Oct 28, 2026 earnings call — Record quarter driven by M800 and solutions
Impinj reported record third quarter revenue of $112.1 million, with endpoint ICs and unit volumes setting new quarterly records.
Revenue $0.1B (est $0.1B) · EPS $0.69 (est $0.61) · Next-quarter revenue outlook $0.1B–$0.1B
Key quotes
"We will continue ramping our back end at an elevated pace for at least the next 2 quarters to meet the growing demand."
"Our software is in beta at our lighthouse accounts and not yet generating meaningful revenue."
"Turning to food, as we highlighted last quarter, there are 4 distinct types of food programs: store replenishment, in-store inventory, loss identification and automated self-checkout."
Analyst Q&A 8
Why seasonality was milder
Q (Harsh Kumar · BMO): They asked why seasonality was less negative than usual and which segments or customers drove the strength. They also asked about the size and scope of two new food customers mentioned.
A: Management said endpoint IC bookings remained strong and multiple drivers helped: retail recovering, a supply chain customer conversion completed in Q3, and specialty IC revenue returning modestly. They said strength is broad-based across retail, supply chain, food and M800. On the two new food logos, they are early-stage, similar in size to existing customers and require a full-platform solution.
"Second, in supply chain and logistics, our second large supply chain and logistics customer conversion to the custom IC was essentially completed in the third quarter, and we still have the international expansion on the horizon." — Cary Baker (CFO)
Back-end capacity and project timing
Q (James Ricchiuti · Needham & Company): They asked about reader/gateway sales, whether there were pull-ins, and why Q4 seasonality was off. They also asked what "unable to get ahead" meant for back-end processing.
A: Management said systems was strong in Q3 but a few projects shifted right into Q4, causing the weaker typical seasonal lift, which they expect to reverse in early 2027. They explained the back-end ramp is a multi-quarter effort and that their shortage is in shared post-processing steps they buy, not in the steps they own. They are investing to own more of those steps and will increase capital spending accordingly.
"If you look at my prepared remarks, I said that our back-end ramp is at least a 3-quarter effort, the Q3 that we just went through and the 2 quarters ahead." — Chris Diorio (CEO)
2027 growth drivers
Q (Christopher Rolland · Susquehanna): They asked whether the capacity issue was front-end or back-end, what happened to lead times and backlog, and what will drive growth in 2027.
A: Management clarified it is back-end post-processing (thinning, bumping, dicing, testing), not front-end wafer supply. They said backlog has increased with customers ordering into Q1 already. For 2027, they are most excited about scaling repeatable solutions based on lighthouse account successes and said many new enterprises are asking for similar solutions.
"Today, we are, quite frankly, oversubscribed with new enterprises who see those results and are asking for our help to do similar things for them." — Chris Diorio (CEO)
Software timing and specialty ICs
Q (Nicholas Igneri · Barclays): They asked what milestones are needed before software is commercially available and when it could add revenue. They also asked what changed for specialty endpoint IC revenue and its potential for 2027.
A: Management said software is still in beta and that the first part of the software going to full GA should be measured in months, not quarters. They said revenue will follow and is expected to be modest in 2027 at first, with room to grow as they scale with enterprise users. For specialty ICs, one customer is driving the return; demand ebbs and flows and current volume is modest but high-margin.
"I think the revenue impact in 2027 is probably modest at first, and then as we grow with our enterprise end users, there's a real opportunity for us to grow from there." — Cary Baker (CFO)
Software monetization and channel inventory
Q (Scott Searle · ROTH Capital): They asked how the company plans to monetize software and what it could become as a percent of sales. They also asked about channel inventory issues and confidence heading into year end and Q1.
A: Management said it's early, they expect to license software but see monetization as an integrated platform play including endpoint ICs, readers and software. They said the custom IC gives improved visibility into customer ordering and channel inventory, which is already helping manage the prior Q1 missteps. They noted costs are rising so they may pass some increases to protect gross margin, and the M800 should reach terminal mix in fourth quarter 2026.
"The improved visibility that the custom IC provides is already paying dividends on that front, especially from a channel management standpoint." — Cary Baker (CFO)
Logistics beyond big customer and general merchandise
Q (James Ricchiuti · Needham & Company): They asked if logistics demand is growing outside the second large U.S. logistics customer and whether that will add revenue. They also asked about general merchandise demand in Q3 and future programs.
A: Management said yes, they see opportunity outside that large customer but cannot name names, and they also see 3PL opportunities tied to that customer that drive additional endpoint IC and solution sales. On general merchandise, demand is steady—neither faster nor slower—work is progressing, one lead customer is pivotal, and more categories are being developed for future quarters.
"But notably, we also see 3PL opportunities with that customer to help them and us grow at their own customers." — Chris Diorio (CEO)
Inventory decline and M800 lead times
Q (Crawford Clarke · Jefferies): They asked whether prior March comments referred to systems or total revenue, why inventory declined, and what M800 lead times look like.
A: Management said they only guide one quarter and were explaining how to think about Q1 versus prior Q1s, noting improved channel visibility and different pricing/mix this year. They explained the inventory decline was due to wafer delivery timing slipping into early Q4 and a low mix of finished goods while back-end catches up. They also said gross margin should rise roughly 100 basis points in Q4 due to M800 reaching terminal mix and specialty IC layering.
"Now, we've got 2 benefits in gross margin: we've got the continued M800 ramp to its terminal mix, and we also have the layering in of the specialty ICs, and those are high-margin ICs." — Cary Baker (CFO)
Digital Product Passport (DPP) timeline
Q (Scott Searle · ROTH Capital): They asked for an update on DPP adoption, RAIN's role, and when benefits might appear.
A: Management said RAIN is approved as a DPP data carrier and there's renewed effort to get mobile devices to read RAIN, but consumer mobile readability is not there yet. Industrial devices with processors supporting RAIN are rolling forward now, and they expect delegated acts and DPP to come into force around 2029, about 2.5 years away, with retail apparel leading initial adoption.
"We're, of course, not there yet, but today industrial devices are rolling forward with processors in them, driven by Qualcomm and now by others, that have support for RAIN RFID." — Chris Diorio (CEO)