FARO Technologies, Inc. (‘FARO’), a global technology company, designs, develops, manufactures, markets and supports software driven, three-dimensional (‘3D’) measurement, imaging, and realization solutions for the manufacturing, architecture, engineering and construction (‘AEC’), operations and maintenance (‘O&M’) and public safety analytics markets.
The company enables its customers to capture, measure, manipulate, interact with, and share 4D, 3D, and 2D data from the physical world in a virt...
FARO Technologies, Inc. (‘FARO’), a global technology company, designs, develops, manufactures, markets and supports software driven, three-dimensional (‘3D’) measurement, imaging, and realization solutions for the manufacturing, architecture, engineering and construction (‘AEC’), operations and maintenance (‘O&M’) and public safety analytics markets.
The company enables its customers to capture, measure, manipulate, interact with, and share 4D, 3D, and 2D data from the physical world in a virtual environment, and then translate this information back into the physical domain. The company's broad technology set equips its customers with a wide selection of 3D capture technologies that range from ultra-high accuracy laser-scanner-based technology to lower accuracy, photogrammetry-based technology. The FARO suite of 3D products and software solutions is used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volumes or structures in 3D, surveying and construction, construction management, assembly layout, machine guidance, as well as in investigation and reconstructions of crash and crime scenes.
The company sells the majority of its solutions through a direct sales force, augmented by sales through indirect channels across a range of sectors, including manufacturing, surveying, architecture, engineering and construction, public safety, forensics, and other industries.
Strategy
Over the past four years, the company has strategically pursued growth and long-term profitability through a combination of strategic acquisitions to bolster its investment in software development, and targeted restructuring initiatives.
FARO Products
FaroArm Portfolio: The FaroArm portfolio consists of a combination of a portable, articulated measurement arm available in various sizes, a computer, and CAM2 software programs, which are described below under ‘FARO Software’, and optional laser line probes (‘LLP’) for scanning larger objects. They are primarily sold to customers in the automotive, aerospace, metal, and machine fabrication industries.
Quantum X FaroArm – The FARO Quantum X FaroArm Series is part of the company's portfolio of portable measurement arms, offering an increase in accuracy over comparable previous generation models. Quantum X comes with five length options and three accuracy performance levels each, and with multiple Laser Line Probes that address various non-contract measurement needs. The addition of the FARO 8-Axis Max, an 8-axis rotary worktable, reduces measurement time while maintaining accuracy.
FARO Laser Tracker: The FARO Vantage Laser Tracker combines a portable, large-volume laser measurement tool, a computer, and CAM2 software programs, representing a product offering primarily sold to customers in the aerospace, automotive, metal, and machine fabrication industries.
Vantage – The FARO Laser Tracker Vantage utilizes a laser beam for ultra-precise measurement of objects of up to 80 meters. It enables manufacturing, engineering, and quality control professionals to build, measure, and inspect large parts, machine tools, and other large objects, on-site and in-process.
Vantage Max – The higher-end Laser Tracker maximizes 6 degrees of freedom (6DoF) measurement capabilities via the optional 6Probe, enabling precise measurement of hidden areas and small features. The Vantage Max provides more accurate 6DoF probing that helps speed up inspections and reduce the number of tooling changes and device moves.
FARO Handheld Metrology Scanner: The FARO Leap ST is an advanced handheld 3D metrology solution. A compact, high-accuracy scanner with five operating modes, Leap ST offers versatility and portability that benefits various workflows and industries, from aerospace and automotive to transportation equipment and metals fabrication, and more. The five modes include: Ultra-fast scanning for fast coverage to measure part features for small to medium parts, Hyper fine scanning for capturing details of complex objects with maximum resolution, Photogrammetry to maintain best accuracy over large-sized objects, Deep hole scanning for maximum allowable depth with hard-to-reach areas and deep holes, and Large-area scanning ideal for capturing large features that need to be inspected, or when a first rough scan of a medium to large part is required.
FARO Laser Projector: The FARO TracerM and TracerSI accurately project a laser outline onto a 3D surface or object, providing a virtual template. The laser template is created using a 3D Computer-Aided Design (‘CAD’) model that enables the system to visually project a laser outline of parts, reference points, or areas of interest. The result is a virtual and collaborative 3D template to eliminate scrap and streamline a wide range of assembly and production applications. This product is primarily sold to customers in the aerospace, metalworking, and AEC industries.
FARO Laser Scanning Portfolio: The laser scanning portfolio utilizes laser technology to measure and collect a cloud of data points, allowing for the detailed and precise 3D rendering of an object or area. This technology is primarily used for factory planning, facility life-cycle management, quality control, forensic analysis, and capturing large volumes of 3D data.
