Impinj Expects Fourth-Quarter 2026 Revenue of Up to $107 Million
Key Facts
Impinj said on October 28 that revenue in the fourth quarter of 2026, for the period ending December 31, would range from $104 million to $107 million, according to its earnings release. The midpoint implies expected annual growth of about 14%, compared with revenue of $92.8 million in the fourth quarter of 2025. The guidance follows a third quarter in which the company posted record revenue, but puts projected quarterly revenue below the level reached in the previous quarter. The company also set ranges for its profitability outlook, including net income under generally accepted accounting principles (GAAP) and adjusted measures that do not conform to them. The fourth-quarter outlook covers the period through the end of December, while management said increased spending on back-end processing capabilities is planned for early 2027.
Third-quarter revenue was $112.083 million, compared with $96.055 million in the same period of 2025, an annual increase of about 16.7%. The result was above analysts’ estimate of $107.43 million, according to Investing.com, beating the forecast by about 4.35%. Endpoint IC revenue was $97.3 million, up 24% year over year, according to the earnings call transcript. The chief executive said revenue from endpoint ICs, inlays and total revenue each reached quarterly records. He attributed this to strength in the M800 IC market, resilient retail demand, growth in key customer accounts and momentum in Gen2X. He said these factors supported the third-quarter records, while the official release did not link the fourth-quarter guidance to an expansion of back-end processing capabilities.
On profitability, Impinj posted third-quarter non-GAAP net income of $22.1 million, or $0.69 per diluted share. For the fourth quarter, the company expects non-GAAP net income of $17.6 million to $19.1 million, and diluted earnings of $0.55 to $0.60 per share. On a GAAP basis, it expects net income of $1.2 million to $2.7 million. Its forecast for adjusted earnings before interest, taxes, depreciation and amortization is $19.2 million to $20.7 million. These ranges differ depending on the profitability measure used, as the company provides separate outlooks for accounting and adjusted measures. Non-GAAP gross margin was 54.9% in the third quarter, compared with 60.9% in the second quarter.
The earnings call transcript attributed the decline in gross margin from the previous quarter mainly to the absence of recurring license revenue. The chief executive, meanwhile, said strength in the M800 market, resilient retail demand, growth in key customer accounts and Gen2X momentum accompanied the quarterly records. He said that “strength in the M800 market and resilient retail demand” were among the factors supporting the company’s performance. This detail provides a picture of the drivers of third-quarter results, alongside the effect of nonrecurring revenue on the comparison of margins between consecutive quarters. The official guidance did not explain fourth-quarter revenue expectations in relation to increased back-end capacity. The chief financial officer said the company expects to increase capital spending to expand back-end processing capabilities in the first quarter of 2027.
The chief financial officer added that overall capital-spending intensity in 2027 would return to levels consistent with the company’s long-term model, following lower spending in 2025 and 2026. Spending is set to rise starting in the first quarter of 2027, with investment directed toward back-end processing capabilities. In trading, Impinj shares closed at $174.81 on October 27, according to EL7 data. After the regular session closed on October 28 at $176.48, the stock rose 6.87% in extended trading to $188.60, according to Investing.com. The move in extended trading followed the release of third-quarter results and financial guidance for the next quarter. The period covered by the guidance ends on December 31, 2026, while the public release did not specify when fourth-quarter results would be announced.