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Analogy 1: Experian for employment screening.

Analogy 2: Carfax for potential employees.

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• Background Checks: Provides comprehensive criminal record searches, employment history verification, and education credential checks for hiring decisions.
• Drug and Alcohol Testing: Offers a variety of drug and alcohol screening solutions to maintain a drug-free workplace and comply with regulations.
• Fingerprinting and Identity Services: Delivers biometric fingerprinting and advanced identity verification solutions for secure and accurate identification.
• Verifications: Confirms critical applicant information such as past employment, educational degrees, and professional licenses to ensure accuracy.
• Occupational Health Services: Includes health screenings, physical examinations, and medical review officer (MRO) services to ensure candidate fitness for duty.
• Driver Monitoring: Provides continuous monitoring of employee driving records to help manage risk and promote road safety.

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First Advantage (symbol: FA) primarily sells its services to other companies (B2B) rather than directly to individuals. The company provides a range of human capital management solutions, including background screening, drug testing, and other employment eligibility services to employers.

Due to the highly diversified nature of its customer base, First Advantage does not have any single customer that accounts for a significant portion of its revenue. According to their public filings (e.g., their 2023 10-K report), no single customer represented more than 1% of their consolidated revenues for the past several fiscal years. Therefore, specific names of major customer companies are not publicly disclosed, as none meet a threshold to be considered "major" in terms of revenue concentration.

First Advantage serves thousands of customers across a broad spectrum of industries globally. These typically include companies of all sizes seeking to screen potential and current employees. Major industries whose companies utilize First Advantage's services include:

• Retail
• Transportation and Logistics
• Healthcare
• Financial Services
• Manufacturing
• Business Services
• Staffing and temporary employment agencies

These businesses are First Advantage's customers, relying on its services to make informed hiring decisions, ensure workplace safety, and maintain regulatory compliance.

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Scott Staples, Chief Executive Officer

Scott Staples has served as Chief Executive Officer of First Advantage since April 2017. Prior to joining First Advantage, Mr. Staples co-founded Mindtree Ltd. in 1999, a global digital transformation and IT Services company. During his 17 years at Mindtree, he served as President of the Americas and led the global vertical markets division, growing the company from its inception to $800 million in revenue with 16,000 employees. He played a strategic role in taking Mindtree public in 2007, with its IPO recognized as one of the most successful in IT service history. Before co-founding Mindtree, Mr. Staples was a Director at Cambridge Technology Partners from 1996 to 1999 and Head of Marketing for Gemini Consulting's North American financial services practice from 1994 to 1996. He was recognized as the Ernst & Young Entrepreneur of the Year in Technology Services in 2015. First Advantage is backed by Symphony Technology Group, a private equity firm.

Steven Marks, Executive Vice President, Chief Financial Officer and Principal Accounting Officer

Steven Marks is slated to succeed David Gamsey as the Executive Vice President and Chief Financial Officer of First Advantage, with his appointment effective November 8, 2024. He joined First Advantage in 2016 and has previously served as the Company's Chief Accounting Officer since February 2022, and prior to that, as Senior Vice President, Accounting and Controller. Before his tenure at First Advantage, Mr. Marks held roles in accounting and financial reporting at Serta Simmons Bedding, LLC. He began his career in public accounting at PricewaterhouseCoopers and is a licensed CPA in Georgia.

Joelle M. Smith, President

Joelle M. Smith serves as the President of First Advantage. She is also identified as President, Data, Technology & Experience.

Douglas Nairne, Global Chief Operating Officer

Douglas Nairne holds the position of Global Chief Operating Officer at First Advantage.

Bret Jardine, Chief Legal Officer and Corporate Secretary

Bret Jardine is the Chief Legal Officer and Corporate Secretary for First Advantage.

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1. Regulatory and Legal Compliance
   First Advantage operates within a highly regulated industry and is subject to numerous evolving laws and regulations, particularly concerning personal data, data security, and artificial intelligence. Non-compliance, increased scrutiny, or adverse publicity related to these regulations could result in substantial compliance expenses, litigation, and a loss of revenue or reputation.
2. Macroeconomic Factors and Demand Volatility
   The company's business is significantly impacted by macroeconomic factors beyond its control, including the overall state of the economy, interest rate volatility, and inflation. These factors can directly affect demand for First Advantage's products and solutions by influencing customer onboarding volumes and increasing fulfillment costs.
3. High Debt Level
   First Advantage carries a substantial amount of debt. Its net debt to equity ratio is considered high, and its debt to equity ratio has increased over the past five years. This high debt level could adversely affect the company's ability to raise additional capital, limit its flexibility to react to economic or industry changes, and potentially hinder its capacity to meet financial obligations.

