Impinj posts record Q2 revenue of $108.4M as RAIN RFID demand surges

Impinj Inc. reported record second-quarter revenue of $108.4 million, beating consensus estimates by 4.7%, as demand for its RAIN RFID endpoint ICs accelerated across retail, supply chain and food applications.

"The results reflect continued market expansion and demand from inlay partners rebuilding IC inventories toward normal levels," Chris Diorio, co-founder and chief executive officer at Impinj, said on the earnings call.

Non-GAAP earnings per share reached $0.86, surpassing the $0.81 consensus estimate and up from $0.80 a year earlier. Adjusted EBITDA hit a record $30.7 million, representing a 28.3% margin. Revenue rose 46% sequentially and 11% year over year, driven by endpoint IC sales that climbed 53% from the prior quarter to a record $96.4 million.

The company's Q3 outlook signals continued momentum. Impinj forecast revenue of $105.5 million to $108.5 million and non-GAAP EPS of $0.59 to $0.63, citing strong bookings, an accelerating custom ASIC ramp for a major supply-chain customer, and expected inventory rebuilding by inlay partners. Gross margin reached a record 60.9% in Q2, up from 52.4% in Q1, boosted by licensing revenue.

Endpoint IC Demand Drives Record Quarter

Endpoint IC product revenue, excluding licensing, rose 26% sequentially and 16% year over year, exceeding the company's expectations. Diorio said unit volume also set a quarterly record, with demand spanning retail apparel, general merchandise, supply chain and logistics, and food-related applications. For the second consecutive quarter, endpoint IC bookings hit an all-time high.

Systems revenue totaled $12 million, up 8% sequentially but down 10% from a year earlier. Reader ICs outperformed expectations on enterprise demand and are expected to be Impinj's fastest-growing product line in the third quarter, the company said.

Custom ASIC Ramp and Food Market Expansion

A custom ASIC program for Impinj's second-largest North American supply-chain and logistics customer is progressing ahead of schedule, with full conversion expected during the third quarter. CFO Cary Baker said the transition gives the company better visibility into channel inventory than when the customer used Impinj's general-purpose M800 product.

In the food vertical, three of the five largest U.S. grocers have publicly announced RAIN RFID pilots or deployments across bakery, deli and meat categories. Impinj is supporting four program types: store replenishment for quick-service restaurants, in-store inventory management at supermarkets, loss-identification at point of sale, and automated self-checkout initiatives. Some store replenishment and in-store inventory programs have progressed to chain-wide deployments, though consumption remains modest relative to current industry volumes.

The guidance raise signals management expects RAIN RFID adoption to broaden beyond core retail into supply chain logistics and food. Investors will watch the Q3 earnings call for updates on the custom ASIC ramp and food program conversion rates.

This article is for informational purposes only and does not constitute investment advice.