Identiv Reports 25% Revenue Decline in Q2 2025, Posts Gross Loss

Identiv, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenue of $5.0 million, down 25% from $6.7 million in the same period of 2024. For the first half of 2025, revenue totaled $10.3 million, a decrease of 23% compared to $13.4 million in the prior year. The decline was attributed to lower unit sales of RFID transponder products and reduced sales to a major customer transitioning production to Thailand. The company also recorded a gross loss of $474,000 for the quarter, compared to a gross profit of $614,000 in Q2 2024, reflecting a gross margin of -9% versus 9% in the previous year.

Operating expenses decreased to $5.9 million in Q2 2025 from $7.3 million in Q2 2024, primarily due to reduced general and administrative costs, which fell by 33% to $3.1 million. The company reported a loss from continuing operations of $6.4 million for the quarter, slightly improved from a loss of $6.7 million in the same period last year. The net loss for the quarter was $6.0 million, compared to a net loss of $6.2 million in Q2 2024. The company’s accumulated deficit increased to $350.9 million as of June 30, 2025.

Strategically, Identiv completed the sale of its Physical Security Business in September 2024, which represented a significant shift in its operations. This sale, which accounted for approximately 63% of the company's 2023 revenue, has led to a focus on its remaining IoT Business segment, which develops specialty RFID solutions for various industries. The transition has resulted in a lower gross margin profile for the continuing business, and the company anticipates ongoing losses until revenue scales up significantly.

Operationally, Identiv has streamlined its manufacturing processes by consolidating production to a facility in Thailand, following the closure of its Singapore site. The company is prioritizing higher-margin opportunities and exiting low-margin business segments to improve profitability. As of June 30, 2025, Identiv had cash and cash equivalents of $129.3 million, down from $135.6 million at the end of 2024, indicating a decrease in working capital.

Looking ahead, Identiv expects continued fluctuations in revenue due to the pace of RFID market adoption and customer transitions. The company aims to leverage its existing cash reserves and operational efficiencies to navigate the challenges posed by macroeconomic conditions, including inflation and supply chain disruptions. Identiv remains focused on enhancing its product offerings and expanding its market presence, while managing costs to improve its financial outlook.