First Advantage(NASDAQ) FA

First Advantage helps companies verify new hires. It runs background checks and drug tests for safety. The company monitors employees for risks after hiring.

Verifying the Workforce

• Pre-onboarding screening: Criminal background checks, drug tests, and education verification for job seekers.
• Identity solutions: Digital tools that verify a person's identity and detect fraud during the hiring process.
• Post-onboarding monitoring: Ongoing tracking of criminal records and professional licenses for existing employees.
• Adjacent services: Tools for managing tax credits and driver safety compliance for business fleets.

Acquisitions and Global Growth

• Acquired Sterling Check Corp. on October 31, 2024, to create a new reportable business segment.
• Introduced mobile-first tools to help applicants submit information and track screening progress easily.
• Expanded global reach to conduct background screens in over 200 countries and territories.

How Does It Stand Out?

First Advantage maintains proprietary databases containing over 1 billion criminal, education, and work history records. The company integrates its screening software with more than 100 third-party human resources and hiring platforms.

By the Numbers

• Revenue grew to $420 million in Q4 2025, up 36.8% from Q4 2024.
• Operating income reached $45.6 million in Q4 2025, up 156.6% year-over-year.
• Net income was $3.5 million in Q4 2025, up 103.5% from the previous year.
• Free cash flow hit $66.4 million in Q4 2025, up 169.1% year-over-year.
• International operations generated 14% of total revenue for the year ended December 31, 2025.

Bottom Line

First Advantage has shifted from simple background checks to providing continuous identity and risk intelligence. The acquisition of Sterling and investments in automation have scaled its global operations across various industries.