Identiv Reports First Quarter 2025 Financial Results
- New strategic partnerships with Tag-N-Trac and InPlay for cold chain tracking and smart BLE labels
- Reduced net loss from ($5.4M) to ($4.8M) year-over-year
- Addition of seasoned financial expert Mick Lopez to Board of Directors
- Revenue declined 20.9% to $5.3M from $6.7M year-over-year
- GAAP gross margin decreased to 2.5% from 7.3% year-over-year
- Non-GAAP adjusted EBITDA loss worsened to ($3.9M) from ($3.2M)
- Q2 2025 guidance suggests continued revenue decline
- Increased operating expenses amid declining revenues
Insights
Identiv reports concerning Q1 results with revenue down 21%, margins deteriorating, and EBITDA losses worsening amid manufacturing transition challenges.
Identiv's Q1 2025 financial performance reveals significant challenges in the company's transition to a pure-play IoT solutions provider. Revenue declined
The company's gross margins present a critical concern. GAAP gross margin fell to just
Despite the revenue contraction, operating expenses increased year-over-year. GAAP operating expenses rose to
The bottom line shows a GAAP net loss from continuing operations of
More telling is the non-GAAP adjusted EBITDA loss, which worsened to
Looking ahead, management's Q2 2025 revenue guidance of
On the strategic front, Identiv is pursuing new partnerships, including collaborations with Tag-N-Trac for pharmaceutical cold chain tracking and with InPlay for smart BLE labels in IoT logistics. While these initiatives could eventually enhance the company's market position, they have not yet translated to financial improvements.
The severe compression in gross margins to near-breakeven levels, combined with increasing operating expenses and widening EBITDA losses, creates a challenging financial situation. The current rate of cash consumption relative to revenue raises important questions about operational sustainability if trends don't improve significantly in coming quarters.
Seasoned Financial Expert Mick Lopez Appointed to Identiv Board of Directors
Partnering with Tag-N-Trac to Deliver Cold Chain Tracking and Compliance Solutions for Pharmaceutical Industry
Collaborating with InPlay to Co-Develop Smart BLE Labels for IoT Logistics Applications
"In the first quarter of 2025, we began executing our Perform-Accelerate-Transform ("P-A-T") strategic framework as a pure-play IoT solutions provider, supported by a strengthened commercial organization," said Kirsten Newquist, CEO of Identiv. "Our specialized RFID and BLE tags, inlays, and labels are an important component enabling the digital transformation and addressing key industry challenges. Even as we navigate through today's challenging macro environment, Identiv's value proposition remains strong and consistent. By reinforcing our core strengths while expanding our reach through new strategic partnerships and innovative product development, we believe we are well-positioned to drive long-term growth."
Financial Results for Fiscal First Quarter 2025
Revenue for the first quarter of 2025 was
GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were
First quarter 2025 GAAP net loss from continuing operations was
Non-GAAP adjusted EBITDA loss in the first quarter of 2025 was
Financial Outlook
Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For the second quarter of fiscal 2025, management currently expects net revenue to be in the range of
Conference Call
Identiv management will hold a conference call today, May 7, 2025, at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss the company's first quarter 2025 financial results. A question-and-answer session will follow management's presentation.
Toll-Free: +1 888-506-0062
International Number: +1 973-528-0011
Call ID: 500348
Webcast link: Register and Join
The teleconference replay will be available through May 21, 2025, by dialing +1 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 52333.
If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at IR@identiv.com.
About Identiv
Identiv's RFID- and BLE-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 1.5 billion applications worldwide, drive innovation across healthcare, consumer electronics, luxury goods, smart packaging, and more. For additional information, visit identiv.com.
Non-GAAP Financial Measures
This press release includes financial information that has not been prepared in accordance with accounting principles generally accepted in
Note Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as "anticipate," "believe," "continue," "plan," "will," "intend," "expect," "outlook," and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding: Identiv's expectations regarding future operating and financial outlook and performance, including 2025 second quarter guidance and outlook; Identiv's strategy, opportunities, focus and goals; and Identiv's beliefs that by reinforcing its core strengths and expanding its reach through new strategic partnerships and innovative product development, it will be well-positioned to drive long-term growth. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv's control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: Identiv's ability to continue the momentum in its business; Identiv's ability to successfully execute its business strategy, including, but not limited to, organic and inorganic growth, strategic partnerships and product development; Identiv's ability to capitalize on trends in its business; Identiv's ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; the success of Identiv's products and strategic partnerships; industry trends and seasonality; the impact of macroeconomic conditions and customer demand, inflation and increases in prices; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements.
