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    PI
    Earnings call· Mar 2026(Q1 FY26)

    IMPINJ Q1 FY26 earnings call PI

    Apr 29, 2026 Source

    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

    12
    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

    2
    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%—

    Operational metrics

    14
    Non-GAAP gross margin
    52.4%down from 54.5% in Q4 FY25, down from 52.7% in Q1 FY25
    Q1 FY26

    Sequential decline primarily due to higher indirect costs, annual endpoint IC price declines, and revenue mix. Year-over-year decline driven by higher indirect costs and revenue mix, partially offset by M800 ramp. A short-term endpoint IC production issue caused approximately 100 basis points of impact in Q1, which is now fixed.

    Total operating expense
    $35.5 millionup from $34.2 million in Q4 FY25, up from $32.6 million in Q1 FY25
    Q1 FY26

    Below expectations due to fiscal discipline and timing of spend.

    Research and development expense
    $20.4 million
    Q1 FY26
    Sales and marketing expense
    $7.3 million
    Q1 FY26
    General and administrative expense
    $7.8 million
    Q1 FY26
    Adjusted EBITDA
    $3.4 milliondown from $16.4 million in Q4 FY25, down from $6.5 million in Q1 FY25
    Q1 FY26

    Exceeded the top end of guidance range.

    Adjusted EBITDA margin
    4.5%
    Q1 FY26
    Non-GAAP Net Income
    $4.4 million
    Q1 FY26
    Non-GAAP EPS
    $0.14
    Q1 FY26
    Cash and investments balance
    $235.2 milliondown from $279.1 million in Q4 FY25, up from $232.5 million in Q1 FY25
    Q1 FY26

    Includes cash, cash equivalents and investments.

    Inventory
    $86.3 millionup $1.3 million from prior quarter
    Q1 FY26
    Capital expenditures
    $1.7 million
    Q1 FY26
    Convertible notes repurchased
    $40.2 million
    Q1 FY26

    Opportunistically repurchased using cash on hand to minimize dilution.

    NXP royalty payment
    $17 millionup from $16 million last year
    FY26

    Payment received this year for intellectual property use by NXP's older ICs. Guardedly optimistic for another payment next year.

    Industry KPIs

    5
    MetricValueDetails
    Lead timeslower end of standard to higher end of standard (inlay partner request times); beyond standard lead times (some customers)
    Fab capacity utilizationreduced
    Bookings net order intakeall-time record
    Inventory channel inventory$86.3 million (company inventory); declined sequentially (inlay partner inventory)USD
    End market segment revenue mixEndpoint IC: $63.2 million; Systems: $11 millionUSD

    Orderbook & backlog

    1
    Endpoint IC bookingsall-time recordQ1 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

    2
    ProductTypeDetails
    Flagship reader processor and memory upgradeupdate
    Gen2X update to reader ICs and readersupdate

    Risks & headwinds

    3
    Unpredictable macro scenariossecond 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 mixQ1 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 timingQ1 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

    5

    Custom ASIC volume ramp

    Q2 FY26
    Currentmeaningful volumes shipped in Q1
    Targetmore 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.