Impinj, Inc.

Welcome to MPinge's first quarter 2026 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star and then two. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Corporate Finance and Investor Relations. Please go ahead.

Thank you, Nick. Good afternoon, and thank you all for joining us to discuss Impinj's first quarter 2026 results. On today's call, Chris DiOrio, Impinj's co-founder and CEO, will provide a brief overview of our market opportunity and performance. Terry Baker, Impinj's CFO, We'll follow with a detailed review of our first quarter financial results and second quarter outlook. We will then open the call for questions. You can find management's prepared remarks plus trended financial data on the company's investor relations website. We will make statements in this call about financial performance and future expectations that are based on our outlook as of today. Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. Whereas we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any such statements are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements except as required by law. On today's call, all financial metrics except for revenue or where we explicitly state otherwise are non-GAAP. All balance sheet and cash flow metrics except for free cash flow are GAAP. Please refer to our earnings release for reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics. Before turning to our results and outlook, note that we will participate in the 2026 Evercore TMT Global Conference on June 2nd in San Francisco. We look forward to connecting with many of you this quarter. I will now turn the call over to Chris.

Thank you, Andy, and thank you all for joining the call. Our first quarter results were solid, with revenue and adjusted EBITDA exceeding the top end of our guide range. EndpointIC bookings hit an all-time record, driven by the custom ASIC ramp at our second large North American supply chain and logistics end user, our market-leading share position, retailer rebuys, and customers booking beyond our standard lead times amid LinkedIn and competitor lead times. Looking further out, we're approaching second half 2026 prudently, hedging against multiple possible macro scenarios. Starting with EndpointICs, The RAIN Alliance has now released the 2025 industry volumes, and our market share grew 1,700 basis points over 2024. That share gain is a springboard for strong second quarter demand. We believe we can meet that demand in the multiple scenarios we are modeling. Looking forward, we are focused on using Gen2x and enterprise solutions to spur preference for our endpoint SEs and grow our share further. First quarter inlay partner inventory declined sequentially, as expected, so we enter the second quarter with healthy channel inventory and clear air to execute our strategy. Turning to our opportunities in supply chain and logistics, we shift meaningful volumes of the custom ASIC in the first quarter and expect those volumes to more than double in the second, with the end user on track to fully convert to that ASIC before year end. That ASIC opens the door for us to migrate upstream to our customers' customers, delivering ICs, readers, and solutions software that improve item visibility and traceability at a double-digit number of accounts. In retail apparel, we expect endpoint IC demand to increase in the second quarter. Multiple new end users are speaking openly about rain adoption, including a large European brand with whom we are closely engaged. And we're approving the benefits of Gen2x in retail, for example, by using it to dramatically improve item readability at a large Asia-based lifestyle brand and unlock a significant share shift opportunity. In general merchandise, we're focused on cosmetics, personal care, and health with the goal of unlocking significant incremental N2C opportunities and, again, demonstrating the benefits of Gen2x. Food volumes are growing modestly as expected, with the bakery rollout on track to double the number of deployed stores this year. Also in food, we and our partners beat the self-checkout readability targets set by the European grocer to progress to a store pilot. Although still early, full store grocery self-checkout enabled by our endpoint ICs and software is a massive opportunity. Overall, We are making strong progress advancing supply chain and logistics, general merchandise and food to fill in behind retail apparel, which is now in mainstream adoption. On the development front, we're growing our software and solutions teams to help solve end-to-end enterprise systems problems. We upgraded the processor and memory in our flagship reader to better support machine learning at the edge, helping us address those enterprise systems problems. And because the solutions almost invariably need Gen2x, we drive preference for our endpoint ICs at the same time. We also continue advancing Gen2x, for example, with a forthcoming update to our reader ICs and readers that improve M800 tag read range by up to 25%. In closing, we have an enviable market position, endless opportunities in front of us, good product supply, and a strong wind at our backs. As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead. But faced with today's unpredictable macro, we're approaching the second half prudently, even as we pursue market share, solutions, successes, and growth. As always, before I turn the call over to Carrie for our financial review and second quarter outlook, I'd like to again thank every member of the Impinj team for your tireless effort. I feel honored by my incredible good fortune to work with you.