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    PI
    Earnings call· Jun 2026(Q2 FY26)

    IMPINJ Q2 FY26 earnings call PI

    Jul 29, 2026 Source

    Executive summary

    Impinj Q2 FY26 — Record Revenue and Strong Demand Across Verticals

    Impinj delivered a record-breaking quarter, driven by robust demand across its key verticals and strong execution. The company is strategically expanding its focus from component sales to solution provision, leveraging its platform to address enterprise pain points in replenishment and point-of-sale. Management expresses high confidence in continued market expansion and the long-term potential of emerging opportunities like food and digital product passports.

    Highlights

    5

    • Record Q2 FY26 revenue of $108.4 million, up 46% sequentially and 11% year-over-year.

    • Record Q2 FY26 adjusted EBITDA of $30.7 million and adjusted EBITDA margin of 28.3%.

    • Record Q2 FY26 non-GAAP net income of $27 million or $0.86 per share.

    • Endpoint IC bookings hit an all-time high for the second consecutive quarter, driven by strong demand in retail apparel, general merchandise, and supply chain & logistics.

    • Custom ASIC ramp for a large North American supply chain and logistics end-user is ahead of schedule, with full conversion expected in Q3 FY26.

    Concerns

    2

    • Systems revenue was down 10% year-over-year to $12 million in Q2 FY26, primarily due to label production systems weakness.

    • Retailer pull-ins ahead of temporary tariff expiration contributed to Q2 FY26 demand, potentially impacting future quarters.

    Guidance & targets

    8
    CategoryTargetConfidence
    Revenue
    $105.5 million to $108.5 million
    high materiality
    High
    Adjusted EBITDA
    $20.7 million to $22.2 million
    high materiality
    High
    Non-GAAP Net Income
    $18.5 million to $20 million
    medium materiality
    High
    Non-GAAP Fully Diluted EPS
    $0.59 to $0.63
    high materiality
    High
    Endpoint IC product revenue growth
    increase sequentially, above the high end of typical seasonal growth
    medium materiality
    Medium
    Systems revenue growth
    strong sequential third quarter systems revenue increase
    medium materiality
    Medium
    Product gross margin
    increase sequentially
    medium materiality
    Medium
    Operating expense
    increase sequentially
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Endpoint IC
    Revenue exceeded expectations, driven by strong demand across retail apparel, general merchandise, and supply chain & logistics. Custom ASIC ramp for a large North American supply chain and logistics end-user is ahead of schedule.
    Unit volumes: new quarterly recordProduct revenue (ex-licensing): up 26% sequentiallyProduct revenue (ex-licensing): up 16% year-over-year
    		$96.4 million14%53%—
    Systems
    Revenue met expectations, with reader IC strength offsetting weakness in label production systems.
    Reader IC strengthLabel production systems weakness
    		$12 million-10%8%—

    Operational metrics

    14
    Non-GAAP gross margin
    60.9%vs 52.4% in Q1 FY26, vs 60.4% in Q2 FY25
    Q2 FY26

    Record gross margin.

    Product gross margin (ex-licensing)
    53.6%vs 52.6% in Q2 FY25
    Q2 FY26

    Expected to increase sequentially in Q3 FY26.

    Adjusted EBITDA
    $30.7 millionvs $3.4 million in Q1 FY26, vs $27.6 million in Q2 FY25
    Q2 FY26

    Record adjusted EBITDA.

    Adjusted EBITDA margin
    28.3%
    Q2 FY26

    Record adjusted EBITDA margin.

    Adjusted EBITDA margin (ex-licensing)
    15%
    Q2 FY26

    Adjusted EBITDA margin excluding the impact of licensing revenue.

    Non-GAAP net income
    $27 million
    Q2 FY26

    Record non-GAAP net income.

    Non-GAAP EPS
    $0.86
    Q2 FY26

    Record non-GAAP EPS.

    Cash and investments balance
    $263.7 millionvs $235.2 million in Q1 FY26, vs $260.5 million in Q2 FY25
    Q2 FY26

    As of end of Q2 FY26.

    Inventory
    $91.5 millionup $5.2 million from prior quarter
    Q2 FY26

    Total inventory at the end of Q2 FY26.

    Capital expenditures
    $2.4 million
    Q2 FY26

    Capital expenditures for Q2 FY26.

    Operating expense
    $35.3 millionvs $35.5 million in Q1 FY26, vs $31.5 million in Q2 FY25
    Q2 FY26

    Operating expense met expectations.

    Research and development expense
    $20.2 million
    Q2 FY26

    R&D expense for Q2 FY26.

    Sales and marketing expense
    $7.1 million
    Q2 FY26

    Sales and marketing expense for Q2 FY26.

    General and administrative expense
    $8.1 million
    Q2 FY26

    General and administrative expense for Q2 FY26.

