Impinj reported a modest sequential revenue dip in Q4 2025, with revenue of $92.8 million (down 3% QoQ) and a year-over-year increase of 1%. Full-year 2025 revenue was $361.1 million, down 1% year over year. The quarter delivered a healthier gross margin of 54.5% and a strong Adjusted EBITDA of $16.4 million (Q4 margin 17.7%), contributing to a record annual Adjusted EBITDA of $69.6 million (2025 margin 19.3%). Net income was volatile on a GAAP basis, with Q4 GAAP net loss of $1.1 million and non-GAAP net income of $15.6 million ($0.50 per share). For the full year, non-GAAP net income was $64.2 million ($2.11 per share).
Impinj’s endpoint IC revenue in Q4 stood at $75.2 million, down 5% QoQ but up 2% YoY, while systems revenue rose 2% QoQ to $17.7 million. For 2025, endpoint IC revenue declined 2% YoY, and total 2025 gross margin rose to 55.3% driven by a richer mix of M800 endpoint ICs. The company ended the quarter with a robust balance sheet: cash, cash equivalents, and investments of $279.1 million and free cash flow of $13.6 million in Q4 (full-year free cash flow of $45.9 million). Notably, Impinj guided to a softer first quarter (Q1 2026) with revenue guidance of $71–$74 million and predicted ongoing weakness from channel inventory burn-down, apparel demand, and logistics transitions, even as management signaled a multi-quarter rebound driven by endpoint IC volume recovery and expanding Gen2X-enabled solutions.
Strategically, Impinj is accelerating its shift from component sales to end-to-end solutions anchored by Gen2X. The company has begun shipping a custom endpoint IC for a major North American logistics end user (in production) and is positioning Gen2X as a core driver of market share gains through enterprise solutions. Management highlighted a growing solutions pipeline, increased NRE revenue in systems, and the potential for software revenues over time. The EM Microelectronics licensing agreement was described as immaterial to 2026 revenue, but it adds optionality for future partnerships. Investors should monitor the pace of the logistics-driven inventory burn-down, the ramp of the custom IC, and the take-up of Gen2X-enabled solutions as key indicators of 2026–2027 growth.