Welcome to Impinj's second 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 second 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. Cary Baker, Impinj's CFO, will follow with a detailed review of our second quarter financial results and third 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. 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 a 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 Jefferies Semiconductor, IT Hardware & Communications Technology Conference on August 25th in Chicago and the Piper Sandler Growth Frontiers Conference on September 15th in Nashville. 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 second quarter results were strong, with revenue, adjusted EBITDA, and earnings per share setting new quarterly records. For the second consecutive quarter, Endpoint IC bookings also hit an all-time high, driven by strong demand across retail apparel, general merchandise, and supply chain and logistics. Looking to the third quarter, we see accelerating demand and strong product revenue growth. Starting with silicon, second quarter Endpoint IC product revenue exceeded our expectations, with unit volume setting a new quarterly record. In supply chain and logistics, the custom ASIC ramp at our second-large North American supply chain and logistics end user is ahead of schedule, with our inlay partners rapidly filling their supply chain and full conversion expected in the third quarter. In retail apparel and general merchandise, stronger than expected demand drove outsized revenue even as channel inventory declined. We believe market expansion, retailer pull-ins before temporary tariffs expired last week, and consumer resilience drove the demand strength. Looking forward, strong bookings suggest continued market expansion and demand on top of our inlay partners rebuilding their IC inventory back to normal levels. Reader IC revenue also beat our expectations, driven by strong enterprise demand. Looking to third quarter, we expect Reader ICs to be our fastest-growing product line. For both Endpoint and Reader ICs, we have sufficient wafers to support the demand with strong support from our foundry partner. Turning to food. A few weeks ago, another large U.S. grocer publicly cited their ongoing bakery pilot using RAIN to track in-store inventory and product expiration dates. Three of the five largest U.S. grocers have now announced pilots or deployments across bakery, deli, or meats. I'll take a moment to give some color on the food opportunity. We are currently supporting four distinct types of food programs. First, store replenishment, led by quick-serve restaurants, and focused on availability and freshness. Second, in-store inventory, led by supermarkets, and focused on stocking and product expiration. Third, loss identification, also led by supermarkets, and focused on flagging unscanned items at point of sale. Fourth, automated self-checkout, led by the large, vertically integrated European grocer we've discussed previously. A few enterprises in the first and second categories have progressed to chain-wide rollouts, consuming a modest number of Endpoint ICs relative to current RAIN industry volumes, but still small relative to the total opportunity. The third and fourth categories are still in proof of concept with encouraging results to date. Notably, the opportunity breadth and sheer number of large engaged enterprises so early in the market cycle is far larger and faster than anything I've seen in our industry's history. With all the excitement around food, I need to encourage you not to lose sight of the opportunities in the supply chain and logistics and general merchandise markets. The former is poised to expand from shipments to e-commerce and third-party logistics. The latter continues its inexorable growth and expansion with many large categories such as OTC pharmaceuticals, cosmetics, and health and beauty not yet deployed. Given their head start, both markets today are consuming significantly more Endpoint ICs than food. Both offer significant solutions opportunities for us. Touching on those solutions, despite only modest second quarter reader and gateway shipments to our lighthouse enterprises, our solutions engagements with those enterprises continue advancing. We're focused on two enterprise pain points, replenishment and point of sale, using our Endpoint and Reader ICs, readers, gateways, and software to provide real-time event data around supply chain transitions and at front of store. We are engaging partners to sell and deploy those solutions. We believe the event data our solutions deliver, for example, a 100% certain event that a store received an item, will dramatically improve AI models that analyze and automate enterprise operations. We're incredibly well positioned to lead and win in solutions, using machine learning to find moving items in confined read zones, Gen2X to improve item readability, label production systems to ensure label quality and reliability, custom ASICs as needed, and solutions engineering and sales to truly deliver the use case. Although we are still in the early days of solutions delivery, my focus is expanding our company from being primarily a component seller to also being a solution provider. I am confident we can do so, and given our solutions demand, I have never been more excited about our future than I am today. In closing, this month marks our 10-year anniversary as a public company, and our timing couldn't be better. Our market opportunity is expanding rapidly with the growth rate in supply chain and logistics, general merchandise, and food outpacing retail apparel, which is in mainstream adoption. We delivered a quarter with record revenue, adjusted