FIRST ADVANTAGE CORP Segments Disclosure
Note 17. Reportable Segments
As discussed in Note 1. “Organization, Nature of Business, and Basis of Presentation,” we have three reportable segments, First Advantage Americas, First Advantage International, and Sterling. Our CODM uses the performance measure of Adjusted EBITDA, on both a consolidated and a segment basis, to allocate resources and assess performance of our businesses. Our CODM also uses Adjusted EBITDA as a performance measure for both segment and corporate management under our incentive compensation plans.
The segment financial information below aligns with how we report information to our CODM to assess operating performance and how the Company manages the business. Corporate costs are generally allocated to the segments based upon estimated revenue levels and other assumptions that management considers reasonable. Adjusted cost of services consists of amounts paid to third parties for access to government records, other third-party data and services, our internal processing fulfillment and customer care functions, and other cost of services excluding depreciation and amortization, share-based compensation expenses, transaction expenses, and integration expenses. Other segment items consist of product and technology and selling, general, and administrative expenses, but similarly excludes depreciation and amortization, share based compensation, and other expenses excluded from Adjusted EBITDA.
The CODM does not review the Company’s assets by segment as it does not provide additional insights into the performance of our business; therefore, such information is not presented. The accounting policies of the segments are the same as described in Note 1. “Organization, Nature of Business, and Basis of Presentation” and Note 9. “Revenues.”
Reconciliations of Segment Adjusted EBITDA to net (loss) income for the years ended December 31, 2025, 2024, and 2023 are as follows (in thousands):
|
|
Year Ended December 31, 2025 |
|
|||||||||||||
|
|
First Advantage Americas |
|
|
First Advantage International |
|
|
Sterling |
|
|
Total |
|
||||
Total revenues |
|
$ |
701,634 |
|
|
$ |
104,868 |
|
|
$ |
777,194 |
|
|
$ |
1,583,696 |
|
Intersegment revenues |
|
|
(1,625 |
) |
|
|
(5,612 |
) |
|
|
(2,070 |
) |
|
|
(9,307 |
) |
External revenues |
|
$ |
700,009 |
|
|
$ |
99,256 |
|
|
$ |
775,124 |
|
|
$ |
1,574,389 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted cost of services |
|
|
362,247 |
|
|
|
61,198 |
|
|
|
439,194 |
|
|
|
|
|
Other segment items |
|
|
127,827 |
|
|
|
26,236 |
|
|
|
125,599 |
|
|
|
|
|
Segment Adjusted EBITDA |
|
$ |
211,560 |
|
|
$ |
17,434 |
|
|
$ |
212,401 |
|
|
$ |
441,395 |
|
Adjustments to reconcile to net loss: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
168,667 |
|
|||
Benefit for income taxes |
|
|
|
|
|
|
|
|
|
|
|
(2,427 |
) |
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
248,583 |
|
|||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
1,052 |
|
|||
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
24,456 |
|
|||
Transaction and acquisition-related charges (a) |
|
|
|
|
|
|
|
|
|
|
|
8,741 |
|
|||
(b) |
|
|
|
|
|
|
|
|
|
|
|
27,147 |
|
|||
Net loss |
|
|
|
|
|
|
|
|
|
|
$ |
(34,824 |
) |
|||
|
|
Year Ended December 31, 2024 |
|
|||||||||||||
|
|
First Advantage Americas |
|
|
First Advantage International |
|
|
Sterling |
|
|
Total |
|
||||
Total revenues |
|
$ |
658,758 |
|
|
$ |
96,854 |
|
|
$ |
113,068 |
|
|
$ |
868,680 |
|
Intersegment revenues |
|
|
(1,867 |
) |
|
|
(6,439 |
) |
|
|
(169 |
) |
|
|
(8,475 |
) |
External revenues |
|
$ |
656,891 |
|
|
$ |
90,415 |
|
|
$ |
112,899 |
|
|
$ |
860,205 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted cost of services |
|
|
335,181 |
|
|
|
53,726 |
|
|
|
67,827 |
|
|
|
|
|
Other segment items |
|
|
112,587 |
|
|
|
25,934 |
|
|
|
24,123 |
|
|
|
|
|
Segment Adjusted EBITDA |
|
$ |
210,990 |
|
|
$ |
17,194 |
|
|
$ |
21,118 |
|
|
$ |
249,302 |
|
Adjustments to reconcile to net loss: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
51,848 |
|
|||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
(4,342 |
) |
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
145,919 |
|
|||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
383 |
|
|||
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
31,762 |
|
|||
Transaction and acquisition-related charges (a) |
|
|
|
|
|
|
|
|
|
|
|
128,234 |
|
|||
(b) |
|
|
|
|
|
|
|
|
|
|
|
5,771 |
|
|||
Net loss |
|
|
|
|
|
|
|
|
|
|
$ |
(110,273 |
) |
|||
|
|
Year Ended December 31, 2023 |
|
|||||||||||||
|
|
First Advantage Americas |
|
|
First Advantage International |
|
|
Sterling |
|
|
Total |
|
||||
Total revenues |
|
$ |
673,075 |
|
|
$ |
96,832 |
|
|
$ |
— |
|
|
$ |
769,907 |
|
Intersegment revenues |
|
|
(970 |
) |
|
|
(5,176 |
) |
|
|
— |
|
|
|
(6,146 |
) |
External revenues |
|
$ |
672,105 |
|
|
$ |
91,656 |
|
|
$ |
— |
|
|
$ |
763,761 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted cost of services |
|
|
338,797 |
|
|
|
54,892 |
|
|
|
— |
|
|
|
|
|
Other segment items |
|
|
112,633 |
|
|
|
26,029 |
|
|
|
— |
|
|
|
|
|
Segment Adjusted EBITDA |
|
$ |
221,645 |
|
|
$ |
15,911 |
|
|
$ |
— |
|
|
$ |
237,556 |
|
Adjustments to reconcile to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
33,040 |
|
|||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
11,183 |
|
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
129,473 |
|
|||
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
15,265 |
|
|||
Transaction and acquisition-related charges (a) |
|
|
|
|
|
|
|
|
|
|
|
4,364 |
|
|||
(b) |
|
|
|
|
|
|
|
|
|
|
|
6,938 |
|
|||
Net income |
|
|
|
|
|
|
|
|
|
|
$ |
37,293 |
|
|||
Geographic Information
The Company bases revenues by geographic region in which the revenues and invoicing are recorded. Other than the United States, no single country accounted for 10% or more of our total revenues during these periods.
The following summarizes revenues by geographical region (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenues |
|
|
|
|
|
|
|
|
|
|||
United States |
|
$ |
1,351,024 |
|
|
$ |
740,506 |
|
|
$ |
660,583 |
|
All other countries |
|
|
223,365 |
|
|
|
119,699 |
|
|
|
103,178 |
|
Total revenues |
|
$ |
1,574,389 |
|
|
$ |
860,205 |
|
|
$ |
763,761 |
|
The following table sets forth net long-lived assets by geographic area (in thousands):
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Long-lived assets, net |
|
|
|
|
|
|
||
United States |
|
$ |
2,822,176 |
|
|
$ |
2,996,933 |
|
All other countries |
|
|
438,668 |
|
|
|
436,741 |
|
Total long-lived assets, net |
|
$ |
3,260,844 |
|
|
$ |
3,433,674 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.