Key Highlights

  • PI shares rose about 6% pre-market to $188.71, from $176.48 prior close.
  • Record Q3 revenue of $112.1 million rose 17% and beat the $107.2 million estimate.
  • Non-GAAP EPS of $0.69 beat the $0.61 estimate.
  • Q4 revenue guidance of $104 million to $107 million exceeds the roughly $99 million consensus.
  • Endpoint IC revenue reached a record $97.3 million, up 24%.

Record Quarter and Strong Outlook

Impinj, Inc. (NASDAQ:PI) shares rose in pre-market trading after record third-quarter results and a fourth-quarter outlook above expectations. Revenue of $112.1 million rose 17% from a year earlier and 3% from the prior quarter, with no licensing revenue. Non-GAAP earnings per share were $0.69 against $0.61 expected.

Fourth-quarter revenue guidance of $104 million to $107 million compares with consensus near $99 million. Non-GAAP EPS guidance of $0.55 to $0.60 compares with about $0.48. Management cited strength in the M800 product line, resilient retail demand and growth in lighthouse accounts.

Impinj is a Seattle-based semiconductor and IoT company founded in 2000 that pioneered RAIN RFID. Its portfolio includes endpoint integrated circuits, reader chips, readers, gateways and software used in retail self-checkout, loss prevention and warehouse inventory tracking. It generated about $366 million in revenue in 2024 and has about 457 employees.

Segment Detail and Supply Limits

Endpoint IC revenue was a record $97.3 million, up 24%, driven by M800 strength, resilient retail, supply chain and logistics conversion to a custom ASIC, and Gen2X momentum. Systems revenue of $14.8 million rose 23% sequentially but fell 15% year on year. Gross margin was 54.9%, against 60.9% in the second quarter, which included licensing revenue. Adjusted EBITDA was $24.5 million, free cash flow was $20.6 million and cash and investments were $228.3 million.

Backend post-processing capacity is tight at shared third-party steps, so demand currently exceeds supply and the company will ramp capacity at an elevated pace for at least two more quarters, with capital spending stepping up in the first quarter of 2027. Endpoint IC revenue should decline modestly in the fourth quarter, better than typical seasonality, and systems revenue is expected to decline because of project timing.

Valuation and Growth Drivers

Impinj has a market capitalisation of about $5.4 billion, a forward price-to-earnings ratio near 67 and a 52-week high of $192.94. A research firm raised its price target to $195 from $168. The shares were indicated about 4% higher pre-market at one point, below after-hours highs near $189 to $190. Weakness in the broader technology sector was a headwind.

The company repurchased $56.3 million of its 2027 convertible notes using cash and shares. Newer solutions are still in beta, with modest revenue expected in 2027, and a pilot at a large grocery chain showed 70% faster inventory counts and 50% lower waste in bakery items. A new chief commercial officer joins on December 1.

What Investors Will Weigh Next

The quarter and outlook show demand ahead of supply. Backend capacity additions, the first-quarter 2027 outlook and the pace at which new solutions convert into revenue are the next markers.