September 28, 20250000851205--12-312025Q3false366203xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesiso4217:SGDiso4217:CNYiso4217:MXNiso4217:HUFiso4217:GBPiso4217:JPYiso4217:EURiso4217:CHFiso4217:CADcgnx:terminationOptionscgnx:extension_optionxbrli:purecgnx:lease_componentutr:sqftcgnx:groupcgnx:segment00008512052025-01-012025-09-2800008512052025-10-2600008512052025-06-302025-09-2800008512052024-07-012024-09-2900008512052024-01-012024-09-290000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-09-2800008512052025-09-2800008512052024-12-3100008512052023-12-3100008512052024-09-290000851205us-gaap:CommonStockMember2025-06-290000851205us-gaap:AdditionalPaidInCapitalMember2025-06-290000851205us-gaap:RetainedEarningsMember2025-06-290000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-2900008512052025-06-290000851205us-gaap:CommonStockMember2025-06-302025-09-280000851205us-gaap:AdditionalPaidInCapitalMember2025-06-302025-09-280000851205us-gaap:RetainedEarningsMember2025-06-302025-09-280000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-302025-09-280000851205us-gaap:CommonStockMember2025-09-280000851205us-gaap:AdditionalPaidInCapitalMember2025-09-280000851205us-gaap:RetainedEarningsMember2025-09-280000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-280000851205us-gaap:CommonStockMember2024-06-300000851205us-gaap:AdditionalPaidInCapitalMember2024-06-300000851205us-gaap:RetainedEarningsMember2024-06-300000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000008512052024-06-300000851205us-gaap:CommonStockMember2024-07-012024-09-290000851205us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-290000851205us-gaap:RetainedEarningsMember2024-07-012024-09-290000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-290000851205us-gaap:CommonStockMember2024-09-290000851205us-gaap:AdditionalPaidInCapitalMember2024-09-290000851205us-gaap:RetainedEarningsMember2024-09-290000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-290000851205us-gaap:CommonStockMember2024-12-310000851205us-gaap:AdditionalPaidInCapitalMember2024-12-310000851205us-gaap:RetainedEarningsMember2024-12-310000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000851205us-gaap:CommonStockMember2025-01-012025-09-280000851205us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-280000851205us-gaap:RetainedEarningsMember2025-01-012025-09-280000851205us-gaap:CommonStockMember2023-12-310000851205us-gaap:AdditionalPaidInCapitalMember2023-12-310000851205us-gaap:RetainedEarningsMember2023-12-310000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000851205us-gaap:CommonStockMember2024-01-012024-09-290000851205us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-290000851205us-gaap:RetainedEarningsMember2024-01-012024-09-290000851205us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-290000851205us-gaap:CashMember2025-09-280000851205us-gaap:MoneyMarketFundsMember2025-09-280000851205us-gaap:CertificatesOfDepositMember2025-09-280000851205us-gaap:CorporateBondSecuritiesMember2025-09-280000851205us-gaap:USTreasurySecuritiesMember2025-09-280000851205us-gaap:AssetBackedSecuritiesMember2025-09-280000851205us-gaap:USTreasuryBillSecuritiesMember2025-09-280000851205us-gaap:SovereignDebtMember2025-09-280000851205us-gaap:CashMember2024-12-310000851205us-gaap:MoneyMarketFundsMember2024-12-310000851205us-gaap:CorporateBondSecuritiesMember2024-12-310000851205us-gaap:USTreasurySecuritiesMember2024-12-310000851205us-gaap:AssetBackedSecuritiesMember2024-12-310000851205us-gaap:SovereignDebtMember2024-12-310000851205us-gaap:OtherCurrentAssetsMember2025-09-280000851205us-gaap:OtherCurrentAssetsMember2024-12-310000851205us-gaap:SovereignDebtSecuritiesMember2025-09-280000851205us-gaap:SovereignDebtSecuritiesMember2024-12-310000851205us-gaap:NondesignatedMember2025-01-012025-09-280000851205currency:SGDus-gaap:NondesignatedMember2025-09-280000851205currency:SGDus-gaap:NondesignatedMember2024-12-310000851205currency:CNYus-gaap:NondesignatedMember2025-09-280000851205currency:CNYus-gaap:NondesignatedMember2024-12-310000851205currency:MXNus-gaap:NondesignatedMember2025-09-280000851205currency:MXNus-gaap:NondesignatedMember2024-12-310000851205currency:HUFus-gaap:NondesignatedMember2025-09-280000851205currency:HUFus-gaap:NondesignatedMember2024-12-310000851205currency:GBPus-gaap:NondesignatedMember2025-09-280000851205currency:GBPus-gaap:NondesignatedMember2024-12-310000851205currency:JPYus-gaap:NondesignatedMember2025-09-280000851205currency:JPYus-gaap:NondesignatedMember2024-12-310000851205currency:EURus-gaap:NondesignatedMember2025-09-280000851205currency:EURus-gaap:NondesignatedMember2024-12-310000851205currency:CHFus-gaap:NondesignatedMember2025-09-280000851205currency:CHFus-gaap:NondesignatedMember2024-12-310000851205currency:CADus-gaap:NondesignatedMember2025-09-280000851205currency:CADus-gaap:NondesignatedMember2024-12-310000851205us-gaap:NondesignatedMember2025-09-280000851205us-gaap:NondesignatedMember2024-12-310000851205us-gaap:NondesignatedMember2025-06-302025-09-280000851205us-gaap:NondesignatedMember2024-07-012024-09-290000851205us-gaap:NondesignatedMember2024-01-012024-09-290000851205country:SG2023-06-300000851205country:SGcgnx:A88000SquareFootPremisesMember2023-06-300000851205country:SGcgnx:A27000SquareFootPremisesMember2023-06-300000851205country:SGcgnx:A27000SquareFootPremisesMember2025-09-280000851205cgnx:AachenGermanyMember2024-12-310000851205cgnx:AachenGermanyMember2025-01-012025-06-290000851205cgnx:AachenGermanyMember2025-09-280000851205cgnx:CustomerContractsAndRelationshipsMember2025-09-280000851205us-gaap:DevelopedTechnologyRightsMember2025-09-280000851205us-gaap:TrademarksMember2025-09-280000851205us-gaap:OtherIntangibleAssetsMember2025-09-280000851205cgnx:CustomerContractsAndRelationshipsMember2024-12-310000851205us-gaap:DevelopedTechnologyRightsMember2024-12-310000851205us-gaap:TrademarksMember2024-12-310000851205us-gaap:OtherIntangibleAssetsMember2024-12-310000851205cgnx:DistributionRightsDevelopedTechnologyRightsCustomerContractsAndRelationshipsOtherIntangibleAssetsAndTrademarksMember2025-09-280000851205cgnx:RepurchaseProgramMarch2022Member2022-03-030000851205cgnx:RepurchaseProgramMarch2022Member2024-01-012024-09-290000851205cgnx:RepurchaseProgramMarch2022Member2025-01-012025-09-280000851205cgnx:RepurchaseProgramMarch2022Member2025-09-280000851205us-gaap:RestrictedStockMember2025-06-302025-09-280000851205us-gaap:RestrictedStockMember2024-07-012024-09-290000851205us-gaap:RestrictedStockMember2025-01-012025-09-280000851205us-gaap:RestrictedStockMember2024-01-012024-09-290000851205us-gaap:PerformanceSharesMember2025-06-302025-09-280000851205us-gaap:PerformanceSharesMember2024-07-012024-09-290000851205us-gaap:PerformanceSharesMember2025-01-012025-09-280000851205us-gaap:PerformanceSharesMember2024-01-012024-09-290000851205cgnx:PerformanceRestrictedStockUnitsMember2025-01-012025-09-280000851205srt:MinimumMembercgnx:PerformanceRestrictedStockUnitsMember2025-01-012025-09-280000851205srt:MaximumMembercgnx:PerformanceRestrictedStockUnitsMember2025-01-012025-09-280000851205cgnx:PerformanceRestrictedStockUnitsMember2025-06-302025-09-280000851205cgnx:ProductCostOfRevenueMember2025-06-302025-09-280000851205cgnx:ProductCostOfRevenueMember2024-07-012024-09-290000851205cgnx:ProductCostOfRevenueMember2025-01-012025-09-280000851205cgnx:ProductCostOfRevenueMember2024-01-012024-09-290000851205us-gaap:ResearchAndDevelopmentExpenseMember2025-06-302025-09-280000851205us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-290000851205us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-09-280000851205us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-09-290000851205cgnx:SellingGeneralAndAdministrativeMember2025-06-302025-09-280000851205cgnx:SellingGeneralAndAdministrativeMember2024-07-012024-09