Fourth Quarter 2025 Highlights(1)

   -- Revenues of $420.0 million 
 
   -- Net income of $3.5 million (0.8% margin)2; Diluted Net Income Per Share 
      of $0.02 
 
   -- Adjusted EBITDA of $116.8 million (27.8% margin) 
 
   -- Adjusted Net Income of $51.9 million; Adjusted Diluted Earnings Per Share 
      of $0.30 
 
   -- Cash Flows from Operations of $65.9 million 
 
   -- New $100 million authorization for share repurchases announced today 

Full Year 2025 Highlights(1)

   -- Revenues of $1,574.4 million 
 
   -- Net loss of $(34.8) million ((2.2)% margin)2; Diluted Net Loss Per Share 
      of $(0.20) 
 
   -- Adjusted EBITDA of $441.4 million (28.0% margin) 
 
   -- Adjusted Net Income of $181.7 million; Adjusted Diluted Earnings Per 
      Share of $1.04 
 
   -- Cash Flows from Operations of $195.1 million 

Full Year 2026 Guidance

   -- Introducing full year 2026 guidance ranges for Revenues of $1,625 million 
      to $1,700 million, Adjusted EBITDA of $460 million to $485 million, 
      Adjusted Net Income of $200 million to $220 million, and Adjusted Diluted 
      Earnings Per Share of $1.15 to $1.253 

ATLANTA, Feb. 26, 2026 (GLOBE NEWSWIRE) -- First Advantage Corporation (NASDAQ: FA), a global software and data company, today announced financial results for the fourth quarter and full year ended December 31, 2025.

Key Financials

(Amounts in millions, except per share data and percentages)

 
                Three Months Ended            Year Ended 
                    December 31,              December 31, 
              -----------------------  ------------------------- 
                 2025        2024          2025         2024 
Revenues      $420.0      $ 307.1      $1,574.4      $ 860.2 
Income 
 (loss) from 
 operations   $ 44.9      $ (80.7)     $  132.5      $ (62.4) 
Net income 
 (loss)       $  3.5      $(100.4)     $  (34.8)     $(110.3) 
Net income 
 (loss) 
 margin          0.8%       (32.7)%        (2.2)%      (12.8)% 
Diluted net 
 income 
 (loss) per 
 share        $ 0.02      $ (0.62)     $  (0.20)     $ (0.74) 
Adjusted 
 EBITDA(1)    $116.8      $  82.9      $  441.4      $ 249.3 
Adjusted 
 EBITDA 
 Margin(1)      27.8%        27.0%         28.0%        29.0% 
Adjusted Net 
 Income(1)    $ 51.9      $  30.2      $  181.7      $ 123.7 
Adjusted 
 Diluted 
 Earnings 
 Per 
 Share(1)     $ 0.30      $  0.18      $   1.04      $  0.82 
(1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted 
 Net Income, and Adjusted Diluted Earnings Per Share 
 are non-GAAP measures. Please see the end of this 
 earnings release for definitions and schedules with 
 reconciliations of these measures to their most directly 
 comparable respective GAAP measures.) 
 2 Q4 2025 includes $3.9 million of expenses related 
 to the acquisition of Sterling Check Corp. ("Sterling") 
 and related integration, and $42.6 million of depreciation 
 and amortization relating to the Sterling acquisition; 
 Full year 2025 includes $32.8 million of expenses 
 related to the acquisition of Sterling and related 
 integration, and $166.8 million of depreciation and 
 amortization relating to the Sterling acquisition. 
 

"In 2025, we delivered exceptional financial results with meaningful success across all pillars of our FA 5.0 growth strategy," said Scott Staples, Chief Executive Officer. "Our targeted go-to-market approach enabled us to grow revenues and expand margins, resulting in revenue, Adjusted EBITDA, and Adjusted Diluted EPS growth in line with or above our long-term targets. During the year, we completed the core integration activities for the Sterling acquisition, maintained a high customer retention rate of 96%, strengthened our balance sheet, and made significant progress on the increased synergy target set in May, with $55 million of acquisition synergies actioned through year end. Our customers continue to express high levels of interest in our best-of-breed solutions as we expand our technology and product offerings to enhance our value proposition, including leveraging AI to transform customer and applicant experiences."

