First Advantage Corporation reported its fourth quarter and full-year 2024 financial results, highlighting the completion of the Sterling acquisition and issuing guidance for 2025.

Key financial results:

- Full-year 2024
- Revenue: $860.2 million
- Net loss: $(110.3) million, impacted by $130.5 million in acquisition-related expenses
- Adjusted net income: $123.7 million
- Adjusted EBITDA: $249.3 million with a 29.0% margin
- GAAP diluted net loss per share: $(0.74), including $0.66 per share of acquisition-related expenses
- Adjusted diluted earnings per share: $0.82
- Cash flows from operations: $28.2 million, with adjusted operating cash flows of $164.5 million

- Fourth quarter 2024
- Revenue: $307.1 million
- Net loss: $(100.4) million, impacted by $97.1 million in acquisition-related expenses
- Adjusted net income: $30.2 million
- Adjusted EBITDA: $82.9 million with a 27.0% margin
- GAAP diluted net loss per share: $(0.62), including $0.43 per share of acquisition-related expenses
- Adjusted diluted earnings per share: $0.18
- Cash flows from operations: $(85.7) million, with adjusted operating cash flows of $39.4 million

2025 guidance:

- Revenue expected to be between $1.5 billion and $1.6 billion
- Adjusted EBITDA projected at $410 million to $450 million
- Adjusted net income forecasted between $152 million and $182 million
- Adjusted diluted earnings per share expected to range from $0.86 to $1.03

First Advantage CEO Scott Staples emphasized the company’s strong progress in integrating Sterling, with $20 million in cost synergies already realized. The synergy target was revised upward from $50-$70 million to $60-$70 million. The company is focused on expanding its offerings through AI, technology, and product innovation while continuing strategic execution.

CFO Steven Marks noted that the 2025 guidance reflects expected synergies and macroeconomic factors, including potential headwinds in the labor market during the first half of the year.

The company will host a conference call to discuss its financial results and 2025 outlook.