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© 2025 Cognex Corporation Introduction to Cognex KeyBanc Capital Markets Technology Leadership Forum Dennis Fehr | Chief Financial Officer August 11, 2025
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© 2025 Cognex Corporation2 Certain statements made in this presentation, as well as oral statements made by Cognex Corporation ("Cognex", "we", "us", "our", or the "Company") from time to time, constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Readers can identify these forward-looking statements by our use of the words “expects,” “anticipates,” “estimates,” "potential," “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” "opportunity," "goal" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance and financial targets, the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, acquisitions, and estimated tax benefits and expenses, changes in tax legislation, and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products and the inability to develop new products; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees, effectively plan for succession including managing the change of our Chief Executive Officer, all while maintaining our unique corporate culture; (4) the failure to properly manage the distribution of products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the imposition of tariffs, the economic climate in China, and the wars involving Ukraine and Israel; (6) the challenges in integrating and achieving expected results from acquired businesses; (7) uncertainty surrounding our future capital needs; (8) information security breaches and other cybersecurity threats; (9) the failure to comply with laws or regulations relating to data privacy or data protection; (10) the inability to protect our proprietary technology and intellectual property; (11) the failure to manufacture and deliver products in a timely manner; (12) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices; (13) the inability to design and manufacture high- quality products; (14) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive industries; (15) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns and economic and market volatility; (16) potential impairment charges with respect to our investments or acquired intangible assets; (17) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (18) fluctuations in foreign currency exchange rates and the use of derivative instruments; (19) unfavorable global economic conditions, including, without limitation, increases in interest rates, elevated inflation rates, and recession risks; (20) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (21) stock price volatility; and (22) our involvement in time-consuming and costly litigation or activist shareholder activities. The foregoing list should not be construed as exhaustive and we encourage readers to refer to the detailed discussion of risk factors included in Part I - Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation to subsequently revise forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such statements are made. Forward Looking Statements
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What is Machine Vision? 3 © 2025 Cognex Corporation Optics Vision Software & AI tools
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Well positioned to capture expansive market opportunity HIGH -MARGIN BUSINESS Software embedded on-device. TECHNOLOGY LEADER Strong brand with deep domain expertise and continuous investment into AI. DIRECT SALES AS A COMPETITIVE EDGE Work with customers at every step of the customer journey to create sticky relationships. LARGE GROWTH MARKET $7B 1 market across diverse set of verticals with ~10%-11% CAGR2 through-cycle. TOP -TIER CUSTOMER BASE Leader with sophisticated tech users and opportunity to significantly expand # of served customers. CAPITAL LIGHT BUSINESS MODEL Enabling consistent cash generation and strong balance sheet. 4 1) Source: Cognex estimates based on full year 2024 market data; 2) Interact Analysis 2024 Machine Vision report and company research INVESTMENT THESIS UNIQUE COMPANY CULTURE © 2025 Cognex Corporation
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New Senior Leadership Team (July 2025) *+1% excluding the Oct 2023 acquisition of Moritex 5 © 2025 Cognex Corporation Carl Gerst Executive Vice President Global Sales & Products Reto Wyss Vice President Vision Engineering Mike Bowdoin Vice President Operations Dennis Fehr Chief Financial Officer Sheila DiPalma Executive Vice President Employee Services Chief Culture Officer Richard Reuter Senior Director Hardware Engineering Darren Long Vice President Customer Success Mark Fennell Chief Legal Officer Corporate Secretary Matt Moschner President and Chief Executive Officer Shirin Saleem Vice President Software Engineering
