Segment and Geographic Information

The Company operates in one segment, machine vision technology. The Company has a single, company-wide management team that administers operations as a whole rather than as discrete operating segments. The Company’s chief operating decision maker is the chief executive officer, who assesses performance and allocates resources at the corporate level, as compared to the geography, product line, or end market levels. The Company offers a variety of machine vision products that have similar economic characteristics and are distributed by the same sales channels to the same types of customers.

The following table summarizes information about geographic areas (in thousands):


	United States		Europe		Greater China		Other		Total
Year Ended December 31, 2025
Revenue	$	329,125	$	251,638	$	158,456	$	255,140	$	994,359
Long-lived assets	48,838		14,112		13,631		14,428		$	91,009
Year Ended December 31, 2024
Revenue	$	306,766	$	217,880	$	164,147	$	225,722	$	914,515
Long-lived assets	56,948		15,655		14,844		16,025		$	103,472
Year Ended December 31, 2023
Revenue	$	288,324	$	220,665	$	164,115	$	164,443	$	837,547
Long-lived assets	62,946		17,005		17,028		15,958		$	112,937

Revenue is presented geographically based on the customer’s country of domicile.

Revenue from a single customer accounted for 15% and 10% of total revenue in 2025 and 2024, respectively. Revenue from this customer was not greater than 10% of total revenue in 2023. Accounts receivable from this customer were not greater than 10% of total accounts receivable as of December 31, 2025 and was 10% of total accounts receivable as of December 31, 2024.

The measure of segment profit or loss for the Company's single segment is net income. Segment expenses were disaggregated based on the information the chief operating decision maker uses to assess performance and allocate resources considering both quantitative and qualitative factors. The following table summarizes significant segment expenses, which represents the difference between segment revenue and segment net income, (in thousands):


	Year Ended December 31,
	2025		2024		2023
Revenue	$	994,359	$	914,515	$	837,547
Less:
Cost of revenue (1)	328,966		288,721		236,306
Gross profit	665,393		625,794		601,241
Less:
Research, development, and engineering expenses
Salaries and fringe benefits	75,690		79,544		78,762
Incentive compensation (2)	9,537		4,711		1,446
Stock-based compensation	15,336		14,628		16,480
Depreciation and amortization	2,628		3,229		3,056
Other segment expenses (3)	35,779		37,703		39,656
Total research, development, and engineering expenses	138,970		139,815		139,400
Selling, general, and administrative expenses
Salaries and fringe benefits	174,526		179,898		166,612
Incentive compensation (2)	55,932		45,565		35,513
Stock-based compensation	30,965		35,849		36,309
Depreciation and amortization	15,759		16,936		11,759
Other segment expenses (3)	86,675		92,666		88,946
Total selling, general, and administrative expenses	363,857		370,914		339,139
Loss (recovery) from fire	—		—		(8,000)

Operating income	162,566		115,065		130,702
Foreign currency gain (loss)	(4,082)		1,531		(10,039)
Investment income	16,950		13,971		14,093
Other income (expense)	7,368		922		592
Income before income tax expense	182,802		131,489		135,348
Income tax expense	68,360		25,318		22,114
Net income	$	114,442	$	106,171	$	113,234

(1) Cost of revenue includes depreciation and amortization expense (including amortization of acquired technologies) of $12,406,000, $12,524,000, and $7,065,000 for 2025, 2024, and 2023, respectively.

(2) Incentive compensation includes company bonus and sales commissions.

(3) Other segment expenses include outside services, prototyping materials, sales demonstration equipment, travel and entertainment, marketing programs, rent, and allocations, among other less significant expenses.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

COGNEX CORP Segments Disclosure

About Segments Disclosures

Other Available Disclosures