Financial Analysis

Note 6. Commitments and Contingencies For information on our commitments and contingencies, see Note 12 of our Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our commitments and contingencies as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, except for Obligations with Third Parties and Litigation as discussed below. Obligations with Third Parties We manufacture products with third-party manufacturers. We are committed to purchase $ 28.9 million of inventory as of June 30, 2026. Litigation From time to time, we are subject to various legal proceedings or claims that arise in the ordinary course of business. We accrue a liability when management believes that it is both probable that we have incurred a liability and we can reasonably estimate the amount of loss. As of June 30, 2026 and December 31, 2025 , we did no t have accrued contingency liabilities. The following is a description of our significant legal proceedings. Patent Infringement Claims and Counterclaims Impinj Patent Infringement Claims Against NXP From 2019 to 2023, we engaged in active patent litigation against our primary endpoint IC competitor, NXP Semiconductors N.V., or NXP. During this time, we filed three patent infringement lawsuits against subsidiaries of NXP in federal courts in California and Texas, and in response NXP filed lawsuits against us in the …

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Note 7. Long-term Debt Convertible Senior Notes In November 2021, we issued $ 287.5 million aggregate principal amount of convertible promissory notes due May 15, 2027 , or the 2021 Notes, and in September 2025, we issued $ 190.0 million aggregate principal amount of convertible promissory notes due September 15, 2029 , or the 2025 Notes, and collectively, the Notes. The following table presents the outstanding principal amount and carrying value of the Notes as of the dates indicated (in thousands): June 30, 2026 December 31, 2025 Principal Amount Unamortized debt issuance costs Net Carrying Amount Principal Amount Unamortized debt issuance costs Net Carrying Amount 2021 Notes $ 57,302 $ ( 283 ) $ 57,019 $ 97,498 $ ( 753 ) $ 96,745 2025 Notes 190,000 ( 5,079 ) 184,921 190,000 ( 5,859 ) 184,141 Total Debt $ 247,302 $ ( 5,362 ) $ 241,940 $ 287,498 $ ( 6,612 ) $ 280,886 Short-term Debt 57,302 ( 283 ) 57,019 97,498 ( 753 ) 96,745 Long-term Debt $ 190,000 $ ( 5,079 ) $ 184,921 $ 190,000 $ ( 5,859 ) $ 184,141 Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2021 Notes May 15, 2027 1.125 % May 15, 2022 1.72 % May 15; November 15 9.0061 $ 111.04 0.5 2025 Notes September 15, 2029 0 % N/A 0.84 % N/A 3.7398 $ 267.39 0.7 The Notes are senior unsecured obligations and do …

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Note 5. Stock-Based Awards Restricted Stock Units We grant restricted stock units, or RSUs, with a service condition, and RSUs with market and service conditions, or MSUs. The following table summarizes activity for RSUs and MSUs for the six months ended June 30, 2026 (in thousands): Number of Underlying Shares RSUs MSUs Outstanding at December 31, 2025 771 219 Granted 444 94 Vested ( 223 ) ( 60 ) Forfeited ( 34 ) ( 3 ) Outstanding at June 30, 2026 958 250 Stock-Based Compensation Expense The following table presents the detail of stock-based compensation expense amounts included in our Condensed Consolidated Statements of Operations for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenue $ 445 $ 539 $ 832 $ 1,065 Research and development expense 7,942 6,065 15,115 13,084 Sales and marketing expense 2,671 1,984 5,039 2,254 General and administrative expense 5,237 4,435 10,000 9,142 Total stock-based compensation expense $ 16,295 $ 13,023 $ 30,986 $ 25,545 At the 2026 Annual Meeting of Shareholders on May 28, 2026, the Companys shareholders approved the 2026 Equity Incentive Plan, or the 2026 Plan. The 2026 Plan provides for equity award grants to Company executives and employees as well as to non-employee directors and consultants that may comprise stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares. Similar awards were offered u …

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Note 2. Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. We did not have any financial assets or liabilities in Level 3 as of June 30, 2026 or December 31, 2025. We applied the following methods and assumptions in estimating our fair value measurements: Cash Equivalents Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active market …