EBITDA, earnings per share, and Endpoint IC volumes, and look to another strong quarter ahead. We have a stellar team energized by the opportunities in front of us and driving forward with pace and conviction. As always, before I turn the call over to Cary for our financial review and third quarter outlook, I would like to thank every member of the Impinj team for your tireless effort. I feel honored by my incredible good fortune to work with you. Cary? Thank you, Chris, good afternoon, everyone. Second quarter revenue was a record $108.4 million, up 46% sequentially from $74.3 million in first quarter 2026, up 11% year-over-year from $97.9 million in second quarter 2025. Second quarter Endpoint IC revenue was a record $96.4 million, up 53% sequentially from $63.2 million in first quarter 2026, up 14% year-over-year from $84.6 million in second quarter 2025. Excluding licensing revenue, Endpoint IC product revenue grew 26% sequentially and 16% year-over-year, significantly exceeding our expectations. Looking forward, we expect third quarter Endpoint IC product revenue to increase sequentially above the high end of typical seasonal growth. Second quarter systems revenue was $12 million, up 8% sequentially from $11 million in first quarter 2026, down 10% year-over-year from $13.3 million in second quarter 2025. Systems revenue met expectations with Reader IC strength offsetting label production systems weakness. Looking forward, we expect a strong sequential third quarter systems revenue increase. Second quarter gross margin was a record 60.9%, compared with 52.4% in first quarter 2026 and 60.4% in second quarter 2025. The sequential increase was driven primarily by licensing revenue. The year-over-year increase was driven primarily by Endpoint IC product mix, specifically a richer mix of Impinj M800, partially offset by lower systems revenue mix. Excluding licensing revenue, second quarter product gross margin was 53.6%, compared with 52.6% in second quarter 2025. Looking forward, we expect third quarter product gross margin to increase sequentially. Total second quarter operating expense was $35.3 million, compared with $35.5 million in first quarter 2026 and $31.5 million in second quarter 2025. Operating expense met expectations. Research and development expense was $20.2 million. Sales and marketing expense was $7.1 million. General and administrative expense was $8.1 million. Looking to third quarter, we expect third quarter operating expense to increase sequentially. Second quarter adjusted EBITDA was a record $30.7 million, compared with $3.4 million in first quarter 2026 and $27.6 million in second quarter 2025. Second quarter adjusted EBITDA margin was a record 28.3%. Excluding licensing revenue, adjusted EBITDA margin was 15%. Second quarter GAAP net income was $12.2 million. Second quarter non-GAAP net income was a record $27 million, or $0.86 per share on a fully diluted basis. Turning to the balance sheet. We ended the second quarter with cash equivalents, and investments of $263.7 million, compared with $235.2 million in first quarter 2026 and $260.5 million in second quarter 2025. Inventory totaled $91.5 million, up $5.2 million from the prior quarter. Second quarter capital expenditures totaled $2.4 million. Free cash flow was $29.2 million. Turning to our outlook, we expect third quarter revenue between $105.5 million-$108.5 million, compared with $91.4 million product revenue in second quarter 2026, a quarter-over-quarter increase of 17% at the midpoint. We expect adjusted EBITDA between $20.7 million-$22.2 million. On the bottom line, we expect non-GAAP net income between $18.5 million-$20 million, reflecting non-GAAP fully diluted earnings per share between $0.59-$0.63. In closing, I want to thank the Impinj team, our customers, our suppliers, and you, our investors, especially those of you still holding IPO shares today at our 10-year listing anniversary, for your ongoing support. I will now turn the call to the operator to open the question and answer session. Nick? Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. As a courtesy to others, we ask that you limit yourself to one question and one follow-up. If you have additional questions, please re-queue, and we will take as many questions as time allows. At this time, we'll pause momentarily to assemble the roster. The first question will come from Harsh Kumar with BMO Capital Markets. Please go ahead. Hey, Chris, and the entire Impinj team. I guess congratulations on two distinct things, your 10-year anniversary and the biggest quarter you guys put up, and also the biggest guide from what I believe, not including royalties. To that end, Chris, I wanted to ask you, the third quarter guide is quite a bit of a surprise to me, and I was curious if you could provide us with some color on where you are seeing outsized trend relative to your previous expectations. Okay, Harsh, thank you for your kind words. To answer your question about where we're seeing strength, as I said in our prepared remarks, we're seeing pull in general merchandise, supply chain logistics, and food. Obviously, there's also continued expansion in retail apparel. There continue to be new programs that are coming online, as well as growth in existing programs. Although retail apparel is in mainstream adoption, and therefore its pace of growth has slowed, in terms of an overall volume number, it's still contributing significant volume growth to us. On top of that, we saw share gains last year in the overall market, and those share gains are giving us momentum in 2026. You put all those pieces together, strong market demand, market pull for solutions, multiple verticals going, and our strength in the