First Advantage Corporation ( (FA) ) has released its Q1 earnings. Here is a breakdown of the information First Advantage Corporation presented to its investors.
First Advantage Corporation, a prominent player in the HR technology sector, specializes in providing global software and data solutions for employment background screening, digital identity, and verification services. The company is known for its innovative use of AI and automation to enhance hiring processes for over 80,000 organizations worldwide.
In its first quarter of 2025, First Advantage reported revenues of $354.6 million, despite incurring a net loss of $41.2 million. This loss was primarily due to expenses related to the acquisition of Sterling Check Corp. and associated integration costs. However, the company achieved an adjusted net income of $30.5 million and an adjusted EBITDA of $92.1 million, reflecting a strong performance in its core operations.
Key financial highlights include an adjusted EBITDA margin of 26.0% and adjusted diluted earnings per share of $0.17. The company also generated $19.5 million in cash flows from operations, with adjusted operating cash flows reaching $33.3 million after accounting for acquisition-related expenses. The integration of Sterling Check Corp. has progressed ahead of schedule, with $37 million in cost synergies already realized, moving towards a target of $60 to $70 million.
Looking ahead, First Advantage has reaffirmed its full-year 2025 guidance, projecting revenues between $1.5 billion and $1.6 billion, and adjusted EBITDA ranging from $410 million to $450 million. The company remains focused on executing its integration plans, maintaining customer retention, and realizing synergies from recent acquisitions.
Overall, First Advantage’s strategic initiatives and financial performance indicate a positive trajectory, as it continues to leverage its technological capabilities to enhance operational efficiency and drive growth in the HR technology space.