0000950170-24-125426 | 10-Q | XBRL Viewer

Long-term Debt

9 Months Ended

Sep. 30, 2024

Note 6. Long-term Debt

The fair value of the Company’s long-term debt obligation approximated its book value as of September 30, 2024 and December 31, 2023 and consisted of the following (in thousands):


	September 30, 2024			December 31, 2023
First Lien Credit Facility	$	564,724		$	564,724
Less: Deferred financing costs		(4,880	)		(6,268	)
Long-term debt, net	$	559,844		$	558,456

First Advantage Holdings, LLC, an indirect wholly-owned subsidiary of the Company, is a party to a First Lien Credit Agreement (as amended, “Credit Agreement”), which provides for a term loan of $766.6 million due January 31, 2027, carrying an interest rate of 2.75% to 3.00%, based on the first lien ratio, plus LIBOR (“First Lien Credit Facility”) and a $100.0 million revolving credit facility due July 31, 2026 (“Revolver”). Pursuant to an amendment in June 2023, the reference rate under the Credit Agreement was transitioned from LIBOR (the London Interbank Offer Rate) to SOFR (the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York), with the addition of an applicable margin. The Credit Agreement is collateralized by substantially all assets and capital stock owned by direct and indirect domestic subsidiaries and are governed by certain restrictive covenants including limitations on indebtedness, liens, and other corporate actions such as investments and acquisitions. In the event the Company’s outstanding indebtedness under the Revolver exceeds 35% of the aggregate principal amount of the revolving commitments then in effect, it is required to maintain a consolidated first lien leverage ratio no greater than 7.75 to 1.00. As of September 30, 2024, there were no outstanding borrowings under the Revolver and $564.7 million outstanding under the First Lien Credit Facility. As the Company had no outstanding amounts under the Revolver, it was not subject to the consolidated first lien leverage ratio covenant. The Company was compliant with all other covenants under the agreement as of September 30, 2024.

In connection with the acquisition of Sterling, on October 31, 2024, the Company refinanced its existing First Lien Credit Agreement and all related Sterling debt (the “2024 First Lien Credit Agreement”). The 2024 First Lien Credit Agreement provides for a term loan of $2.185 billion due October 31, 2031, carrying an interest rate of 3.00% to 3.25%, based on the first lien ratio, plus SOFR (“Amended First Lien Credit Facility”) and a $250.0 million revolving credit facility due October 31, 2029 (“Amended Revolver”). Similar to the Company’s existing debt, the 2024 First Lien Credit Agreement is collateralized by substantially all assets and capital stock owned by direct and indirect domestic subsidiaries and are governed by certain restrictive covenants including limitations on indebtedness, liens, and other corporate actions such as investments and acquisitions. In the event the Company’s outstanding indebtedness under the Amended Revolver exceeds 40% of the aggregate principal amount of the revolving commitments then in effect, it is required to maintain a consolidated first lien leverage ratio no greater than 7.75 to 1.00.

Reportable Segments

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Reportable Segments

Note 15. Reportable Segments

We have two reportable segments, Americas and International. Our chief operating decision maker (“CODM”) uses the profit measure of Adjusted EBITDA, on both a consolidated and a segment basis, to allocate resources and assess performance of our businesses. We use Adjusted EBITDA as our profit measure because it eliminates the impact of certain items that we do not consider indicative of operating performance, which is useful to compare operating results between periods. Our CODM also uses Adjusted EBITDA as a compensation measure for both segment and corporate management under our incentive compensation plans. Adjusted EBITDA is also a measure frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies similar to ours.

We define Adjusted EBITDA as net (loss) income before interest, taxes, depreciation, and amortization, and as further adjusted for loss on extinguishment of debt, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges. We exclude the impact of share-based compensation because it is a non-cash expense and we believe that excluding this item provides meaningful supplemental information regarding performance and ongoing cash generation potential. We exclude loss on extinguishment of debt, transaction and acquisition related charges, integration and restructuring charges, and other charges because such expenses are episodic in nature and have no direct correlation to the cost of operating our business on an ongoing basis.

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. The CODM does not review the Company’s assets by segment; therefore, such information is not presented. The accounting policies of the segments are the same as described in Note 2, “Summary of Significant Accounting Policies” and Note 9, “Revenues.”

