Impinj Reports Second Quarter 2026 Financial Results

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (Nasdaq: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the second quarter ended June 30, 2026. “Our second-quarter results were strong, with revenue, adjusted EBITDA and non-GAAP earnings-per-share setting new quarterly records,” said Chris Diorio, Impinj co-founder and CEO. “Although we are still in the early days of solutions delivery, we are incredibly well positioned to lead and win, and I have never been more excited about our future than I am today.” Second Quarter 2026 Financial Summary Revenue of $108.4 million GAAP gross margin of 58.6%; non-GAAP gross margin of 60.9% GAAP net income of $12.2 million, or income of $0.39 per diluted share using 31.0 million shares Adjusted EBITDA of $30.7 million Non-GAAP net income of $27.0 million, or income of $0.86 per diluted share using 32.2 million shares A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” sections below. Third Quarter 2026 Financial Outlook Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the third quarter of 2026 (in millions, except per share data): Three Months Ending September 30, 2026 Revenue $105.5 to $108.5 GAAP Net income $2.2 to $3.7 Adjusted EBITDA income $20.7 to $22.2 GAAP Weighted-average shares — diluted 31.3 to 31.5 GAAP Net income per share — diluted $0.07 to $0.12 Non-GAAP Net income $18.5 to $20.0 Non-GAAP Weighted-average shares — diluted(1) 32.5 to 32.7 Non-GAAP Net income per share — diluted(1) $0.59 to $0.63 (1) Non-GAAP diluted net income per share includes the impact of our convertible debt, using the if-converted method, which assumes full share settlement. To arrive at Non-GAAP diluted net income per share, interest expense is added back to net income and weighted average shares include total shares issuable at conversion of 1.2 million. A reconciliation between GAAP and non-GAAP financial measures is provided in the “Non-GAAP Financial Measures” section below. Conference Call Information Impinj will host a conference call and webcast to discuss its second-quarter 2026 results and third-quarter 2026 outlook today, July 29, 2026 at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may access the call by dialing +1-412-317-1863. A live webcast and replay will also be available on the company’s website at investor.impinj.com. Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 6801707. Management’s prepared written remarks, along with quarterly financial data, will be made available on Impinj’s website at investor.impinj.com along with this release. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, our competitive position and conditions in the markets in which we compete, as well as financial guidance and considerations for the third quarter of 2026 and future periods. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law. About Impinj Impinj (Nasdaq: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners. IMPINJ, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited) June 30, 2026 December 31, 2025 Assets: Current assets: Cash and cash equivalents $ 38,573 $ 48,206 Short-term investments 94,443 127,130 Accounts receivable, net 71,111 70,785 Inventory 91,501 84,961 Prepaid expenses and other current assets 8,967 8,135 Total current assets 304,595 339,217 Long-term investments 130,722 103,766 Property and equipment, net 49,075 50,290 Intangible assets, net 8,189 9,501 Operating lease right-of-use assets 21,368 20,896 Other non-current assets 547 795 Goodwill 20,253 20,721 Total assets $ 534,749 $ 545,186 Liabilities and stockholders’ equity: Current liabilities: Accounts payable $ 17,049 $ 13,614 Accrued compensation and employee related benefits 12,401 9,936 Accrued and other current liabilities 3,135 3,664 Current portion of operating lease liabilities 1,810 776 Current portion of long-term debt 57,019 96,745 Current portion of deferred revenue 1,542 1,791 Total current liabilities 92,956 126,526 Long-term debt 184,921 184,141 Operating lease liabilities, net of current portion 22,904 22,536 Deferred tax liabilities, net 1,808 2,062 Deferred revenue, net of current portion 574 690 Total liabilities 303,163 335,955 Stockholders’ equity: