Breaking Down Impinj, Inc. (PI) Financial Health: Key Insights for Investors

Are you keeping a close watch on Impinj, Inc. (PI) and trying to decipher its financial performance? Did you know that in 2024, Impinj reported a revenue of $366.1 million? The company's GAAP net income stood at $40.8 million, or $1.39 per diluted share. But how do these figures truly reflect the company's financial health, and what are the key insights for investors like you? Dive in to explore the details of Impinj's financial results, including gross margins, EBITDA, and strategic achievements, to understand the full picture.

Impinj, Inc. (PI) Revenue Analysis

Understanding Impinj, Inc.'s revenue streams is crucial for investors seeking insights into the company's financial health and growth potential. A detailed breakdown reveals the primary sources of income, historical growth trends, and the contribution of different business segments to the overall revenue.

Impinj, Inc. primarily generates revenue from two main sources:

• Products: This includes endpoint ICs, readers, gateways, and other RFID hardware.
• Services: This segment comprises software and support services related to the company's RFID solutions.

Analyzing Impinj, Inc.'s year-over-year revenue growth rate provides a clear picture of its performance. For example, in 2023, Impinj reported a revenue of $317.3 million, marking a 15.8% increase compared to $274.1 million in 2022. This growth trend demonstrates the increasing adoption of Impinj's RFID solutions across various industries.

To illustrate the revenue contributions of different business segments, consider the following breakdown based on the 2024 fiscal year data:

The endpoint ICs constitute the largest portion of Impinj's revenue, highlighting their significance in the company's business model. Readers, gateways, software and services also play important roles, contributing to a diversified revenue stream.

Significant changes in revenue streams can impact investor confidence and strategic decision-making. For instance, shifts in regional demand, technological advancements, or competitive pressures can influence the revenue mix. Keeping abreast of these changes is essential for a comprehensive understanding of Impinj, Inc.'s financial trajectory.

For additional insights into Impinj, Inc.'s financial health, you can refer to: Breaking Down Impinj, Inc. (PI) Financial Health: Key Insights for Investors

Impinj, Inc. (PI) Profitability Metrics

Analyzing Impinj, Inc.'s financial health requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Key profitability indicators include gross profit margin, operating profit margin, and net profit margin. By evaluating these metrics and their trends over time, investors can gain a better understanding of Impinj's financial performance and its ability to create value for shareholders. For an overview, check out: Breaking Down Impinj, Inc. (PI) Financial Health: Key Insights for Investors.

Gross profit is the profit a company makes after deducting the costs associated with producing and selling its goods or services. Gross Profit Margin reveals the proportion of revenue that remains after accounting for the cost of goods sold (COGS). For Impinj, Inc., the gross profit for the year 2024 was $141.9 million. The gross profit margin was approximately 46.8% in 2024.

Operating profit, also known as earnings before interest and taxes (EBIT), measures a company's profit from its core operations, excluding interest and tax expenses. Operating Profit Margin indicates how much profit a company makes from its operations before interest and taxes, relative to its revenue. Impinj's operating profit for 2024 stood at $8.74 million. Impinj's operating profit margin for 2024 was 2.9%.

Net profit is the profit a company makes after deducting all expenses, including interest, taxes, and other non-operating expenses, from its revenue. Net Profit Margin shows the percentage of revenue that remains after all expenses have been paid. In 2024, Impinj's net profit was $5.78 million, resulting in a net profit margin of approximately 1.9%.

Here's a summary of Impinj's profitability metrics for 2024:

Analyzing Impinj's profitability trends over time provides valuable insights into the company's financial performance. By comparing profitability ratios across different periods, investors can identify patterns, assess the impact of strategic initiatives, and evaluate the company's ability to sustain or improve its profitability.

When assessing Impinj's profitability, comparing its ratios with industry averages is essential. This comparison helps determine whether Impinj's profitability is in line with industry standards or if it outperforms or underperforms its peers. Significant deviations from industry averages may warrant further investigation to understand the underlying factors driving the differences.

Operational efficiency plays a crucial role in driving profitability. Effective cost management and favorable gross margin trends can positively impact a company's bottom line. For example, Impinj's cost of revenue was $161.24 million in 2024. Analyzing these aspects can provide insights into a company's ability to control costs and optimize its operations to enhance profitability.

Impinj, Inc. (PI) Debt vs. Equity Structure

Understanding how Impinj, Inc. (PI) finances its operations and growth is crucial for investors. A key aspect of this involves analyzing the company's debt levels and its balance between debt and equity financing. This provides insights into the company's financial risk and stability. For more information, see Breaking Down Impinj, Inc. (PI) Financial Health: Key Insights for Investors.

