First Advantage Corporation Reports Q1 2025 Revenue Surge to $354.6 Million, Net Loss of $41.2 Million, and Adjusted EPS of $0.17

First Advantage Corporation has reported its financial results for the first quarter of 2025, stating revenues of $354.6 million. The company experienced a net loss of $41.2 million, with a net loss margin of 11.6%. This net loss includes $15.3 million of expenses related to the acquisition of Sterling Check Corp. and associated integration costs, as well as $41.2 million in Sterling depreciation and amortization. Despite the loss, First Advantage achieved an adjusted net income of $30.5 million and an adjusted EBITDA of $92.1 million, resulting in an adjusted EBITDA margin of 26.0%. The company also reported cash flows from operations totaling $19.5 million, with adjusted operating cash flows of $33.3 million after accounting for $13.8 million in cash costs directly associated with the Sterling acquisition and integration. The company noted solid financial performance in the first quarter, exceeding expectations, driven by strong traction through upsell, cross-sell, and new customer acquisitions, as well as high customer retention levels. The integration of the Sterling acquisition is reportedly progressing ahead of schedule, with $37 million in run rate cost synergies already actioned towards the objective of achieving $60 million to $70 million in synergies.