Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 8, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information Note
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. For
Slide 3: Q1 2025 Highlights
Q1 2025 Highlights Scott Staples Chief Executive Officer
Slide 4: Key Messages
Key Messages 1 Q1 performance exceeded expectations, driven by go-to-market execution, accelerated synergy realization, and focused cost discipline 2 Executing post-close priorities, underpinned by FA 5.0 growth strategy Enable smooth integration with seamless customer experience Innovate throug
Slide 5: Solid Q1 2025 Results
Solid Q1 2025 Results Adjusted Cash Flow Revenues Adjusted EBITDA1 Adjusted Net Income1 from Operations2 $355M $92M $33M $30M (0.2%) 26.0% $172M $0.17 YoY Change3 Adj. EBITDA Margin1 Cash Balance Adj. Diluted EPS1 Q1 2025 CUSTOMER VERTICAL RESULTS BOOKINGS TAKEAWAYS Top- and bottom-line performanc
Slide 6: Executing on Post-Close Strategic Priorities
Executing on Post-Close Strategic Priorities INTEGRATION CONTINUED CUSTOMER PROGRESS INNOVATION FOCUS Seamless customer experience FA 5.0 strategy underpins optimized COLLABORATE 2025 without disruptions organization and supports growth Annual User Conference Leveraging the best solutions Fo
Slide 7: Financial Results & Outlook
Financial Results & Outlook Steven Marks Chief Financial Officer
Slide 8: Q1 2025 Financial Results
Q1 2025 Financial Results ($ in millions, except per share data and percentages) REVENUES ADJUSTED EBITDA AND MARGIN1 ADJUSTED DILUTED EPS1 $355.1 $92.1 $354.6 $85.1 +8.3% $0.17 No $0.17 (0.2%) Change 26.0% 24.0% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 (Pro Forma2) (Pro Forma2) Revenues, n
Slide 9: Delivering on Net Cost Synergies
Delivering on Net Cost Synergies SYNERGY PRIORITIES $70M $60M – $70M Total Run Rate Synergy Target $60M Expected To Be Actioned Within 2 Years ($50M – $70M previous total target, up from $50M+ originally) $50M $40M Day 1: Nov 1, 2024: First 180 Days: Year 1: Year 2: $37M Corporate Costs Internal Ope
Slide 10: Revenue Growth Algorithm Drivers
Revenue Growth Algorithm Drivers Legacy 2023 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 2024 First Advantage Upsell / Cross Sell 5% 4% 5% 7% 5% 5% New Logos 4% 5% 4% 3% 3% 4% Gross Retention 97% 97% 96% 96% 96% 96% First Advantage Q1 ’25 Base (12%) (11%) (7%) (8%) (8%) (9%) Upsell / Cross Sell 5% New Logos 4% Gros
Slide 11: Cash Flow and Net Leverage
Cash Flow and Net Leverage Q1 2025 Cash Flow Net Leverage Cash balance of $172.0M at 3/31/25 Made first mandatory principal repayment of $5.5M during Q1 Q1 2025 Adjusted Operating Cash Flows of $33.3M1 Made voluntary principal repayment of $15M on May 7th YoY decline driven by increased de
Slide 12: Reaffirming Full Year 2025 Guidance
Reaffirming Full Year 2025 Guidance Full Year 2025 Guidance Total Revenues $1.5B to $1.6B Adjusted EBITDA $410M to $450M Adjusted EBITDA Margin ~27% to ~28% Adjusted Net Income $152M to $182M Adjusted Diluted Earnings Per Share $0.86 to $1.03 Note: Actual results may differ materially from First A
Slide 13: Closing Remarks
Closing Remarks Scott Staples Chief Executive Officer
Slide 14: Reminder: First Advantage Inaugural Investor Day May 28, 2025
Reminder: First Advantage Inaugural Investor Day May 28, 2025 NYC and Live Webcast 14
Slide 15: Appendix
Appendix Supplemental Materials and Reconciliations to GAAP Measures
Slide 16: Company At A Glance
