Impinj Reports $74.3 Million Revenue in Q1 2025, Down 3.3% Year-Over-Year

Impinj, Inc. reported a revenue of $74.3 million for the first quarter of 2025, a decrease of 3.3% from $76.8 million in the same period of the previous year. The company's gross profit also fell to $36.7 million, down from $37.5 million, although the gross margin improved slightly to 49.4% from 48.9%. The company experienced a loss from operations of $9.6 million, an improvement from the $11.7 million loss reported in the first quarter of 2024. The net loss for the quarter was $8.5 million, compared to a net income of $33.3 million in the prior year, which included a one-time income of $45 million from a litigation settlement with NXP Semiconductors.

In terms of operational metrics, Impinj's endpoint integrated circuit (IC) revenue decreased marginally to $61.2 million from $61.5 million, while systems revenue saw a more significant decline, dropping to $13.1 million from $15.3 million. The decrease in systems revenue was attributed to lower shipment volumes. The company noted that while it continues to derive most of its revenue from endpoint ICs, the systems segment is critical for future growth, particularly in large-scale deployments.

Strategically, Impinj has focused on enhancing its research and development efforts, which increased to $25.3 million from $22.5 million year-over-year. This increase reflects the company's commitment to innovation and product development, despite overall operating expenses decreasing due to lower sales and marketing costs and the absence of restructuring costs that were present in the previous year. The company also reported a reduction in its employee headcount following a strategic restructuring initiated in early 2024, which affected approximately 10% of its workforce.

As of March 31, 2025, Impinj had cash, cash equivalents, and short-term investments totaling $147.9 million, a significant increase from $61.3 million at the end of the previous quarter. The company’s working capital stood at $280.4 million, indicating a solid liquidity position. However, Impinj continues to face challenges, including reliance on a limited number of customers for a substantial portion of its revenue and potential impacts from global trade policies and tariffs.

Looking ahead, Impinj remains optimistic about the long-term adoption of RAIN technology and plans to continue investing in product development and market expansion. The company acknowledges the uncertainties in macroeconomic conditions and their potential impact on future performance but is committed to navigating these challenges while pursuing growth opportunities in the Internet of Things (IoT) space.