market, and they all contribute to a strong 2Q and a strong 3Q. Thank you, Chris. I think you spent quite a bit of time on food and laying out how you will play it. I know that the largest retailer in the U.S. is implementing food tracking for deli and bakery. I was curious about how that is going, because it wasn't announced by you, it was announced by one of your inlay partners. Also, are you concerned about tariffs at all, or are you seeing anything? It doesn't seem like you're seeing anything, but I'd be curious if that's something in the back of your mind. Okay, two questions. First on food, the second one on tariffs. In the food space, Harsh, we as a company tend to let our partners and customers speak for themselves. I devoted a significant portion of my script to the food opportunity overall because, like I said, I'm truly excited about this opportunity. The number of large enterprises that are engaged is far greater than anything I've seen in our history. I mean, just think about it. You look at supply chain and logistics, it was led primarily by one enterprise. You look at some of the growth in retail apparel in the old days, it was led by a very small number of enterprises. Here we've got three of the five largest U.S. grocers jumping in at the beginning. Just the demand and the pace is something I haven't experienced. I'm very excited about food. We're working with those grocers, including the one you mentioned. I'm supporting them as we can, very much as we can. I'll let them speak for themselves, in terms of where their program is. Regarding tariffs? Regarding tariffs. As I said in my prepared remarks, we did see some pull aheads in the second quarter before the prior tariffs expired a week ago. We did see some channel inventory burn down as our inlay and label partners filled into the demand for product inventory before those tariffs expired. That said. We still see strength in the market built on consumer resilience and an ongoing category expansion and market expansion. As Cary said in his prepared remarks, we see very strong demand for our Endpoint IC. Yes, pull-ahead for tariffs. Yes, continued strength in the market. On top of that, we expect our inlay and label partners to rebuild their inventories in the back half of the year. Thank you, and congratulations again. Thank you, Harsh. Thanks, Harsh. The next question will come from Christopher Rolland with Susquehanna. Please go ahead. Hey, guys. Thanks for the questions. Mine is around, Chris, you mentioned logistics, on your main partner there. They had some very positive comments about RFID, and an increased deployment there, basically going from a scanner world to a RFID world. Perhaps most significantly, an expansion internationally as well. On this, if you could talk about what that means for you guys and any other movement on other logistics potential engagements and customer opportunities. Yeah. Thank you, Chris. I'll do my best here. Obviously, I could talk a long time on that topic. We do our very best to support that customer. I call them a customer, but they're really a partner of ours. We do our very best to support them with all their initiatives. We work closely together. We support each other, and we at Impinj, on the Impinj side, are very thrilled about what they've got going on. They spoke a little bit about AI and the opportunities with AI, and the one thing I'd like to say there is that we deliver what I like to call hard event data. I made a point in my prepared remarks about 100% certainty that an item arrived at a certain location. When we read it, we have certainty that that's the item, it arrived at that time, and that location. That kind of hard data is a boon to AI models, because you don't have to create synthetic data. There's no inference or anything on what's going on with the underlying data for the model. The data are real. The AI model has the job of optimizing the enterprise's operations. That partner's ability to ingest the real hard event data, optimize their operations, and then take their learnings to their customers, who then become our customers, is where I want to take the company and deliver solutions to that partner's customers. That's where I talk about third-party logistics opportunities. Huge opportunity with them. We will support them, never let them down, and I am incredibly excited about the future in supply chain and logistics. Now, of course, there are other companies in the supply chain and logistics space. We are supporting them as well, supporting them through partners, and we're doing what we can to drive the whole overall industry forward. Of course, the partner we work with is well ahead of everybody else. Excellent. Thank you, Chris. Thank you. Additionally, you're great at kind of looking ahead at some of these trends. I guess first of all, if you could talk about any new opportunities, end markets or opportunities you see on the horizon. Circling back on one that has some potential is the digital passport, product passport opportunity. Can you talk about any progress we might have seen there? Yes, I'll do my best. New opportunities on the horizon, outside of supply chain and logistics and food. I think you should just take note of the categories I mentioned around retail general merchandise. The three categories I mentioned, OTC pharma, health and beauty, and cosmetics are all gigantic. They would all benefit significantly from tagging, whether it's for expiration, guarantees of product, availability on a shelf, stock accuracy. Those categories, we believe, hold a significant potential future volume opportunity for us. If I just look across that set, retail apparel, retail general merchandise, especially those three