First Advantage(US:FA)2025-08-07 12:30Q2 2025 Performance Highlights - Revenues reached $391 million, a 1.5% year-over-year growth assuming the Sterling acquisition occurred on 1/1/2023[21, 23] - Adjusted EBITDA was $114 million, resulting in a 29.2% Adjusted EBITDA Margin[21] - Adjusted Net Income amounted to $47 million with an Adjusted Diluted EPS of $0.27[21] - Adjusted Operating Cash Flow was $47.7 million after adjusting for $10.4 million in Sterling acquisition and integration costs[23, 49] Synergy Realization and Cost Management - $47 million in run-rate synergies were actioned as of June 30, 2025, progressing towards a total run rate synergy target of $65 million to $80 million within 2 years[38, 69] - $18 million in year-to-date synergies were realized as of June 30, 2025[38] - Debt was repriced in July, reducing the borrowing rate by 50 bps, leading to approximately $10 million in annual cash interest savings[49] Financial Outlook and Capital Structure - Full year 2025 revenue guidance is reaffirmed at $1.5 billion to $1.6 billion[53] - Full year 2025 Adjusted EBITDA guidance is reaffirmed at $410 million to $450 million, with an Adjusted EBITDA Margin of approximately 27% to 28%[53] - Full year 2025 Adjusted Net Income is projected to be $152 million to $182 million, with Adjusted Diluted Earnings Per Share of $0.86 to $1.03[53] - Net leverage is targeted to reach approximately 2-3x within 24 months post-closing, with total debt repayments exceeding $45 million since closing[46, 47]