Impinj Inc (NASDAQ:PI) reported financial results for the fourth quarter and full year of 2025 after the market close on Wednesday, delivering a mixed performance that has triggered a sharp negative reaction from investors. While the company met key bottom-line expectations for the quarter, a significant shortfall in its forward guidance appears to be the primary driver behind a steep after-hours sell-off.
Quarterly Results Versus Expectations
The RAIN RFID technology provider posted revenue of $92.8 million for the quarter ended December 31, 2025, representing a modest 1.4% increase over the same period last year. This figure came in slightly below the average analyst estimate of approximately $94.9 million. On a non-GAAP basis, which excludes items like stock-based compensation, the company's profitability metrics were stronger.
- Non-GAAP Earnings Per Share (EPS): $0.50, which was marginally below the consensus estimate of $0.52.
- GAAP Net Loss: $1.1 million, or a loss of $0.04 per share.
The company highlighted several operational milestones for the full year, including growing endpoint IC volumes, establishing its M800 product as the volume leader, and launching its new Gen2X platform. CEO Chris Diorio described 2025 as a "transition year," concluding with record adjusted EBITDA and cash levels.
Market Reaction and the Guidance Culprit
Despite the largely in-line quarterly print, Impinj shares plummeted approximately 24% in after-hours trading. This severe reaction is almost entirely attributable to the company's financial outlook for the first quarter of 2026, which fell dramatically short of Wall Street's expectations.
The company provided the following guidance for Q1 2026:
- Revenue: $71.0 to $74.0 million.
- Non-GAAP Net Income: $2.5 to $4.0 million, or $0.08 to $0.13 per share.
This revenue guidance midpoint of $72.5 million is nearly 20% below the analyst consensus estimate of $90.5 million for the quarter. Similarly, the EPS guidance is a fraction of the estimated $0.40 per share. This substantial disconnect suggests the company is anticipating a significant near-term slowdown or facing headwinds not fully anticipated by the market.
Balance Sheet and Full-Year Summary
For the full year 2025, Impinj reported revenue of $361.1 million, a slight decrease from $366.1 million in 2024. The company finished the year with a strengthened balance sheet, including:
- Cash, cash equivalents, and investments totaling $279.1 million.
- Total assets of $545.2 million, up from $489.1 million at the end of 2024.
- Record adjusted EBITDA of $69.6 million for the year.
Looking Ahead
The stark contrast between the stable annual performance and the bleak first-quarter forecast creates uncertainty. Management's commentary on the upcoming earnings call will be scrutinized for explanations regarding the guidance cut, whether it relates to inventory corrections, end-market demand, competitive pressures, or broader economic factors affecting the IoT and retail sectors.
For detailed historical earnings data and future analyst estimates, you can review the information available on Chartmill.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, nor a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
