Shares of Impinj (NASDAQ: PI) tumbled 12.78% in after-hours trading on Wednesday following the release of its third-quarter 2025 financial results. Despite beating analyst expectations for Q3, the company's weaker-than-anticipated fourth-quarter guidance appears to have spooked investors.
For the third quarter, Impinj reported revenue of $96.055 million, surpassing the IBES estimate of $92.4 million. However, the company posted a net loss of $12.81 million, highlighting ongoing profitability challenges. The strong Q3 performance was overshadowed by the company's conservative outlook for the upcoming quarter.
Impinj's fourth-quarter revenue guidance of $90.0 million to $93.0 million suggests a potential sequential decline, which may have triggered the sell-off. Additionally, the company projected fourth-quarter adjusted earnings per share in the range of $0.48 to $0.52, which could be viewed as cautious by market participants expecting stronger growth. The muted outlook raises concerns about Impinj's near-term growth prospects and its ability to maintain the momentum from its Q3 performance.