Investor Relations Contact:
IR@identiv.com
Media Contact:
press@identiv.com
Identiv, Inc. | |||||
Condensed Consolidated Statements of Operations | |||||
(in thousands, except per share data) | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | December 31, | March 31, | |||
2025 | 2024 | 2024 | |||
Net revenue | $ 5,269 | $ 6,697 | $ 6,658 | ||
Cost of revenue | 5,137 | 7,692 | 6,175 | ||
Gross profit (loss) | 132 | (995) | 483 | ||
Operating expenses: | |||||
Research and development | 787 | 922 | 897 | ||
Selling and marketing | 1,407 | 1,073 | 1,169 | ||
General and administrative | 3,146 | 3,095 | 3,480 | ||
Restructuring and severance | 260 | 540 | — | ||
Total operating expenses | 5,600 | 5,630 | 5,546 | ||
Loss from continuing operations | (5,468) | (6,625) | (5,063) | ||
Non-operating income (expense): | |||||
Interest income (expense), net | 1,212 | 1,344 | (87) | ||
Foreign currency gains (losses), net | (530) | 733 | (226) | ||
Loss from continuing operations before income tax (provision) benefit | (4,786) | (4,548) | (5,376) | ||
Income tax (provision) benefit | (3) | 271 | (6) | ||
Net loss from continuing operations | (4,789) | (4,277) | (5,382) | ||
Income from discontinued operations, net of tax: | |||||
Income from Physical Security Business, net of tax | — | — | 824 | ||
Gain on sale of Physical Security Business, net of tax | — | 1,795 | — | ||
Total income from discontinued operations, net of tax | — | 1,795 | 824 | ||
Net loss | (4,789) | (2,482) | (4,558) | ||
Cumulative dividends on Series B convertible preferred stock | (205) | (201) | (248) | ||
Net loss available to common stockholders | $ (4,994) | $ (2,683) | $ (4,806) | ||
Net income (loss) per common share: | |||||
Basic and diluted - continuing operations | $ (0.21) | $ (0.19) | $ (0.24) | ||
Basic and diluted - discontinued operations | $ — | $ 0.08 | $ 0.04 | ||
Basic and diluted - net loss | $ (0.21) | $ (0.11) | $ (0.21) | ||
Weighted average common shares outstanding: | |||||
Basic and diluted | 23,599 | 23,833 | 23,368 | ||
Identiv, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(in thousands) | |||
(unaudited) | |||
March 31, | December 31, | ||
2025 | 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 132,382 | $ 135,646 | |
Restricted cash | 300 | 300 | |
Accounts receivable, net of allowances | 3,622 | 4,214 | |
Inventories | 7,760 | 7,475 | |
Prepaid expenses and other current assets | 4,793 | 5,210 | |
Total current assets | 148,857 | 152,845 | |
Property and equipment, net | 7,589 | 7,694 | |
Operating lease right-of-use assets | 1,599 | 2,000 | |
Other assets | 690 | 686 | |
Total assets | $ 158,735 | $ 163,225 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 2,701 | $ 2,746 | |
Operating lease liabilities | 861 | 852 | |
Accrued compensation and related benefits | 695 | 862 | |
Accrued income taxes payable | 1,146 | 1,173 | |
Other accrued expenses and liabilities | 1,847 | 2,327 | |
Total current liabilities | 7,250 | 7,960 | |
Long-term operating lease liabilities | 957 | 1,167 | |
Other long-term liabilities | 29 | 29 | |
Total liabilities | 8,236 | 9,156 | |
Total stockholders' equity | 150,499 | 154,069 | |
Total liabilities and stockholders' equity | $ 158,735 | $ 163,225 | |
Identiv, Inc. | |||||
Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations | |||||
(in thousands) | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | December 31, | March 31, | |||
2025 | 2024 | 2024 | |||
Reconciliation of GAAP gross margin to non-GAAP gross margin | |||||
GAAP gross profit (loss) | $ 132 | $ (995) | $ 483 | ||
Reconciling items included in GAAP gross profit (loss): | |||||
Stock-based compensation | 4 | 3 | 7 | ||
Amortization and depreciation | 434 | 643 | 404 | ||
Total reconciling items included in GAAP gross profit (loss) | 438 | 646 | 411 | ||
Non-GAAP gross profit (loss) | $ 570 | $ (349) | $ 894 | ||
Non-GAAP gross margin | 11 % | -5 % | 13 % | ||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||
GAAP operating expenses | $ 5,600 | $ 5,630 | $ 5,546 | ||
Reconciling items included in GAAP operating expenses: | |||||
Stock-based compensation | (792) | (873) | (512) | ||
Amortization and depreciation | (57) | (52) | (25) | ||
Strategic transaction-related costs | (4) | (55) | (953) | ||
Restructuring and severance | (260) | (540) | — | ||
Total reconciling items included in GAAP operating expenses | (1,113) | (1,520) | (1,490) | ||
Non-GAAP operating expenses | $ 4,487 | $ 4,110 | $ 4,056 | ||
Reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted EBITDA | |||||
GAAP net loss from continuing operations | $ (4,789) | $ (4,277) | $ (5,382) | ||
Reconciling items included in GAAP net loss: | |||||
Income tax provision (benefit) | 3 | (271) | 6 | ||
Interest income (expense), net | (1,212) | (1,344) | 87 | ||
Foreign currency gains (losses), net | 530 | (733) | 226 | ||
Stock-based compensation | 796 | 876 | 519 | ||
Amortization and depreciation | 491 | 695 | 429 | ||
Strategic transaction-related costs | 4 | 55 | 953 | ||
Restructuring and severance | 260 | 540 | — | ||
Total reconciling items included in GAAP net loss from continuing operations | 872 | (182) | 2,220 | ||
Non-GAAP adjusted EBITDA | $ (3,917) | $ (4,459) | $ (3,162) | ||
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SOURCE Identiv
FAQ
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