The following is a description of our two reportable segments:

Americas. This segment performs a variety of background check and compliance services across all phases of the workforce lifecycle from pre-onboarding services to post-onboarding and ongoing monitoring services, covering employees, contractors, contingent workers, tenants, and drivers. We generally classify our service offerings into three categories: pre-onboarding, post-onboarding, and adjacent products. We deliver our solutions across multiple industry verticals in the United States, Canada, and Latin America.

International. The International segment provides services similar to our Americas segment in regions outside of the Americas. We primarily deliver our solutions across multiple industry verticals in the Europe, India, and Asia Pacific.

A reconciliation of Segment Adjusted EBITDA to net (loss) income for the three and nine months ended September 30, 2024 and 2023 is as follows (in thousands):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024			2023
Adjusted EBITDA
Americas	$	58,637		$	60,188	$	153,900		$	157,168
International		5,409			4,603		12,465			12,154
Total	$	64,046		$	64,791	$	166,365		$	169,322
Adjustments to reconcile to net (loss) income:
Interest expense, net		17,191			7,557		28,114			20,125
Provision for income taxes		782			4,881		83			9,530
Depreciation and amortization		30,168			32,419		89,968			96,341
Share-based compensation		9,504			4,790		19,303			10,449
Transaction and acquisition-related charges(a)		13,218			1,571		35,083			3,832
Integration, restructuring, and other charges(b)		2,043			2,800		3,721			6,565
Net (loss) income	$	(8,860	)	$	10,773	$	(9,907	)	$	22,480

(a)

Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Transaction and acquisition related charges for the three and nine months ended September 30, 2024 include approximately $13.2 million and $33.5 million of expense, respectively, associated with the acquisition of Sterling, primarily consisting of legal, regulatory, and diligence professional service fees. The three and nine months ended September 30, 2024 and 2023 also include insurance costs incurred related to the initial public offering.

(b)

Represents charges from organizational restructuring and integration activities, non-cash, and other charges primarily related to nonrecurring legal exposures, foreign currency (gains) losses, (gains) losses on the sale of assets, and other non-recurring items.

Geographic Information

The Company categorizes 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):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenues
Americas	$	174,905		$	176,046		$	486,410		$	490,784
International		26,624			25,805			72,834			74,766
Eliminations		(2,410	)		(1,487	)		(6,163	)		(4,351	)
Total revenues	$	199,119		$	200,364		$	553,081		$	561,199

The following table sets forth net long-lived assets by geographic area (in thousands):


	September 30, 2024		December 31, 2023
Long-lived assets, net
United States, country of domicile	$	1,021,330	$	1,083,318
All other countries		163,393		168,068
Total long-lived assets, net	$	1,184,723	$	1,251,386

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Share-Based Compensation - Summary of the Option Unit Activity (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted Average Remaining Contractual Term, Grants Vested	10 months 24 days
2021 Equity Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units, grant outstanding beginning balance \| shares	4,686,659
Number of grants, exercised \| shares	(252,784)
Number of grants, issued \| shares	307,136
Number of grants, forfeited \| shares	(94,323)
Number of units, grant outstanding ending balance \| shares	4,646,688
Number of grants, vested \| shares	2,159,459
Number of grants, unvested \| shares	2,487,229
Weighted average exercise price, grant outstanding beginning balance \| $ / shares	$ 13.61
Weighted average exercise price, grants issued \| $ / shares	13.56
Weighted average exercise price, grants issued \| $ / shares	17.55
Weighted average exercise price, forefeited \| $ / shares	13.87
Weighted average exercise price, grant outstanding ending balance \| $ / shares	13.87
Weighted average exercise price, grants vested \| $ / shares	13.65
Weighted average exercise price, grants unvested \| $ / shares	$ 14.06
Weighted Average Remaining Contractual Term, Grants Outstanding	7 years
Weighted Average Remaining Contractual Term, Grants Vested	6 years 10 months 24 days
Aggregate Intrinsic Value, grants outstanding \| $	$ 27.8
Aggregate Intrinsic Value, grants vested \| $	$ 13.2
First Advantage Corporation [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units, grant outstanding beginning balance \| shares	1,915,252
Number of grants, exercised \| shares	(156,107)
Number of grants, forfeited \| shares	(16,978)
Number of units, grant outstanding ending balance \| shares	1,742,167
Number of grants, vested \| shares	726,095
Number of grants, unvested \| shares	1,016,072
Weighted average exercise price, grant outstanding beginning balance \| $ / shares	$ 5.15
Weighted average exercise price, grants issued \| $ / shares	5.23
Weighted average exercise price, forefeited \| $ / shares	5.11
Weighted average exercise price, grant outstanding ending balance \| $ / shares	5.15
Weighted average exercise price, grants vested \| $ / shares	5.12
Weighted average exercise price, grants unvested \| $ / shares	$ 5.18
Weighted Average Remaining Contractual Term, Grants Outstanding	5 years 4 months 24 days
Weighted Average Remaining Contractual Term, Grants Vested	5 years 4 months 24 days
Aggregate Intrinsic Value, grants outstanding \| $	$ 25.6
Aggregate Intrinsic Value, grants vested \| $	$ 10.7

