cgnx-20250330

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 30, 2025 or


☐			Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________

Commission File Number 001-34218

COGNEX CORPORATION


(Exact name of registrant as specified in its charter)


Massachusetts						04-2713778
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Vision Drive

Natick, Massachusetts 01760-2059

(508) 650-3000


(Address, including zip code, and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.002 per share	CGNX	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

As of March 30, 2025, there were 167,864,778 shares of Common Stock, $.002 par value per share, of the registrant outstanding.

INDEX


PART I	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (interim periods unaudited)	3
	Consolidated Statements of Operations for the three-month periods ended March 30, 2025 and March 31, 2024	3
	Consolidated Statements of Comprehensive Income (Loss) for the three-month periods ended March 30, 2025 and March 31, 2024	4
	Consolidated Balance Sheets as of March 30, 2025 and December 31, 2024	5
	Consolidated Statements of Cash Flows for the three-month periods ended March 30, 2025 and March 31, 2024	6
	Consolidated Statements of Shareholders’ Equity for the three-month periods ended March 30, 2025 and March 31, 2024	7
	Notes to Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	28

	Signatures	29

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)


	Three-months Ended
		March 30, 2025		March 31, 2024
	(unaudited)
Revenue		$	216,036	$	210,797
Cost of revenue		71,713		68,860
Gross profit		144,323		141,937
Research, development, and engineering expenses		34,727		37,105
Selling, general, and administrative expenses		83,504		90,628

Operating income		26,092		14,204
Foreign currency gain (loss)		(2,453)		46
Investment income		3,990		3,120
Other income (expense)		169		196
Income before income tax expense		27,798		17,566
Income tax expense		4,195		5,544
Net income		$	23,603	$	12,022

Net income per weighted-average common and common-equivalent share:
Basic		$	0.14	$	0.07
Diluted		$	0.14	$	0.07

Weighted-average common and common-equivalent shares outstanding:
Basic		169,265		171,692
Diluted		170,391		172,594

Cash dividends per common share		$	0.080	$	0.075

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)


	Three-months Ended
		March 30, 2025		March 31, 2024
	(unaudited)
Net income		$	23,603	$	12,022
Other comprehensive income (loss), net of tax






Available-for-sale investments:
Net unrealized gain (loss), net of tax of $875 and $117 in the three-month periods, respectively		2,711		359

Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations		(27)		(2)
Net change related to available-for-sale investments		2,684		357

Foreign currency translation adjustments:
Foreign currency translation adjustments		11,447		(16,156)
Net change related to foreign currency translation adjustments		11,447		(16,156)

Other comprehensive income (loss), net of tax		14,131		(15,799)
Total comprehensive income (loss)		$	37,734	$	(3,777)

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)


	March 30, 2025		December 31, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	143,744	$	186,094
Current investments, allowance for credit losses of $0 in 2025 and 2024	56,703		59,956
Accounts receivable, allowance for credit losses of $598 and $827 in 2025 and 2024, respectively	161,185		143,359
Unbilled revenue	2,755		3,055
Inventories	152,113		157,527
Prepaid expenses and other current assets	61,179		63,376
Total current assets	577,679		613,367
Non-current investments, respectively, allowance for credit losses of $0 in 2025 and 2024	312,310		340,898
Property, plant, and equipment, net	95,979		98,445
Operating lease assets	70,212		67,326
Goodwill	389,929		384,937
Intangible assets, net	91,134		90,684
Deferred income taxes	390,170		392,166
Other assets	5,090		5,027
Total assets	$	1,932,503	$	1,992,850

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	43,303	$	38,046
Accrued expenses	67,849		71,760
Accrued income taxes	22,677		25,685
Deferred revenue and customer deposits	39,858		25,035
Operating lease liabilities	10,277		8,854
Total current liabilities	183,964		169,380
Non-current operating lease liabilities	63,425		61,363
Deferred income taxes	212,205		217,155
Reserve for income taxes	27,194		26,365

Other liabilities	87		1,082
Total liabilities	486,875		475,345

Commitments and contingencies (Note 9)
Shareholders’ equity:
Preferred stock, $.01 par value – Authorized: 400 shares in 2025 and 2024, respectively; no shares issued and outstanding	—		—
Common stock, $.002 par value – Authorized: 300,000 shares in 2025 and 2024, respectively; issued and outstanding: 167,865 and 170,434 shares in 2025 and 2024, respectively	336		341
Additional paid-in capital	1,097,989		1,090,638
Retained earnings	405,949		499,303
Accumulated other comprehensive loss, net of tax	(58,646)		(72,777)
Total shareholders’ equity	1,445,628		1,517,505
Total liabilities and shareholders' equity	$	1,932,503	$	1,992,850

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	Three-months Ended
	March 30, 2025		March 31, 2024
	(unaudited)
Cash flows from operating activities:
Net income	$	23,603	$	12,022
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense	9,939		13,302
Depreciation of property, plant, and equipment	5,306		5,279