Common stock, $0.001 par value 31 30 Additional paid-in capital 644,065 606,852 Accumulated other comprehensive income 691 2,509 Accumulated deficit (413,201 ) (400,160 ) Total stockholders’ equity 231,586 209,231 Total liabilities and stockholders’ equity $ 534,749 $ 545,186 IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenue $ 108,371 $ 97,894 $ 182,621 $ 172,171 Cost of revenue 44,838 41,281 82,629 78,877 Gross profit 63,533 56,613 99,992 93,294 Operating expenses: Research and development 29,262 24,652 57,986 49,966 Sales and marketing 9,829 8,738 19,586 16,793 General and administrative 13,404 11,828 26,013 24,224 Amortization of intangibles 534 521 1,071 1,006 Total operating expenses 53,029 45,739 104,656 91,989 Income (loss) from operations 10,504 10,874 (4,664 ) 1,305 Other income, net 2,255 2,053 4,921 4,113 Induced conversion expense — — (11,938 ) — Interest expense (631 ) (1,225 ) (1,404 ) (2,448 ) Income (loss) before income taxes 12,128 11,702 (13,085 ) 2,970 Income tax benefit (expense) 92 (149 ) 44 132 Net income (loss) $ 12,220 $ 11,553 $ (13,041 ) $ 3,102 Net income (loss) per share — basic $ 0.40 $ 0.40 $ (0.43 ) $ 0.11 Net income (loss) per share — diluted $ 0.39 $ 0.39 $ (0.43 ) $ 0.10 Weighted-average shares outstanding — basic 30,480 29,008 30,386 28,824 Weighted-average shares outstanding — diluted 31,005 29,655 30,386 29,550 IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) Six Months Ended June 30, 2026 2025 Operating activities: Net income (loss) $ (13,041 ) $ 3,102 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 7,734 7,230 Stock-based compensation 30,986 25,545 Loss on fixed asset disposal 107 — Accretion of discount or amortization of premium on investments (394 ) (1,117 ) Amortization of debt issuance costs 987 830 Induced conversion expense related to convertible notes 11,938 — Deferred tax expense (205 ) (192 ) Changes in operating assets and liabilities: Accounts receivable (358 ) 1,930 Inventory (6,570 ) 3,241 Prepaid expenses and other assets (167 ) 808 Accounts payable 2,447 (5,416 ) Accrued compensation and employee related benefits 2,501 (13,173 ) Accrued and other liabilities (972 ) 7 Operating lease right-of-use assets 794 1,333 Operating lease liabilities 136 (1,792 ) Deferred revenue (339 ) 381 Net cash provided by operating activities 35,584 22,717 Investing activities: Purchases of investments (85,887 ) (107,105 ) Proceeds from maturities of investments 90,572 83,820 Purchases of property and equipment (4,166 ) (8,403 ) Net cash provided by (used in) investing activities 519 (31,688 ) Financing activities: Payment of 2021 Notes (47,031 ) — Proceeds from exercise of stock options and employee stock purchase plan 3,157 6,734 Payments of taxes on restricted stock units (1,769 ) (1,771 ) Net cash provided by (used in) financing activities (45,643 ) 4,963 Effect of exchange rate changes on cash and cash equivalents (93 ) 372 Net decrease in cash and cash equivalents (9,633 ) (3,636 ) Cash and cash equivalents Beginning of period 48,206 46,053 End of period $ 38,573 $ 42,417 Non-GAAP Financial Measures To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, our key non-GAAP performance measures include adjusted EBITDA, non-GAAP net income (loss) and free cash flow as defined below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We use free cash flow as a key measure when assessing our sources of liquidity, capital resources, and quality of earnings. We believe these measures provide useful information for period-to-period comparisons of our business to allow investors and others to understand and evaluate our operating results in the same manner as our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from similarly termed non-GAAP measures used by other companies. Adjusted EBITDA We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; other income, net; interest expense; acquisition related expense and related purchase accounting adjustments; and income tax benefit (expense). Non-GAAP Net Income (Loss) We define non-GAAP net income as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; acquisition related expense and related purchase accounting adjustments; and the corresponding income