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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-37824

IMPINJ, INC.

(Exact name of registrant as specified in its charter)


Delaware		91-2041398
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
400 Fairview Avenue North, Suite 1200, Seattle, Washington		98109
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (206) 517-5300

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	PI	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of October 17, 2025, 30,109,132 shares of common stock were outstanding.

Table of Contents

IMPINJ, INC.

QUARTERLY REPORT ON FORM 10-Q

Table of Contents


		Page
	Risk Factor Summary	3

	PART I. — FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income (Loss)	6
	Condensed Consolidated Statements of Cash Flows	7
	Condensed Consolidated Statements of Changes in Stockholders' Equity	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	28
	PART II. — OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	49
	Signatures	50

Table of Contents

Risk Factor Summary

Our business is subject to numerous risks and uncertainties, including those highlighted in the section of this report captioned “Risk

Factors.” These risks include, but are not limited to, the following:

•

we operate in a very competitive market;

•

RAIN adoption is concentrated in key markets and the extent and pace of RAIN market adoption beyond those markets is uncertain;

•

our ability to deliver enterprise solutions at scale is nascent;

•

poor product quality could result in significant costs to us and impair our ability to sell our products;

•

end users and partners must design our products into their products and business processes;

•

an inability or limited ability of end user systems to exploit RAIN information may adversely affect the market for our products;

•

alternative technologies may enable products and services that compete with ours;

•

we obtain the products we sell through a limited number of third parties with whom we do not have long-term supply contracts;

•

shortages of silicon wafers, integrated-circuit, or IC, post-processing materials or capacity or components used in our readers and gateways may adversely affect our ability to meet demand for our products and adversely affect our revenue and/or gross margins;

•

changes in global trade policies could have a material adverse effect on us;

•

we must attract and retain employees with specialized knowledge and experience to compete effectively;

•

we rely on a small number of customers for a large share of our revenue;

•

our ability to affect or determine end-user demand is limited in part because we sell and fulfill primarily through partners and rarely directly to end users;

•

our growth strategy depends in part on the success of strategic relationships with third parties and their continued performance and alignment;

•

if we are unable to protect and enforce our intellectual property, then our business could be adversely affected;

•

we have been and may in the future be party to intellectual property disputes which could be time consuming and costly to prosecute, defend or settle, result in the loss of significant rights, and adversely affect RAIN adoption or adoption of our products or platform;

•

we have a history of losses and have only achieved profitability periodically and we cannot be certain that we will attain or sustain profitability in the future;

•

we have a history of significant fluctuations in our quarterly and annual operating results;

•

our executive officers, directors and principal stockholders, together with their affiliates, beneficially owned approximately 51.0% of our outstanding common stock as of September 30, 2025, and as a result are able to exercise significant influence over matters subject to stockholder approval; and

•

we may not have sufficient cash flow or access to cash necessary to satisfy our obligations under the $190.0 million aggregate principal amount 0% convertible senior notes due 2029, or the 2025 Notes and $97.5 million aggregate principal amount 1.125% convertible senior notes due 2027, or the 2021 Notes, and our current and future indebtedness may restrict our business.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited).

IMPINJ, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value, unaudited)


	September 30, 2025			December 31, 2024
Assets:
Current assets:
Cash and cash equivalents	$	51,726		$	46,053
Short-term investments		138,355			118,661
Accounts receivable, net		61,193			56,802
Inventory		92,638			99,346
Prepaid expenses and other current assets		7,871			5,536
Total current assets		351,783			326,398
Long-term investments		75,036			74,871
Property and equipment, net		52,353			50,610
Intangible assets, net		10,030			10,291
Operating lease right-of-use assets		5,684			7,142
Other non-current assets		870			1,045
Goodwill		20,703			18,723
Total assets	$	516,459		$	489,080
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	16,173		$	17,254
Accrued compensation and employee related benefits		9,532			22,309
Accrued and other current liabilities		3,338			2,684
Current portion of operating lease liabilities		3,925			3,589
Current portion of long-term debt		96,610			283,493
Current portion of deferred revenue		2,217			1,848
Total current liabilities		131,795			331,177
Long-term debt		183,753			—
Operating lease liabilities, net of current portion		3,244			5,719
Deferred tax liabilities, net		2,161			2,200
Deferred revenue, net of current portion		543			120
Total liabilities		321,496			339,216
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value — 5,000 shares authorized, no shares issued and outstanding at September 30, 2025 and December 31, 2024		—			—
Common stock, $0.001 par value — 495,000 shares authorized, 30,109 and 28,504 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively		30			29
Additional paid-in capital		591,536			541,090
Accumulated other comprehensive income (loss)		2,418			(1,942	)
Accumulated deficit		(399,021	)		(389,313	)
Total stockholders' equity		194,963			149,864
Total liabilities and stockholders' equity	$	516,459		$	489,080

