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FARO (FARO) investor relations material

FARO Q1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2025 earnings summary24 Apr, 2025

Executive summary

  • Q1 2025 net income was $0.9M, reversing a $7.3M loss in Q1 2024, with revenue of $82.9M at the upper end of guidance and non-GAAP EPS of $0.33, the highest Q1 in company history.

  • Gross margin rose to 57.0% (non-GAAP: 57.7%), above guidance, driven by higher selling prices and lower material costs.

  • Operating expenses decreased to $43.4M (non-GAAP: $38.5M), mainly from restructuring savings and lower commissions.

  • Adjusted EBITDA was $12.5M (15% margin), up from $5.6M (6.6%) year-over-year.

  • Cash, equivalents, and short-term investments totaled $102.6M at quarter-end.

Financial highlights

  • Total sales were $82.9M, down 1.6% year-over-year; Americas, EMEA, and APAC contributed $36.0M, $25.1M, and $21.7M, respectively.

  • Gross profit increased to $47.2M; product gross margin at 58.5%, service at 52.4%.

  • Non-GAAP net income was $6.4M ($0.33/share), up from $1.7M ($0.09/share) prior year.

  • Free cash flow was $2.2M; adjusted free cash flow $3.1M.

  • Research and development expenses rose 5.1% to $9.5M, reflecting talent investment and patent portfolio streamlining.

Outlook and guidance

  • Q2 2025 revenue expected between $79M and $87M; non-GAAP gross margin guidance 57.0%–58.5%; non-GAAP EPS $0.20–$0.40.

  • Q2 operating expenses expected at $45M–$47M (non-GAAP: $38.5M–$40.5M).

  • Management expects the 2024 Restructuring Plan to be completed by year-end 2025, with anticipated pre-tax charges of $6–9M.

  • Positive adjusted free cash flow expected for 2025.

  • Evaluating mitigation strategies for new U.S. tariffs on Thai imports, which could materially impact operating performance.

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Frequently asked questions

FARO Technologies Inc develops and markets 3D measurement, imaging, and realization technologies. The company provides hardware and software solutions for 3D capture and analysis used in manufacturing, construction, public safety, and engineering. The company is headquartered in Lake Mary, Florida, and its shares are listed on the NASDAQ.

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