Cognex Corporation

Greetings, and welcome to the Cognex Third Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Greer Aviv, Head of Investor Relations. Thank you. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us. Our earnings release was published yesterday after market closed, and our 10Q was filed this morning. The earnings materials are available on our investor relations website. I am joined here today by Matt Moschner, our CEO, and Dennis Fair, our CFO. Today, we plan to share several key messages with you, including progress on our strategic objectives to be the AR leader in the industry and market trends our performance in the third quarter, and our expectations for the fourth quarter. After prepared remarks, we'll open the lines for Q&A. Both our published materials and the call today will reference non-GAAP measures. You can find a reconciliation of certain items from GAAP to non-GAAP in our press release and earnings presentation. Today's earnings materials will cover forward-looking statements, including statements regarding our expectations Our actual results may differ from our projections due to the risks and uncertainties that are described in our SEC filings, including our most recent form, 10-K. With that, I'll turn the call over to Matt.

Thanks, Greer. Good morning, everyone, and thank you for joining us today. Q3 was another strong quarter for Cognex. We delivered outstanding financial results, which reflect our commitment to profitable growth and disciplined execution. At the same time, we remained focused on advancing our strategic objective to be the leading provider of AI technology for industrial machine vision. Turning to page three of our earnings presentation, let's look at some highlights from the third quarter. I'm pleased to share that our third quarter key financial metrics all came in at the high end of our expectations. We delivered double-digit revenue growth and achieved our highest adjusted EBITDA margin since Q2 of 2023. In addition to the strong financial performance, we are making meaningful progress against our strategic objectives. First, we continue to execute our Salesforce transformation, acquiring new customers and under penetrated verticals such as packaging, using easy to use AI enabled products. I'm also very pleased with the progress we've made this year driving productivity in our sales organization by using the CRM tools and updated processes. Second, we are advancing our technology leadership in AI. This quarter we're excited to announce the launch of our new solutions experience product line and logistics, which we are calling SLX. This release introduces our latest AI vision tools to solve novel applications in this fast growing vertical. Turning to page four, you can see that the SLX epitomizes our mission to make advanced machine vision easy. By combining industry leading AI with intuitive deployment workflows, we can solve critical logistics applications with minimal user training. Our initial rollout of SLX devices targets specific applications, including object classification and side-by-side detection, both of which complement barcode reading in mixed application workflows. Correlator, a leading freight, package, and logistics provider, recently deployed SLX as the next step in their automation strategy, enabling advanced package detection within its sortation process. Since implementation, Correlator has significantly reduced costs tied to process errors, and seamlessly scaled the solution across its terminals and its network. These new products extend our reach beyond traditional barcode reading into higher value vision applications in logistics. They help accelerate automation adoption by offering customers scalable, easy to use solutions that improve efficiency. With SLX, we're also laying the foundation for other application specific solutions. Next, let's review our current trends across key end markets as shown on page five of the earnings presentation. Please note that my discussion on end market performance excludes the one-time benefit from the commercial partnership in our Q3 2025 results and an additional month of more tax revenue in Q3 2024 results. Although the macroeconomic backdrop remains uneven and geopolitical uncertainty persists, we continue to see momentum in consumer electronics, logistics, and packaging, while automotive remains soft. Starting with logistics. This market remains a strong growth driver. Q3 marks our seventh consecutive quarter of double-digit year-over-year revenue growth, which was led by large e-commerce customers this quarter. The current cycle is being driven primarily by automation of existing facilities rather than new capacity expansion. We believe automation penetration is still low in this vertical and the ROI on our products is very strong. Next is automotive. As expected, automotive revenue continued to contract. although year-over-year declines moderated through the year. The market remains challenging, but we continue to anticipate less steep decline in 2025 relative to last year's 14% contraction, and we believe we are nearing the bottom. Looking ahead, we continue to see promising long-term opportunities in the automotive market as customers prioritize improving vehicle quality and driving down operating costs. Next, let's talk about packaging. The business delivered solid revenue growth across most geographies in Q3. Packaging remains a large, under-penetrated market with less cyclicality than other verticals. We're making progress with new products and expanding sales coverage, positioning us to capture incremental opportunities and drive further penetration. We maintain a positive full-year outlook for packaging. Turning now to consumer electronics. Q3 revenue grew significantly year-over-year, driven by broad-based strengths. This market is showing clear signs of recovery following a prolonged down cycle, and we are well positioned to benefit from ongoing supply chain diversification and evolving device form factors. We maintain a positive outlook for the full year as we expect consumer electronics to deliver its first year of revenue growth since 2022. Finally, turning to semiconductor. Q3 revenue increased modestly year over year against a very strong comparison. although we maintain a cautious full-year outlook. Longer term, we expect Semi growth to benefit from the AI-driven investment cycle, reinforcing our confidence in this market. Cognex's deep relationships with leading Semi equipment manufacturers position us well for future growth. In summary, Q3 underscores the strength of our strategy and execution. We remain focused on being the number one provider of AI technology for machine vision, delivering the best customer experience in our industry, and doubling our customer base over the next five years. These strategic objectives, supported by operational discipline and continued innovation, position us to drive long-term profitable growth and create sustainable value for our shareholders. Let me now hand it over to Dennis to walk through the financial results and the outlook for the fourth quarter. Dennis?