First Advantage Reports Second Quarter 2025 Results

First Advantage Corporation, a leading provider of global software and data in the HR technology industry, has released its financial results for the second quarter of 2025. The company has reaffirmed its full-year 2025 guidance, showcasing a strong performance despite ongoing macroeconomic uncertainties.

Financial Highlights

For the second quarter of 2025, First Advantage reported revenues of $390.6 million, a significant increase from $184.5 million in the same period last year. Net income for the quarter was $0.3 million, down from $1.9 million in the second quarter of 2024. The net income margin stood at 0.1%, reflecting expenses related to the acquisition of Sterling Check Corp. and related integration costs.

Adjusted Net Income was $47.0 million, and Adjusted EBITDA reached $113.9 million, with an Adjusted EBITDA Margin of 29.2%. GAAP Diluted Net Income Per Share was $0.00, while Adjusted Diluted Earnings Per Share came in at $0.27. Cash Flows from Operations were $37.3 million, with Adjusted Operating Cash Flows of $47.7 million after adjusting for acquisition-related costs.

Business and Operational Highlights

First Advantage's balanced vertical strategy and market reach have contributed to its solid financial performance. The company continues to advance its FA 5.0 strategic priorities, including the integration of Sterling and the execution of its product, data, and technology strategy. The company also reported strong customer interest in its Digital Identity solutions and momentum in international markets.

Strategic Initiatives and Corporate Developments

First Advantage has made significant strides in its capital allocation strategy, including repricing its credit facility in July to reduce the borrowing rate by 50 basis points. The company has also made two voluntary principal debt repayments this year, totaling over $45 million. These actions are part of the company's commitment to realizing synergies, decreasing net leverage, and advancing toward long-term financial objectives.

Management's Perspective

Scott Staples, Chief Executive Officer, highlighted the company's strong financial performance and the successful integration of Sterling. He emphasized the company's strategic priorities and the positive momentum in international markets. Steven Marks, Chief Financial Officer, reaffirmed the company's full-year 2025 guidance and discussed the recent debt repayments and credit facility repricing.

Future Outlook

First Advantage has reaffirmed its full-year 2025 guidance, expecting revenues between $1.5 billion and $1.6 billion, Adjusted EBITDA between $410 million and $450 million, Adjusted Net Income between $152 million and $182 million, and Adjusted Diluted Earnings Per Share between $0.86 and $1.03. The company remains confident in its ability to achieve these targets, supported by its strategic initiatives and market position.

SEC Filing: FIRST ADVANTAGE CORP [ FA ] - 8-K - Aug. 07, 2025