Key Highlights

  • Revenue of USD 112.1 million set a record, up 17% and above the USD 107.16 million consensus estimate.
  • Non-GAAP EPS of USD 0.69 beat the USD 0.61 consensus estimate, while GAAP net income was USD 4.7 million.
  • Endpoint IC revenue climbed 24% to a record USD 97.3 million, while systems revenue fell 15%.
  • Fourth-quarter guidance covers revenue of USD 104 million to 107 million and non-GAAP EPS of USD 0.55 to 0.60.

Impinj, Inc. (NASDAQ:PI) reported record third-quarter 2026 revenue of USD 112.1 million, up 17% from USD 96.1 million a year earlier and 3% from the second quarter. The figure was above a consensus estimate of USD 107.16 million and came without any licensing revenue, which had contributed USD 17 million in the second quarter. Non-GAAP earnings per diluted share were USD 0.69, above a consensus estimate of USD 0.61, on non-GAAP net income of USD 22.1 million.

GAAP net income was USD 4.7 million, or USD 0.15 per diluted share, compared with a loss of USD 12.8 million, or USD 0.44 per share, a year earlier. The GAAP result included USD 1.8 million of induced conversion expense tied to convertible note repurchases. Chief executive Chris Diorio said endpoint IC revenue and unit volumes, along with total revenue, all set quarterly records.

Product Mix and Margin Detail

Endpoint IC revenue reached USD 97.3 million, led by M800 demand, a custom ASIC conversion at a supply chain and logistics customer, and a European retailer. Excluding the USD 17 million of licensing revenue in the second quarter, endpoint IC product revenue grew 23% sequentially. Systems revenue was USD 14.8 million, up 23% from the second quarter but down from USD 17.3 million a year earlier.

Non-GAAP gross margin was 54.9%, against 60.9% in the second quarter and 53% a year earlier, with the sequential dip tied to licensing revenue and the annual gain to a higher M800 contribution. GAAP gross profit was USD 59.1 million. GAAP operating expenses rose to USD 54.5 million from USD 47.7 million, and adjusted EBITDA was USD 24.5 million, a 21.9% margin. Free cash flow was USD 20.6 million.

Guidance, Capacity and Balance Sheet

For the fourth quarter, the company guided to revenue of USD 104 million to USD 107 million, adjusted EBITDA of USD 19.2 million to USD 20.7 million, and non-GAAP net income of USD 17.6 million to USD 19.1 million. Management anticipates a modest sequential decline in endpoint IC revenue, lower systems revenue as lighthouse accounts draw down reader and gateway inventory, and higher operating expense. Gross margin is projected to rise sequentially on specialty ICs and M800.

Management is ramping back-end wafer post-processing at an elevated pace for at least two more quarters, and capital expenditures step up in the first quarter of 2027. Cash, cash equivalents and investments were USD 228.3 million, down from USD 263.7 million in the second quarter. In September the company repurchased USD 56.3 million of principal on its 1.125% convertible notes due May 2027, using cash and shares, and elected cash settlement of a capped call worth roughly USD 49 million.

Checkpoints Ahead

Four items frame the next report. Fourth-quarter revenue against the USD 104 million to USD 107 million range is first, versus USD 112.1 million in the third quarter. Non-GAAP EPS against USD 0.55 to USD 0.60 is second, versus USD 0.69. Third is supply: back-end capacity is being ramped for at least two quarters, with a capital spending step-up scheduled for the first quarter of 2027. Fourth is the balance sheet, with the remaining 2027 convertible notes due May 15, 2027 and cash and investments of USD 228.3 million. A new chief commercial officer is scheduled to join on December 1.