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Impinj (PI) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Jul 29, 2026

Source: earnings call transcript

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

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

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%—

Orderbook & backlog

Endpoint IC bookings All-time high Q2 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

ProductTypeDetails
RAIN RFID reading in mobile phone chipsetsmilestone

Deals & partnerships

Second large North American supply chain and logistics end user Custom 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. grocers RAIN 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 grocer RAIN RFID pilot for automated self-checkout

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

Risks & headwinds

Temporary demand pull-ins due to tariff expiration Q2 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 systems Q2 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 customer Past 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

Endpoint IC product revenue growth

Q3 FY26
Current Up 26% sequentially (ex-licensing) in Q2 FY26
Target Above 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.

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Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

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