SCHEDULE 13G/A: Royce & Associates Discloses 5.55% Passive Stake in FARO Technologies

Royce & Associates LP has disclosed a 5.55% passive beneficial ownership stake in FARO Technologies, Inc. as of March 31, 2025, as detailed in an amended Schedule 13G filing.

Summary

• Royce & Associates LP reported beneficial ownership of 1,053,329 shares of FARO Technologies, Inc. common stock.
• This ownership represents 5.55% of the total class of FARO Technologies, Inc. common stock.
• The filing is an Amendment No. 13 to Schedule 13G, indicating a passive investment without the intent to influence or control the issuer.
• Royce & Associates LP is classified as an investment adviser (IA) for the purpose of this filing.
• The securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing the control of FARO Technologies, Inc.

Sentiment

Score: 6

Explanation: The filing indicates a significant passive stake by a reputable investment adviser, which can be viewed as a positive signal of institutional confidence in FARO Technologies, Inc. However, it is a routine disclosure and does not imply active engagement or a change in company strategy, thus a moderately positive sentiment.

Positives

• A prominent investment adviser, Royce & Associates LP, maintains a significant 5.55% stake in FARO Technologies, Inc., which may signal continued institutional confidence in the company's long-term prospects.

Negatives

• No direct negative implications are apparent from this routine passive ownership disclosure.

Risks

• The reporting person, Royce & Associates LP, disclaims any pecuniary interest in the reported securities.
• Royce & Associates LP explicitly states that it is not a 'group' with Franklin Resources, Inc. affiliates or Principal Shareholders, and beneficial ownership is not attributed to them, which is a legal clarification to avoid potential regulatory grouping implications.

Future Outlook

This Schedule 13G filing provides no forward-looking statements or guidance regarding FARO Technologies, Inc.'s future performance or strategic outlook, as it pertains solely to beneficial ownership disclosure.

Management Comments

• "To the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect." (Statement by Daniel A. O'Byrne, Vice President of Royce & Associates LP).

Industry Context

This filing is a routine disclosure for institutional investors holding over 5% of a company's stock, reflecting standard portfolio management practices within the investment advisory industry. It indicates that FARO Technologies, Inc. continues to be a company of interest to large institutional funds.

Comparison to Industry Standards

• This document is a standard regulatory filing (Schedule 13G) for passive beneficial ownership, and as such, it does not contain financial or operational results that can be directly compared to industry benchmarks or specific comparable companies' performance.

Stakeholder Impact

• Shareholders: The disclosure of a significant passive stake by a reputable investment firm like Royce & Associates LP may be viewed positively by other shareholders, potentially enhancing market confidence and liquidity.
• Management: As a passive stake, there is no direct impact on FARO Technologies' management or operational decisions.

Next Steps

• Royce & Associates LP will be required to file further amendments to this Schedule 13G if there are material changes to their beneficial ownership percentage (e.g., an increase or decrease of 1% or more).

Key Dates

Keywords

FARO Technologies, Royce & Associates, Schedule 13G, beneficial ownership, common stock, investment adviser, passive stake, institutional ownership