Shares of Impinj (PI 7.23%) were taking a dive after the RAIN RFID (radio-frequency ID) specialist came up slightly short of fourth-quarter estimates slightly and its guidance for the first quarter missed the mark.
As of 12:14 p.m. ET, the stock was down 21.4% on the news.
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What happened with Impinj
Impinj's revenue in the fourth quarter was essentially flat, up 1.4% to $92.8 million, which matched the analyst consensus.
On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ticked up from $15 million to $16.4 million, and adjusted earnings per share, which excludes $15.2 million in stock-based compensation, was $0.50, up from $0.48 a year ago, and slightly below the consensus at $0.51. On a generally accepted accounting principles (GAAP) basis, the company reported a loss of $1.1 million, and it had a GAAP loss for the year, of $10.8 million.
CEO Chris Diorio called 2025 "a transition year for Impinj," and said it was "a tough year for our industry," citing challenges related to tariffs, inventory reductions, and a declining trend in apparel imports and RFID adoption in general merchandise.
NASDAQ: PI
Key Data Points
What's next for Impinj
Investors were also disappointed with Impinj's forecast for the first quarter as the Internet of Things company called for revenue of $71 million-$74 million, implying a 2% decline at the midpoint, which was well below the analyst consensus at $90.5 million as the company expects weak apparel retailer demand.
It sees a GAAP net loss of $15.1 million to $16.6 million, and per-share profit of $0.08 to $0.13 on an adjusted basis, much worse than estimates at $0.39.
Wall Street analysts lowered their price targets on the stock, but they largely maintained positive ratings on Impinj.
Impinj's business has historically been volatile so a money-losing year isn't that unusual, but it's reasonable to question the stock's premium valuation as it's unclear how long these headwinds will persist.