tax impacts of adjustments to net income (loss). Free cash flow We define free cash flow as net cash provided by (used in) operating activities, determined in accordance with GAAP, less purchases of property and equipment. IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 GAAP Gross margin 58.6 % 57.8 % 54.8 % 54.2 % Adjustments: Depreciation and amortization 1.9 % 2.0 % 2.2 % 2.2 % Stock-based compensation 0.4 % 0.6 % 0.5 % 0.6 % Non-GAAP Gross margin 60.9 % 60.4 % 57.4 % 57.0 % Certain amounts may be off due to rounding GAAP Net income (loss) $ 12,220 $ 11,553 $ (13,041 ) $ 3,102 Adjustments: Depreciation and amortization 3,889 3,709 7,734 7,230 Stock-based compensation 16,295 13,023 30,986 25,545 Other income, net (2,255 ) (2,053 ) (4,921 ) (4,113 ) Induced conversion expense — — 11,938 — Interest expense 631 1,225 1,404 2,448 Income tax expense (benefit) (92 ) 149 (44 ) (132 ) Adjusted EBITDA $ 30,688 $ 27,606 $ 34,056 $ 34,080 GAAP Net income (loss) $ 12,220 $ 11,553 $ (13,041 ) $ 3,102 Adjustments: Depreciation and amortization 3,889 3,709 7,734 7,230 Stock-based compensation 16,295 13,023 30,986 25,545 Induced conversion expense — — 11,938 — Income tax effects of adjustments(1) (5,394 ) (3,769 ) (6,209 ) (5,057 ) Non-GAAP Net income $ 27,010 $ 24,516 $ 31,408 $ 30,820 Non-GAAP Net income per share — diluted $ 0.86 (2 ) $ 0.80 (2 ) $ 1.01 (3 ) $ 1.04 (2 ) GAAP Weighted-average shares — diluted 31,005 (4 ) 29,655 (4 ) 30,386 29,550 (4 ) Dilutive shares from stock plans — — 617 — Dilutive shares from convertible debt 1,227 2,589 667 2,589 Non-GAAP Weighted-average shares — diluted 32,232 (2 ) 32,244 (2 ) 31,670 (3 ) 32,139 (2 ) (1) The tax effects of the adjustments are calculated using the statutory rate, taking into consideration the nature of the item and relevant taxing jurisdictions. (2) Diluted net income per share includes the impact of all convertible debt outstanding at period end, using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion. (3) Diluted net income per share includes the impact of a portion of our convertible debt (2021 Notes) using the if-converted method, which assumes full share settlement. Interest expense related to the 2021 Notes of $0.6 million is added back to net income and weighted average shares includes total shares issuable at conversion. (4) GAAP Weighted average shares — diluted includes the impact of dilutive shares from stock plans. IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 GAAP Net cash provided by operating activities $ 31,604 $ 33,860 $ 35,584 $ 22,717 Adjustments: Purchases of property and equipment (2,419 ) (6,540 ) (4,166 ) (8,403 ) Free cash flow $ 29,185 $ 27,320 $ 31,418 $ 14,314 IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK (in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range) Three Months Ending September 30, 2026 GAAP Net income $ 2,909 Adjustments: Forecasted Depreciation and amortization 3,890 Forecasted Stock-based compensation 16,350 Forecasted Interest expense 634 Forecasted Other income, net (2,283 ) Forecasted Income tax expense (benefit) (100 ) Adjusted EBITDA $ 21,400 GAAP Net income $ 2,909 Adjustments: Forecasted Depreciation and amortization 3,890 Forecasted Stock-based compensation 16,350 Forecasted Income tax effects of adjustments (3,882 ) Non-GAAP Net income $ 19,267 GAAP Net income per share — diluted $ 0.09 Non-GAAP Net income per share — diluted(1) $ 0.61 GAAP Weighted-average shares — diluted 31,400 Dilutive shares 1,200 Non-GAAP Weighted-average shares — diluted(1) 32,600 (1) Non-GAAP diluted net income per share includes the impact of our convertible debt, using the if-converted method, which assumes full share settlement. To arrive at Non-GAAP diluted net income per share, interest expense is added back to net income and weighted average shares include total shares issuable at conversion of 1.2 million. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729214424/en/ For more information, contact: Investor Relations Andy Cobb, CFA Vice President, Corporate Finance & Investor Relations +1-206-315-4470 [email protected] Media Relations Emily Schauer Senior Corporate Communications Manager +1 206-209-2923 [email protected] Source: Impinj, Inc.