FIRST ADVANTAGE CORP (FA) Earnings History

FIRST ADVANTAGE CORP - Q4 FY2025 EarningsBeat

Filed at: Feb 26, 2026, 6:00 AM EST|Read from source

EXECUTIVE SUMMARY

First Advantage reported a strong fourth quarter with significant revenue and adjusted EPS growth, driven by successful integration of the Sterling acquisition and effective go-to-market strategies. The company is investing in product and go-to-market capabilities for 2026, aiming to accelerate organic growth and deliver sustained shareholder value.

POSITIVE HIGHLIGHTS

  • •

    Fourth quarter revenues of $420.0 million, a substantial increase from $307.1 million in the prior year.

    positive
  • •

    Full year 2025 revenues of $1,574.4 million, significantly up from $860.2 million in the prior year.

    positive
  • •

    Adjusted Diluted Earnings Per Share of $0.30 for Q4 2025, up from $0.18 in Q4 2024.

    positive
  • •

    Full year 2025 Adjusted Diluted Earnings Per Share of $1.04, up from $0.82 in the prior year.

    positive
  • •

    Announced a new $100 million share repurchase program, underscoring confidence in business and long-term opportunities.

    positive
  • •

    Achieved $55 million of acquisition synergies actioned through year-end 2025.

    positive

CONCERNS & RISKS

  • •

    Reported a GAAP Net Loss of $(34.8) million for the full year 2025, compared to a Net Loss of $(110.3) million in the prior year.

    negative
  • •

    Full year 2025 GAAP Diluted Net Loss Per Share was $(0.20), compared to $(0.74) in the prior year.

    negative
  • •

    Significant increase in interest expense, net, from $51.8 million in FY2024 to $168.7 million in FY2025.

    negative
  • •

    Depreciation and amortization increased substantially from $145.9 million in FY2024 to $248.6 million in FY2025, largely due to the Sterling acquisition.

    attention
  • •

    Full year 2025 operating expenses increased to $1,441.9 million from $922.6 million in the prior year, driven by cost of services and D&A.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$420.02M
+36.8%
Prior year: $307.12M
Annual (YTD)
$1.57B
N/A
Prior year: $860.21M
Net Income
Quarterly
$3.47M
-103.5%
Prior year: $-100.37M
Annual (YTD)
$-34.82M
N/A
Prior year: $-110.27M
EPS (Diluted)
Quarterly
$0.02
-103.2%
Prior year: $-0.62
Annual (YTD)
$-0.20
N/A
Prior year: $-0.74
Operating Income
Quarterly
$44.87M
-155.6%
Prior year: $-80.67M
Annual (YTD)
$132.47M
N/A
Prior year: $-62.38M
EPS (Basic)
Quarterly
$0.02
-103.2%
Prior year: $-0.62
Annual (YTD)
$-0.20
N/A
Prior year: $-0.74

MARGIN ANALYSIS

Operating Margin
Current Quarter
10.7%
Prior Year
-26.3%
YoY Change
+3695 bps
Net Margin
Current Quarter
0.8%
Prior Year
-32.7%
YoY Change
+3351 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

revenue
$1625000.0B—$1700000.0B
Mid-point: $1662500.0B
Adjusted EBITDA
460,000,000—485,000,000
Mid-point: 472,500,000
Adjusted Net Income
200,000,000—220,000,000
Mid-point: 210,000,000
Adjusted Diluted Earnings Per Share
$1.15—$1.25
Mid-point: $1.20

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Expenses related to the acquisition of Sterling Check Corp. and related integration.
Included in Net Income (loss) calculation.
+$3.9M
Q4 2025
Depreciation and amortization relating to the Sterling acquisition.
Included in Net Income (loss) calculation.
+$42.6M
FY2025
Expenses related to the acquisition of Sterling Check Corp. and related integration.
Included in Net Income (loss) calculation.
+$32.8M
FY2025
Depreciation and amortization relating to the Sterling acquisition.
Included in Net Income (loss) calculation.
+$166.8M
Total Impact
+$246.1M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Delivered exceptional financial results with meaningful success across all pillars of our FA 5.0 growth strategy.

— FIRST ADVANTAGE CORP, Q4 FY2025 2025 Earnings Call

Closed 2025 with outstanding performance in the fourth quarter, demonstrating ability to deliver positive results in a relatively flat hiring environment.

— FIRST ADVANTAGE CORP, Q4 FY2025 2025 Earnings Call

Well-positioned to maximize the benefits of our combined business and enhance our competitive strengths.

— FIRST ADVANTAGE CORP, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.