First Advantage Reports Fourth Quarter and Full Year 2024 Results

Core Insights - First Advantage Corporation has completed the acquisition of Sterling Check Corp, which is expected to enhance its operational scale and synergy benefits moving forward [4][6][24] - The company reported significant financial results for the fourth quarter and full year ended December 31, 2024, with revenues of $860.2 million, a net loss of $(110.3) million, and an adjusted EBITDA of $249.3 million [5][6][24] Full Year 2024 Highlights - Revenues for 2024 reached $860.2 million, up from $763.8 million in 2023, representing a year-over-year increase of approximately 12.3% [4][5] - The net loss for 2024 was $(110.3) million, compared to a net income of $37.3 million in 2023, reflecting a significant decline due to acquisition-related expenses [5][6] - Adjusted EBITDA for the year was $249.3 million, with an adjusted EBITDA margin of 29.0% [5][6] Fourth Quarter 2024 Highlights - In Q4 2024, revenues were $307.1 million, compared to $202.6 million in Q4 2023, marking a 51.5% increase [4][5] - The net loss for Q4 2024 was $(100.4) million, with a net loss margin of (32.7)%, influenced by $97.1 million in acquisition-related expenses [5][6] - Adjusted EBITDA for the quarter was $82.9 million, with an adjusted EBITDA margin of 27.0% [5][6] Full Year 2025 Guidance - The company has provided guidance for 2025, projecting revenues between $1.5 billion and $1.6 billion, adjusted EBITDA of $410 million to $450 million, adjusted net income of $152 million to $182 million, and adjusted diluted earnings per share of $0.86 to $1.03 [3][8] - The guidance reflects expected synergies from the Sterling acquisition and a cautious outlook on growth due to macroeconomic conditions [7][8] Synergy Targets - First Advantage has already realized $20 million in run-rate cost synergies from the Sterling acquisition and has updated its synergy target range to $60 million to $70 million [6][7] - The combined company generated approximately $1.51 billion in revenues and nearly $397 million in adjusted EBITDA in 2024, demonstrating effective integration and execution strategies [6][7]