As of the fiscal year 2024, Impinj, Inc. (PI) maintains a mix of debt and equity to fund its activities. Examining the specifics of its debt structure provides a clearer picture:

• Overview of Debt Levels: Impinj's financial health can be assessed by looking at both its short-term and long-term debt.
• Debt-to-Equity Ratio: Comparing Impinj's debt-to-equity ratio against industry averages offers insight into its financial leverage.
• Recent Financing Activities: Monitoring any recent debt issuances, credit ratings, or refinancing activities helps in understanding the company's strategic financial decisions.

Impinj, Inc. (PI) reported the following debt-related figures in its financial statements:

As of December 31, 2023, Impinj had $0 in short-term debt. In terms of long-term debt, the company had $345.0 million principal amount of 1.75% Convertible Senior Notes due 2027. The carrying amount of the convertible notes, net of discount and issuance costs, was approximately $306.7 million.

Here's a summary of Impinj's debt and equity situation based on available information:

The debt-to-equity ratio is calculated by dividing the total debt by the total equity. For Impinj, using the net carrying amount of the convertible notes, the debt-to-equity ratio is approximately 0.62 ($306.7 million / $493.4 million). This indicates that Impinj has a moderate level of debt compared to its equity.

Impinj's strategy involves carefully balancing debt and equity to ensure sustainable growth and financial flexibility. The company’s approach to financing reflects its commitment to managing financial risk while pursuing growth opportunities.

Impinj, Inc. (PI) Liquidity and Solvency

Assessing Impinj, Inc.'s financial health involves a close look at its liquidity and solvency, which are vital for understanding its ability to meet short-term obligations and sustain long-term operations. Liquidity measures the company's capacity to cover its immediate liabilities with its current assets, while solvency indicates its ability to meet long-term debt obligations.

Here's an overview of Impinj, Inc.’s liquidity based on the latest available data:

• Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. Impinj's current ratio for the fiscal year 2024 is 2.9.
• Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Impinj's quick ratio for the fiscal year 2024 is 2.2.

A review of Impinj, Inc.'s cash flow statements provides additional insights into its liquidity. The cash flow statement is divided into three main sections:

• Operating Activities: This section shows the cash generated or used from the company's core business operations.
• Investing Activities: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section reports cash flow from debt, equity, and dividends.

Analysis of working capital trends is crucial for assessing Impinj, Inc.'s short-term financial health. Working capital, calculated as current assets minus current liabilities, indicates the company's ability to finance its immediate operations. Effective management of working capital ensures that Impinj, Inc. can meet its short-term obligations and invest in future growth.

For more in-depth analysis, you can refer to: Breaking Down Impinj, Inc. (PI) Financial Health: Key Insights for Investors

Impinj, Inc. (PI) Valuation Analysis

Assessing whether Impinj, Inc. (PI) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives.

To determine whether Impinj, Inc. (PI) is overvalued or undervalued, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A high P/E ratio might suggest overvaluation, while a low P/E ratio could indicate undervaluation.
• Price-to-book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. It’s used to assess valuation relative to operational cash flow.

Analyzing Impinj, Inc.'s (PI) stock price trends over the last 12 months (or longer) can provide insights into market sentiment and investor confidence. Here's how the stock has been performing:

As of April 18, 2025, Impinj Inc.'s (PI) stock is trading at $149.89. Recent trends include:

• One-Year Target Estimate: The average target estimate for Impinj Inc. is $148.33.
• Analyst Ratings: Based on 9 analysts, the consensus is to hold the stock, showing mixed sentiments.
• Stock Volatility: The stock has shown price fluctuations, reflecting broader market and sector-specific influences.

Impinj, Inc. does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Here's a breakdown of analyst ratings for Impinj, Inc. (PI):

According to the latest analyst consensus, the overall recommendation for Impinj Inc. (PI) is:

• Buy Recommendations: Some analysts recommend buying the stock.
• Hold Recommendations: A significant number of analysts suggest holding the stock.
• Sell Recommendations: A few analysts recommend selling the stock.

These recommendations are based on various factors, including the company's financial performance, growth prospects, and industry trends. For further insights into Impinj, Inc.'s (PI) mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Impinj, Inc. (PI).

Impinj, Inc. (PI) Risk Factors

Several factors could significantly impact Impinj, Inc.'s (PI) financial health. These risks span internal operational challenges and external market dynamics, including industry competition, regulatory changes, and broader economic conditions. Understanding these risks is crucial for investors assessing the company's long-term viability and potential returns. For more insights, see: Breaking Down Impinj, Inc. (PI) Financial Health: Key Insights for Investors

One of the primary risks Impinj, Inc. faces is intense industry competition. The market for radio-frequency identification (RFID) solutions is competitive, with numerous players vying for market share. This competition could lead to pricing pressures, reduced profit margins, and the potential loss of customers. To remain competitive, Impinj, Inc. must continually innovate and adapt its product offerings to meet evolving customer needs.

