TORONTO, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) is pleased to report the results of its Annual General and Special Meeting (the “Meeting”) of shareholders held on Thursday, September 4, 2025. All proposed resolutions, as set forth in the notice of meeting and management information circular of the Company dated July 28, 2025 (the “Information Circular”), were approved by shareholders. At the Meeting, the shareholders re-elected Paul Kelly (chairman), ...

Presentation Peter ChristiansenVice President and Analyst Good morning. My name is Pete Christiansen. I'm on Citi's equity research team covering a number of different areas, info services, business services in addition to crypto and some LendTech names. Right now, we're excited to showcase First Advantage, certainly an interesting name in this space. dominant market position, and we're joined by Steven Marks, the CFO. Steven, thank you so much for coming. Great to have you. Steven MarksExecutive VP & C ...

First Advantage (FA) 2025 Conference September 04, 2025 10:50 AM ET Company ParticipantsPeter Christiansen - DirectorSteven Marks - EVP & CFOPeter ChristiansenMorning. My name is Pete Christiansen. I'm on Citi's equity research team covering a number of different areas, info services, business services, in addition to crypto and some LendTech names. Right now, we're excited to showcase First Advantage, certainly an interesting name in the space, dominant market position. And we're joined by Stephen Marks, t ...

PresentationManav PatnaikMD, Business & Information Services Equity Research Analyst. Late evening to everybody here who's joining us. Thank you for joining -- sticking around here for our Credit Bureau Day. And we're very pleased to have added this year to the lineup First Advantage, especially coming off the big merger that they're currently integrating with. And we have Scott Staples, the CEO; Steven Marks, the CFO; and then Stephanie Gorman as well IR is around, if needed. So thank you all for being her ...

Summary of First Advantage (FA) FY Conference Call - September 03, 2025 Company Overview - **Company**: First Advantage (FA) - **Industry**: Background screening and data services - **Key Executives**: Scott Staples (CEO), Steven Marks (CFO), Stephanie Gorman (IR) Core Business Insights - **Global Reach**: First Advantage operates in 200 countries and territories, serving 80,000 customers, with a strong focus on enterprise clients [6][7] - **Value Proposition**: The company emphasizes its technology, software, and data capabilities, positioning itself as a category leader in the background check space [9] - **Unique Offerings**: FA customizes its products by vertical, enhancing its ability to meet specific industry needs [7][48] Growth Strategy - **Revenue Growth Drivers**: - Base growth (same-store sales) - New logo growth (4-5% annually) - Upsell and cross-sell opportunities (4-5% additional growth) - High customer retention rate (over 96%) [12][16][17] - **Market Dynamics**: The company is experiencing a stabilization in the job market, with a focus on "just in time hiring" rather than growth hiring [25][26] Market Trends and Customer Insights - **Job Market Stability**: The job market is described as flat, with clients cautious about hiring due to economic uncertainties [24][25] - **Client Sentiment**: Clients are not reducing workforces but are cautious in their hiring plans, focusing on backfill and seasonal hiring [25][26] Financial Performance and Projections - **Base Growth Assumptions**: The company anticipates slight negative growth in the second half of the year, with a long-term outlook of 2-3% positive growth by 2026 [30][36] - **Vertical Mix**: The company has a balanced mix of white-collar and blue-collar clients, with healthcare being the largest vertical (24% of business) [40][42] Total Addressable Market (TAM) - **Background Screening TAM**: Estimated at $14 billion, with 50% currently vended and 50% unvended, indicating significant growth potential [50][51] - **Digital Identity Market**: An additional $10 billion TAM is emerging due to increased risks associated with hiring processes [50][55] Merger and Integration Insights - **Merger with Sterling**: The merger is seen as beneficial, combining complementary technologies and vertical strengths, with a focus on achieving $65-80 million in cost synergies [66][68] - **Cultural Integration**: The integration process has been smooth, with a focus on creating a new company culture that leverages the strengths of both organizations [71][75] Technology and Innovation - **AI Investments**: First Advantage has invested heavily in AI, enhancing its verification processes and customer interactions, leading to improved efficiency and margins [81][83] - **Proprietary Data**: The company maintains two large proprietary databases with approximately 900 million records, providing a competitive edge in background checks [87][88] Conclusion - **Outlook**: First Advantage is well-positioned for growth, leveraging its technology, market presence, and strategic focus on verticals to capitalize on emerging opportunities in the background screening and digital identity markets [49][55]