See accompanying notes to condensed consolidated financial statements.

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IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Revenue	$	96,055		$	95,198		$	268,226		$	274,518
Cost of revenue		47,727			47,629			126,604			131,885
Gross profit		48,328			47,569			141,622			142,633
Operating expenses:
Research and development		25,720			25,492			75,686			72,935
Sales and marketing		9,380			9,888			26,173			29,891
General and administrative		12,035			12,452			36,259			39,040
Amortization of intangibles		537			506			1,543			2,411
Restructuring costs		—			—			—			1,812
Total operating expenses		47,672			48,338			139,661			146,089
Income (loss) from operations		656			(769	)		1,961			(3,456	)
Other income, net		2,592			2,416			6,705			5,830
Income from settlement of litigation		—			—			—			45,000
Induced conversion expense		(15,026	)		—			(15,026	)		—
Interest expense		(1,121	)		(1,219	)		(3,569	)		(3,652	)
Income (loss) before income taxes		(12,899	)		428			(9,929	)		43,722
Income tax benefit (expense)		89			(207	)		221			(194	)
Net income (loss)	$	(12,810	)	$	221		$	(9,708	)	$	43,528

Net income (loss) per share — basic	$	(0.44	)	$	0.01		$	(0.33	)	$	1.57
Net income (loss) per share — diluted	$	(0.44	)	$	0.01		$	(0.33	)	$	1.48
Weighted-average shares outstanding — basic		29,338			28,168			28,995			27,805
Weighted-average shares outstanding — diluted		29,338			29,727			28,995			31,918

See accompanying notes to condensed consolidated financial statements.

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IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Net income (loss)	$	(12,810	)	$	221		$	(9,708	)	$	43,528
Other comprehensive income, net of tax:
Unrealized gain (loss) on investments		247			(37	)		829			10
Foreign currency translation adjustment		(102	)		1,049			3,531			229
Total other comprehensive income		145			1,012			4,360			239
Comprehensive income (loss)	$	(12,665	)	$	1,233		$	(5,348	)	$	43,767

See accompanying notes to condensed consolidated financial statements.

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IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)


	Nine Months Ended September 30,
	2025			2024
Operating activities:
Net income (loss)	$	(9,708	)	$	43,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,082			10,155
Stock-based compensation		40,096			41,336
Restructuring equity modification expense		—			366
Accretion of discount or amortization of premium on investments		(1,860	)		(247	)
Amortization of debt issuance costs		1,274			1,226
Induced conversion expense related to convertible notes		15,026			—
Deferred tax expense		(297	)		(471	)
Revaluation of acquisition-related contingent consideration liability		—			986
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		(4,153	)		(9,438	)
Inventory		6,806			8,825
Prepaid expenses and other assets		(1,409	)		(610	)
Accounts payable		(977	)		12,056
Accrued compensation and employee related benefits		(12,906	)		9,515
Accrued and other liabilities		659			1,268
Acquisition-related contingent consideration liability		—			(2,556	)
Operating lease right-of-use assets		2,019			1,921
Operating lease liabilities		(2,699	)		(2,542	)
Deferred revenue		657			369
Net cash provided by operating activities		43,610			115,687
Investing activities:
Purchases of investments		(146,293	)		(154,331	)
Proceeds from sales of investments		12,937			—
Proceeds from maturities of investments		115,480			18,605
Purchases of property and equipment		(11,343	)		(12,979	)
Net cash used in investing activities		(29,219	)		(148,705	)
Financing activities:
Proceeds from issuance of 2025 Notes, net of issuance costs		183,658			—
Premiums paid for capped call transactions		(11,210	)		—
Payment of 2021 Notes		(190,000	)		—
Proceeds from exercise of stock options and employee stock purchase plan		11,025			16,499
Payments of taxes on restricted stock units		(2,550	)		—
Payment of acquisition-related contingent consideration		—			(4,602	)
Net cash provided by (used in) financing activities		(9,077	)		11,897
Effect of exchange rate changes on cash and cash equivalents		359			32
Net increase (decrease) in cash and cash equivalents		5,673			(21,089	)
Cash and cash equivalents
Beginning of period		46,053			94,793
End of period	$	51,726		$	73,704