Regulatory changes also pose a significant risk. Changes in regulations related to data privacy, security, or industry standards could require Impinj, Inc. to make costly adjustments to its products and services. Compliance with new regulations could also delay product launches or create barriers to entry in certain markets.

Market conditions, including economic downturns and fluctuations in demand for RFID technology, can significantly impact Impinj, Inc.'s financial performance. A decrease in overall economic activity could lead to reduced spending by businesses on RFID solutions, impacting the company's revenue and profitability. Additionally, shifts in global trade policies and tariffs could affect the cost of components and the company's ability to compete in international markets.

Operational risks include:

• Supply Chain Disruptions: Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or other unforeseen circumstances, could impact Impinj, Inc.'s ability to manufacture and deliver its products on time.
• Product Development Delays: Delays in the development and launch of new products could result in a loss of market share and reduced revenue growth.
• Cybersecurity Threats: The increasing sophistication of cyberattacks poses a risk to Impinj, Inc.'s systems and data. A successful cyberattack could result in financial losses, reputational damage, and legal liabilities.

Financial risks include:

• Liquidity Risk: The risk that Impinj, Inc. may not have sufficient cash on hand to meet its short-term obligations.
• Credit Risk: The risk that customers may not be able to pay their debts, leading to financial losses for Impinj, Inc..
• Interest Rate Risk: Fluctuations in interest rates could increase the cost of borrowing and negatively impact the company's profitability.

Strategic risks include:

• Failure to Innovate: If Impinj, Inc. fails to keep pace with technological advancements and changing customer needs, it could lose its competitive edge.
• Poor Investment Decisions: Investments in new products or markets that do not generate sufficient returns could result in financial losses.
• Mergers and Acquisitions: Risks associated with integrating acquired businesses or technologies, including cultural clashes, operational challenges, and financial losses.

Mitigation strategies and plans (if available) often involve:

• Diversifying the supply chain to reduce reliance on single suppliers.
• Investing in cybersecurity measures to protect against cyber threats.
• Implementing robust risk management processes to identify and mitigate potential risks.
• Maintaining a strong balance sheet with sufficient cash reserves to weather economic downturns.

Impinj, Inc. (PI) Growth Opportunities

Impinj, Inc. (PI) demonstrates promising future growth prospects driven by several factors, including product innovation, market expansion, strategic initiatives, and competitive advantages. The company's focus on advancing its RAIN RFID technology and expanding its global reach positions it well for sustained growth.

Key growth drivers for Impinj, Inc. (PI):

• Product Innovations: Impinj's continuous investment in research and development allows the company to introduce new and improved RAIN RFID solutions. These innovations cater to evolving customer needs and expand the applicability of RAIN RFID technology across various industries.
• Market Expansion: Impinj strategically targets high-growth markets and applications for its RAIN RFID technology. This includes expanding its presence in the retail, supply chain, healthcare, and industrial sectors, where RAIN RFID solutions can deliver significant value and efficiency gains.
• Strategic Initiatives and Partnerships: Impinj's collaborations with other technology providers, industry partners, and end-users can drive future growth. These alliances enable Impinj to integrate its RAIN RFID solutions with other technologies, access new markets, and develop comprehensive solutions for its customers.

While specific future revenue growth projections and earnings estimates for Impinj, Inc. (PI) beyond 2024 are not available, analysts generally provide forecasts based on the company's historical performance, industry trends, and growth strategies. For example, analysts predicted revenue growth of 16.9% in 2024, followed by 18.7% in 2025. These estimates are subject to change based on various factors, including market conditions, competitive pressures, and technological advancements.

Impinj, Inc. (PI) possesses several competitive advantages that position the company for growth:

• Technology Leadership: Impinj is a leading provider of RAIN RFID technology, with a comprehensive portfolio of endpoint ICs, readers, gateways, and software. The company's technology leadership allows it to offer high-performance, reliable, and cost-effective RAIN RFID solutions to its customers.
• Ecosystem Development: Impinj has cultivated a strong ecosystem of partners, including tag manufacturers, system integrators, and application developers. This ecosystem enables Impinj to deliver complete RAIN RFID solutions to its customers and expand the reach of its technology.
• Strong Customer Relationships: Impinj has established long-standing relationships with many of the world's leading retailers, manufacturers, and logistics providers. These relationships provide Impinj with valuable insights into customer needs and enable the company to develop solutions that address specific business challenges.

Here's a look at Impinj, Inc. (PI)'s financial performance metrics from 2024:

For more insights into Impinj, Inc. (PI)'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Impinj, Inc. (PI).

These elements collectively suggest a positive trajectory for Impinj, Inc. (PI), emphasizing its potential for continued expansion and innovation within the RAIN RFID market.