First Advantage Reports 2024 Results and 2025 Outlook

First Advantage Corporation ( (FA) ) has released its Q4 earnings. Here is a breakdown of the information First Advantage Corporation presented to its investors.

First Advantage Corporation is a global leader in employment background screening, identity, and verification solutions, leveraging proprietary technology to offer innovative services to mitigate risk and enhance hiring processes for over 80,000 customers worldwide.

In its latest earnings report, First Advantage Corporation announced its financial results for the fourth quarter and full year of 2024, highlighting the completion of its acquisition of Sterling Check Corp. and providing guidance for 2025. Despite reporting a net loss for the year, the company emphasized the strategic benefits and synergies expected from the acquisition.

Key financial metrics for 2024 included revenues of $860.2 million and an adjusted net income of $123.7 million, with an adjusted EBITDA of $249.3 million. The acquisition of Sterling significantly impacted the company’s financials, incurring $130.5 million in related expenses. For the fourth quarter, revenues reached $307.1 million, with an adjusted net income of $30.2 million and an adjusted EBITDA of $82.9 million.

Looking ahead to 2025, First Advantage has set revenue guidance between $1.5 billion and $1.6 billion, with expected adjusted EBITDA ranging from $410 million to $450 million. The company aims to capitalize on the synergies from the Sterling acquisition and maintain its focus on growth through innovation and strategic execution.

The management remains optimistic about the future, focusing on integrating Sterling and realizing synergy targets while navigating potential macroeconomic challenges. The company’s strategy emphasizes growth, innovation, and maintaining strong customer relationships to drive future success.