Company At A Glance O U R S C A L E O U R V E R T I C A L S $1.5B $404M $457M Healthcare* 5% 7% Transportation* 21% Pro Forma Pro Forma Synergized Pro Forma 7% Retail & E-Commerce* Revenue1 Adjusted EBITDA1 Adjusted EBITDA1,2 Financial Services 8% Manufacturing & Industrials 15% 96% 80K TMT & Hospit
Slide 17: Post-Close Strategic Priorities
Post-Close Strategic Priorities Executing Integration Playbook. Seamless integration process focused on customer retention, synergy realization, and operational efficiency led by a dedicated team and supported by all functional areas Actioning Synergies. Target run rate cost synergy range of $60M to
Slide 18: Full Year 2025 Guidance Modeling Assumptions
Full Year 2025 Guidance Modeling Assumptions Assumption ($ in millions; all values are approximate) Actioned synergies expected to be realized in 2025 $30 – $35 Capital expenditures, including capitalized software development $57 – $64 Net interest expense, excluding amortization of financing fees a
Slide 19: Full Year 2025 Guidance Details: Adjusted Diluted EPS Bridge
Full Year 2025 Guidance Details: Adjusted Diluted Earnings Per Share Bridge Reflects 10-month pro forma impact on consolidated results (Jan-Oct 2024) Represents 15%+ $0.58 ($0.46) YoY expansion Midpoint $0.95 ($0.07) to $0.07 $0.86 to $1.03 ($0.12) $0.11 to $0.14 $0.82 $0.82 FY2024 Reported Sterling
Slide 20: Reported First Advantage Adjusted EBITDA
Reported First Advantage Adjusted EBITDA For the Quarters Ended LTM Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Mar 31, 2025 (in thousands, except percentages) Q1 Q2 Q3 Q4 Q1 Net (loss) income $ (2,908) $ 1,861 $ (8,860) $ (100,366) $ (41,194) $ (148,559) Interest expense, net 3
Slide 21: Pro Forma LTM First Advantage Adjusted EBITDA
Pro Forma LTM First Advantage Adjusted EBITDA Reported Pro Forma Quarters Ended Year Ended LTM Mar 31, 2025 Mar 31, 2024 Dec 31, 2024 Mar 31, 2025 (in thousands, except percentages) Q1 Q1 Net loss $ (41,194) $ (33,718) $ (139,432) $ (146,907) Interest expense, net 46,580 36,671 160,181 170,090 Provi
Slide 22: Reported Adjusted Net Income and Adjusted Earnings Per Share
Reported First Advantage Adjusted Net Income Reported First Advantage Adjusted Earnings Per Share For the Quarters Ended For the Quarters Ended Mar 31, 2024 Mar 31, 2025 Q1 Q1 Mar 31, 2024 Mar 31, 2025 Diluted net loss per share (GAAP) $ (0.02) $ (0.24) (in thousands) Q1 Q1 Net loss Adjusted Net Inc
Slide 23: Pro Forma 2024 First Advantage Adjusted EBITDA
Pro Forma 2024 First Advantage Adjusted EBITDA Historical Pro Forma Period Ended Year Ended Dec Adjustments Year Ended Dec For the Quarter Ended March 31, 2024 Oct 31, 2024 31, 2024 for the 31, 2024 Reported Twelve Months Reported Reported Pro Forma Legacy First Ended First First Legacy First (in th
Slide 24: Pro Forma First Advantage Constant Currency Revenues
Pro Forma First Advantage Constant Currency Revenues For the Quarter Ended Mar 31, 2025 (in thousands, except percentages) Q1 Revenues, as reported (GAAP) $ 354,588 Pro forma foreign currency translation impact (1) 1,423 Pro forma constant currency revenues $ 356,011 Proforma constant currency reven
Slide 25: Reported First Advantage Adjusted Operating Cash Flow
Reported First Advantage Adjusted Operating Cash Flow For the Quarters Ended Mar 31, 2024 Mar 31, 2025 (in thousands, except percentages) Q1 Q1 Cash flows from operating activities, as reported (GAAP) $ 38,329 $ 19,471 Cost paid related to the Sterling acquisition and integration 548 13,844 Adjusted