- FARO Technologies (FARO, Financial) reports a 1.6% decline in Q1 2025 revenue to $82.9 million, but exceeds earnings expectations with a net income of $0.9 million.
- Gross margin significantly improves to 57.0%, with non-GAAP gross margin reaching 57.7%, surpassing previous guidance.
- FARO forecasts Q2 2025 revenue between $79 million and $87 million, with non-GAAP net income per share expected to range from $0.20 to $0.40.
FARO Technologies (FARO), a leader in 4D digital reality solutions, has released its financial results for the first quarter ending March 31, 2025. The company reported revenues of $82.9 million, which represents a year-over-year decline of 1.6%. Nevertheless, this figure reached the upper end of FARO's guided range.
Significant improvements were seen in the company's profitability metrics. FARO's gross margin increased to 57.0% from 51.4% in the same period last year, with a non-GAAP gross margin of 57.7%, both exceeding guidance expectations. The company posted a net income of $0.9 million, translating to $0.05 per share, effectively turning around from a net loss of $7.3 million in the previous year.
On a non-GAAP basis, net income soared to $6.4 million or $0.33 per share, compared to $1.7 million or $0.09 per share in Q1 2024. Adjusted EBITDA stood at $12.5 million, representing 15.0% of revenue, a substantial increase from the 6.6% seen in the prior year.
In terms of cash position, FARO reported $102.6 million in cash, cash equivalents, and short-term investments as of March 31, 2025, reflecting an increase from $98.7 million at the end of 2024.
Looking forward, FARO has guided Q2 2025 revenue to fall between $79 million and $87 million, with gross margins expected to be in the range of 56.5% to 58.0% on a GAAP basis and 57.0% to 58.5% on a non-GAAP basis. Net income per share is anticipated to be between -$0.20 to zero on a GAAP basis, and $0.20 to $0.40 on a non-GAAP basis.
FARO's strategic focus on new product launches, including Leap ST and Blink, alongside recent partnerships, is anticipated to contribute to sustained, long-term growth despite macroeconomic uncertainties.
