Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Note 4. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2026 by reportable segment were as follows (in thousands):


	First Advantage Americas		First Advantage International			Sterling			Total
Balance – December 31, 2025	$	703,383	$	116,401		$	1,323,820		$	2,143,604
Foreign currency translation		18		(2,042	)		(1,379	)		(3,403	)
Adjustment of goodwill for asset disposition		—		—			(5,043	)		(5,043	)
Balance – June 30, 2026	$	703,401	$	114,359		$	1,317,398		$	2,135,158

The following summarizes the gross carrying value and accumulated amortization for the Company’s trade names, customer lists, and other intangible assets as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Useful Life (in years)
Trade names	$	158,090	$	(68,057	)	$	90,033	5-20 years
Customer lists		1,172,157		(478,169	)		693,988	13-14 years
Other intangible assets		2,400		(1,359	)		1,041	5 years
Total	$	1,332,647	$	(547,585	)	$	785,062


	December 31, 2025
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Useful Life (in years)
Trade names	$	158,382	$	(58,902	)	$	99,480	5-20 years
Customer lists		1,176,608		(420,263	)		756,345	13-14 years
Other intangible assets		2,400		(1,114	)		1,286	5 years
Total	$	1,337,390	$	(480,279	)	$	857,111

In January 2026, the Company sold certain customer relationships associated with an adjacent product to an unrelated third party for cash consideration. The customers transferred represented less than 0.5% of consolidated revenues for the year ended December 31, 2025. The Company retained the underlying technology, data, and other assets and continues to operate the subsidiary’s remaining portions of the business. Because the transaction did not represent a strategic shift or the disposal of a separate major line of business, the related operations are not presented as discontinued operations. In connection with the asset disposition, the Company derecognized $5.0 million of goodwill and $2.5 million of customer lists.

Amortization expense of trade names, customer lists, and other intangible assets was approximately $34.4 million and $34.2 million for the three months ended June 30, 2026 and 2025, respectively. Amortization expense of trade names, customer lists, and other intangible assets was approximately $68.8 million and $68.3 million for the six months ended June 30, 2026 and 2025, respectively. Trade names and customer lists are amortized on an accelerated basis based upon their estimated useful life. Other intangible assets are amortized on a straight-line or accelerated basis over their expected useful life of five years.