FARO Technologies Reports Strong Q1 2025 Results

By Tamara Parker • Thursday, April 24 10:11 • Permanent Link

Faro Technologies, Inc. has reported its financial results for the first quarter of 2025, showcasing a strong start to the year. The company's total sales stood at $82.9 million, representing a 1.6% decrease year over year. However, the gross margin saw a significant improvement, reaching 57.0% compared to 51.4% in the prior year period. Non-GAAP gross margin also increased to 57.7% from 51.8% in the prior year period.

Operating expenses for the quarter were $43.4 million, down from $48.6 million in the prior year period. Non-GAAP operating expenses also decreased to $38.5 million from $40.7 million in the prior year period.

In terms of profitability, Faro reported a net income of $0.9 million, or $0.05 per share, a notable improvement from the net loss of $7.3 million, or $(0.38) per share, in the prior year period. On a non-GAAP basis, the company achieved a net income of $6.4 million, or $0.33 per share, compared to non-GAAP net income of $1.7 million, or $0.09 per share, in the prior year period.

Additionally, adjusted EBITDA for the quarter reached $12.5 million, or 15.0% of total sales, up from $5.6 million, or 6.6% of total sales, in the prior year period. Faro also noted an increase in its cash, cash equivalents, and short-term investments, totaling $102.6 million compared to $98.7 million as of December 31, 2024.

Looking ahead, for the second quarter ending June 30, 2025, Faro expects revenue in the range of $79 to $87 million, with a gross margin in the range of 56.5% to 58.0%. The company also provided guidance for operating expenses and net income per share for the upcoming quarter.

Faro's recent product launches, including the Leap ST and Blink, are expected to expand its addressable opportunity and drive sustained, long-term organic growth. The company remains focused on executing its growth strategy despite continued macroeconomic uncertainty.

As a result of these announcements, the company's shares have moved 17.4% on the market, and are now trading at a price of $30.99. Check out the company's full 8-K submission here.

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