Core Viewpoint - Fountain Asset Corp. reported strong financial results for Q2 and the first half of 2025, highlighting significant gains in investment activities and an increase in net asset value [1][6]. Summary of Financial Results for Q2/25 - The company realized $0.47 million in gains from the sale of portfolio investments, driven by increased trading prices in the technology sector [4]. - Net assets as of June 30, 2025, were valued at $8.59 million, or $0.13 per share, up from $5.51 million, or $0.09 per share, at the end of 2024, representing a 44% increase [5][8]. - Net comprehensive income for Q2/25 was $3.01 million, compared to a net comprehensive loss of $0.49 million for Q2/24 [8]. Summary of Financial Results for Six Months Ended June 30, 2025 - For the six months ended June 30, 2025, net comprehensive income was $3.06 million, compared to a net comprehensive loss of $0.95 million for the same period in 2024 [8]. - Total income from investment activities was $3.65 million, contrasting with a total loss of $0.54 million for the first half of 2024 [8]. - Net realized gains on the sale of portfolio investments reached $1.76 million, compared to net realized losses of $0.14 million for the same period in 2024 [8]. - Net unrealized gains on portfolio investments were $1.82 million, compared to net unrealized losses of $0.41 million for the first half of 2024 [8]. - Total expenses for the six months were $0.58 million, up from $0.40 million in the same period of 2024, while operating expenses decreased to $0.29 million from $0.39 million [8]. Company Overview - Fountain Asset Corp. operates as a merchant bank, providing equity financing, bridge loan services, and strategic financial consulting across various industries, including marijuana, oil & gas, mining, real estate, manufacturing, retail, financial services, and biotechnology [7].

Core Insights - First Advantage Corporation released its 2024 Sustainability Impact Report, highlighting its commitment to responsible business practices and progress in environmental, community, and governance priorities [1][2] Group 1: Company Growth and Acquisitions - The 2024 report marks a milestone year for First Advantage, highlighted by the acquisition of Sterling Check Corp., which closed on October 31, 2024 [2] - The CEO emphasized that the combination with Sterling provides an opportunity for growth while maintaining a focus on purpose, responsibility, and impact [3] Group 2: Sustainability Efforts - The report outlines sustainability focus areas including people and community, environment and climate, governance and accountability, and policy and process [2] - The company conducted third-party assessments of Scope 1, 2, and 3 greenhouse gas emissions to align with the Task Force on Climate-related Financial Disclosures (TCFD) [5] Group 3: Employee Development and Inclusion - Following the acquisition, First Advantage updated its Culture & Inclusion priorities, expanding Employee Resource Groups into Employee Impact Groups [5] - Employees across 19 countries completed 131,740 training hours, leading to a 74% increase in the speed at which new hires became ready to work on live cases [5] Group 4: Data Privacy and Compliance - First Advantage maintained its ISO 27001 and ISO 27701 certifications, with Australian operations newly certified in 2024 [5] - The company earned Data Privacy Framework certifications across its EU, UK, and Swiss locations, reflecting its commitment to data protection [5] Group 5: Governance and Corporate Oversight - The company demonstrated strong governance through a well-qualified board of directors overseeing various committees [5]

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31666 First Advantage Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 84-3884690 incorporation or orga ...

Financial Data and Key Metrics Changes - The company's Q2 revenues reached $391 million, reflecting a 1.5% increase year-over-year on a pro forma basis [25][26] - Adjusted EBITDA for Q2 was $114 million, with an adjusted EBITDA margin of 29.2%, an improvement of 270 basis points compared to the previous year [26] - Adjusted diluted EPS was $0.27, representing a 29% year-over-year increase [26] Business Line Data and Key Metrics Changes - The company reported strong upsell and cross-sell performance, contributing to a 9% growth in the quarter [25] - Retention rates remained high at over 96%, consistent with historical performance [11][26] - The transportation vertical showed positive growth despite macro-related slowing, while retail and e-commerce experienced declines in order volumes [13][14] Market Data and Key Metrics Changes - International growth was robust, with a 7.2% increase in the quarter, outperforming the Americas in all growth algorithm metrics [58][60] - The company noted a normalization in hiring volumes across the macro environment, leading to updated expectations for slightly negative base growth in the second half of the year [16][30] Company Strategy and Development Direction - The company is focused on executing its FA five point zero strategy, which includes increasing market share in target verticals, accelerating international growth, and enhancing product offerings [10][22] - The integration of the Sterling acquisition is ahead of schedule, with a synergy target range increased to $65 million to $80 million within two years [10][27] - The company is leveraging its digital identity solutions as a competitive differentiator in the market [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, citing a diverse range of global verticals and customer segments [17][30] - The company reaffirmed its full-year guidance despite updated expectations for base performance in the second half of the year [30][31] - Management highlighted the importance of customer conversations and the overall tone of caution among clients regarding hiring plans [42][53] Other Important Information - The company generated adjusted operating cash flows of nearly $48 million, a 17% increase year-over-year [28] - The cash balance at the end of Q2 was $184 million, providing ample liquidity for future operations [28] - The company plans to continue making voluntary principal debt repayments, showcasing its commitment to reducing net leverage [29][73] Q&A Session Summary Question: Change in base growth assumption for the back half - Management indicated that the change is broad-based and not specific to one vertical, driven by overall market perception and policy uncertainties [38][39] Question: Impact of Jennie I initiative on hiring - Management noted that clients are generally in a wait-and-see mode regarding hiring, with no specific ties to the Jennie I initiative [42][44] Question: Performance of various verticals - Management reported that staffing and financial services performed well, while healthcare saw a slight decline, which is not a major concern [48][49] Question: International growth metrics - International growth was up 7.2% in the quarter, with a diversified go-to-market strategy contributing to this success [57][60] Question: Upsell and cross-sell contributions from Sterling acquisition - Management stated that it is still early to track specific contributions from the Sterling acquisition, with expectations for revenue synergies to materialize more in 2026 [63][66] Question: Trends in July compared to Q2 - Management confirmed that July trends were consistent with Q2, indicating continued strong performance [70][71] Question: Interest outlook and debt repayment - Management confirmed that the updated outlook accounts for recent debt repricing and voluntary prepayments, with expectations for stable interest rates [88][90] Question: Competitive environment post-Sterling acquisition - Management noted that win rates have improved, but emphasized a focus on execution and customer relationships rather than competitor actions [92][96] Question: Digital identity framework developments - Management highlighted ongoing education and client interest in digital identity solutions, but refrained from providing specific revenue metrics at this time [101][102] Question: Impact of One Big Beautiful Bill Act on business - Management indicated it is too early to assess the long-term impacts of the new tax law, but it will support deleveraging and investment in synergy programs [104][105]