Supplemental disclosure of cashflow information:
Cash paid for interest		2,288			1,617
Purchases of property and equipment not yet paid		608			1,196
Operating lease liabilities arising from obtaining ROU assets		507			—

See accompanying notes to condensed consolidated financial statements.

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IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, unaudited)


											Accumulated
					Additional						Other			Total
	Common Stock				Paid-in			Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital			Deficit			Income (Loss)			Equity
Balance at December 31, 2024		28,504	$	29	$	541,090		$	(389,313	)	$	(1,942	)	$	149,864
Issuance of common stock		423		—		5,847			—			—			5,847
Stock-based compensation		—		—		12,522			—			—			12,522
RSU tax withholding		—		—		(787	)		—			—			(787	)
Net loss		—		—		—			(8,451	)		—			(8,451	)
Other comprehensive income		—		—		—			—			1,569			1,569
Balance at March 31, 2025		28,927	$	29	$	558,672		$	(397,764	)	$	(373	)	$	160,564
Issuance of common stock		161		—		887			—			—			887
Stock-based compensation		—		—		13,023			—			—			13,023
RSU tax withholding		—		—		(984	)		—			—			(984	)
Net income		—		—		—			11,553			—			11,553
Other comprehensive income		—		—		—			—			2,646			2,646
Balance at June 30, 2025		29,088	$	29	$	571,598		$	(386,211	)	$	2,273		$	187,689
Issuance of common stock		210		—		4,291			—			—			4,291
Stock-based compensation		—		—		14,551			—			—			14,551
RSU tax withholding		—		—		(779	)		—			—			(779	)
Induced conversion on 2021 Notes (Note 7)		811		1		13,085			—			—			13,086
Premiums paid for capped calls (Note 7)		—		—		(11,210	)		—			—			(11,210	)
Net loss		—		—		—			(12,810	)		—			(12,810	)
Other comprehensive income		—		—		—			—			145			145
Balance at September 30, 2025		30,109	$	30	$	591,536		$	(399,021	)	$	2,418		$	194,963

											Accumulated
					Additional						Other			Total
	Common Stock				Paid-in			Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital			Deficit			Income (Loss)			Equity
Balance at December 31, 2023		27,166	$	27	$	463,900		$	(430,151	)	$	355		$	34,131
Issuance of common stock		494		1		6,916			—			—			6,917
Stock-based compensation		—		—		11,790			—			—			11,790
Restructuring equity modification expense		—		—		366			—			—			366
Net income		—		—		—			33,344			—			33,344
Other comprehensive loss		—		—		—			—			(625	)		(625	)
Balance at March 31, 2024		27,660	$	28	$	482,972		$	(396,807	)	$	(270	)	$	85,923
Issuance of common stock		413		—		6,529			—			—			6,529
Stock-based compensation		—		—		14,705			—			—			14,705
Net income		—		—		—			9,963			—			9,963
Other comprehensive loss		—		—		—			—			(148	)		(148	)
Balance at June 30, 2024		28,073	$	28	$	504,206		$	(386,844	)	$	(418	)	$	116,972
Issuance of common stock		195		—		3,053			—			—			3,053
Stock-based compensation		—		—		14,841			—			—			14,841
Net income		—		—		—			221			—			221
Other comprehensive income		—		—		—			—			1,012			1,012
Balance at September 30, 2024		28,268	$	28	$	522,100		$	(386,623	)	$	594		$	136,099

See accompanying notes to condensed consolidated financial statements.

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IMPINJ, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”), regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2024 included in Impinj, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on February 10, 2025.

The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, comprising normal recurring adjustments, necessary to state fairly our financial position, results of operations and our cash flows for the periods presented. Interim results are not necessarily indicative of the results for a full year or for any other future period.