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Note 4. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. The following table presents goodwill as of June 30, 2026 (in thousands): Six Months Ended June 30, 2026 2025 Balance at beginning of period $ 20,721 $ 18,723 Foreign currency translation adjustment ( 468 ) 2,037 Total $ 20,253 $ 20,760 As of June 30, 2026, intangible assets comprised the following (in thousands): Estimated Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Developed Technology 7.25 $ 13,484 $ ( 6,044 ) $ 7,440 Patent 3 $ 250 $ ( 247 ) 3 Tradename 8 $ 1,257 $ ( 511 ) 746 Total definite-lived intangible assets (1) $ 14,991 $ ( 6,802 ) $ 8,189 (1) Foreign intangible asset carrying amounts are affected by foreign currency translation We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis. Amortization of intangible assets was $ 0.5 million and $ 1.1 million for the three and six months ended June 30, 2026 , respectively, and $ 0.5 million and $ 1.0 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) 2026 1,012 2027 2,017 2028 2,017 2029 2,017 2030 1,087 Ther …

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Recently Issued Accounting Standards Not Yet Adopted In November 2024, the FASB released ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which amends disclosure requirements related to the disaggregation of income statement expenses in the notes to financial statements. In January 2025, the FASB released ASU 2025-01, clarifying that the standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. We are currently evaluating any impact of this standard on our financial statement disclosures.

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Note 11. Related-Party Transactions On December 22, 2025, we signed a goods and services agreement with Microchip Technology Incorporated, or Microchip. The chairman of our board of directors is chief executive officer and board chairman of Microchip. As of June 30, 2026, we have prepaid $ 2.0 million for goods and services related to this agreement. No amounts have been recorded in the Condensed Consolidated Statements of Operations.

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N ote 10. Deferred Revenue Deferred revenue, comprising individually immaterial amounts for extended warranty, enhanced product maintenance and advance payments on nonrecurring engineering, or NRE, services contracts, represents contracted revenue that has not yet been recognized. We recognize d $ 1.4 million of revenue related to amounts included in deferred revenue as of December 31, 2025 for the six months ended June 30, 2026. We recognized $ 1.1 million of reven ue related to amounts included in deferred revenue as of December 31, 2024 for the six months ended June 30, 2025. The following table presents the changes in deferred revenue for the indicated periods (in thousands): Six Months Ended June 30, 2026 2025 Balance at beginning of period $ 2,481 $ 1,968 Deferral of revenue 1,057 1,804 Recognition of deferred revenue ( 1,422 ) ( 1,261 ) Balance at end of period $ 2,116 $ 2,511

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Note 9. Segment Information We have one reportable and operating segment: developing and selling our RAIN products and services. We identified our operating segment based on how our chief operating decision-maker, or CODM, manages our business, makes operating decisions and evaluates our operating performance. Our chief executive officer acts as the CODM and reviews financial and operational information on an entity-wide basis. Accordingly, we have determined we have a single reportable and operating segment. Our CODM reviews information about our revenue categories: Endpoint ICs, including licensing revenue, and systems, defined as reader ICs, readers, gateways, label production systems and software. The following table presents our revenue categories for the indicated periods (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Endpoint ICs $ 96,401 $ 84,619 $ 159,610 $ 145,837 Systems 11,970 13,275 23,011 26,334 Total revenue $ 108,371 $ 97,894 $ 182,621 $ 172,171 Significant Segment Expenses As our CODM manages operations on a consolidated basis, consolidated net income (loss) as reported in our Statement of Operations is the GAAP measure that we use to make operating decisions and evaluate operating performance. The significant expense categories we use to manage operations are those reflected in our Condensed Consolidated Statement of Operations.

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Note 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2025 included in Impinj, Inc.s Annual Report on Form 10-K, which was filed with the SEC on February 9, 2026. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, comprising normal recurring adjustments, necessary to state fairly our financial position, results of operations and our cash flows for the periods presented. Interim results are not necessarily indicative of the results for a full year or for any other future period. Use of Estimates Preparing financial statements in co …

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