First Advantage (FA) Wolfe Research FinTech Forum summary

Company overview and market position

• Leading global provider of tech-enabled background screening, drug testing, and digital identity solutions, with over $1.5 billion in revenue and a strong focus on high-volume, verticalized markets.

• Holds about 25% of the U.S. background screening market, with significant presence in the U.K., India, and APAC, and a highly fragmented competitive landscape.

• Key verticals include healthcare (now over 20% of business), transportation, and retail, with a focus on enterprise clients and high automation in service delivery.

• Over 70% of U.S. criminal background checks are fully automated, leveraging technology to manage complexity across 10,000+ court jurisdictions.

Recent performance and growth drivers

• Q4 saw the completion of the Sterling acquisition, doubling company size and expanding vertical exposure, especially in healthcare and gig economy.

• Base growth was challenged by labor market headwinds, but new client wins, upsell/cross-sell, and high retention (96-97%) drove consistent 6-8% growth even in flat environments.

• Synergy realization from the Sterling deal is ahead of schedule, with $60-70 million targeted, supporting both top and bottom line growth.

Strategic rationale and integration of Sterling acquisition

• Sterling was seen as the highest quality competitor, with complementary strengths in healthcare and gig verticals, and valuable product/data assets.

• Integration is progressing well, with early wins in retail gig and international financial services, leveraging combined data and product portfolios.

• Diversification reduces reliance on seasonal peaks and broadens customer base to over 80,000, including a large share of Fortune 100/500 companies.