-290000851205cgnx:SellingGeneralAndAdministrativeMember2025-01-012025-09-280000851205cgnx:SellingGeneralAndAdministrativeMember2024-01-012024-09-290000851205srt:AmericasMember2025-06-302025-09-280000851205srt:AmericasMember2024-07-012024-09-290000851205srt:AmericasMember2025-01-012025-09-280000851205srt:AmericasMember2024-01-012024-09-290000851205srt:EuropeMember2025-06-302025-09-280000851205srt:EuropeMember2024-07-012024-09-290000851205srt:EuropeMember2025-01-012025-09-280000851205srt:EuropeMember2024-01-012024-09-290000851205country:CN2025-06-302025-09-280000851205country:CN2024-07-012024-09-290000851205country:CN2025-01-012025-09-280000851205country:CN2024-01-012024-09-290000851205cgnx:AsiaExcludingChinaMember2025-06-302025-09-280000851205cgnx:AsiaExcludingChinaMember2024-07-012024-09-290000851205cgnx:AsiaExcludingChinaMember2025-01-012025-09-280000851205cgnx:AsiaExcludingChinaMember2024-01-012024-09-290000851205cgnx:StandardProductsandServicesMember2025-06-302025-09-280000851205cgnx:StandardProductsandServicesMember2024-07-012024-09-290000851205cgnx:StandardProductsandServicesMember2025-01-012025-09-280000851205cgnx:StandardProductsandServicesMember2024-01-012024-09-290000851205cgnx:ApplicationSpecificCustomerSolutionsMember2025-06-302025-09-280000851205cgnx:ApplicationSpecificCustomerSolutionsMember2024-07-012024-09-290000851205cgnx:ApplicationSpecificCustomerSolutionsMember2025-01-012025-09-280000851205cgnx:ApplicationSpecificCustomerSolutionsMember2024-01-012024-09-290000851205cgnx:LicenseFeesAndTransferredInventoryRevenueMember2025-06-302025-09-280000851205us-gaap:ForeignCountryMemberus-gaap:RevenueCommissionersIrelandMember2025-01-012025-09-280000851205us-gaap:ForeignCountryMemberus-gaap:StateAdministrationOfTaxationChinaMember2025-01-012025-09-280000851205us-gaap:ForeignCountryMembercountry:JP2025-01-012025-09-280000851205us-gaap:ForeignCountryMembercountry:KP2025-01-012025-09-280000851205us-gaap:DomesticCountryMember2025-01-012025-09-280000851205srt:MinimumMembersrt:ScenarioForecastMember2025-07-042025-12-310000851205srt:MaximumMembersrt:ScenarioForecastMember2025-07-042025-12-310000851205us-gaap:EmployeeStockOptionMember2025-06-302025-09-280000851205us-gaap:EmployeeStockOptionMember2024-07-012024-09-290000851205us-gaap:EmployeeStockOptionMember2025-01-012025-09-280000851205us-gaap:EmployeeStockOptionMember2024-01-012024-09-290000851205us-gaap:RestrictedStockMember2025-06-302025-09-280000851205us-gaap:RestrictedStockMember2024-07-012024-09-290000851205us-gaap:RestrictedStockMember2025-01-012025-09-280000851205us-gaap:RestrictedStockMember2024-01-012024-09-290000851205us-gaap:PerformanceSharesMember2025-06-302025-09-280000851205us-gaap:PerformanceSharesMember2024-07-012024-09-290000851205us-gaap:PerformanceSharesMember2025-01-012025-09-280000851205us-gaap:PerformanceSharesMember2024-01-012024-09-290000851205cgnx:ResearchDevelopmentAndEngineeringExpensesMember2025-06-302025-09-280000851205cgnx:ResearchDevelopmentAndEngineeringExpensesMember2024-07-012024-09-290000851205cgnx:ResearchDevelopmentAndEngineeringExpensesMember2025-01-012025-09-280000851205cgnx:ResearchDevelopmentAndEngineeringExpensesMember2024-01-012024-09-290000851205cgnx:SegmentGeneralAndEngineeringExpenseMember2025-06-302025-09-280000851205cgnx:SegmentGeneralAndEngineeringExpenseMember2024-07-012024-09-290000851205cgnx:SegmentGeneralAndEngineeringExpenseMember2025-01-012025-09-280000851205cgnx:SegmentGeneralAndEngineeringExpenseMember2024-01-012024-09-290000851205us-gaap:SubsequentEventMember2025-10-292025-10-290000851205cgnx:LauraMacDonaldMember2025-06-302025-09-280000851205cgnx:LauraMacDonaldMembercgnx:LauraMacDonaldRuleTradingArrangementStockOptionsMember2025-09-280000851205cgnx:LauraMacDonaldMembercgnx:LauraMacDonaldRuleTradingArrangementCommonStockMember2025-09-280000851205cgnx:CarlGerstMember2025-06-302025-09-280000851205cgnx:CarlGerstMember2025-09-28

