First Advantage (FA) 2026 Baird Global Consumer, Technology & Services Conference summary

Key presentations and strategic overview

• Leadership highlighted ongoing focus on technology, automation, and proprietary data to drive growth and differentiation.

• Emphasis on serving the full employee lifecycle with solutions spanning background screening, digital identity, and compliance.

• Industry analysis underscored a $24B+ total addressable market with mid-to-high teens growth in digital identity.

• Company maintains a leading market share, serving over 80,000 customers globally, including a majority of Fortune 100 and 500 firms.

• Competitive advantages include deep system integrations, proprietary databases, and AI-driven platforms.

Financial performance and growth drivers

• Q1 2026 revenues reached $385.2M, up 8.6% YoY, with adjusted EBITDA of $105.3M and margin expansion to 27.3%.

• Retention rates remained high at 97%, with new logo, upsell, and cross-sell contributing 12% to growth.

• Cash balance at $226M and operating cash flow of $49.4M in Q1 2026; net leverage reduced to 3.9x post-acquisition.

• $19.5M in share repurchases and $120.5M in debt repayments since the Sterling acquisition.

• Long-term organic revenue growth target set at 6–7%, with additional upside from AI and automation.

Strategic initiatives and capital allocation

• Realized $58M in run rate synergies from the Sterling acquisition as of March 2026, targeting $65–80M within two years.

• Focus on de-leveraging to a 2x–3x net leverage ratio, with future plans for disciplined acquisitions and continued share buybacks.

• Investment priorities include technology differentiation, global expansion, and vertical market focus.

• AI and proprietary data are central to operational efficiency and margin expansion.

• 2028 targets include $1.8B–$2.0B in revenues, 31–32% adjusted EBITDA margin, and $1.65–$2.00 adjusted diluted EPS.