categories on top of everything that's been tagged already. Supply chain and logistics and food, that's enough to propel us and our industry forward. Turning to DPP, I've been pushing forward this vision for a long time of getting readers in the hands of consumers and the DPP benefit as part of that, but it's really more than a DPP benefit. It's giving consumers the ability to get information about items they own and recycling at end of life. The Qualcomm announcement a while back, that they're embedding RAIN RFID reading in their mobile phone chipsets, at least initially for industrial devices, but they said also that that can be ported to consumer devices. The progress at the regulatory side around DPP, I see all of that coming to a confluence by the end of this decade, and DPP helping to drive the consumer use case, and consumers helping to drive the DPP use case. A little bit early to post results there, because both of those things are in the early days. In the out years here, they hold huge promise for our future. Thanks, Chris. Okay, thank you. The next question will come from Jim Ricchiuti with Needham & Company. Please go ahead. Hi. Thanks. Good afternoon. Hey, Chris, just with respect to OTC cosmetics and health and beauty aids, I'm not aware of the large general merchandise retailer moving forward with that phase of the deployment. Do you anticipate this potentially being a driver in 2027? If you can't comment directly on that, can you give us a sense that if we do see a retailer like this customer moving forward, how would you think about this scaling versus some of the other general merchandise categories in the past? Jim, let me be clear. I mentioned those categories because I see the opportunity there, and obviously there's been broad interest in the past. If you really want to look at it was the cosmetics use case that got this whole industry going in the first place back 25 years ago. It's because those categories haven't gone yet. I see the opportunity there. I know from history about the opportunity there. We are doing work internally to enable those categories. That said, there's been no announcement that I know of by any retailer that they're moving forward with those categories. I'm not trying to put words in anybody's mouth, it's just where I see the opportunity. As I think about the size of those categories, obviously they're smaller than food, but they're gigantic. They drive sales uplift for enterprises. Health and beauty, huge. Cosmetics and the need there, like I said, it drove our industry in the first case. OTC pharma would be the first step towards prescription pharma. I can't cite the numbers, I don't have them off the top of my head, but the OTC market is also gigantic. All of those categories are taggable. They take work, but it can be done. I'm excited about those categories to the point where we as a company are putting some effort into helping them go. Did I answer your question, Jim? Yeah, I knew it would be a tough to answer directly. You did, I think, provide some good color on the market opportunity. I wanted to switch gears a little bit on the competitive environment. Your major competitor has introduced a new Endpoint IC. I'm wondering whether this might impact some of the share gains that you've made in recent years. Curious how you see the competitive landscape at the moment. Then if I could just ask a quick one to Cary, just with respect to gross margin improvement in Q3 on the product side, how much of that is this full conversion of the ASIC ramp, the logistics side of the business? Two questions. Yeah. I apologize. That's all right. I can go first. Okay. You want to go first? Go ahead, Cary. On the gross margin side, Jim, it's really our continued ramp with the Impinj M800. Think of the custom ASIC as part of the Impinj M800 platform and contributing to the 300 basis points of gross margin accretion that the Impinj M800 will eventually deliver. In Q2, on a product gross margin basis, we saw gross margin increase by about 120 basis points sequentially. I expect a roughly similar increase sequentially in Q3, again, on a product gross margin basis. Chris, I'll hand it over to you. Okay. Yeah. Jim, to your question, obviously our key competitor highlighted strong demand for their products. We see strong demand as well, evidenced by our second quarter results and third quarter guide, and propelled by last year's share gains. They saw strong demand, we see strong demand, and that strong demand is driven by market growth. We feel good about our share position today. They have introduced a new product. We have not seen it significantly in market yet, and I think you know from our Impinj M800 ramp and prior product ramps that introducing new product in our industry, given that the end customers need to qualify them and a lot of those products go through our testing, takes a while. We feel good about our share position. Now we feel good about where we are driving forward and we have very high performing products in market that are meeting end customers' need. We're driving forward with Gen2X to improve readability, machine learning to do the things we said around solutions, confine read zones, and identify transitions. We'll be driving forward in the solution space, winning our fair share of the market. Jim, you good? Good. Thanks very much. Appreciate it. Okay. Thank you. The next question will come from Scott Searle with Roth Capital. Please go ahead. Hey, good afternoon. Thanks for taking the questions. Congrats on the anniversary and congrats on the quarter. Thank you. Hey, Chris, maybe quickly to follow up on your comments with Gen2X, significant in terms- Yeah. Of throughput and readability. I'm