Amortization of intangible assets	2,628		2,813
Excess and obsolete inventory charges	197		471
Fair value adjustment on acquired inventories (Note 7)	—		1,224

Amortization of discounts or premiums on investments	(161)		306
Realized (gain) loss on sale of investments	(27)		(2)


Change in deferred income taxes	(4,689)		(3,333)
Change in operating assets and liabilities:
Accounts receivable	(17,183)		(25,669)
Unbilled revenue	307		(347)
Inventories	5,474		(10,938)

Prepaid expenses and other current assets	2,526		(3,395)
Accounts payable	4,996		7,398
Accrued expenses	(6,055)		(470)
Accrued income taxes	(3,153)		5,258
Deferred revenue and customer deposits	14,761		8,737
Other	2,033		987
Net cash provided by (used in) operating activities	40,502		13,643
Cash flows from investing activities:
Purchases of investments	(113,297)		(233,726)
Maturities and sales of investments	148,885		189,758
Purchases of property, plant, and equipment	(2,501)		(4,061)
Net payments related to business acquisitions (Note 7)	—		(994)


Net cash provided by (used in) investing activities	33,087		(49,023)
Cash flows from financing activities:
Net payments from issuance of common stock under stock plans	(2,587)		(2,861)
Repurchase of common stock	(102,233)		(9,339)
Payment of dividends	(13,550)		(12,888)

Net cash provided by (used in) financing activities	(118,370)		(25,088)
Effect of foreign exchange rate changes on cash and cash equivalents	2,431		(3,328)
Net change in cash and cash equivalents	(42,350)		(63,796)
Cash and cash equivalents at beginning of period	186,094		202,655
Cash and cash equivalents at end of period	$	143,744	$	138,859

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands)


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of December 31, 2024	170,434	$	341	$	1,090,638	$	499,303	$	(72,777)	$	1,517,505
Net issuance of common stock under stock plans	478	1		(2,588)		—		—		(2,587)
Repurchase of common stock	(3,047)	(6)		—		(103,407)		—		(103,413)
Stock-based compensation expense	—	—		9,939		—		—		9,939
Payment of dividends ($0.080 per common share)	—	—		—		(13,550)		—		(13,550)
Net income	—	—		—		23,603		—		23,603


Net unrealized gain (loss) on available-for-sale investments, net of tax of $875	—	—		—		—		2,711		2,711

Reclassification of net realized (gain) loss on the sale of available-for-sale investments	—	—		—		—		(27)		(27)
Foreign currency translation adjustment	—	—		—		—		11,447		11,447
Balance as of March 30, 2025 (unaudited)	167,865	$	336	$	1,097,989	$	405,949	$	(58,646)	$	1,445,628


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of December 31, 2023	171,599	$	343	$	1,037,202	$	512,543	$	(45,336)	$	1,504,752
Net issuance of common stock under stock plans	294	—		(2,861)		—		—		(2,861)
Repurchase of common stock	(231)	—		—		(9,339)		—		(9,339)
Stock-based compensation expense	—	—		13,302		—		—		13,302
Payment of dividends ($0.075 per common share)	—	—		—		(12,888)		—		(12,888)
Net income	—	—		—		12,022		—		12,022


Net unrealized gain (loss) on available-for-sale investments, net of tax of $117	—	—		—		—		359		359

Reclassification of net realized (gain) loss on the sale of available-for-sale investments	—	—		—		—		(2)		(2)
Foreign currency translation adjustment	—	—		—		—		(16,156)		(16,156)
Balance as of March 31, 2024 (unaudited)	171,662	$	343	$	1,047,643	$	502,338	$	(61,135)	$	1,489,189

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1: Summary of Significant Accounting Policies

As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles ("GAAP"). Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for a full description of other significant accounting policies.

In the opinion of the management of Cognex Corporation (the "Company"), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications necessary to present fairly the Company’s financial position as of March 30, 2025, and the results of its operations for the three-month periods ended March 30, 2025 and March 31, 2024, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.

The results disclosed in the Consolidated Statements of Operations for the three-month period ended March 30, 2025 are not necessarily indicative of the results to be expected for the full year.

NOTE 2: New Pronouncements

Accounting Standards Update (ASU) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures"

The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, are equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis. Management does not expect ASU 2023-09 to have a material impact on the Company's financial statements and disclosures.

ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)

ASU 2024-03 aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. ASU 2024-03 mandates disclosures in the notes to financial statements detailing the composition and trends of key expense categories within major income statement captions. These enhanced disclosures are intended to help investors more effectively assess the entity’s performance, understand its cost structure, and make more accurate forecasts of future cash flows. For public business entities, ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The adoption will result in disclosure changes only.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3: Financial Instruments

Cash, Cash Equivalents, and Investments

The following table summarizes the Company’s cash, cash equivalents, and investments as of March 30, 2025 (in thousands):


	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value	Cash and Cash Equivalents	Current Investments	Non-current Investments
Cash		$	121,283	$	—	$	—	$

SEC Form 10-Q filed by Cognex Corporation