7. IMPINJ Inc. (NASDAQ:PI)
6-Month Performance as of February 26: -42.68%
Upside Potential as of February 26: 49.77%
Number of Hedge Fund Holders: 37
IMPINJ Inc. (NASDAQ:PI) provides a cloud-based platform that wirelessly links everyday objects to the digital world. Through its innovative endpoint ICs, reader systems, and software, it enables businesses to track, manage, and authenticate items across diverse industries, from retail and logistics to healthcare and manufacturing.
Its core revenue driver is its Endpoint IC segment, which saw $289.8 million in revenue for the full year 2024, a 30% jump year-over-year. This segment focuses on selling integrated circuits (ICs) used in RAIN RFID tags, which are attached to items for tracking and inventory management. This growth was propelled by a 34% increase in unit volumes, which were particularly strong in retail apparel, general merchandise, supply chain, and logistics. However, Q1 2025 anticipates a sequential decline in Endpoint IC revenue. This is due to partner inventory corrections, geopolitical uncertainties, and the absence of major new program rollouts. Despite this, January bookings exceeded the Q4 run rate.
The company is banking on its Gen2X technology and M800 series. Gen2X enhances RAIN system performance, and the M800 series enables smaller and cost-effective inlays. This is relevant for cosmetics, accessories, and food, expanding recurring revenue opportunities. IMPINJ Inc. (NASDAQ:PI) is also pursuing growth in the grocery sector, engaging with major chains for item-level food tagging and self-checkout. These could exceed the volume of any previous projects, with possible ramps in 2026.
Alger Weatherbie Specialized Growth Fund stated the following regarding IMPINJ Inc. (NASDAQ:PI) in its Q1 2024 investor letter:
“Impinj, Inc. (NASDAQ:PI) engages in the development and sale of RAIN, a radio frequency identification solution. Its platform allows inventory management, patient safety, asset tracking and item authentication for the retail, healthcare, supply chain and logistics. hospitality, food and beverage, ‘and industrial manufacturing industries. During the quarter, shares contributed to performance as the company reported better-than- expected fiscal fourth quarter results, driven by strong revenue growth and profitability. Further, management raised fiscal first quarter guidance above analyst estimates, noting that the company is beginning to see a recovery in the North American retail market, along with year-end channel inventory approaching more normalized levels – both of which had been headwinds for growth in the second half of 2023. The company also noted that key large-scale enterprise deployments appear to be on track, supporting key new use cases for the company’s RFID technology in supply chain, logistics and general merchandise applications Separately, in March, Impinj announced a favorable litigation settlement with a top competitor who will be paying Impinj an annual licensing tee going forward.”