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. We evaluate our estimates on an ongoing basis, including those related to revenue recognition, sales incentives, the fair value of assets acquired, liabilities assumed, contingent consideration in business combinations, inventory excess and obsolescence and income taxes. To the extent there are material differences between our estimates, judgments, or assumptions and actual results, our financial statements will be affected.

Licensing of Intellectual Property

On March 13, 2024, we and NXP Semiconductors N.V. (“NXP”) entered into a Settlement and Patent Cross-License Agreement (the “Settlement Agreement”). Under the Settlement Agreement, NXP made a one-time payment of $45 million and agreed to make annual license fee payments on April 1 of each year, starting on April 1, 2024, until the termination of the Settlement Agreement. During first-quarter 2024, we recorded the $45 million payment in income from settlement of litigation in the condensed consolidated statements of operations. We will recognize the license fee, which relates to annual usage of the license from April 1 to March 31 of each applicable year, as revenue in the second quarter of each year until the Settlement Agreement terminates. We recognized the license fee for the first annual usage period in second-quarter 2024. See Note 6 Commitments and Contingencies for additional details of the Settlement Agreement with NXP.

Recently Adopted Accounting Standards

In November 2024, the FASB released Accounting Standard Update (“ASU”) 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20), which improves the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt - Debt with Conversion and Other Options. The standard is effective for fiscal years beginning after December 31, 2025, and early adoption is permitted. We early adopted ASU 2024-04 on January 1, 2025, using the prospective transition approach. As a result of our adoption, we accounted for the exchange of the 2021 Notes in September 2025 described below, as an induced conversion. See Note 7 Debt for additional details of this exchange transaction.

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB released ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends income tax disclosure requirements to enhance the transparency and decision usefulness for users of the financial statements. The standard is effective for fiscal years beginning after December 31, 2024. We are currently evaluating impact of this standard, if any, on our financial statement disclosures.

In November 2024, the FASB released ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which amends disclosure requirements related to the disaggregation of income statement expenses in the notes to financial statements. In January 2025, the FASB released ASU 2025-01, clarifying that the standard is effective for annual reporting periods beginning after December 15, 2026, and interim

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periods within annual reporting periods beginning after December 15, 2027. We are currently evaluating any impact of this standard on our financial statement disclosures.

Note 2. Fair Value Measurements

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

•

Level 1 — Quoted prices in active markets for identical assets or liabilities.

•

Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.

•

Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.

We did not have any financial assets or liabilities in Level 3 as of September 30, 2025 or December 31, 2024.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets.

Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper and treasury bills. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Long-term Debt — See Note 7 for the carrying amount and estimated fair value of the 2021 Notes and 2025 Notes.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):


	September 30, 2025						December 31, 2024
	Level 1		Level 2		Total		Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	11,403	$	—	$	11,403	$	1,097	$	—	$	1,097
Total cash equivalents		11,403		—		11,403		1,097		—		1,097
Short-term investments:
U.S. Government agency securities		—		2,001		2,001		—		3,929		3,929
U.S. Treasury securities		—		30,116		30,116		—		63,634		63,634
Corporate notes and bonds		—		59,161		59,161		—		32,305		32,305
Commercial paper		—		47,077		47,077		—		18,793		18,793
Total short-term investments		—		138,355		138,355		—		118,661		118,661
Long-term investments:
U.S. Government agency securities		—		3,951		3,951		—		5,989		5,989
U.S. Treasury securities		—		2,271		2,271		—		2,492		2,492
Corporate notes and bonds		—		68,814		68,814		—		66,390		66,390
Total long-term investments		—		75,036		75,036		—		74,871		74,871
Total	$	11,403	$	213,391	$	224,794	$	1,097	$	193,532	$	194,629

We expect short-term investments to mature within 1 year and long-term investments within 1 to 3 years of the reporting date.