wondering if you could extrapolate a little bit on that in terms of market share potential, kind of what you're seeing in terms of engagement with customers. Gen2X, as I understand it, huge performance advantages when you're using Endpoint ICs from Impinj. How is that impacting the share outlook when you're talking to existing and new customers? I'm wondering if you could factor in or kind of fold in the custom ASIC development as well. You gave an update in terms of where that was with the preexisting customer, but you had referenced earlier that we might see additional customers moving into that direction. Kind of wondering how that's playing out. Yeah. I'll do my best here. On the Gen2X front, the vast majority of labels today are still read with handheld readers. It's for inventory visibility. We see and have been able to demonstrate a material benefit from Gen2X in that handheld reading scenario, which is especially in some of the more difficult-to-read categories like food, which is giving us a leg up in the market. We have partners like Zebra and Qualcomm and others who are pushing forward with Gen2X because of its readability benefits. In the base market, handheld-driven inventory counting, we see a benefit from Gen2X with our Endpoint ICs. You don't have to have 100% of Impinj Endpoint ICs out there. You get the benefit from the Impinj side with Gen2X. If I turn to the rapidly growing part of the market, at least on a percentage basis, which is fixed reading for transitions, point-of-sale, store exits, there, Gen2X has an outsized benefit because we've tailored the capabilities of Gen2X to enable the ML enhancements we're driving to the solution that literally make the solution go. For us, those Gen2X enhancements are critical to our solutions efforts. Evidence the fact that our two very high share enterprise end users in supply chain and logistics and retail apparel are both using Gen2X to enhance the readability or essentially to enable their use case. What you'll see us doing going forward is using Gen2X more and more to enable solutions we literally otherwise could not do. Gen2X, in my mind, is key to fixed reading solutions, which is where the market is heading and where we're taking the company. Tell me the second part of the question because I forgot it already. Custom ASIC or- Oh, sorry. Oh, custom ASIC. Custom ICs? Custom ASIC. Yeah, custom. Yeah, custom ASIC. We've obviously already delivered one custom ASIC. We don't have anything else to report right now on the custom ASIC side. We will do custom ASICs as needed. I use that word carefully, because when you do a custom ASIC, you also have the operations issues around just having a custom product. Where we need a custom ASIC and the customers can use it, we'll build it. Where we don't need a custom ASIC because they can just get by with base Gen2X, we will do that. Don't expect us to push everything to a custom ASIC because it creates a kind of overall operations headache. We have to manage through it. As needed, where we need to do something special for an enterprise, we will do so. Chris, if I could just follow up on the food front. Sure. A lot of progress on that front, both within North America and sounds like as well within the European marketplace- Yeah. in the pilot phase. Could you provide a little bit of color as we're starting to look into 2027? Is the expectation now that these will convert from pilots into full-fledged deployments? With that backdrop, given where the market is, given the growth that you're seeing now, and the unit opportunity that just exists within those existing pilot customers, of the three of the top five in North America and Europe, are we due for an inflection point now in terms of RAIN RFID ICs as we go into 2027 and 2028? That's a hard question for me to answer, because we don't guide that out into 2027. When you're talking about programs this size, obviously there's a huge commitment on the part of the end user to go forward. We do have at least one enterprise that has already deployed many hundreds of stores and is continuing with the store rollout, as well as talking about moving to additional categories. We've got the other grocers in there. I think I'm just going to have to revert back to what I said, the pace of the adoption and the number of end users here is unlike anything I've seen. Because we're generating positive results for the enterprises, I do expect rapid growth on a percentage basis. The other retail apparel, supply chain logistics, retail general merchandise are far ahead in terms of volumes. It's going to take a good bit of time until food volumes cross over, because those other categories are still growing. In terms of excitement, I'm incredibly excited about food. Great. That's helpful. Thanks so much, and congrats again. Thank you. The next question will come from Troy Jensen with Cantor Fitzgerald. Please go ahead. Hey, gentlemen. Congrats also. Maybe a question now for both of you guys. Chris, for you first, I'd love you just to expand a little bit on your comments about being a solution provider or focusing more on that, and what do you have to do? Does this compete at all with some of your partners? Just to expand, it would be great. Troy, I'm going to start with the partners side. This opportunity is so big, our opportunity to grow the pie is so large that outside of our Endpoint IC competitor, I view everybody else as a partner. There's no reason for us to compete with anybody out in this space, including in solutions delivery, because the opportunities are so compelling. I mentioned the opportunities just on the food side. It's just one of them. The loss identification at point of sale. We had one grocer come to us