Financial Data and Key Metrics Changes - The second quarter revenues reached $391 million, reflecting a 1.5% increase year-over-year on a pro forma basis [23] - Adjusted EBITDA for Q2 was $114 million, with an adjusted EBITDA margin of 29.2%, an improvement of 270 basis points compared to the previous year [24] - Adjusted diluted EPS was $0.27, representing a 29% year-over-year increase [24] Business Line Data and Key Metrics Changes - The transportation vertical showed positive growth despite macro-related slowing in base volumes, driven by upsell and cross-sell initiatives [11] - The retail and e-commerce sector experienced a decline in order volumes due to tariffs impacting U.S. consumers [11] - Healthcare hiring momentum tapered slightly, but the overall outlook for the industry remains positive [12] Market Data and Key Metrics Changes - International growth was strong, with a 7.2% increase in the quarter, particularly in EMEA and the U.K. markets [56] - The overall customer retention rate remained high at over 96% [24] - The macro environment has led to a normalization of hiring volumes, with a cautious tone among customers regarding their hiring plans [14] Company Strategy and Development Direction - The company is executing its FA 5.0 strategy, focusing on increasing market share in target verticals, accelerating international growth, and enhancing product offerings [8] - The integration of the $2.2 billion Sterling acquisition is ahead of schedule, emphasizing customer retention and synergy realization [8][9] - The company aims to achieve adjusted EBITDA margins of 28% for the full year, reflecting a meaningful expansion from 2024 [29] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in base growth expectations for the second half of the year to slightly negative due to macroeconomic uncertainties [14][28] - Despite the cautious outlook, management remains confident in the company's ability to generate upsell and cross-sell revenues [29] - The company anticipates continued strong performance in the second half, supported by a robust deal pipeline and high customer retention [29] Other Important Information - The company has increased its synergy target range to $65 million to $80 million within two years, with $47 million already actioned as of Q2 [25] - The company is focused on reducing net leverage towards approximately three times adjusted EBITDA within 24 months post-acquisition [27] - The passing of the One Big Beautiful Bill Act is expected to significantly reduce cash tax payments for 2025, enhancing free cash flow [31] Q&A Session Summary Question: Change in base growth assumption for the back half - Management indicated that the change is broad-based and not specific to one vertical, driven by overall market perception [36][38] Question: Impact of Jennie I initiative on hiring - Customers are generally in a wait-and-see mode regarding hiring, influenced by broader policy uncertainties rather than specific initiatives [40][41] Question: Performance of verticals, particularly staffing - Staffing held its own, with financial services performing well, while healthcare saw a slight decline, which is not a major concern [46][48] Question: International growth metrics - International growth was up 7.2% in the quarter, with a diversified go-to-market strategy contributing to this success [56][58] Question: Upsell and cross-sell contributions from Sterling acquisition - Early revenue synergies from the Sterling acquisition are expected to materialize more in 2026, with current focus on improving customer experience [62][66] Question: Trends in July compared to Q2 - July trends were consistent with Q2, indicating continued strong performance despite cautious outlook for the second half [70][72] Question: Sales force adjustments due to weaker demand - The company is not reducing the sales force but is maintaining it to capitalize on expected demand as macro uncertainties clear up [116]