diff --git a/src/analyze/dependencies.ts b/src/analyze/dependencies.ts
index ae124c4..7a90b70 100644
--- a/src/analyze/dependencies.ts
+++ b/src/analyze/dependencies.ts
@@ -4,14 +4,10 @@ import type {
   Stats,
   AnalysisContext
 } from '../types.js';
-import {normalizePath} from '../utils/path.js';
-import {getPackageJson} from '../utils/package-json.js';
 
 export async function runDependencyAnalysis(
   context: AnalysisContext
 ): Promise<ReportPluginResult> {
-  const packageFiles = await context.fs.listPackageFiles();
-
   const messages: Message[] = [];
   const pkg = context.packageFile;
 
@@ -23,37 +19,6 @@ export async function runDependencyAnalysis(
   const prodDependencies = Object.keys(pkg.dependencies || {}).length;
   const devDependencies = Object.keys(pkg.devDependencies || {}).length;
 
-  // Recursively traverse dependencies
-  async function traverse(packagePath: string, pathInTree: string) {
-    const depPkg = await getPackageJson(context.fs, packagePath);
-    if (!depPkg || !depPkg.name) return;
-
-    for (const depName of Object.keys(depPkg.dependencies || {})) {
-      let packageMatch = packageFiles.find((packageFile) =>
-        normalizePath(packageFile).endsWith(
-          `/node_modules/${depName}/package.json`
-        )
-      );
-
-      if (!packageMatch) {
-        for (const packageFile of packageFiles) {
-          const depPkg = await getPackageJson(context.fs, packageFile);
-          if (depPkg !== null && depPkg.name === depName) {
-            packageMatch = packageFile;
-            break;
-          }
-        }
-      }
-
-      if (packageMatch) {
-        await traverse(packageMatch, pathInTree + ' > ' + depName);
-      }
-    }
-  }
-
-  // Start traversal from root
-  await traverse('/package.json', 'root');
-
   const stats: Partial<Stats> = {
     name: pkg.name,
     version: pkg.version,
diff --git a/src/local-file-system.ts b/src/local-file-system.ts
index c2d987a..0443831 100644
--- a/src/local-file-system.ts
+++ b/src/local-file-system.ts
@@ -6,9 +6,15 @@ import {fdir} from 'fdir';
 import {readFile, stat} from 'node:fs/promises';
 import {normalizePath} from './utils/path.js';
 
+interface ScanResult {
+  packageFiles: string[];
+  installSize: number;
+}
+
 export class LocalFileSystem implements FileSystem {
   #root: string;
   #logger = fileSystemLogger;
+  #scanResult: ScanResult | undefined;
 
   constructor(root: string) {
     this.#root = root;
@@ -18,47 +24,28 @@ export class LocalFileSystem implements FileSystem {
     return this.#root;
   }
 
-  async listPackageFiles(): Promise<string[]> {
-    const nodeModulesPath = path.join(this.#root, 'node_modules');
-
-    try {
-      await fs.access(nodeModulesPath);
-      const crawler = new fdir()
-        .withFullPaths()
-        .withSymlinks()
-        .filter((filePath) => normalizePath(filePath).endsWith('/package.json'))
-        .crawl(nodeModulesPath);
-      const files = await crawler.withPromise();
-      return files.map((file) => {
-        const relativePath = path.relative(this.#root, file);
-        return '/' + normalizePath(relativePath);
-      });
-    } catch {
-      return [];
+  async #scanFiles(): Promise<ScanResult> {
+    if (this.#scanResult) {
+      return this.#scanResult;
     }
-  }
 
-  async readFile(filePath: string): Promise<string> {
-    return await readFile(path.join(this.#root, filePath), 'utf8');
-  }
-
-  async getInstallSize(): Promise<number> {
     const nodeModulesPath = path.join(this.#root, 'node_modules');
-
+    const packageFiles: string[] = [];
     let installSize = 0;
 
     try {
       await fs.access(nodeModulesPath);
-
-      // TODO (43081j): we traverse the file system twice. Once here,
-      // and once when finding the package.json files. It may be worth
-      // caching some things one day so we only traverse once.
       const crawler = new fdir()
         .withFullPaths()
         .withSymlinks()
         .crawl(nodeModulesPath);
       const files = await crawler.withPromise();
+
       for (const filePath of files) {
+        if (normalizePath(filePath).endsWith('/package.json')) {
+          const relativePath = path.relative(this.#root, filePath);
+          packageFiles.push('/' + normalizePath(relativePath));
+        }
         try {
           const stats = await stat(filePath);
           installSize += stats.size;
@@ -70,6 +57,21 @@ export class LocalFileSystem implements FileSystem {
       this.#logger.debug('No node_modules directory found');
     }
 
+    this.#scanResult = {packageFiles, installSize};
+    return this.#scanResult;
+  }
+
+  async listPackageFiles(): Promise<string[]> {
+    const {packageFiles} = await this.#scanFiles();
+    return packageFiles;
+  }
+
+  async readFile(filePath: string): Promise<string> {
+    return await readFile(path.join(this.#root, filePath), 'utf8');
+  }
+
+  async getInstallSize(): Promise<number> {
+    const {installSize} = await this.#scanFiles();
     return installSize;
   }
 
diff --git a/src/test/analyze/dependencies.test.ts b/src/test/analyze/dependencies.test.ts
index 2eff450..3616734 100644
--- a/src/test/analyze/dependencies.test.ts
+++ b/src/test/analyze/dependencies.test.ts
@@ -153,6 +153,53 @@ describe('analyzeDependencies (local)', () => {
     expect(stats).toMatchSnapshot();
   });
 
+  it('should handle circular dependencies without hanging', async () => {
+    context.packageFile.dependencies = {
+      'package-a': '1.0.0'
+    };
+
+    await createTestPackage(
+      tempDir,
+      {
+        name: 'test-package',
+        version: '1.0.0',
+        dependencies: {
+          'package-a': '1.0.0'
+        }
+      },
+      {createNodeModules: true}
+    );
+
+    const nodeModules = path.join(tempDir, 'node_modules');
+
+    // package-a depends on package-b
+    const pkgADir = path.join(nodeModules, 'package-a');
+    await fs.mkdir(pkgADir, {recursive: true});
+    await fs.writeFile(
+      path.join(pkgADir, 'package.json'),
+      JSON.stringify({
+        name: 'package-a',
+        version: '1.0.0',
+        dependencies: {'package-b': '1.0.0'}
+      })
+    );
+
+    // package-b depends on package-a (circular)
+    const pkgBDir = path.join(nodeModules, 'package-b');
+    await fs.mkdir(pkgBDir, {recursive: true});
+    await fs.writeFile(
+      path.join(pkgBDir, 'package.json'),
+      JSON.stringify({
+        name: 'package-b',
+        version: '1.0.0',
+        dependencies: {'package-a': '1.0.0'}
+      })
+    );
+
+    const result = await runDependencyAnalysis(context);
+    expect(result.stats?.dependencyCount?.production).toBe(1);
+  });
+
   it('should handle missing node_modules', async () => {
     //update package json on context
     context.packageFile.dependencies = {