Cognex(US:CGNX)2025-10-29 20:32Revenue and Income - Revenue for Q3 2025 was $277 million, an 18% increase year over year, or 16% on a constant-currency basis[5] - Operating income reached $58 million, up 83% from $32 million in Q3 2024, with an operating margin of 20.9%, an increase of 750 basis points[5] - Adjusted EBITDA was $69 million, a 67% increase year over year, with an adjusted EBITDA margin of 24.9%, up 730 basis points[5] - Net income per diluted share was $0.10, a decrease of 39% from $0.17 in Q3 2024, while adjusted diluted earnings per share increased by 69% to $0.33[5] - Net income for the three months ended September 28, 2025, was $17,664,000, a decrease from $29,591,000 in the same period last year, resulting in a net income margin of 6.4%[19] - Net income (GAAP) for the three months ended September 28, 2025, was $17.66 million, a decrease from $29.59 million in the same quarter of 2024, representing a decline of 40.3%[25] - Adjusted net income for the three months ended September 28, 2025, was $56.10 million, compared to $33.93 million in 2024, showing an increase of 65.5%[25] Cash Flow and Shareholder Returns - Cognex returned $37 million to shareholders during the quarter, exceeding 100% of free cash flow over the trailing twelve-month period[5] - Free cash flow for Q3 2025 was $86 million, a 66% increase from $52 million in Q3 2024, with a conversion rate of 487% of net income[8] - Cash and cash equivalents increased to $245,898,000 as of September 28, 2025, up from $186,094,000 at the end of 2024[17] - Total current assets rose to $670,919,000 as of September 28, 2025, compared to $613,367,000 at the end of 2024, reflecting a growth of 9.4%[17] - The company declared cash dividends of $0.080 per common share for the three months ended September 28, 2025, compared to $0.075 in the same period of 2024[19] - Free cash flow for the nine months ended September 28, 2025, was $164.47 million, significantly higher than $84.71 million in the same period of 2024, reflecting a growth of 94.0%[25] Expenses and Margins - Research, development, and engineering expenses were $35,081,000 for the three months ended September 28, 2025, representing 12.7% of revenue, down from 15.0% in the prior year[19] - Selling, general, and administrative expenses were $94,444,000 for the three months ended September 28, 2025, which is 34.1% of revenue, down from 39.5% in the same period of 2024[19] - Gross profit for the three months ended September 28, 2025, was $187,290,000, representing a gross margin of 67.6%, slightly down from 67.9% in the prior year[19] - Adjusted gross profit for the nine months ended September 28, 2025, reached $504.74 million, compared to $474.47 million in 2024, reflecting a year-over-year increase of 6.4%[25] Future Guidance - For Q4 2025, Cognex expects revenue between $230 million and $245 million, representing a 3% year-over-year increase[11] - Adjusted EBITDA margin guidance for Q4 2025 is set between 17.0% and 20.0%, with adjusted earnings per share expected to be between $0.19 and $0.24[11] Financial Position - As of September 28, 2025, Cognex had $600 million in cash and investments with no debt[8] - Total liabilities increased to $513,114,000 as of September 28, 2025, compared to $475,345,000 at the end of 2024, marking an increase of 7.9%[17] Strategic Initiatives - The company launched the Solutions Experience (SLX) product portfolio in Logistics, targeting the growing AI-enabled Vision applications market[5] - The company continues to focus on AI technology to enhance the capabilities of its vision sensors and systems, aiming to improve manufacturing efficiency across various industries[31] - Acquisition and integration costs related to the ongoing integration of Moritex Corporation were incurred during the periods presented, impacting financial results[27]