and say they lose $100 million a year from theft at point of sale, primarily proteins and liquor products, wines and beers and alcohol. That's a huge number for a grocer. The opportunities are there. The opportunities are for fixed reading. Yet you can't just go in with a handheld and solve the thing. We are developing solutions that include every layer of our platform, plus a huge push on the software side to do the ML part, the device management part, the solutions management part. Rather than serving up raw data to the enterprise, we serve up events. Working closely with our partners to deliver those solutions to an enterprise. Impinj by itself cannot go out and deploy 5,000 stores. We have to partner, and there's huge opportunities for us and the partner, including ERP partners, WMS partners, as well as other RAIN RFID partners. The opportunity is there. It's fixed reading solutions to drive a new chapter in this industry beyond just inventory counting. I am incredibly excited about it, and it's where I'm pushing the company. Well, the passion. Did I answer your question? Very much so. Yep. I love the passion here, maybe just a follow-up for Cary, just on- Yeah. The inlay partners that are handling the IC transition with your logistics customer. Any thoughts on, do you have good visibility on that? Is there any kind of risk of getting surprised on channel inventory during that transition? Yeah, it's a good question, Troy. After missteps in the last couple Q1s, yeah, we're very alert to this. Those missteps have been centered around that second large supply chain logistics customer. Both years are different reasons, but the crux of the issue was our inability to see the channel inventory that our partners held in support of that customer. Until this year, our second-largest supply chain logistics customer used our general purpose Impinj M800. That SKU can go into any apparel, general merchandise, or food application, which made it difficult for us to understand and have visibility into just how much inventory they were holding for supply chain versus what they were holding for the rest of their market. Because this end customer typically does a share reallocation at the end of the year, we found ourselves in the early part of the next year navigating some channel inventory noise. With the transition to a custom IC, we have much better visibility. We know what we ship into the channel, we know what gets pulled from the channel, and therefore we know what is left in the channel when the day is done. One of the things that we've learned from having this better visibility is that the purchasing seasonality of our inlay partners in support of this customer is dislocated from the seasonality of the package volume of this customer. Our peak season supporting this customer is 2Q into Q3, with a steeper decline in the fourth quarter consumption as the ecosystem prepares for that annual RFP process. We feel good that our visibility into this channel is much improved versus the prior two years, but we understand that we have to prove it to you in Q1 of 2027. Yep. Understood. Congrats. It's going to be a fun couple of years, guys. Thank you. Thanks, Troy. The next question will come from Guy Hardwick with Barclays. Please go ahead. Hi, this is Nick Igneri on for Guy. Thanks for taking my question. You guys mentioned Endpoint IC bookings reached another all-time high. Maybe if you can just discuss the composition of those bookings by vertical, and how much visibility they provided to 4Q and early 2027 demand. Thanks, Nick. Thanks for the question. As you know, we delivered record bookings in Q2, and that was after posting what were previously record bookings in Q1. We see several drivers of that booking strength. Kind of first and foremost, after a prolonged period of softness, we are starting to see encouraging signs from retail apparel and general merchandise. There continues to be market expansion in both of those verticals, and the consumer remains very resilient. We also saw some pull-ins from the retailers ahead of the July tariff reset. Now, fortunately, that reset wasn't a large reset, and the rates aren't that different than the expiring rates. Second, in supply chain and logistics, the custom IC ramp at our second-largest North American retail supply chain logistics customer is ahead of schedule. Our inlay partners are filling their channel and filling their supply chain, and we expect full conversion at some point in the third quarter. Finally, as you noted, some of our customers are booking into the fourth quarter, which is a little further out than our standard six to eight-week lead time. If I were to break it down, it's those three factors in that order that are driving the booking strength. Okay, great. Thanks for the color there. Just maybe to put a finer point on the retailer pull-ins, can you help quantify the impact? Was this a modest boost or a meaningful portion of the Endpoint IC upside in the quarter? Maybe what assumptions are embedded in 3Q guidance around that? Thank you. It was a small benefit to the quarter. That's why I listed it as third on that list. It's hard to quantify specifically, but we know that retailers have signaled that. We know that some of our partners in our ecosystem have said they think it's happening. We don't think it was a meaningful driver of the growth. Great. Thanks. I'll pass it on. Thank you. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Chris Diorio, Co-Founder and CEO, for closing remarks. Okay. Thank you, Nick. I'd like to thank everybody for joining the call today, a special thanks for your ongoing support. Thank you very much. Bye-bye. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.