong Q1 bookings. First, our ecosystem is aggressively ramping, the custom ASIC to support our North American supply chain and logistics customer. And second, we're beginning to see retail rebuys after a prolonged period of destocking.”

asked by Natalia Winkler · answered by Cary Baker

2 min read 5 chapters

Detailed narrative

Strategic Focus on Enterprise Solutions and Gen2X

Impinj is intensifying its focus on enterprise solutions, leveraging machine learning at the edge to enhance reader capabilities for applications like confining read zones and identifying item transitions. This strategy, coupled with advancements in Gen2X technology, aims to drive preference for Impinj's endpoint ICs and solve complex end-to-end enterprise system problems, particularly in supply chain and logistics.

Expansion in Supply Chain & Logistics

The company is experiencing significant traction in supply chain and logistics, with custom ASIC volumes for a second large North American end user expected to more than double in Q2 and fully convert by year-end. This partnership is seen as a model for migrating upstream to customers' customers, delivering ICs and software to improve item visibility and traceability across a double-digit number of accounts.

Retail Apparel and General Merchandise Opportunities

Retail apparel demand is projected to increase in Q2, supported by retailer rebuys and new program growth at multiple accounts. Impinj is also actively engaged with a large European brand for RAIN adoption and demonstrating Gen2X benefits in retail. In general merchandise, the focus is on cosmetics, personal care, and health to unlock significant incremental endpoint IC opportunities, with growth expected this year.

Food Segment Progress and Self-Checkout Potential

Food volumes are growing modestly, with the bakery rollout on track to double deployed stores this year. A significant opportunity lies in full-store grocery self-checkout, where Impinj and partners exceeded readability targets for a European grocer, progressing towards a store pilot. This represents a massive, albeit early-stage, opportunity for all-item tagging.

Product Development and Technology Advancements

Impinj continues to invest in R&D, upgrading the processor and memory in its flagship reader to support machine learning at the edge. Further Gen2X advancements include a forthcoming update to reader ICs and readers that will improve M800 tag read range by up to 25%, reinforcing the company's market-leading position and product supply.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.