First Advantage (FA) Barclays 24th Annual Global Financial Services Conference summary

Strategic evolution and technology leadership

• Transitioned from a manual BPO to a tech-enabled, data-driven global services company over the past decade, culminating in the FA 5.0 strategy focused on advanced automation, AI, and proprietary data assets.

• Expanded offerings beyond background screening to include Digital Identity Services, credential verification, and continuous risk monitoring, addressing evolving risks and customer needs.

• Maintains industry leadership by investing in product innovation, sales, marketing, and R&D, leveraging a verticalized approach tailored to specific industries.

• Proprietary databases, including a near-billion-record National Criminal Records File and a 135 million record Verified! database, underpin differentiation and margin expansion.

• Smart Hub AI router optimizes data sourcing, reducing costs for clients and increasing margins, while automation rates in U.S. criminal fulfillment approach 75%, targeting 90% long-term.

Acquisition and integration of Sterling

• Acquired Sterling, a major peer, nearly two years ago, achieving successful integration without forced customer migrations, preserving high retention rates (96-97%).

• Synergy targets raised from $50 million to $65-80 million, with $63 million already actioned by Q2; full value realization expected by 2027.

• Acquisition strengthened market leadership, enabled larger investments, and improved financial performance.

Competitive differentiation and data strategy

• Deep verticalization allows tailored solutions for sectors like transportation, healthcare, and retail, enhancing customer satisfaction and retention.

• Proprietary data and Smart Hub AI router provide cost-effective, differentiated solutions, avoiding expensive top-of-waterfall contracts and leveraging a broad network of data sources.

• Proprietary data is difficult to replicate due to high acquisition costs, regulatory requirements, and decades of operational history.