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38% 24% 18% 20% Cognex snapshot (NASDAQ: CGNX) $915M 2024 REVENUE 28% ADJ. EBITDA MARGIN 10-YR HISTORICAL AVERAGE ~1,400 PATENTS ISSUED & PENDING 40+ COGNEX GLOBAL HQ NATICK, MA, USA 2,900+ Cognoids globally Geographic Revenue Mix 2024 Americas Europe Greater China Other Asia 6 YEARS OF MACHINE VISION LEADERSHIP © 2025 Cognex Corporation
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7 We serve a ~$7B machine vision market with overall market share in the mid-teens $7B MARKET TODAY VS $6.5B AT 2022 INVESTOR DAY ▪ Moritex added $0.5B to our served market ▪ Logistics peak in 2021/22 due to post-COVID e-commerce boom OPTIMIZED PRESENTATION OF VERTICALS ▪ EV now included in Auto ▪ Packaging includes FMCG and Healthcare ▪ Semi split out from Consumer Electronics SERVED MARKET BY VERTICAL $1.8B $1.5B $1.5B $0.5B $1.2B $0.5B $7B 1 MARKET IN 2024 Auto Logistics Electronics Packaging Semi Other 1) Source: Cognex estimates based on full year 2024 market data © 2025 Cognex Corporation
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We sell into a diverse set of attractive verticals LOGISTICS AUTOMOTIVE CONSUMER ELECTRONICSPACKAGING 2 SEMI 8 Expect ~10%–11% market CAGR 1 through the cycle 1) Source: Interact Analysis 2024 Machine Vision report and company research; 2) Packaging includes Fast Moving Consumer Goods (FMCG) and Healthcare © 2025 Cognex Corporation
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Demographics drive manufacturing labor shortage 1 Continuous cost and quality optimization Recalibration of global supply chain Ease-of-use drives penetration Secular trends drive machine vision penetration 9 1) Source: Deloitte Insights study: Creating pathways for tomorrow’s workforce today. © 2025 Cognex Corporation
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10 1) >10% market share in China Five-Year Strategic Objectives #1 2x Customers served #1 #1 or #2 AI technology for industrial machine vision applications In Customer Experience across the industry Market Position in all major markets1 © 2025 Cognex Corporation
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EXISTING RIGHT TO WIN Guide, inspect, gauge, and identify products with speed and precision Vision inspection ready to deploy today, from a partner who is there tomorrow Enabling customers to standardize global operations NEXT LEVEL RIGHT TO WIN Apply advanced AI broadly to unlock new market opportunities for inspection applications Make it easy to deploy machine vision, enhancing the customer experience Launch a comprehensive product ecosystem with benefits to standardizing on Cognex Maintain Leadership Extend Leadership We are taking our Right To Win to the next level 11 © 2025 Cognex Corporation
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Salesforce transformation and expansion Increases reach and enables new customer acquisition opportunities COGNEX TODAY ~30,000 customers 12 New logos, entering with easy-to-use and easy-to-deploy products The most tech savvy, large customers with the most complex problems OPPORTUNITY TO double # of served customers over next five years © 2025 Cognex Corporation
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13 Through-cycle financial framework targets drive shareholder value 13% - 14% Revenue CAGR incl. 3% Inorganic Growth >100% Free Cash Flow Conversion1 20% - 30% Adjusted EBITDA Margin long-term Value Creation 1) FCF conversion is defined as Free Cash Flow divided by Adj. Net Income© 2025 Cognex Corporation
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© 2025 Cognex Corporation14 Adj. EBITDA Margin 20.7% Free Cash Flow Conversion1 130% Please see the appendix of this presentation for a description of certain Non-GAAP measures and a full GAAP to Non-GAAP reconciliation Q2 2025 Financial Highlights Adj. EPS $0.25 +12% Y/Y Fourth consecutive quarter of Y/Y growth +80bps Y/Y Highest level since Q2 2023 Trailing twelve-month rate 1) Defined as Free Cash Flow divided by Adjusted Net Income
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© 2025 Cognex Corporation15 Investor Relations Team & Upcoming Activity INVESTOR RELATIONS CONTACT: ir@cognex.com Greer Aviv HEAD OF INVESTOR RELATIONS Jordan Bertier SENIOR MANAGER, IR Upcoming Conferences and Investor Events August Raymond James Industrial Showcase Virtual September UBS Non-Deal Roadshow London, Stockholm, Geneva, Zurich, Frankfurt September Vertical Research Partners HQ Visit Natick, MA October BNP Paribas Non-Deal Roadshow Boston, MA
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© 2025 Cognex Corporation Appendix
