Impinj (NASDAQ: PI) shares experienced a significant 24-hour plunge of 9.16% 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 profitability challenges.

For the third quarter, Impinj reported revenue of $96.055 million, surpassing analyst estimates of $92.4 million. However, the company still posted a net loss of $12.81 million for the quarter, indicating ongoing profitability issues. 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, suggesting 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 disappointed investors who were hoping for stronger growth and improved profitability heading into the end of the year. The 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.