First Advantage Reports Third Quarter 2025 Results

Core Insights - First Advantage Corporation reported strong financial results for the third quarter of 2025, with revenues of $409.2 million, a significant increase from $199.1 million in the same quarter of 2024, indicating a year-over-year growth of approximately 105.5% [3][4] - The company achieved a net income of $2.6 million, compared to a net loss of $8.9 million in the prior year, marking a notable turnaround in profitability [3][5] - Adjusted EBITDA for the quarter was $118.5 million, with an adjusted EBITDA margin of 29.0%, slightly down from 32.2% in the previous year [3][4][34] Financial Performance - Revenues for the third quarter of 2025 reached $409.2 million, up from $199.1 million in Q3 2024 [3] - Income from operations was reported at $42.2 million, compared to $9.1 million in the same quarter last year [3] - Adjusted net income for the quarter was $52.3 million, an increase from $38.0 million in Q3 2024 [3][34] - The diluted net income per share was $0.01, recovering from a loss of $0.06 per share in the previous year [3][34] Strategic Developments - The company is focused on integrating the Sterling acquisition, which has progressed ahead of schedule, contributing to strong customer satisfaction and retention [5][6] - First Advantage's diversified exposure across various verticals, particularly in retail & e-commerce and transportation & logistics, has supported its growth amid a challenging macroeconomic environment [4][6] - The company has made significant strides in deleveraging, with a voluntary principal repayment of $25 million, bringing total repayments for the year to $70.5 million [7] Updated Guidance - First Advantage has refined its full-year 2025 guidance, projecting revenues between $1.535 billion and $1.570 billion, adjusted EBITDA of $430 million to $440 million, and adjusted net income of $170 million to $180 million [2][8] - The adjusted diluted earnings per share guidance has been updated to a range of $0.98 to $1.02, reflecting confidence in the company's performance [8]