Focus – The FARO Focus Laser Scanner utilizes laser technology to measure and collect a cloud of data points, allowing for the accurate and photorealistic 3D representations of an object or environment, such as a building, facility, street, mine, or even crash/crime scene. The Focus is available in several models that allow the customer to choose the right tool for their applications: Focus Core, Focus Premium, and Focus Premium Max. The Focus connects with the FARO Stream mobile app, bridging FARO hardware to the FARO Sphere XG cloud environment. The new scan mode for the FARO Focus Premium Laser Scanner is available as an add-on subscription that combines the accuracy of a 3D scan with the speed of a panoramic camera. This product line is primarily sold to customers in the AEC and public safety industries.
Freestyle 2 – The FARO Freestyle 2 is a high-quality, portable 3D scanner designed for photorealistic 3D reality capture. It is a lightweight, handheld device with a high degree of flexibility, allowing operators to scan anywhere in most conditions. This product is primarily sold to customers in the AEC and public safety industries.
FARO Mobile Laser Portfolio: The Mobile Scanner Portfolio, inherited from the GeoSLAM acquisition, uses LiDAR technology and SLAM technology to provide fast, highly portable accurate 3D scanning. The portability allows for these solutions to be used in difficult environments and attached to other mobile devices, such as drones.
Orbis — The FARO Orbis range are 3D mobile scanning solutions created to optimize workflows and elevate productivity. Designed for surveying and mapping, engineering, and construction, and public safety professionals, Orbis delivers rapid speed of capture, while returning accurate 3D visual representations of the real world. Integrating FARO’s Flash Technology in Orbis allows for stationary scans and provides excellent details.
Orbis Premium — The FARO Orbis Premium delivers mobile scanning with a higher resolution camera and an IP54 rating for rugged conditions, capturing vivid and quality images for point cloud colorization. It’s the solution for professionals needing accuracy and resilience in any environment.
Powered by GeoSLAM’s proven SLAM algorithm, Orbis and Orbis Premium are the next steps for industry professionals looking to quickly deliver accurate results, reduce user impact, and increase overall efficiency.
GeoSLAM Zeb — The legacy GeoSLAM Zeb series is still offered. Several models (Zeb Go, Zeb Revo, Zeb Horizon) provide different levels of point cloud density, range, and accuracy.
FARO Software: The company provides a complete portfolio of software solutions that integrate with FARO hardware products to merge data and provide collaborative workflows and applications.
FARO Sphere XG is a cloud-based digital reality platform that provides its users a centralized, collaborative experience across the company’s reality capture applications. When paired with the Stream mobile app, Sphere XG enables faster 3D data capture, processing, and project management from anywhere in the world. It also allows construction contractors to create, document, analyze, compare, and share virtual 3D views of construction projects utilizing commercially available 360° cameras. Sphere XG is offered as a subscription-based plan.
CAM2 allows users in the 3D metrology market to efficiently fulfill quality assurance and inspection tasks. CAM2 is currently offered under either a subscription-based plan or as a standalone licensed product.
BuildIT Metrology is a 3D metrology software platform for alignment, inspection, and build applications. BuildIT Metrology is currently offered under either a subscription-based plan or as a standalone licensed product.
BuildIT Projector allows manufacturers to plan and operate imaging laser projection and verification workflows to improve the quality and speed of assembly processes. BuildIT Projector is currently offered under either a subscription-based plan or as a standalone licensed product.
BuildIT Construction is a construction quality control software solution that leverages reality data to uncover design deviations compared to construction industry standards. BuildIT Construction is currently offered under either a subscription-based plan or as a standalone licensed product.
FARO SCENE software combines ease of use, networking, and an enhanced 3D experience to deliver a complete scan processing solution. FARO SCENE is currently offered under either a subscription-based plan or as a standalone licensed product.
FARO Connect automatically processes mobile scanning data that allows customers to perform additional workflows. It has the capability to provide point cloud measurements, classify the data, and perform manual and automatic alignment of multiple data sets. FARO Connect is currently offered under either a subscription-based plan or as a standalone license product.
FARO Zone allows public safety professionals to diagram, analyze, and share any scene, available in both 2D and 3D. The software combines data to accelerate forensic crime investigations, crashes, and pre-incident planning. FARO Zone is currently offered under either a subscription-based plan or as a standalone licensed product.
FARO As-BuiltTM enables AEC professionals to integrate reality data into any CAD and virtual design environment for buildings. FARO As-BuiltTM is currently offered under either a subscription-based plan or as a standalone license product.
Hardware Warranty, Repair & Other Services: The company generally warrants its products against defects in design, materials, and workmanship for one to two years. To support its product lines, the company also separately sells hardware service contracts that typically range from one year to three years, software maintenance contracts, which enable its customers to receive the latest software updates and typically range from one year to three years, and comprehensive support, training, and technology consulting services to its customers.