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© 2025 Cognex Corporation17 Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating expense, adjusted operating income and margin, adjusted EBITDA and margin, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow. Cognex defines its non-GAAP metrics as follows: • Adjusted gross profit and margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events. • Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events. • Adjusted operating income and margin: Operating income adjusted for amortization of acquisition- related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events. • Adjusted EBITDA and margin: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events. • Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, and one-time discrete events. • Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares. • Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments. • Free cash flow: Cash provided by operating activities less cash for capital expenditures. • Free cash flow conversion rate: Free cash flow divided by adjusted net income. Cognex may also disclose results on a constant- currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over- period. Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex’s definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
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© 2025 Cognex Corporation18 June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Gross profit (GAAP) 167,876$ 166,599$ 312,199$ 308,536$ Acquisition and integration costs 211 233 453 1,801 Amortization of acquisition-related intangible assets 1,382 1,388 2,720 2,817 Reorganization charges - - 86 - Adjusted gross profit 169,469$ 168,220$ 315,458$ 313,154$ GAAP gross margin 67.4% 69.6% 67.1% 68.5% Adjusted gross margin 68.0% 70.3% 67.8% 69.6% Operating expense (GAAP) 124,443$ 128,142$ 242,674$ 255,875$ Acquisition and integration costs (259) (1,203) (797) (2,506) Amortization of acquisition-related intangible assets (1,296) (1,339) (2,586) (2,723) Reorganization charges - - (1,622) - Adjusted operating expense 122,888$ 125,600$ 237,669$ 250,646$ Operating income (GAAP) 43,433$ 38,457$ 69,525$ 52,661$ Acquisition and integration costs 470 1,436 1,250 4,307 Amortization of acquisition-related intangible assets 2,678 2,727 5,306 5,540 Reorganization charges - - 1,708 - Adjusted operating income 46,581$ 42,620$ 77,789$ 62,508$ GAAP operating margin 17.4% 16.1% 14.9% 11.7% Adjusted operating margin 18.7% 17.8% 16.7% 13.9% Depreciation (adjusted for amounts included in Acquisition and integration costs) 5,095 4,948 10,178 10,227 Adjusted EBITDA 51,676$ 47,568$ 87,967$ 72,735$ Adjusted EBITDA margin 20.7% 19.9% 18.9% 16.2% Three-months Ended Six-months Ended GAAP to Non-GAAP Tables USD $ in 000s unless noted as per share
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© 2025 Cognex Corporation19 June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Net income (GAAP) 40,511$ 36,212$ 64,114$ 48,234$ Acquisition and integration costs 470 1,436 1,250 4,307 Amortization of acquisition-related intangible assets 2,678 2,727 5,306 5,540 Reorganization charges - - 1,708 - Discrete tax (benefit) expense (211) (463) (518) 2,622 Tax impact of reconciling items (891) (1,033) (2,256) (2,387) Adjusted net income 42,557$ 38,879$ 69,604$ 58,316$ Earnings per share of common stock, diluted (GAAP) 0.24$ 0.21$ 0.38$ 0.28$ Acquisition and integration costs 0.00 0.01 0.01 0.02 Amortization of acquisition-related intangible assets 0.02 0.02 0.03 0.03 Reorganization charges - - 0.01 - Discrete tax (benefit) expense (0.00) (0.00) (0.00) 0.02 Tax impact of reconciling items (0.01) (0.01) (0.01) (0.01) Adjusted earnings per share of common stock, diluted 0.25$ 0.23$ 0.41$ 0.34$ Effective tax rate (GAAP) 15.7% 12.9% 15.5% 18.4% Discrete tax benefit (expense) 0.4% 1.1% 0.7% -4.4% Net Impact of other reconciling items 0.7% 1.0% 1.1% 1.5% Adjusted effective tax rate 16.9% 15.0% 17.3% 15.5% Cash provided by operating activities (GAAP) 42,625$ 27,763$ 83,127$ 41,406$ Capital expenditures (2,194) (4,510) (4,695) (8,571) Free cash flow 40,431$ 23,253$ 78,432$ 32,835$ Three-months Ended Six-months Ended GAAP to Non-GAAP Tables USD $ in 000s unless noted as per share
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© 2025 Cognex Corporation20 Description of Certain Adjustments 1. Depreciation The company incurs expense related to its normal use of property, plant and equipment 2. Acquisition and integration costs The Company has incurred charges related to the purchase and integration of acquired businesses. During the periods presented, these costs were primarily related to the ongoing integration of Moritex Corporation, which the Company acquired in the fourth quarter of 2023. 3. Reorganization charges The Company has incurred charges related to the reorganization of its employees. During the six-month period ended June 29, 2025, these costs consisted primarily of severance. 4. Amortization of acquisition-related intangible assets The Company excludes the amortization of acquired intangible assets from non- GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation. 5. Discrete tax (benefit) expense Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period’s actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock- based compensation, and adjustments to deferred tax positions. We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.