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Investments

The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands):


	September 30, 2025
	Cost or		Gross		Gross			Total Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Description:
Money market funds	$	11,403	$	—	$	—		$	11,403
U.S. Government agency securities		5,951		2		(1	)		5,952
U.S. Treasury securities		32,386		14		(13	)		32,387
Corporate notes and bonds		127,722		319		(66	)		127,975
Commercial paper		47,068		16		(7	)		47,077
Total	$	224,530	$	351	$	(87	)	$	224,794


	December 31, 2024
	Cost or		Gross		Gross			Total Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Description:
Money market funds	$	1,097	$	—	$	—		$	1,097
U.S. Government agency securities		9,933		1		(16	)		9,918
U.S. Treasury securities		66,146		17		(37	)		66,126
Corporate notes and bonds		99,215		—		(520	)		98,695
Commercial paper		18,805		—		(12	)		18,793
Total	$	195,196	$	18	$	(585	)	$	194,629

Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $47.9 million and $0.1 million in unrealized losses as of September 30, 2025, and an estimated fair value of $142.8 million and $0.6 million in unrealized losses as of December 31, 2024. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $45.8 million and immaterial losses as of September 30, 2025. There were no marketable securities in a continuous loss position for greater than 12 months as of December 31, 2024.

Note 3. Inventory

The following table presents the detail of inventories as of the dates presented (in thousands):



	September 30, 2025		December 31, 2024
Raw materials	$	9,561	$	14,040
Work-in-process		39,834		52,028
Finished goods		43,243		33,278
Total inventory	$	92,638	$	99,346

Note 4. Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. The following table presents goodwill as of September 30, 2025 (in thousands):


	Nine Months Ended September 30,
	2025		2024
Balance at beginning of period	$	18,723	$	19,696
Foreign currency translation adjustment		1,980		137
Total	$	20,703	$	19,833

As of September 30, 2025, intangible assets comprised the following (in thousands):

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	Estimated Useful Life in Years	Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Developed Technology	7.25		13,853		(4,776	)		9,077
Patent	3		250		(184	)		66
Tradename	8		1,291		(404	)		887
Total definite-lived intangible assets (1)		$	15,394	$	(5,364	)	$	10,030
(1) Foreign intangible asset carrying amounts are affected by foreign currency translation

We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis. Amortization of intangible assets was $0.5 million and $1.5 million for the three and nine months ended September 30, 2025, respectively, and $0.5 million and $2.4 million for the three and nine months ended September 30, 2024, respectively.

As of September 30, 2025, the estimated intangible asset amortization expense for the next five years and thereafter is as follows:


	Estimated Amortization
	(in thousands)
2025	$	539
2026		2,117
2027		2,072
2028		2,072
2029		2,072
Thereafter		1,158
Total	$	10,030

Note 5. Stock-Based Awards

Restricted Stock Units

We grant restricted stock units (“RSUs”) with a service condition, and RSUs with market and service conditions (“MSUs”).

The following table summarizes activity for RSUs and MSUs for the nine months ended September 30, 2025 (in thousands):


	Number of Underlying Shares
	RSUs			MSUs
Outstanding at December 31, 2024		920			239
Granted		362			101
Vested		(376	)		(87	)
Forfeited		(69	)		(34	)
Outstanding at September 30, 2025		837			219

Stock-Based Compensation Expense

The following table presents the detail of stock-based compensation expense amounts included in our condensed consolidated statements of operations for the periods presented (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Cost of revenue	$	515	$	521	$	1,580	$	1,508
Research and development expense		6,760		6,813		19,844		18,618
Sales and marketing expense		2,266		2,743		4,520		7,954
General and administrative expense		5,010		4,764		14,152		13,256
Total stock-based compensation expense	$	14,551	$	14,841	$	40,096	$	41,336

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Note 6. Commitments and Contingencies

For information on our commitments and contingencies, see Part II, Item 8 (Financial Statements and Supplementary Data, Note 12, Commitments and Contingencies) of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our commitments and contingencies as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, except for “Obligations with Third Parties” and “Litigation” as discussed below.

Obligations with Third Parties

We manufacture products with third-party manufacturers. We are committed to purchase $24.6 million of inventory as of September 30, 2025.

Litigation

From time to time, we are subject to various legal proceedings or claims that arise in the ordinary course of business. We accrue a liability when management believes that it is both probable that we have incurred a liability and we can reasonably estimate the amount of loss. As of September 30, 2025 and December 31, 2024, we did not have accrued contingency liabilities. The following is a description of our significant legal proceedings.