Net (Loss) Income Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,312,675	4,739,037	3,244,309	4,754,689

Condensed Consolidated Statement of Changes in Stockholder's Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In-Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balance, beginning at Dec. 31, 2022	$ 1,126,618	$ 149	$ 1,176,163	$ (27,363)	$ (22,331)
Share-based compensation	2,058	0	2,058	0	0
Repurchases of common stock	(25,517)	(2)	0	(25,515)	0
Proceeds from issuance of common stock under share-based compensation plans	1,399	0	1,399	0	0
Common stock withheld for tax obligations on restricted stock unit and option settlement	(25)	0	(25)	0	0
Foreign currency translation	869	0	0	0	869
Net Income (Loss)	1,925	0	0	1,925	0
Balance, ending at Mar. 31, 2023	1,107,327	147	1,179,595	(50,953)	(21,462)
Balance, beginning at Dec. 31, 2022	1,126,618	149	1,176,163	(27,363)	(22,331)
Foreign currency translation	(523)
Net Income (Loss)	22,480
Balance, ending at Sep. 30, 2023	888,000	145	972,063	(61,354)	(22,854)
Balance, beginning at Mar. 31, 2023	1,107,327	147	1,179,595	(50,953)	(21,462)
Share-based compensation	3,601	0	3,601	0	0
Repurchases of common stock	(27,339)	(2)	0	(27,337)	0
Proceeds from issuance of common stock under share-based compensation plans	705	0	705	0	0
Common stock withheld for tax obligations on restricted stock unit and option settlement	(186)	0	(186)	0	0
Foreign currency translation	218	0	0	0	218
Net Income (Loss)	9,782	0	0	9,782	0
Balance, ending at Jun. 30, 2023	1,094,108	145	1,183,715	(68,508)	(21,244)
Share-based compensation	4,790	0	4,790	0	0
Repurchases of common stock	(3,619)	0	0	(3,619)	0
Cash dividends declared, $1.50 per share	(218,384)	0	(218,384)	0	0
Proceeds from issuance of common stock under share-based compensation plans	1,985	0	1,985	0	0
Common stock withheld for tax obligations on restricted stock unit and option settlement	(43)	0	(43)	0	0
Foreign currency translation	(1,610)	0	0	0	(1,610)
Net Income (Loss)	10,773	0	0	10,773	0
Balance, ending at Sep. 30, 2023	888,000	145	972,063	(61,354)	(22,854)
Balance, beginning at Dec. 31, 2023	906,733	145	977,290	(49,545)	(21,157)
Share-based compensation	4,751	0	4,751	0	0
Forfeitures of previously declared cash dividends	6	0	6	0	0
Proceeds from issuance of common stock under share-based compensation plans	976	0	976	0	0
Common stock withheld for tax obligations on restricted stock unit and option settlement	(41)	0	(41)	0	0
Foreign currency translation	(1,773)	0	0	0	(1,773)
Net Income (Loss)	(2,908)	0	0	(2,908)	0
Balance, ending at Mar. 31, 2024	907,744	145	982,982	(52,453)	(22,930)
Balance, beginning at Dec. 31, 2023	906,733	145	977,290	(49,545)	(21,157)
Foreign currency translation	2,460
Net Income (Loss)	(9,907)
Balance, ending at Sep. 30, 2024	920,714	146	998,707	(59,442)	(18,697)
Balance, beginning at Mar. 31, 2024	907,744	145	982,982	(52,453)	(22,930)
Share-based compensation	5,048	0	5,048	0	0
Forfeitures of previously declared cash dividends	5	0	5	0	0
Proceeds from issuance of common stock under share-based compensation plans	221	0	221	0	0
Common stock withheld for tax obligations on restricted stock unit and option settlement	(270)	0	(270)	0	0
Foreign currency translation	(1,298)	0	0	0	(1,298)
Net Income (Loss)	1,861	0	0	1,861	0
Balance, ending at Jun. 30, 2024	913,311	145	987,986	(50,592)	(24,228)
Share-based compensation	9,504	0	9,504	0	0
Excise tax on repurchase of common stock	10			10
Forfeitures of previously declared cash dividends	31	0	31	0	0
Proceeds from issuance of common stock under share-based compensation plans	4,666	1	4,665	0	0
Common stock withheld for tax obligations on restricted stock unit and option settlement	(3,479)	0	(3,479)	0	0
Foreign currency translation	5,531	0	0	0	5,531
Net Income (Loss)	(8,860)	0	0	(8,860)	0
Balance, ending at Sep. 30, 2024	$ 920,714	$ 146	$ 998,707	$ (59,442)	$ (18,697)

