Impinj (PI) shares tumbled 9.16% 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 analyst estimates of $92.4 million. The company also posted adjusted earnings of 58 cents per share, beating the mean expectation of 50 cents. However, Impinj still recorded 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. For Q4, the company projects revenue in the range of $90.0 million to $93.0 million, suggesting a sequential decline from Q3 results. Additionally, Impinj 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. Despite the company's strong performance in Q3, the conservative Q4 outlook has overshadowed the positive results, leading to a significant sell-off in the stock.