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FA

First Advantage Corporation

FA

First Advantage Corporation • NASDAQ
$13.88 ▲ 0.43% (+0.06)
Market Cap $2.42 B
52w High $20.36
52w Low $11.95
Dividend Yield 0%
P/E -15.6
Volume 220.73K
Outstanding Shares 174.11M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $409.151M ▲ $144.869M ▼ $2.593M ▲ 0.634% ▲ $0.01 ▲ $104.922M ▲
Q2-2025 $390.633M ▲ $145.055M ▼ $308K ▲ 0.079% ▲ $0.002 ▲ $101.943M ▲
Q1-2025 $354.588M ▲ $154.406M ▼ $-41.194M ▲ -11.617% ▲ $-0.24 ▲ $73.083M ▲
Q4-2024 $307.124M ▲ $219.306M ▲ $-100.366M ▼ -32.679% ▼ $-0.62 ▼ $-25.106M ▼
Q3-2024 $199.119M $89.127M $-8.86M -4.45% $-0.061 $52.481M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $216.848M ▲ $3.856B ▼ $2.555B ▼ $1.302B ▲
Q2-2025 $184.261M ▲ $3.871B ▼ $2.572B ▼ $1.299B ▲
Q1-2025 $171.994M ▲ $3.872B ▼ $2.593B ▼ $1.279B ▼
Q4-2024 $168.688M ▼ $3.923B ▲ $2.616B ▲ $1.307B ▲
Q3-2024 $307.392M $1.657B $736.42M $920.714M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $2.593M ▲ $72.369M ▲ $-13.48M ▼ $-23.92M ▼ $32.587M ▲ $58.884M ▲
Q2-2025 $308K ▲ $37.345M ▲ $-12.74M ▼ $-15.114M ▼ $11.554M ▲ $46.74M ▲
Q1-2025 $-41.194M ▲ $19.471M ▲ $-11.076M ▲ $-5.993M ▼ $3.308M ▲ $18.986M ▲
Q4-2024 $-100.366M ▼ $-85.666M ▼ $-1.63B ▼ $1.58B ▲ $-137.997M ▼ $-96.161M ▼
Q3-2024 $-8.86M $43.49M $-7.904M $942K $37.831M $55.968M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025
First Advantage Americas
First Advantage Americas
 $140.00M ▲$160.00M ▲$180.00M ▲
First Advantage International
First Advantage International
 $20.00M ▲$20.00M ▲$30.00M ▲
Sterling
Sterling
 $190.00M ▲$200.00M ▲$200.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown nicely over the last few years, showing that demand for First Advantage’s services is generally moving in the right direction, even with a small pause in growth along the way. Profitability, however, has become more mixed. Earlier years show a pattern of healthy margins and positive earnings, but the most recent year flipped back into a loss despite higher sales. That suggests added costs from acquisitions, integration, or investments are weighing on results. Overall, the business is clearly capable of generating profits, but the latest year shows pressure on operating performance and a need to prove that earnings can recover after the recent expansion moves.

Balance Sheet

Balance Sheet The balance sheet has changed from relatively lean and balanced to much larger and more leveraged. Total assets have jumped, reflecting the sizable Sterling acquisition and a bigger overall footprint. At the same time, debt has increased sharply, while cash on hand has not kept pace. Equity has grown, which is positive, but the capital structure is now more reliant on borrowing. This means the company has more scale and resources, but it also carries higher financial risk and will need consistent cash generation to comfortably manage its obligations.

Cash Flow

Cash Flow Historically, the business produced solid cash flow from operations and respectable free cash flow after investments, which supported the idea of a steady, service-based model with modest capital needs. In the most recent year, that pattern weakened: operating cash flow and free cash flow dropped to much lower levels. Capital spending itself remains small and manageable, so the main issue appears to be operating cash generation during a period of transition and integration. The key question going forward is whether cash flow returns to prior strength once acquisition-related disruptions and extra costs normalize.

Competitive Edge

Competitive Edge First Advantage holds a strong position in the background screening and HR tech space, supported by scale, brand recognition, and deep relationships with large employers. Its proprietary data sets, including employment, education, and criminal record databases, give it a meaningful edge that smaller competitors struggle to match. The Sterling acquisition further consolidates the market, broadens the customer base, and deepens its moat by adding more data, more volume, and more cross-selling opportunities. The flip side is integration risk, dependence on hiring volumes and economic cycles, and the need to maintain service quality and data accuracy at greater scale. Overall, the company appears to be one of the key players in a consolidated, data-intensive niche.

Innovation and R&D

Innovation and R&D Innovation is clearly a strategic focus. Instead of traditional lab-style R&D, First Advantage invests heavily in software, artificial intelligence, and data platforms. Tools like its mobile-first Profile Advantage platform and Next-Gen RightID show an emphasis on user experience, automation, and digital identity verification. Its proprietary databases and AI-driven matching, fraud detection, and document analysis create both efficiency and differentiation. The company is also leaning into integrations with HR and applicant tracking systems, making its services part of customers’ daily workflows. Future innovation is likely to center on more advanced AI, better digital identity tools, and global expansion of its tech stack, all of which could deepen its competitive moat if executed well.

Summary

First Advantage has grown into a larger, more complex, and more strategically important player in background screening and HR technology. Revenue has risen over time, but the most recent year shows a clear hit to profitability and cash flow, likely reflecting the cost and complexity of major acquisitions and integration. The balance sheet now carries much more debt, trading financial flexibility for greater scale and market share. On the positive side, the company appears to enjoy strong competitive advantages in data, technology, and customer relationships, reinforced by ongoing innovation in AI and digital identity. The main things to watch are whether management can translate this stronger competitive position back into consistent profits and robust cash flow, while safely managing the higher debt load and delivering the promised benefits from the Sterling deal.

NEWS

November 6, 2025 · 6:00 AM UTC

First Advantage Reports Third Quarter 2025 Results

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October 16, 2025 · 7:00 AM UTC

First Advantage to Release Third Quarter 2025 Financial Results and Hold Investor Conference Call on November 6, 2025

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October 14, 2025 · 4:05 PM UTC

First Advantage Named to Newsweek's World's Most Trustworthy Companies 2025 List

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