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Jun 30
First Advantage Q2 2025 Earnings Report
First Advantage reported its second quarter 2025 results, reaffirming its full-year 2025 guidance.
Key Takeaways
First Advantage delivered solid financial performance in the second quarter of 2025, meeting the high end of its expectations despite macroeconomic uncertainties. The company reported revenues of $390.6 million and adjusted diluted earnings per share of $0.27, driven by a balanced vertical strategy and consistent market execution. Strategic priorities, including the integration of Sterling Check Corp. and advancements in product and technology, contributed to the results, alongside momentum in international markets and strong interest in Digital Identity solutions.
Revenues for Q2 2025 reached $390.6 million, demonstrating solid top-line performance.
Adjusted Diluted Earnings Per Share was $0.27, indicating strong non-GAAP profitability.
The company reaffirmed its full-year 2025 guidance for revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings Per Share.
Strategic initiatives, including the integration of Sterling Check Corp. and advancements in Digital Identity solutions, are progressing well and contributing to performance.
First Advantage
First Advantage
Forward Guidance
First Advantage reaffirmed its full-year 2025 guidance, expecting revenues between $1.5 billion and $1.6 billion, Adjusted EBITDA between $410 million and $450 million, Adjusted Net Income between $152 million and $182 million, and Adjusted Diluted Earnings Per Share between $0.86 and $1.03.
Positive Outlook
- Reaffirmed full-year 2025 revenue guidance of $1.5 billion to $1.6 billion.
- Reaffirmed full-year 2025 Adjusted EBITDA guidance of $410 million to $450 million.
- Reaffirmed full-year 2025 Adjusted Net Income guidance of $152 million to $182 million.
- Reaffirmed full-year 2025 Adjusted Diluted Earnings Per Share guidance of $0.86 to $1.03.
- Successful repricing of credit facility in July, reducing borrowing rate by 50 basis points, supporting capital allocation strategy.
Challenges Ahead
- Guidance reconciliation for non-GAAP metrics to GAAP measures cannot be provided without unreasonable effort due to inherent difficulty in forecasting adjusting items.
- Actual results may differ materially from guidance due to various risks and uncertainties.
- Negative changes in external events beyond control, including customer onboarding volumes and economic drivers sensitive to macroeconomic cycles.
- Operations in a highly regulated industry, subject to numerous and evolving laws and regulations, including data privacy and AI.
- Potential harm to business, brand, and reputation from security breaches, cyber-attacks, or mishandling of personal data.