FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA

(UNAUDITED)

Three Months Ended December 31,

Twelve Months Ended December 31,

(in thousands)

2022

2021

2022

2021

Net loss

$        (2,235)

$      (31,712)

$      (26,756)

$      (39,964)

Interest (income) expense, net

(8)

1

(36)

55

Income tax expense

753

35,070

5,105

31,403

Depreciation and amortization and fair value
adjustments

7,472

3,836

17,533

13,396

EBITDA

5,982

7,195

(4,154)

4,890

Other (income) expense, net

(159)

503

(3,236)

70

Stock-based compensation

3,291

2,799

13,315

11,456

Restructuring and other costs ⁽¹⁾

2,604

3,689

7,548

7,368

Adjusted EBITDA

$        11,718

$        14,186

$        13,473

$        23,784

Adjusted EBITDA margin ⁽²⁾

11.3 %

14.2 %

3.9 %

7.0 %

⁽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
December 31,

For the Twelve Months Ended
December 31,

(in thousands)

2022

2021

2022

2021

Total sales to external customers as reported

Americas ⁽¹⁾

$           44,345

$           40,438

$         154,422

$         140,633

EMEA ⁽¹⁾

31,680

29,035

98,174

104,350

APAC ⁽¹⁾

27,834

30,731

93,169

92,831

$         103,859

$         100,204

$         345,765

$         337,814

For the Three Months Ended
December 31,

For the Twelve Months Ended
December 31,

(in thousands)

2022

2021

2022

2021

Total sales to external customers in constant currency ⁽²⁾

Americas ⁽¹⁾

$           43,894

$           41,677

$         153,897

$         141,579

EMEA ⁽¹⁾

35,597

28,180

106,642

100,002

APAC ⁽¹⁾

30,987

30,356

100,502

91,552

$         110,478

$         100,213

$         361,041

$         333,133

(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.