Impinj — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached $112.1 million, compared to $96.1 million in the same period of 2025.
• GAAP gross margin was 52.8% for the quarter, up from 50.3% in Q3 2025; non-GAAP gross margin was 54.9%, up from 53.0%.
• GAAP net income was $4.7 million ($0.15 per diluted share), a significant improvement from a net loss of $12.8 million ($0.44 per share) in Q3 2025.
• Non-GAAP net income was $22.1 million ($0.69 per diluted share), compared to $17.7 million ($0.58 per share) in Q3 2025.
• Adjusted EBITDA was $24.5 million for the quarter, compared to $19.1 million in Q3 2025.
• For the nine months ended September 30, 2026, revenue was $294.7 million versus $268.2 million in the prior year period.
• Nine-month GAAP net loss was $8.4 million, compared to a loss of $9.7 million in the prior year period.
• Nine-month non-GAAP net income was $53.5 million ($1.71 per share), compared to $48.5 million ($1.61 per share) in the prior year period.
• Free cash flow for the nine months ended September 30, 2026, was $52.0 million, up from $32.3 million in the prior year period.
• Cash and cash equivalents were $38.7 million as of September 30, 2026, down from $48.2 million at December 31, 2025.
• Long-term debt was $185.3 million as of September 30, 2026, compared to $184.1 million at December 31, 2025.
• Current portion of long-term debt decreased to $1.0 million as of September 30, 2026, from $96.7 million at December 31, 2025.
• Total current liabilities were $35.5 million as of September 30, 2026, down from $126.5 million at December 31, 2025.
• Deferred revenue totaled $1.9 million ($1.4 million current, $0.5 million non-current) as of September 30, 2026, compared to $2.5 million ($1.8 million current, $0.7 million non-current) at December 31, 2025.

Guidance and Future Outlook:

• Fourth quarter 2026 revenue is expected to be between $104.0 million and $107.0 million.
• Fourth quarter 2026 GAAP net income is projected to be between $1.2 million and $2.7 million.
• Fourth quarter 2026 Adjusted EBITDA is projected to be between $19.2 million and $20.7 million.
• Fourth quarter 2026 non-GAAP net income is projected to be between $17.6 million and $19.1 million.
• Fourth quarter 2026 non-GAAP net income per diluted share is projected to be between $0.55 and $0.60.
• Fourth quarter 2026 GAAP net income per diluted share is projected to be between $0.04 and $0.08.

Business Segments and Product Lines:

• Endpoint IC revenue and unit volumes set new quarterly records in the third quarter.
• M800 product line demonstrated market strength.
• Retail demand remained resilient.
• Growth was reported at "lighthouse accounts."
• Gen2X technology showed momentum.

Management Commentary and Tone:

• CEO Chris Diorio described third-quarter results as "strong" and noted that revenue, endpoint IC revenue, and unit volumes all set new quarterly records.
• Management cited M800 market strength, resilient retail demand, growth at lighthouse accounts, and Gen2X momentum as key contributors to record results.
• Management expressed confidence that these trends will continue.

Other Key Points:

• The company reported an induced conversion expense of $1.8 million for the quarter and $13.7 million for the nine months ended September 30, 2026.
• In the nine months ended September 30, 2026, the company paid $103.6 million to retire 2021 Notes.
• Stock-based compensation was $16.1 million for the quarter and $47.1 million for the nine months ended September 30, 2026.
• The company paid $103.6 million for the payment of 2021 Notes in the nine-month period, compared to $190.0 million in the prior year period.
• Proceeds from the issuance of 2025 Notes were $183.7 million in the nine months ended September 30, 2025, with no such issuance in the 2026 period.
• Non-GAAP diluted net income per share calculations include the impact of convertible debt using the if-converted method.