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Dec 31, 2025
First Advantage Q4 2025 Earnings Report
First Advantage reported outstanding fourth quarter 2025 results, featuring significant revenue growth and a return to net profitability following the Sterling acquisition integration.
Key Takeaways
First Advantage delivered a strong Q4 2025 with revenues of $420.0 million, up 36.8% year-over-year. The company successfully integrated core Sterling Check Corp. operations, achieving $55 million in synergies. Despite a flat hiring environment, the company saw 17% growth from upsells, cross-sells, and new logos, while maintaining a 97% customer retention rate in the quarter.
Revenues grew 36.8% year-over-year to $420.0 million in Q4 2025.
Achieved a 97% customer retention rate and 17% growth from combined upsell, cross-sell, and new logos during the quarter.
Completed core integration activities for the Sterling acquisition with $55 million in synergies actioned through year-end.
Announced a new $100 million share repurchase authorization and a $25 million voluntary debt prepayment.
Forward Guidance
First Advantage introduced full year 2026 guidance reflecting confidence in organic growth acceleration and synergy realization.
Positive Outlook
- Expected full year 2026 revenues between $1.625 billion and $1.700 billion.
- Projected Adjusted EBITDA of $460 million to $485 million.
- Adjusted Diluted EPS expected to grow to a range of $1.15 to $1.25.
- Strategic investments in go-to-market and product capabilities to accelerate organic growth.
- Continued realization of synergies from the Sterling acquisition.
Challenges Ahead
- Guidance accounts for a relatively flat hiring environment.
- Potential impact from macroeconomic cycles including interest rate volatility and inflation.
- Risks associated with international business operations and evolving regulations.
- Dependence on third-party data providers and potential security breaches.
Historical Earnings Impact
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