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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.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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