Impinj (PI) shares tumbled 12.78% in after-hours trading on Wednesday, following the release of its third-quarter 2025 financial results and fourth-quarter outlook. The sharp decline came despite the company reporting better-than-expected revenue for Q3, suggesting investors were more focused on the forward guidance and continued net losses.

For the third quarter, Impinj reported revenue of $96.055 million, surpassing the analyst estimates of $92.4 million. However, the company still posted a net loss of $12.81 million for the quarter, indicating ongoing profitability challenges. The market's negative reaction appears to be primarily driven by Impinj's fourth-quarter outlook, which fell short of investor expectations.

Looking ahead to Q4, Impinj projects revenue in the range of $90.0 million to $93.0 million, which suggests a sequential decline from Q3 results. The company also forecasts adjusted earnings per share between $0.48 and $0.52 for the fourth quarter. This guidance may have disappointed investors who were hoping for stronger growth and improved profitability heading into the end of the year. The after-hours plunge reflects growing concerns about Impinj's near-term growth prospects and its path to sustainable profitability in the competitive RFID and IoT solutions market.