Impinj delivered an impressive quarterly report in the second quarter of 2025, with its net profit increasing by 15.96% year-on-year to $12 million, achieving a turnaround from losses to profits. This led to a 26.49% single-day surge in the stock price to $154.58, and the market capitalization exceeded $4.48 billion. Although revenue decreased slightly by 4.49% year-on-year to $97.9 million, the non-GAAP gross margin rose from 52.7% in Q1 to 60.4%, reaching a new high and becoming the core driving force for profit growth.

This breakthrough is attributed to technological iteration and product structure optimization. The large-scale application of the new generation Gen2X protocol chips (such as the M800 series) has increased the revenue share of high-margin endpoint ICs (tag chips) to 75%, while the licensing income has grown by 40% to 16 million US dollars. The successful verification of the technology licensing model has validated Enfinage’s patent barriers. In terms of cash flow, the free cash flow changed from -13 million US dollars in Q1 to +27.3 million US dollars in Q2, indicating a significant improvement in operational efficiency.

The core growth engine of Impinj – the Gen2X technology – was put into large-scale commercial use in the second quarter, accelerating the penetration of RAIN RFID technology in various fields: In the retail and logistics sectors, RFID has become the catalyst for an efficiency revolution. After global leading sports brands adopted the Infinium solution, the inventory accuracy rate reached 99.9%, and the single-store inventory checking time was reduced from several hours to 40 minutes. In the logistics field, through cooperation with UPS and using Gen2X technology, the package tracking accuracy rate was increased to 99.5%, the misdelivery rate decreased by 40%, and this directly drove a 45% year-on-year growth in the end-point IC revenue of the logistics industry in the second quarter of 2025.

In the medical and food sectors, RFID serves as the guardian of compliance and security. Rady Children’s Hospital uses Impinj readers to manage controlled medications, resulting in a 30% reduction in compliance costs. The ultra-compact reader (with a size only 50% of that of traditional devices) has increased penetration in scenarios involving narrow item labeling (such as medicine boxes and precision electronic components), and the revenue share in the medical field has risen from 8% in Q1 to 12%. In the food industry, Infinium and Kroger collaborated to develop a fresh produce tracking system, which uses Gen2X chips to monitor the expiration date in real time. The revenue from related hardware and services reached $8 million in Q2 of 2025.

Not only that, Impinj has also made breakthroughs in high-end manufacturing and emerging markets. In the aerospace manufacturing scenario, the reliability of Impinj chips in extreme environments ranging from -40°C to 125°C has made them the preferred choice for Boeing and Airbus supply chains. In the electronic consumer sector, the self-developed RAIN Analytics platform optimizes inventory forecasting through machine learning. After a pilot program in a North American chain supermarket, the out-of-stock rate decreased by 15%, driving the proportion of software service revenue in the system business from 15% in 2024 to 22% in the second quarter of 2025.