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

There have been no material changes to the Company’s contractual obligations as compared to December 31, 2023.

The Company is involved in litigation from time to time in the ordinary course of business. At times, the Company, given the nature of its background screening business, could become subject to lawsuits, or potential class action lawsuits, in multiple jurisdictions, related to claims brought primarily by consumers or individuals who were the subject of its screening services.

For all pending matters, the Company believes it has meritorious defenses and intends to defend vigorously or otherwise seek indemnification from other parties as appropriate. However, the Company has recorded a liability of $4.3 million and $5.2 million as of September 30, 2024 and December 31, 2023, respectively, for matters that it believes a loss is both probable and estimable. This is included in accrued liabilities in the accompanying condensed consolidated balance sheets.

The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable.

Share-Based Compensation - Summary of Assumptions Applied to Establish Fair Value of Options Granted Using Black-Scholes Option Pricing Model (Details) - 2021 Equity Plan [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected stock price volatility	35.09%
Risk- Free Interest Rate	3.88%
Expected Term (in years)	6 years 3 months
Estimated fair value of the underlying unit	$ 17.55

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Net (Loss) Income Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Summary of Basic and Diluted Net Income (loss) Per Share

Basic and diluted net (loss) income per share was calculated as follows:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024			2023
Basic net (loss) income per share	$	(0.06	)	$	0.08	$	(0.07	)	$	0.16
Diluted net (loss) income per share	$	(0.06	)	$	0.07	$	(0.07	)	$	0.15
Numerator:
Net (loss) income (in thousands)	$	(8,860	)	$	10,773	$	(9,907	)	$	22,480
Denominator:
Weighted average number of shares outstanding - basic		144,096,312			143,231,707		143,851,357			144,392,463
Add stock options to purchase shares and restricted stock units		—			1,501,650		—			2,000,533
Weighted average number of shares outstanding - diluted		144,096,312			144,733,357		143,851,357			146,392,996

Reportable Segments - Summary of Long Lived Assets by Geographical Area (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating Segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets, net	$ 1,184,723	$ 1,251,386
United States, country of domicile
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets, net	1,021,330	1,083,318
All Other Countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets, net	$ 163,393	$ 168,068

Revenues

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Note 9. Revenues

Substantially all of the Company’s revenues are recognized at a point in time when the orders are completed and the completed reports are reported, or otherwise made available. For revenues delivered over time, the output method is utilized to measure the value to the customer based on the transfer to date of the services promised, with no rights of return once consumed. In these cases, revenues on transactional contracts with a defined price but an undefined quantity is recognized utilizing the right to invoice expedient resulting in revenues being recognized when the service is provided and becomes billable. Additionally, under this practical expedient, the Company is not required to estimate the transaction price.

The Company considers negotiated and anticipated incentives and estimated adjustments, including historical collections experience, when recording revenues.

The Company’s contracts with customers generally include standard commercial payment terms acceptable in each region, and do not include any financing components. The Company does not have any significant obligations for refunds, warranties, or similar obligations. The Company records revenues net of sales taxes.