(Mark One)

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

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.  

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).

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):

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).    

As of October 26, 2025 there were 167,598,049 shares of Common Stock, $.002 par value per share, of the registrant outstanding.

 

(In thousands, except per share amounts)

 

 

 

(In thousands, except share amounts)

 

(In thousands, except unit and per unit data)

(In thousands of dollars, except unit and per unit data)

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 accounting principles generally accepted in the United States ("GAAP"). Reference should be made to the consolidated financial statements and related notes included in Cognex Corporation's ("Cognex" or the "Company") 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 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 September 28, 2025, and the results of its operations for the three-month and nine-month periods ended September 28, 2025 and September 29, 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 and nine-month periods ended September 28, 2025 are not necessarily indicative of the results to be expected for the full year.

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.

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

This ASU aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. This ASU 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, this ASU 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.

Accounting Standards Update (ASU) 2025-05 - Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets

This ASU provides a practical expedient to simplify the measurement of credit losses for certain receivables and contract assets. The amendments allow entities to assume that current conditions at the balance sheet date will persist over the life of these assets, eliminating the need to develop forward-looking forecasts required under the current expected credit loss ("CECL") model. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued or made available for issuance. Management does not expect ASU 2025-05 to have a material impact on the Company's financial statements and disclosures.

Accounting Standards Update (ASU) 2025-06 - Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

The amendments in this ASU updates the accounting and disclosure guidance for internal-use software to better reflect modern, iterative development practices. The amendments replace the former “development stage” model with a judgment-based framework and require entities to evaluate whether significant development uncertainty exists before capitalizing costs. The ASU also incorporates website development guidance into Subtopic 350-40 and aligns disclosures for capitalized software with those for property, plant, and equipment.

For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-06 would have on the Company's financial statements and disclosures.

Cash, Cash Equivalents, and Investments

The following table summarizes the Company’s cash, cash equivalents, and investments as of September 28, 2025 (in thousands):

The following table summarizes the Company’s cash, cash equivalents, and investments as of December 31, 2024 (in thousands):

The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1.

The Company’s debt securities are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial instruments, and in doing so, considers valuations provided by a large, third-party pricing service. This service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations.

Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $3,268,000 and $4,144,000 as of September 28, 2025 and December 31, 2024, respectively.

Realized Gains (Losses) on Debt Securities

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month and nine-month periods ended September 28, 2025 and September 29, 2024 (in thousands):

Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive income (loss).

Unrealized Losses on Debt Securities

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of September 28, 2025 (in thousands):

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2024 (in thousands):

			Unrealized Loss Position For:
			Less than 12 Months												12 Months or Greater												Total
			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Corporate bonds			$	172,049					$	(2,227)					$	87,815					$	(2,071)					$	259,864					$	(4,298)
Treasury notes			42,149						(425)						2,487						(14)						44,636						(439)
Asset-backed securities			11,024						(547)						2,290						(10)						13,314						(557)
Sovereign bonds			—						—						990						(23)						990						(23)
			$	225,222					$	(3,199)					$	93,582					$	(2,118)					$	318,804					$	(5,317)

Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of September 28, 2025 or December 31, 2024. Management currently intends to hold these securities to full value recovery at maturity.

Debt Securities Maturities

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of September 28, 2025 (in thousands):

Derivative Instruments

The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed twelve months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.

The Company had the following outstanding forward contracts (in thousands):

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

The Company’s forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.

Information regarding the effect of derivative instruments on the Consolidated Statements of Operations was as follows (in thousands):

Activities related to derivative instruments are reflected within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.

Inventories consisted of the following (in thousands):

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its business. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of September 28, 2025, there were no options to terminate and nineteen options to extend that were accounted for in the determination of the applicable lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for outstanding leases as of September 28, 2025. The Company did not have any leases that had not yet commenced but that created significant rights and/or obligations as of September 28, 2025.

