FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2022

2021

2021

Net loss

$        (6,261)

$        (3,855)

$      (24,521)

$        (8,252)

Interest (income) expense, net

(24)

5

(28)

54

Income tax expense (benefit)

586

(1,658)

4,352

(3,667)

Depreciation and amortization

3,406

3,271

10,061

9,560

EBITDA

(2,293)

(2,237)

(10,136)

(2,305)

Other (income) expense, net

(1,428)

299

(3,077)

(433)

Stock-based compensation

3,666

3,280

10,024

8,657

Restructuring and other costs ⁽¹⁾

2,028

1,376

4,944

3,679

Adjusted EBITDA

$          1,973

$          2,718

$          1,755

$          9,598

Adjusted EBITDA margin ⁽²⁾

2.3 %

3.4 %

0.7 %

4.0 %

⁽¹⁾ On February 14, 2020, our Board of Directors approved a global restructuring plan (the "Restructuring Plan"), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. The Restructuring and other costs primarily consist of severance and related benefits.

⁽²⁾ Calculated as Adjusted EBITDA as a percentage of total sales.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
KEY SALES MEASURES
(UNAUDITED)

For the Three Months Ended
September 30,

For the Nine Months Ended
September 30,

(in thousands)

2022

2021

2022

2021

Total sales to external customers as reported

Americas ⁽¹⁾

$           38,732

$           33,944

$         110,077

$         100,195

EMEA ⁽¹⁾

22,802

23,387

66,494

75,315

APAC ⁽¹⁾

23,798

21,838

65,335

62,100

$           85,332

$           79,169

$         241,906

$         237,610

For the Three Months Ended
September 30,

For the Nine Months Ended
September 30,

(in thousands)

2022

2021

2022

2021

Total sales to external customers in constant currency ⁽²⁾

Americas ⁽¹⁾

$           38,586

$           33,837

$         109,640

$           99,983

EMEA ⁽¹⁾

26,791

22,968

73,329

73,024

APAC ⁽¹⁾

26,150

21,749

69,371

61,376

$           91,527

$           78,554

$         252,340

$         234,383

⁽¹⁾ Regions represent North America and South America (Americas); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC).

⁽²⁾ We compare the change in the sales from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect during the last day of the prior comparable period, rather than the actual exchange rates in effect during the respective periods.