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Mar 31, 2025
First Advantage Q1 2025 Earnings Report
First Advantage reported financial results for the first quarter ended March 31, 2025, with revenues of $354.6 million and a net loss of $(41.2) million.
Key Takeaways
First Advantage reported strong financial performance in Q1 2025, exceeding expectations with revenues of $354.6 million, a significant increase from the prior year, driven by the Sterling acquisition. The company reported a net loss due to acquisition-related expenses and depreciation and amortization, but achieved positive adjusted net income and adjusted EBITDA, reaffirming its full-year guidance.
Revenues for Q1 2025 were $354.6 million, a substantial increase compared to $169.4 million in Q1 2024.
Net loss was $(41.2) million, including significant expenses related to the Sterling acquisition and integration.
Adjusted Net Income for Q1 2025 was $30.5 million, and Adjusted EBITDA was $92.1 million.
The company reaffirmed its full-year 2025 guidance ranges for Revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings Per Share.
Forward Guidance
First Advantage reaffirmed its full-year 2025 guidance ranges for Revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings Per Share.
Positive Outlook
- Reaffirming full year 2025 guidance indicates confidence in future performance.
- Guidance includes expected benefits of realized synergies from the Sterling acquisition.
- Focus on integration plan execution is expected to drive efficiency.
- Commitment to customer retention is a positive for future revenue stability.
- Emphasis on net leverage reduction is a positive for financial health.
Challenges Ahead
- Guidance reconciliation to GAAP measures is not provided due to inherent difficulties in forecasting adjustments.
- Actual results may differ materially from guidance due to various risks and uncertainties.
- External events beyond the company's control could negatively impact results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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