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The emergence and increasing adoption of Self-Sovereign Identity (SSI) and decentralized credential verification systems, often leveraging blockchain technology, represent a clear emerging threat. These systems aim to empower individuals to securely manage and directly share their verified credentials (such as educational degrees, employment history, and certifications) with employers. If widely adopted, this model could significantly reduce the need for third-party background check providers like First Advantage, as employers could directly trust cryptographically verifiable credentials presented by candidates, potentially bypassing traditional re-verification processes for many common checks.

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First Advantage (FA) offers a comprehensive suite of employment background screening, identity, and verification solutions. Their main products and services encompass criminal background checks, drug and health screening, extended workforce screening, identity checks, education and work history verification, driver records and compliance, healthcare credentials, executive screening, criminal records monitoring, and tenant screening.

Although First Advantage operates in over 200 countries and territories globally and has a notable market share in the employment background checks industry (15.23% globally and an estimated 21.7% in the U.S. for Background Check Services), specific addressable market sizes for their main products or services are not publicly available in the provided information.

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Expected Drivers of Future Revenue Growth for First Advantage (FA)

Over the next 2-3 years, First Advantage (FA) is expected to drive revenue growth through several key initiatives:

1. Sterling Acquisition Integration and Synergy Realization: The successful integration of Sterling Check Corp., acquired in October 2024, is a significant driver. First Advantage anticipates realizing $60 million to $70 million in run-rate synergies within two years post-closing, with $37 million in cost synergies already actioned by Q1 2025 and $52 million by Q3 2025. This integration is expected to yield revenue synergies through expanded product offerings and increased geographical presence.
2. Go-to-Market Success with New Logos, Upsell, and Cross-sell: The company consistently reports strong performance in attracting new enterprise customers and expanding business with existing clients through upsell and cross-sell strategies. In Q1 2025, new logo and upsell/cross-sell revenues contributed 9.3% growth, with similar 9% growth reported in Q3 2025, alongside a high customer retention rate of 97%.
3. International Expansion and Diverse Vertical Market Penetration: First Advantage identifies opportunities for growth by expanding its international operations and increasing exposure across various vertical markets. The company noted strength in verticals such as healthcare, retail, tech media, and industrials in Q3 2024, and specifically highlighted growth in retail, e-commerce, and transportation and logistics in Q3 2025. While international sales (excluding Canada) were stable in Q3 2024, strength was observed in EMEA.
4. Expansion of Digital Identity Products and AI Innovations (FA 5.0 Strategy): The company is focused on enhancing and expanding its Digital Identity products, particularly to counter emerging threats like AI-generated candidate fraud. Under its "FA 5.0" strategy, First Advantage is rolling out AI-enabled customer care platforms, such as Click.Chat.Call, and integrating AI agents into processes like criminal records processing to boost operational efficiency and customer satisfaction.

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Share Repurchases

• A $200 million share repurchase authorization was extended through December 31, 2024.
• The total cost of shares repurchased was $105.408 million in 2024, $61.548 million in 2023, and $60.530 million in 2022.
• As of December 31, 2024, there were no additional authorizations for share repurchases after the expiration of the program.

Share Issuance

• First Advantage issued common stock totaling $490.099 million in connection with the acquisition of Sterling Check Corp. in 2024.
• Proceeds from the issuance of common stock under share-based compensation plans were $14.653 million in 2024 and $4.565 million in 2023.

Outbound Investments

• First Advantage completed the acquisition of Sterling Check Corp. on October 31, 2024, for approximately $2.2 billion, including Sterling's outstanding debt.
• The consideration for the Sterling acquisition included approximately $1.2 billion in cash and 27.15 million shares of First Advantage common stock, valued at $490.099 million.

Capital Expenditures

• Total capital expenditures, including purchases of property and equipment and capitalized software development costs, were approximately $37.383 million for the nine months ended September 30, 2025.
• Total capital expenditures were approximately $32.265 million in 2024 and $27.699 million in 2023.
• A primary focus of capital expenditures includes continued investments in software development and other technology.