Impinj's Q2 2025 Earnings Call: Unpacking Contradictions in Channel Inventory, Growth Trajectories, and Margin Impacts

Channel inventory and market conditions, endpoint IC growth trajectory, logistics demand changes, and issues with product roadmap execution and supply chain are the key contradictions discussed in Impinj's latest 2025Q2 earnings call.



Strong Financial Performance and Sequential Growth:
- Impinj reported revenue of $97.9 million for Q2 2025, up 32% sequentially and down 4% year-over-year.
- This performance was driven by increased demand for endpoint ICs, reader ICs, readers, and gateways, as well as expansion in category and use case adoption, particularly in the retail and logistics sectors.

Endpoint IC Volume Growth and Margin Improvement:
- Endpoint IC revenue was $84.6 million, up 38% sequentially, despite a decline in partner channel inventory.
- This growth was supported by strong execution in sales and operations, as well as increasing market adoption of M800 and Gen2X, which improved read range and performance, benefiting margin improvements.

Reader IC and Revenue Outlook:
- Second quarter reader IC revenue saw a sequential decline due to the end of life of a product line, but expectations are set for sequential growth in Q3 driven by strong E Family shipment volumes.
- The integration of Gen2X in partner modules and readers is creating a virtuous cycle of demand for M800 endpoint ICs, enhancing reader IC sales.

Supply Chain and Logistics Expansion:
- Impinj has seen increased demand in the logistics sector, with two major customers contributing to new use cases and reader revenue growth.
- This trend is driven by companies seeking to enhance supply chain resiliency and flexibility amid tariff and supply chain disruptions, expanding the opportunities in the sector beyond just pure logistics and supply chain companies.