Patent Infringement Claims and Counterclaims

Impinj Patent Infringement Claims Against NXP

From 2019 to 2023, we engaged in active patent litigation against our primary endpoint IC competitor, NXP Semiconductors N.V., or NXP. During this time, we filed three patent infringement lawsuits against subsidiaries of NXP in federal courts in California and Texas. Our complaints alleged that certain NXP endpoint ICs infringed a number of our U.S. patents. In response, NXP filed a suit against us in federal court in Delaware, later transferred to Washington, countersued us in Texas, and filed three lawsuits against our subsidiary in China. NXP’s complaints alleged that certain of our endpoint ICs infringed a number of their own U.S. or Chinese patents or U.S. patents that they exclusively licensed from a third-party to assert against us.

Through 2023, we prevailed in these lawsuits. In three U.S. trials held in 2023, juries in California and Texas returned verdicts that NXP endpoint ICs infringed five of our patents that made it to trial, and juries in Washington and Texas ruled that we did not infringe any of the three patents NXP accused us in court of infringing. Also in 2023, NXP withdrew all three cases it filed against us in China.

On March 13, 2024, while additional trials were pending in China and Texas, and post-trial motions and appeals were pending in China and the U.S., we and NXP entered into the Settlement Agreement. Under the agreement we and NXP agreed to terminate and withdraw all pending proceedings and release one another for all patent infringement claims preceding March 31, 2024 and grant to each other non-exclusive, worldwide patent licenses to make, have made, import, use, offer for sale and sell their respective products and services, subject to the terms of the agreement. The Settlement Agreement will remain in force until all the valid claims of a specified set of Impinj patents, or the Indicator Patents, expire in about ten years. Either party can terminate the Settlement Agreement if the other party materially breaches the terms of the Agreement and NXP can terminate the Settlement Agreement if it successfully designs out all valid claims of the Indicator Patents.

Under the Settlement Agreement, NXP paid us a one-time amount of $45.0 million and agreed to make annual license fee payments, if the specified set of Indicator Patents are still in use, on April 1 of each year, effective April 1, 2024. The annual license fee will increase by a fixed percentage each year after 2024 for the remaining term of the Settlement Agreement. We have no obligation to pay NXP under the Settlement Agreement.

We allocated the consideration from the Settlement Agreement to the components of the Settlement Agreement. We recorded the $45.0 million payment in income from settlement of litigation in the condensed consolidated statements of operations in first-quarter 2024, upon receipt, and recognized the first and second annual license fees of $15.0 million and $16.0 million in revenue in second-quarter 2024 and 2025, respectively. Licensing of our intellectual property is part of our ongoing operations and therefore, we will recognize the license fee, which relates to annual usage of the license from April 1 to March 31 of each applicable year, as revenue in the second quarter of each year until the Settlement Agreement terminates.

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Note 7. Long-term debt

Convertible Senior Notes

In November 2021, we issued $287.5 million aggregate principal amount of convertible promissory notes due May 15, 2027 (the “2021 Notes”) and in September 2025, we issued $190.0 million aggregate principal amount of convertible promissory notes due September 15, 2029 (the “2025 Notes” and collectively, the “Notes”).

The following table presents the outstanding principal amount and carrying value of the Notes as of the dates indicated (in thousands):


	September 30, 2025							December 31, 2024
	Principal Amount		Unamortized debt issuance costs			Net Carrying Amount		Principal Amount		Unamortized debt issuance costs			Net Carrying Amount
2021 Notes	$	97,498	$	(888	)	$	96,610	$	287,500	$	(4,007	)	$	283,493
2025 Notes		190,000		(6,247	)		183,753		—		—			—
Total Debt	$	287,498	$	(7,135	)	$	280,363	$	287,500	$	(4,007	)	$	283,493
Short-term Debt		97,498		(888	)		96,610		287,500		(4,007	)		283,493
Long-term Debt	$	190,000	$	(6,247	)	$	183,753		—		—			—

Further details of the Notes are as follows:


Issuance	Maturity Date	Interest Rate	First Interest Payment Date	Effective Interest Rate	Semi-Annual Interest Payment Dates	Initial Conversion Rate per $1,000 Principal	Initial Conversion Price		Number of Shares (in millions)
2021 Notes	May 15, 2027	1.125%	May 15, 2022	1.72%	May 15; November 15	9.0061	$	111.04	0.9
2025 Notes	September 15, 2029	0%	N/A	0.84%	N/A	3.7398	$	267.39	0.7

