Cognex(US:CGNX)2026-02-11 21:31Revenue Growth - Fourth-quarter revenue increased by 10% year over year to $252 million, with a constant-currency growth of 9%[4] - Full-year revenue grew by 9% to $994 million, with a 7% increase when excluding the one-time benefit from the Commercial Partnership[6] - First-quarter 2026 revenue guidance is set between $235 million and $255 million, representing a year-over-year increase of approximately 13%[10] - Revenue for Q4 2025 was $252.3 million, an increase of 9.1% from $229.7 million in Q4 2024[20] Profitability Metrics - Adjusted EBITDA margin for the fourth quarter expanded by 420 basis points year over year to 22.7%, marking the sixth consecutive quarter of expansion[4] - Full-year adjusted EBITDA increased by 37% to $214 million, with an adjusted EBITDA margin of 21.5%, up 440 basis points year over year[6] - Net income per diluted share for the fourth quarter was $0.19, an increase of 18% year over year, while adjusted diluted EPS rose by 35% to $0.27[5] - Operating income for Q4 2025 was $35.3 million, representing 14.0% of revenue, compared to 13.4% in Q4 2024[20] - The company reported a net income of $32.7 million for Q4 2025, compared to $28.3 million in Q4 2024, with adjusted net income of $46.4 million[26] Shareholder Returns - The company returned $206 million to shareholders in 2025, including $151 million in share buybacks[4] - Cognex's Board of Directors declared a quarterly cash dividend of $0.085 per share, payable on March 12, 2026[8] - The company declared cash dividends of $0.085 per share in Q4 2025, compared to $0.080 in Q4 2024[20] Cash Flow and Assets - The company generated $246 million in cash from operating activities in 2025, a 65% increase compared to 2024[12] - Free cash flow for the twelve months ended December 31, 2025, was $236.8 million, significantly higher than $134.0 million in the previous year[27] - Cash provided by operating activities increased to $74.9 million in Q4 2025 from $51.4 million in Q4 2024[27] - Total assets increased to $2.02 billion in 2025 from $1.99 billion in 2024[18] - Cash and cash equivalents rose to $262.9 million in 2025, up from $186.1 million in 2024[18] - Total liabilities increased to $524.7 million in 2025 from $475.3 million in 2024[18] Research and Development - Research and development expenses for Q4 2025 were $36.1 million, representing 14.3% of revenue, slightly up from 14.2% in Q4 2024[20] - The company continues to focus on AI technology to enhance the capabilities of its vision sensors and systems, improving efficiency in manufacturing and distribution[36] Strategic Initiatives - Cognex expects to achieve an additional $35 to $40 million in annualized cost reductions by the end of 2026 through ongoing operating model optimization[4] - Cognex acquired Moritex Corporation in Q4 2023, which has contributed to ongoing integration costs and amortization of intangible assets[29][30] Inventory and Tax - The company incurred $13.1 million in excess and obsolete inventory charges in Q4 2025, reflecting a strategic product portfolio review[26] - Cognex's effective tax rate for Q4 2025 was 25.9%, compared to 20.8% in Q4 2024[27] Gross Profit Metrics - Gross profit margin for Q4 2025 was 65.7%, down from 68.7% in Q4 2024[20] - Q4 2025 GAAP gross profit reached $165.9 million, up from $157.9 million in Q4 2024, with an adjusted gross profit of $180.7 million[26] - The adjusted gross margin improved to 71.6% in Q4 2025 compared to 69.4% in Q4 2024[26]