    Industry KPIs

    9
    MetricValueDetails
    Lead times6- to 8-weekweeks
    Backlog order book—
    Ai data center revenue—
    Fab capacity utilizationSufficient wafers
    Bookings net order intakeAll-time high
    Design wins socket pipeline—
    Inventory channel inventory$91.5 millionUSD
    Node platform ramp scheduleM800 platform
    End market segment revenue mix—

    Orderbook & backlog

    1
    Endpoint IC bookingsAll-time highQ2 FY26

    Second consecutive quarter of all-time high

    Driven by strong demand across retail apparel, general merchandise, and supply chain & logistics. Some bookings extend into Q4 FY26, beyond the standard 6-8 week lead time.

    Product announcements

    1
    ProductTypeDetails
    RAIN RFID reading in mobile phone chipsetsmilestone

    Deals & partnerships

    3
    Second large North American supply chain and logistics end userCustom ASIC ramp for RFID solutions

    This customer is transitioning to a custom ASIC, providing Impinj with better visibility into channel inventory compared to prior general-purpose M800 usage.

    Three of the five largest U.S. grocersRAIN RFID pilots or deployments for in-store inventory tracking

    Pilots include bakery, deli, or meats for store replenishment, in-store inventory, and loss identification. Some have progressed to chain-wide rollouts.

    Large vertically integrated European grocerRAIN RFID pilot for automated self-checkout

    This pilot focuses on automated self-checkout using RAIN RFID technology.

    Risks & headwinds

    3
    Temporary demand pull-ins due to tariff expirationQ2 FY26

    Contributed to Q2 FY26 demand, but not a meaningful driver of overall growth.

    Mitigation: Management expects inlay and label partners to rebuild inventories in H2 FY26, and underlying market strength continues.

    Weakness in label production systemsQ2 FY26

    Offset reader IC strength, contributing to a 10% YoY decline in systems revenue to $12 million in Q2 FY26.

    Mitigation: Management expects a strong sequential increase in systems revenue in Q3 FY26.

    Channel inventory noise for large supply chain customerPast Q1s

    Historically led to missteps in Q1 FY25 and Q1 FY26 due to inability to see channel inventory for general-purpose M800 SKUs.

    Mitigation: Transition to a custom ASIC provides much better visibility into channel inventory, allowing Impinj to track shipments and pulls more accurately. Management will prove this in Q1 FY27.

    What to watch in Q3 FY26

    5

    Endpoint IC product revenue growth

    Q3 FY26
    CurrentUp 26% sequentially (ex-licensing) in Q2 FY26
    TargetAbove high end of typical seasonal growth sequentially

    Why it matters

    Verifies continued strong demand and market expansion beyond Q2 tariff pull-ins, crucial for overall revenue trajectory.

    Looking forward, we expect third quarter endpoint IC product revenue to increase sequentially, above the high end of typical seasonal growth.

    Q&A highlights

    6

    What is driving the outsized strength in the Q3 guidance?

    Chris Diorio explained that strength is seen across general merchandise, supply chain and logistics, food, and continued expansion in retail apparel. He also noted that prior year share gains are contributing to momentum.

    “As I said in our prepared remarks, we're seeing pull in general merchandise, supply chain and logistics and food. Obviously, there's also continued expansion in retail apparel.”

    asked by Harsh Kumar · answered by Chris Diorio

    2 min read5 chapters

    Detailed Narrative

    01

    Expanding Food Market Opportunity

    Impinj is actively supporting four distinct types of food programs: store replenishment (quick-serve restaurants), in-store inventory (supermarkets), loss identification (supermarkets), and automated self-checkout (European grocer). Three of the five largest U.S. grocers have announced pilots or deployments. While still early, the breadth and number of engaged enterprises in food are unprecedented🌐 for the company, with some chain-wide rollouts already consuming modest endpoint IC volumes.

    02

    Solutions-Oriented Strategy

    The company is shifting its focus from primarily a component seller to a solution provider, addressing enterprise pain points like replenishment and point-of-sale. These solutions leverage Impinj's full platform (endpoint and reader ICs, readers, gateways, software) to provide real-time event data, which is crucial for improving AI models that analyze and automate enterprise operations. This strategy involves close collaboration with partners for deployment.

    03

    Custom ASIC Development

    Impinj successfully ramped a custom ASIC for a second large North American supply chain and logistics end-user, which is ahead of schedule and expected to fully convert in Q3 FY26. The company will continue to develop custom ASICs 'as needed' for specific enterprise requirements, but will not push everything to custom ASICs due to operational complexities, preferring Gen2X for base applications.

    04

    Digital Product Passports (DPP) and Consumer Use Cases

    Management sees significant long-term potential in DPP, which aligns with the vision of enabling consumers to access item information and facilitate recycling. The Qualcomm announcement of RAIN RFID reading in mobile phone chipsets and regulatory progress around DPP are converging to drive consumer use cases by the end of the decade, holding huge promise for future volume.

    05

    Competitive Dynamics and Gen2X Advantage

    Impinj acknowledges a competitor's new endpoint IC but notes it has not significantly impacted the market yet, citing the time required for customer qualification. The company feels confident in its share position, driven by strong demand and its high-performing Gen2X products. Gen2X offers material benefits for handheld reading, especially in difficult categories like food, and is critical for enabling fixed-reading solutions and machine learning enhancements.

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