Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2024

2023

2024

2023

Hardware

$        50,301

$        55,706

$      152,968

$      167,484

Software

11,159

11,205

33,341

32,270

Service

21,103

19,902

62,583

60,237

Total Sales

$        82,563

$        86,813

$      248,892

$      259,991

Hardware as a percentage of total sales

60.9 %

64.2 %

61.5 %

64.4 %

Software as a percentage of total sales

13.5 %

12.9 %

13.4 %

12.4 %

Service as a percentage of total sales

25.6 %

22.9 %

25.1 %

23.2 %

Total Recurring Revenue ⁽³⁾

$        17,431

$        17,056

$        51,287

$        50,137

Recurring revenue as a percentage of total sales

21.1 %

19.6 %

20.6 %

19.3 %

⁽³⁾ 

Recurring revenue is comprised of hardware service contracts, software maintenance contracts, and subscription based software applications.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

FREE CASH FLOW RECONCILIATION

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2024

2023

2024

2023

Net cash provided by (used in) operating activities

$              2,568

$            (4,373)

$            13,355

$          (17,580)

Purchases of property and equipment

(1,871)

(704)

(3,559)

(5,016)

Cash paid for technology development, patents and licenses

(1,430)

(1,455)

(4,822)

(5,071)

Free Cash Flow

(733)

(6,532)

4,974

(27,667)

Restructuring and other cash payments ⁽¹⁾

343

6,279

3,100

11,014

Adjusted Free Cash Flow

$               (390)

$               (253)

$              8,074

$          (16,653)

⁽¹⁾  

On February 7, 2023, our Board of Directors approved the Integration Plan, which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits associated with the Restructuring Plan, Integration Plan, and executive transitions.