The components of lease expense were as follows (in thousands):

						Three-months Ended												Nine-months Ended
						September 28, 2025						September 29, 2024						September 28, 2025						September 29, 2024
Operating lease expense						$	3,637					$	3,610					$	10,629					$	10,647
Short-term lease expense (1)						290						$	52					710						$	191
(1) Leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability

Supplemental balance sheet information related to leases was as follows:

Supplemental cash flow information related to leases was as follows (in thousands):

						Three-months Ended												Nine-months Ended
						September 28, 2025						September 29, 2024						September 28, 2025						September 29, 2024
Cash paid for amounts included in the measurement of operating lease liabilities						$	3,594					$	3,516					$	10,428					$	10,130

Maturities of lease liabilities as of September 28, 2025 were as follows (in thousands):

						Amount
Remainder of fiscal 2025						$	4,044
2026						14,688
2027						13,063
2028						11,650
2029						9,846
2030						8,774
Thereafter						42,171
Total undiscounted lease payments						$	104,236
Less: imputed interest						25,311
Total operating lease liabilities						$	78,925

The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that had a commencement date in June of 2023 and a second 27,000 square-foot premises that does not commence until the fourth quarter of 2025. Accordingly, the second component of the lease has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of September 28, 2025. This second lease component has an original term of eight years. Undiscounted lease payment obligations associated with this lease component total $8,420,000, $169,000 of which is payable in the remainder of 2025. Undiscounted lease payment obligations related to this lease component are not included in the lease liability maturity table above as the lease component has not yet commenced.

The Company has entered into a lease for a 6,500 square-foot building in Aachen, Germany for a term of ten years. The lease was recorded on the Consolidated Balance Sheet upon commencement in June of 2025. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original term. Undiscounted lease payment obligations associated with this lease are included in the lease liability maturity table above and total $9,128,000, $223,000 of which is payable in the remainder of 2025.

The changes in the carrying value of goodwill were as follows (in thousands):

Amortized intangible assets as of September 28, 2025 consisted of the following (in thousands):

Amortized intangible assets as of December 31, 2024 consisted of the following (in thousands):

Future amortization expense related to intangible assets as of September 28, 2025 is as follows (in thousands):

The Company records the estimated cost of fulfilling product warranties at the time of sale based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or changes in circumstances impacting product quality become known that would not have been taken into account using historical data. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets.

The changes in the warranty obligation were as follows (in thousands):

As of September 28, 2025, the Company had outstanding purchase orders totaling $42,597,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months.

A significant portion of the Company's outstanding inventory purchase orders as of September 28, 2025, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss.

Stock Repurchase Program

In March 2022, the Company's Board of Directors (the "Board") authorized a program providing for the repurchase of $500,000,000 of the Company's common stock (the "Program"). Under the Program, in addition to repurchases made in other periods, the Company repurchased 555,000 shares at a total cost of $23,841,000 during the nine-month period ended September 29, 2024 and 3,594,000 shares at a total cost of $126,233,000 during the nine-month period ended September 28, 2025, leaving a remaining balance of $140,020,000 as of September 28, 2025. The Company may repurchase shares under the Program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

Stock-Based Compensation Expense

The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs").

The following table summarizes the number of stock-based awards granted by the Company and the weighted-average grant-date fair value per unit for the three-month and nine-month periods ended September 28, 2025 and September 29, 2024:

During the first quarter of 2025, the Company granted PRSUs that vest upon the achievement of (1) a service condition of three years of continuous employment and (2) a performance condition established by the Compensation Committee of the Board as of the grant date. The number of shares earned could range between 0% and 120% based on achievement of the performance condition, which includes certain financial targets over the three-year measurement period. The fair value of these PRSUs is calculated based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes. During the three-month and nine-month periods ended September 28, 2025, the Company recorded $345,000 and $841,000 in compensation expense based on the probable three-year financial target outcome for the PRSUs granted during the first quarter of 2025.

The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 11% to all stock-based awards for senior management and a rate of 13% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover. Credits of $4,789,000 and $1,832,000 were recorded in 2025 and 2024, respectively, to true up previously recorded compensation expense for this forfeiture rate revision.

As of September 28, 2025, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $59,613,000, which is expected to be recognized over a weighted-average period of 1.7 years.

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):

No compensation expense was capitalized as of September 28, 2025 or December 31, 2024.

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):

The following table summarizes disaggregated revenue information by revenue type (in thousands):