The Notes are our senior unsecured obligations, do not contain any financial covenants and are governed by indentures (the “Indentures”). The 2025 Notes do not bear regular interest and the principal amount of the 2025 Notes does not accrete. The total net proceeds from the 2021 Notes and the 2025 Notes, after deducting initial debt issuance costs, fees and expenses, were $278.4 million and $183.6 million, respectively. We used approximately $183.6 million of the 2021 Notes net proceeds, excluding accrued interest, to repurchase approximately $76.4 million aggregate principal amount of convertible notes due 2026 (the “2019 Notes”) through individual privately negotiated transactions concurrent with us offering the 2021 Notes. We used approximately $17.6 million, excluding accrued interest, to repurchase the remaining $9.9 million aggregate principal amount of the 2019 Notes in June 2022. We used the remainder of the net proceeds from the 2021 Notes for general corporate purposes. We used the 2025 Notes net proceeds, and cash on hand to exchange $190.0 million aggregate principal amount of the 2021 Notes for approximately $190.0 million in cash, representing the principal amount exchanged, and approximately 811,000 shares of our common stock, representing the exchange value in excess thereof, and also paid accrued and unpaid interest thereon, in privately negotiated transactions concurrently with the 2025 Notes offering.

Terms of the Notes

The holders of each series of Notes may convert their respective Notes at their option at any time prior to the close of business on the business day immediately preceding the respective conversion dates under the following circumstances:

•

during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2022 (for the 2021 Notes) and the fiscal quarter ending on December 31, 2025 (for the 2025 Notes) (and only during such fiscal quarter), if the last reported sale price of our common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•

during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the applicable series of Notes for each trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for such series of Notes on each such trading day;

•

prior to the close of business on the second scheduled trading day immediately preceding the redemption date if we call the

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applicable series of Notes for redemption; or

•

upon the occurrence of specified corporate events, as described in the Indenture governing each series of Notes.

Regardless of the foregoing circumstances, holders may convert all or any portion of the 2021 Notes, in increments of $1,000 principal amount, on or after February 15, 2027, and may convert all or any portion of the 2025 Notes, in increments of $1,000 principal amount, on or after June 15, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date for the applicable series of Notes.

We may redeem all or any portion of the 2021 Notes for cash, at our option, on or after November 20, 2024, and all or any portion of the 2025 Notes for cash, at our option, on or after March 20, 2028, if the last reported sale price of our common stock has been at least 130% of the conversion price for the applicable series of Notes for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date for such Notes.

Holders who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture governing each series of Notes) are, under certain circumstances, entitled to an increase in the conversion rate for such Notes. Additionally in the event of a corporate event constituting a fundamental change (as defined in the Indenture governing each series of Notes), holders of the Notes may require us to repurchase all or a portion of their Notes of such series at a repurchase price equal to 100% of the principal amount of the Notes of such series being repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date.

Our common stock exceeded 130% of the conversion price of the 2021 Notes for more than 20 trading days during the 30 consecutive trading days ended September 30, 2025. Accordingly, the 2021 Notes are convertible at the option of the holders as of September 30, 2025 and therefore, have remained classified as current portion of long-term debt on the condensed consolidated balance sheet as of September 30, 2025. The “if-converted value” exceeded the principal amounts by $61.2 million based on the closing price of our common stock of $180.75 as of September 30, 2025.

Accounting for the Notes

The 2025 Notes are accounted for as a single liability measured at its amortized cost. We presented the 2025 Notes total issuance costs of $6.3 million as a direct deduction from the face amount of the 2025 Notes. We amortize the issuance costs to interest expense over the respective term of the 2025 Notes using the effective interest rate method.

Interest expense related to the Notes was as follows (in thousands):


	Three Months Ended September 30, 2025				Three Months Ended September 30, 2024
	2025 Notes		2021 Notes		2021 Notes
Amortization of debt issuance costs	$	95	$	348	$	410
Cash interest expense		—		678		809
Total interest expense	$	95	$	1,026	$	1,219

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Emerging growth company

IMPINJ INC 10-Q