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Reportable Segments | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Reportable Segments | Note 15. Reportable Segments The Company has three reportable segments: • First Advantage Americas. This segment pertains to our Legacy First Advantage business and performs a variety of background check and compliance services across all phases of the workforce lifecycle from pre-onboarding services to post-onboarding and ongoing monitoring services, covering employees, contractors, contingent workers, tenants, and drivers. We generally classify our service offerings into three categories: pre-onboarding, post-onboarding, and adjacent products. We deliver our solutions across multiple industry verticals in the United States, Canada, and Latin America. • First Advantage International. The First Advantage International segment pertains to our Legacy First Advantage business and provides services similar to our Americas segment in regions outside of the Americas. We primarily deliver our solutions across multiple industry verticals in the Europe, India, and Asia Pacific. • Sterling. This segment is comprised of the acquired entity, Sterling Check Corp., which was acquired on October 31, 2024. The Sterling segment provides similar services as compared to First Advantage’s Americas and International segments on a global basis. Our chief operating decision maker (“CODM”) uses the performance measure of Adjusted EBITDA, on both a consolidated and a segment basis, to allocate resources and assess performance of our businesses. Our CODM also uses Adjusted EBITDA as a performance measure for both segment and corporate management under our incentive compensation plans. Corporate costs are generally allocated to the segments based upon estimated revenue levels and other assumptions that management considers reasonable. Adjusted cost of services consists of amounts paid to third parties for access to government records, other third-party data and services, our internal processing fulfillment and customer care functions, and other cost of services excluding depreciation and amortization, share-based compensation expenses, transaction expenses, and integration expenses. Other segment items consist of product and technology and selling, general, and administrative expenses, but similarly excludes depreciation and amortization, share based compensation, and other expenses excluded from Adjusted EBITDA. The CODM does not review the Company’s assets by segment as it does not provide additional insights into the performance of our business; therefore, such information is not presented. The accounting policies of the segments are the same as described in Note 1. “Organization, Nature of Business, and Basis of Presentation” and Note 2. “Summary of Significant Accounting Policies” included in the Annual Report on Form 10-K for the year ended December 31, 2024. Reconciliations of Segment Adjusted EBITDA to net income (loss) for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands):
|  | Three Months Ended September 30, 2025 |
|  | First Advantage Americas |  |  | First Advantage International |  |  | Sterling |  |  | Total |
Total revenues |  | $ | 182,805 |  |  | $ | 29,740 |  |  | $ | 199,440 |  |  | $ | 411,985 |
Intersegment revenues |  |  | (462 | ) |  |  | (1,533 | ) |  |  | (839 | ) |  |  | (2,834 | )
External revenues |  | $ | 182,343 |  |  | $ | 28,207 |  |  | $ | 198,601 |  |  | $ | 409,151 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of services |  |  | 93,887 |  |  |  | 18,932 |  |  |  | 112,604 |  |  |  |
Other segment items |  |  | 32,453 |  |  |  | 5,706 |  |  |  | 29,903 |  |  |  |
Segment Adjusted EBITDA |  | $ | 56,465 |  |  | $ | 5,102 |  |  | $ | 56,933 |  |  | $ | 118,500 |
Adjustments to reconcile to net income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  | 40,041 |
Benefit for income taxes |  |  |  |  |  |  |  |  |  |  |  | (798 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  | 407 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | 62,274 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 5,721 |
Transaction and acquisition-related charges (a) |  |  |  |  |  |  |  |  |  |  |  | 1,585 |
Integration, restructuring, and other charges (b) |  |  |  |  |  |  |  |  |  |  |  | 6,677 |
Net income |  |  |  |  |  |  |  |  |  |  | $ | 2,593 |
|  | Three Months Ended September 30, 2024 |
|  | First Advantage Americas |  |  | First Advantage International |  |  | Sterling |  |  | Total |
Total revenues |  | $ | 174,905 |  |  | $ | 26,624 |  |  | $ | — |  |  | $ | 201,529 |
Intersegment revenues |  |  | (516 | ) |  |  | (1,894 | ) |  |  | — |  |  |  | (2,410 | )
External revenues |  | $ | 174,389 |  |  | $ | 24,730 |  |  | $ | — |  |  | $ | 199,119 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of services |  |  | 89,184 |  |  |  | 14,579 |  |  |  | — |  |  |  |
Other segment items |  |  | 27,084 |  |  |  | 6,636 |  |  |  | — |  |  |  |
Segment Adjusted EBITDA |  | $ | 58,637 |  |  | $ | 5,409 |  |  | $ | — |  |  | $ | 64,046 |
Adjustments to reconcile to net loss: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  | 17,191 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  | 782 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | 30,168 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 9,504 |