Staples continued, "We closed 2025 with outstanding performance in the fourth quarter, again demonstrating our ability to deliver positive results in a relatively flat hiring environment. We generated impressive combined upsell, cross sell, and new logo growth of 17%, exceeding our long-term revenue growth algorithm, alongside excellent customer retention of 97% in Q4. Our go-to-market strategy drove momentum in our targeted verticals and geographies during the quarter, with particular strength in retail & e-commerce, general staffing, transportation & logistics, and healthcare verticals, and continued consistent international sales growth.

With the core Sterling integration activities completed, we are well-positioned to maximize the benefits of our combined business and enhance our competitive strengths. Building upon the great success we have seen to date with our FA 5.0 growth strategy, in 2026, we are making strategic investments in our go-to-market and product capabilities to accelerate organic revenue growth. We are confident that we are positioned to further increase our momentum and deliver meaningful, sustained value for our customers and shareholders," Staples concluded.

Share Repurchase Program

Today, First Advantage announced that its Board of Directors has approved a share repurchase program with authorization to purchase up to $100 million of its common stock with no expiration date.

"This program underscores our confidence in our business and conviction in our attractive long-term opportunities," commented Steven Marks, EVP and Chief Financial Officer. "Within our capital allocation framework, we consider current market conditions and view share repurchases at today's valuation levels as a highly attractive use of capital, while maintaining a balanced focus on liquidity and shareholder value creation. Our commitment to disciplined balance sheet management and focus on deleveraging remains, evidenced by our $25 million voluntary debt prepayment to be made in late February, as we expect to continue reducing net leverage toward our long-term target of 2x to 3x."

Full Year 2026 Guidance

"We are pleased to be commencing 2026 in a strong position, building upon our momentum of 27% Adjusted Diluted EPS growth in 2025. Our full year 2026 guidance reflects confidence in our ability to continue to deliver positive results powered by disciplined execution, go-to-market excellence, and a relentless focus on our customers," commented Marks. "Our guidance takes into consideration our latest view of expected product mix, our targeted investments, the realization of synergies already actioned or expected to be actioned in 2026, and our latest view of the macroeconomic environment and labor market. We remain committed to delivering on our objectives, generating profitable growth with strong free cash flow and consistent deleveraging."

The following table summarizes our full year 2026 guidance.

 
                                          As of February 26, 2026 
Revenues                                  $1,625 million -- $1,700 million 
Adjusted EBITDA(3)                          $460 million -- $485 million 
Adjusted Net Income(3)                      $200 million -- $220 million 
Adjusted Diluted Earnings Per Share(3)             $1.15 -- $1.25 
3 A reconciliation of the foregoing guidance for the 
 non-GAAP metrics of Adjusted EBITDA and Adjusted Net 
 Income to GAAP net income (loss) and Adjusted Diluted 
 Earnings Per Share to GAAP diluted net income (loss) 
 per share cannot be provided without unreasonable 
 effort because of the inherent difficulty of accurately 
 forecasting the occurrence and financial impact of 
 the various adjusting items necessary for such reconciliation 
 that have not yet occurred, are out of our control, 
 or cannot be reasonably predicted. For the same reasons, 
 the Company is unable to assess the probable significance 
 of the unavailable information, which could have a 
 material impact on its future GAAP financial results. 
 

Actual results may differ materially from First Advantage's full year 2026 guidance as a result of, among other things, the factors described under "Forward-Looking Statements" below.

Conference Call and Webcast Information

First Advantage will host a conference call to review its fourth quarter and full year 2025 results today, February 26, 2026, at 8:30 a.m. ET.

To participate in the conference call, please dial 800-225-9448 (domestic) or 203-518-9708 (international) approximately ten minutes before the 8:30 a.m. ET start. Please mention to the operator that you are dialing in for the First Advantage fourth quarter and full year 2025 earnings call or provide the conference code FA4Q25. The call will also be webcast live on the Company's investor relations website at https://investors.fadv.com under the "News & Events" and then "Events & Presentations" section, where related presentation materials will be posted prior to the conference call.

Following the conference call, a replay of the webcast will be available on the Company's investor relations website, https://investors.fadv.com. Alternatively, the live webcast and subsequent replay will be available at https://event.on24.com/wcc/r/5179695/3B5073CD5631AA2BE2C785CFEC3D8000.

Forward-Looking Statements

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February 26, 2026 06:00 ET (11:00 GMT)