First Advantage Corporation Presents at Barclays 10th Annual Credit Bureau Forum

First Advantage Corporation (FA) presented at Barclays 10th Annual Credit Bureau Forum. CEO Scott Staples and CFO Steven Marks discussed the company's value proposition, which goes beyond just background checks for job applicants. First Advantage provides comprehensive risk management solutions for various industries, including employment, tenant screening, and insurance underwriting. The company is currently integrating a merger and focusing on expanding its services and increasing market share.

First Advantage Corporation (FA) presented at the Barclays 10th Annual Credit Bureau Forum on Wednesday, September 3, 2025. The company, a leader in background checks and risk management solutions, provided an overview of its strategic initiatives, financial priorities, and the impact of AI-driven innovation. CEO Scott Staples and CFO Steven Marks discussed the company's focus on organic growth, AI-driven product development, and the financial implications of the Sterling acquisition.

Key takeaways from the presentation included First Advantage's focus on organic growth and AI-driven product development. The company highlighted significant synergies from the Sterling acquisition, with a target of $65-80 million in savings. The company aims to deleverage its balance sheet by the end of 2026, with a voluntary prepayment of $40 million in debt already achieved. The company also emphasized its high customer retention rate of over 96%, reflecting strong client satisfaction.

Financial results were discussed, with base growth initially expected to be slightly positive but revised to slightly negative due to market uncertainty. A return to 2-3% positive growth is anticipated after 2026. The company aims to achieve a leverage ratio of 2-3x by 2026. Operational updates included vertical performance, with healthcare being the largest vertical followed by transportation. Retail remains stable, focusing on essential retailers. The Sterling integration is being approached using a "new co" strategy, blending leadership from both companies equally.

AI initiatives are a significant focus for First Advantage, with the company leveraging AI for smart verifications and customer care to enhance operational efficiency. The company utilizes proprietary databases with 900 million records to improve background check quality. Future outlook includes a neutral year in 2026, with long-term growth expected to return thereafter. The company is focusing on organic growth in key markets like the UK, India, and Australia, with no major international M&A planned. Capital allocation priorities include deleveraging before considering strategic M&A opportunities post-2026.

The presentation also touched on the impact of AI on sales and marketing, creating new product opportunities in digital identity. Data utilization is being optimized through smart hub technology, reducing reliance on costly third-party verification sources. The company remains committed to its mission of providing comprehensive risk management solutions and is well-positioned to capitalize on the growing demand for such services.

References:
[1] https://www.investing.com/news/transcripts/first-advantage-at-barclays-forum-strategic-growth-and-ai-focus-93CH-4223001