Customers
The company’s sales are diversified across a broad number of over 14,000 customers worldwide in a range of metrology, reverse engineering, factory automation, building information modeling, public safety, and other applications. The company’s metrology, reverse engineering, and factory automation applications are purchased by customers in the automotive and aerospace markets, and a diverse array of manufacturing customers from small machine shops to large industrial manufacturers. Applications are used by these customers for alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and setup, and assembly guidance. The company’s building information modeling applications are purchased primarily by customers in the AEC markets. Applications are used by these customers for as-built documentation, construction monitoring, surveying, asset and facility management, and heritage preservation. The company’s public safety applications are purchased primarily by law enforcement agencies, private investigators, and forensic experts, and are used for capturing environmental or situational scenes, crash and fire scene investigations, and environmental safety evaluations. The company’s ten largest customers by revenue represented an aggregate of approximately 4.2% of its total sales in 2024.
Sales and Marketing
The company sells its products worldwide through direct sales and service offices, as well as third-party distributors and resellers. The company has direct sales personnel in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Romania, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the United Arab Emirates, the United Kingdom, Austria, Belgium, and the United States. The company’s sales and marketing efforts use a process of integrated lead qualification and sales demonstration. Once a customer opportunity is identified, the company employs a team-based sales approach involving inside and outside sales personnel. Each team has the ability to sell multiple product lines. The company employs a variety of marketing techniques to promote brand awareness and customer identification.
The company’s marketing team focuses its efforts on gaining an increased understanding of customer applications and workflows, which enables value-based product positioning while optimizing its customers' total cost of ownership. By strengthening its understanding of customer applications and workflows, the company continues to develop high-value solutions across its product and software platforms. The company’s sales and marketing leadership teams have transformed its lead generation process and implemented technology to provide its sales organization with higher quality leads, which optimizes the time and effort spent by its sales team.
Research and Development
The company’s research and development expenses were approximately $40.1 million in 2024.
Intellectual Property
The company owns approximately 453 registered patents and 140 pending patent applications worldwide, which generally expire on a rolling basis between 2025 and 2045. The company also owns approximately 293 trademark registrations worldwide, with 58 pending trademark applications.
Manufacturing and Assembly
The company’s FARO Laser Tracker, FaroArm, and FAROBluTM laser line probe products are all registered to ISO 17025:2005.
Sanmina currently manufactures the company’s FARO Quantum X Arm, FARO Focus Laser Scanner, FARO Laser Tracker, and FARO Laser Projector products in their facility located in Thailand.
Competition
In the FaroArm portfolio, FARO Laser Tracker, FARO Orbis, FARO Focus, and FARO Sphere solution lines, the company competes primarily with Hexagon Manufacturing Intelligence, a division of Hexagon AB; Automated Precision, Inc.; KEYENCE Corporation K.K.; Leica Geosystems AG, a division of Hexagon AB; Creaform, a division of Ametek; and Trimble Inc.
In the FARO Laser Projector product line, the company competes primarily with Virtek Vision International, a division of Ametek.
In the company’s cloud-based virtual reality capturing software, Sphere XG product line, the company competes primarily with OpenSpace and StructionSite.
Government Regulation
The company’s foreign operations are subject to the U.S. Foreign Corrupt Practices Act, or FCPA, and similar foreign anti-corruption laws, which make illegal any payments to government officials or government employees that are intended to induce their influence to assist the company or to gain any improper advantage for the company. The company operates in certain regions in the Middle East, Africa, Latin America, and Asia-Pacific that are more prone to risk under these anti-corruption laws.
In addition, a number of data protection laws impact the manner in which the company collects, processes, and transfers personal data. Most notably, the European Union’s General Data Protection Regulation (‘EU GDPR’), the United Kingdom General Data Protection Regulation and Data Protection Act 2018 (collectively, the ‘UK GDPR’), and the China Personal Information Protection Law adopted in 2021 (the ‘China GDPR’) (the EU GDPR, UK GDPR, and China GDPR together referred to as the ‘GDPR’). The GDPR imposes comprehensive data privacy compliance obligations in relation to the company’s collection, processing, sharing, disclosure, transfer, and other use of data relating to an identifiable living individual or ‘personal data’, including a principle of accountability and the obligation to demonstrate compliance through policies, procedures, training, and audit.
The company historically has sold its products and related services to the U.S. Government (the ‘Government’) under two General Services Administration (‘GSA’) Federal Supply Schedule contracts (the ‘GSA Contracts’) through the end of 2021.
Seasonality
The company typically experiences greater order volume during the fourth quarter (year ended December 31, 2024), as customers spend the remaining balances of their capital expenditure budgets.
History
FARO Technologies, Inc. was founded in 1981. The company was incorporated in Florida in 1992.
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