First Advantage Reports Third Quarter 2025 Results
First Advantage Corporation, a leading provider of global software and data in the HR technology industry, has released its financial results for the third quarter ended September 30, 2025. The company reported strong performance metrics and refined its full-year 2025 guidance.
Financial Highlights
For the third quarter of 2025, First Advantage reported:
- Revenues of $409.2 million, a significant increase from $199.1 million in the same period last year.
- Net Income of $2.6 million, compared to a net loss of $8.9 million in Q3 2024.
- Adjusted Net Income of $52.3 million, up from $38.0 million in the previous year.
- Adjusted EBITDA of $118.5 million, with an Adjusted EBITDA Margin of 29.0%.
- GAAP Diluted Net Income Per Share of $0.01, and Adjusted Diluted Earnings Per Share of $0.30.
- Cash Flows from Operations of $72.4 million, and Adjusted Operating Cash Flows of $80.5 million.
Business and Operational Highlights
CEO Scott Staples highlighted the company's profitable growth and market success despite a flat hiring growth environment. The company saw strong momentum in its retail & e-commerce and transportation & logistics verticals, with its international business achieving year-over-year revenue growth for the sixth consecutive quarter.
Strategic Initiatives and Corporate Developments
First Advantage celebrated the one-year anniversary of its acquisition of Sterling Check Corp. The integration is progressing ahead of schedule, delivering strategic and financial benefits. The company also made a voluntary principal repayment of $25 million, bringing total principal repayments for the year to $70.5 million.
Management's Perspective
CEO Scott Staples expressed satisfaction with the company's performance and integration progress. CFO Steven Marks emphasized the company's focus on deleveraging and strong free cash flow generation, which supports the refined full-year guidance.
Future Outlook
First Advantage has refined its full-year 2025 guidance, expecting revenues between $1.535 billion and $1.570 billion, Adjusted EBITDA between $430 million and $440 million, Adjusted Net Income between $170 million and $180 million, and Adjusted Diluted Earnings Per Share between $0.98 and $1.02.
Original SEC Filing: FIRST ADVANTAGE CORP [ FA ] - 8-K - Nov. 06, 2025