FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA

(UNAUDITED)

Three Months Ended March 31,

(in thousands)

2023

2022

Net loss

$                                    (21,164)

$                                      (9,687)

Interest (income) expense, net

835

8

Income tax expense

1,933

2,500

Depreciation and amortization

3,978

3,012

EBITDA

(14,418)

(4,167)

Other (income) expense, net

(220)

(13)

Stock-based compensation

3,634

2,867

Restructuring and other costs ⁽¹⁾

5,468

600

Adjusted EBITDA

$                                      (5,536)

$                                          (713)

Adjusted EBITDA margin ⁽²⁾

(6.5) %

(0.9) %

⁽¹⁾ On February 7, 2023, our Board of Directors approved an integration plan (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.

⁽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 March 31,

(in thousands)

2023

2022

Total sales to external customers as reported

Americas ⁽¹⁾

$                          42,343

$                          36,677

EMEA ⁽¹⁾

24,165

22,136

APAC ⁽¹⁾

18,459

17,843

$                          84,967

$                          76,656

For the Three Months Ended March 31,

(in thousands)

2023

2022

Total sales to external customers in constant currency ⁽²⁾

Americas ⁽¹⁾

$                          43,059

$                          36,625

EMEA ⁽¹⁾

25,055

21,978

APAC ⁽¹⁾

19,818

17,791

$                          87,932

$                          76,394

⁽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.