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SANTA ANA, Calif., May 7, 2025 /PRNewswire/ -- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID- and BLE-enabled Internet of Things (IoT) solutions, today released its financial results for the first quarter ended March 31, 2025.
Identiv Logo (PRNewsfoto/Identiv)
"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 $5.3 million, compared to $6.7 million in the first quarter of 2024. The year-over-year decrease was as expected and due primarily to the exit of low margin business. First quarter 2025 GAAP gross margin was 2.5% and non-GAAP gross margin was 10.8%, compared to first quarter 2024 GAAP gross margin of 7.3% and non-GAAP gross margin of 13.4%. The year-over-year decrease was primarily driven by the incremental costs related to the transition of production to Thailand and the dual manufacturing sites required during the transition.
GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were $5.6 million in the first quarter of 2025, compared to $5.5 million in the first quarter of 2024. Non-GAAP operating expenses were $4.5 million in the first quarter of 2025, compared to $4.1 million in the first quarter of 2024. The increase reflects management's targeted investments to support the Company's organic growth initiatives as outlined in the P-A-T strategic framework.
First quarter 2025 GAAP net loss from continuing operations was ($4.8) million, or ($0.21) per basic and diluted share, compared to GAAP net loss from continuing operations of ($5.4) million, or ($0.24) per basic and diluted share, in the first quarter of 2024. This was primarily due to strategic review-related costs associated with the asset sale of $0.9 million incurred in the first quarter of 2024 that did not recur in the first quarter of 2025.
Non-GAAP adjusted EBITDA loss in the first quarter of 2025 was ($3.9) million, compared to ($3.2) million in the first quarter of 2024.
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 $4.9 million to $5.3 million.
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 the United States (GAAP), including non-GAAP adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross margin excludes stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net income (loss), GAAP operating expenses, and GAAP gross margin, and excludes income tax provision (benefit), net, interest income (expense), net, foreign currency gains (losses), stock-based compensation, amortization and depreciation, restructuring and severance, and strategic transaction-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic transaction-related costs, and restructuring and severance. The exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release.
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.
