PI · Impinj, Inc.

Impinj’s Q1 2026 results reflect continued execution against a challenging macro backdrop, with revenue flat year-over-year at $74.3 million—matching the prior-year quarter precisely—while gross margin held steady at 49.1% GAAP (down slightly from 49.4%) and 52.4% Non-GAAP (down from 52.7%). The GAAP net loss of $25.3 million widened significantly from $8.5 million in Q1 2025, primarily due to a $11.9 million induced conversion expense related to its convertible notes, a non-cash accounting charge that does not impact liquidity or operations. Excluding this and other non-recurring items, Non-GAAP net income was $4.4 million ($0.14 diluted EPS), though down from $6.3 million ($0.21) in Q1 2025, reflecting increased R&D spend (+13% YoY), higher stock-based compensation (+17% YoY), and elevated amortization. Management attributed the solid top-line outcome and robust Q2 outlook—including projected revenue growth of ~38% quarter-over-quarter—to record endpoint IC bookings, signaling strong underlying demand in retail, logistics, and industrial verticals. The Q2 guidance implies meaningful operating leverage: adjusted EBITDA is expected to more than double to $27.8–$29.3 million, and Non-GAAP EPS is forecast to rise nearly fivefold to $0.77–$0.82, supported by scale-driven gross margin expansion and disciplined cost management. Importantly, cash flow remained resilient: operating cash flow turned positive at $4.0 million (versus -$11.1 million in Q1 2025), and free cash flow improved to $2.2 million, underscoring the business’s improving cash generation profile despite GAAP losses. The balance sheet remains well-positioned, with $32.3 million in cash and $241.5 million in long-term debt as of March 31, 2026.