Transaction and acquisition-related charges (a) |  |  |  |  |  |  |  |  |  |  |  | 13,218 |
Integration, restructuring, and other charges (b) |  |  |  |  |  |  |  |  |  |  |  | 2,043 |
Net loss |  |  |  |  |  |  |  |  |  |  | $ | (8,860 | )
|  | Nine Months Ended September 30, 2025 |
|  | First Advantage Americas |  |  | First Advantage International |  |  | Sterling |  |  | Total |
Total revenues |  | $ | 491,662 |  |  | $ | 79,435 |  |  | $ | 590,701 |  |  | $ | 1,161,798 |
Intersegment revenues |  |  | (1,596 | ) |  |  | (4,349 | ) |  |  | (1,481 | ) |  |  | (7,426 | )
External revenues |  | $ | 490,066 |  |  | $ | 75,086 |  |  | $ | 589,220 |  |  | $ | 1,154,372 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of services |  |  | 251,064 |  |  |  | 47,310 |  |  |  | 330,027 |  |  |  |
Other segment items |  |  | 92,566 |  |  |  | 19,317 |  |  |  | 96,956 |  |  |  |
Segment Adjusted EBITDA |  | $ | 148,032 |  |  | $ | 12,808 |  |  | $ | 163,718 |  |  | $ | 324,558 |
Adjustments to reconcile to net loss: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  | 131,406 |
Benefit for income taxes |  |  |  |  |  |  |  |  |  |  |  | (6,177 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  | 661 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | 185,846 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 19,430 |
Transaction and acquisition-related charges (a) |  |  |  |  |  |  |  |  |  |  |  | 7,971 |
Integration, restructuring, and other charges (b) |  |  |  |  |  |  |  |  |  |  |  | 23,714 |
Net loss |  |  |  |  |  |  |  |  |  |  | $ | (38,293 | )
|  | Nine Months Ended September 30, 2024 |
|  | First Advantage Americas |  |  | First Advantage International |  |  | Sterling |  |  | Total |
Total revenues |  | $ | 486,410 |  |  | $ | 72,834 |  |  | $ | — |  |  | $ | 559,244 |
Intersegment revenues |  |  | (1,247 | ) |  |  | (4,916 | ) |  |  | — |  |  |  | (6,163 | )
External revenues |  | $ | 485,163 |  |  | $ | 67,918 |  |  | $ | — |  |  | $ | 553,081 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of services |  |  | 246,374 |  |  |  | 40,633 |  |  |  | — |  |  |  |
Other segment items |  |  | 86,136 |  |  |  | 19,736 |  |  |  | — |  |  |  |
Segment Adjusted EBITDA |  | $ | 153,900 |  |  | $ | 12,465 |  |  | $ | — |  |  | $ | 166,365 |
Adjustments to reconcile to net loss: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  | 28,114 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  | 83 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | 89,968 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 19,303 |
Transaction and acquisition-related charges (a) |  |  |  |  |  |  |  |  |  |  |  | 35,083 |
Integration, restructuring, and other charges (b) |  |  |  |  |  |  |  |  |  |  |  | 3,721 |
Net loss |  |  |  |  |  |  |  |  |  |  | $ | (9,907 | )
(a) Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Transaction and acquisition related charges for the three and nine months ended September 30, 2025 include approximately $1.4 million and $7.5 million of expense, respectively, associated with the Sterling Acquisition. The three and nine months ended September 30, 2024 include approximately $13.2 million and $33.5 million of expense, respectively, associated with the Sterling Acquisition, primarily consisting of legal, regulatory, and diligence professional service fees. The three and nine months ended September 30, 2024 also include insurance costs incurred related to the Company's initial public offering. (b) Represents charges from organizational restructuring and integration activities, non-cash, and other charges primarily related to nonrecurring legal exposures, foreign currency (gains) losses, impairment of capitalized software, (gains) losses on the sale of assets, and other non-recurring items. Integration, restructuring, and other charges for the three and nine months ended September 30, 2025 include approximately $3.8 million and $15.4 million of expense, respectively, associated with the integration of Sterling. The three and nine months ended September 30, 2025 also include approximately $1.5 million of expenses related to debt refinancing activities, as well as capitalized software impairment charges of approximately $1.2 million. Geographic Information The Company categorizes revenues by geographic region in which the revenues and invoicing are recorded. Other than the United States, no single country accounted for 10% or more of our total revenues during these periods. The following summarizes revenues by geographical region (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 349,284 |  |  | $ | 170,823 |  |  | $ | 987,980 |  |  | $ | 475,900 |
All other countries |  |  | 59,867 |  |  |  | 28,296 |  |  |  | 166,392 |  |  |  | 77,181 |
Total revenues |  | $ | 409,151 |  |  | $ | 199,119 |  |  | $ | 1,154,372 |  |  | $ | 553,081 |
The following table sets forth net long-lived assets by geographic area (in thousands):
|  | September 30, 2025 |  |  | December 31, 2024 |
Long-lived assets, net |  |  |  |  |  |
United States |  | $ | 2,863,195 |  |  | $ | 2,996,933 |
All other countries |  |  | 438,338 |  |  |  | 436,741 |
Total long-lived assets, net |  | $ | 3,301,533 |  |  | $ | 3,433,674 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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