Contract balances are generated when the revenues recognized in a given period varies from billing. A contract asset is created when the Company performs a service for a customer and recognizes more revenues than what has been billed. The contract asset balance was $8.3 million and $4.8 million as of September 30, 2024 and December 31, 2023, respectively, and is included in accounts receivable, net in the accompanying condensed consolidated balance sheets.

A contract liability is created when the Company transfers a good or service to a customer and recognizes less than what has been billed. The Company recognizes these contract liabilities as deferred revenues when the Company has an obligation to perform services for a customer in the future and has already received consideration from the customer. The contract liability balance was $2.5 million and $1.9 million as of September 30, 2024 and December 31, 2023, respectively, and is included in deferred revenues in the accompanying condensed consolidated balance sheets. An immaterial amount of revenues was recognized in the current period related to the beginning balance of deferred revenues.

For additional disclosures about the disaggregation of our revenues, see Note 15, “Reportable Segments.”

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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+ Details

Property and Equipment, net- Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 15.9	$ 16.9	$ 47.1	$ 50.0

Reportable Segments - Additional Information (Details)	3 Months Ended		9 Months Ended
Reportable Segments - Additional Information (Details)	Sep. 30, 2024 Country	Sep. 30, 2023 Country	Sep. 30, 2024 Country Segment	Sep. 30, 2023 Country
Segment Reporting Information [Line Items]
Number of reportable segments \| Segment			2
Non-US [Member] \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, number of customers \| Country	0	0	0	0
Non-US [Member] \| Revenue Benchmark \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of sales	10.00%	10.00%	10.00%	10.00%

Goodwill, Trade Names, Customer Lists and Other Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Trade Names, Customer Lists and Other Intangible Assets

Note 5. Goodwill, Trade Names, Customer Lists and Other Intangible Assets

The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 by reportable segment were as follows (in thousands):


	Americas			International		Total
Balance – December 31, 2023	$	703,797		$	116,857	$	820,654
Adjustments to initial purchase price allocations		(368	)		—		(368	)
Foreign currency translation		(114	)		2,105		1,991
Balance – September 30, 2024	$	703,315		$	118,962	$	822,277

The following summarizes the gross carrying value and accumulated amortization for the Company’s trade names, customer lists, and other intangible assets as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Useful Life (in years)
Trade names	$	96,505	$	(35,515	)	$	60,990	20 years
Customer lists		521,117		(282,296	)		238,821	13-14 years
Other intangible assets		2,400		(502	)		1,898	5 years
Total	$	620,022	$	(318,313	)	$	301,709


	December 31, 2023
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Useful Life (in years)
Trade names	$	96,321	$	(30,092	)	$	66,229	20 years
Customer lists		520,105		(244,577	)		275,528	13-14 years
Other intangible assets		2,400		(143	)		2,257	5 years
Total	$	618,826	$	(274,812	)	$	344,014

Amortization expense of trade names, customer lists, and other intangible assets was approximately $14.3 million and $15.5 million for the three months ended September 30, 2024 and 2023, respectively. Amortization expense of trade names, customer lists, and other intangible assets was approximately $42.8 million and $46.3 million for the nine months ended September 30, 2024 and 2023, respectively. Trade names and customer lists are amortized on an accelerated basis based upon their estimated useful life. Other intangible assets are amortized on a straight-line or accelerated basis over their expected useful life of five years.

Share-Based Compensation - Summary of Recognition of Share-Based Compensation related to Employees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated share based compensation expense	$ 9,504	$ 4,790	$ 19,303	$ 10,449
Cost of Services [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated share based compensation expense	414	330	1,181	918
Product and Technology Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated share based compensation expense	703	640	2,040	1,665
Selling, General and Administrative Expenses [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated share based compensation expense	$ 8,387	$ 3,820	$ 16,082	$ 7,866

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Goodwill, Trade Names, Customer Lists and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 by reportable segment were as follows (in thousands):


	Americas			International		Total
Balance – December 31, 2023	$	703,797		$	116,857	$	820,654
Adjustments to initial purchase price allocations		(368	)		—		(368	)
Foreign currency translation		(114	)		2,105		1,991
Balance – September 30, 2024	$	703,315		$	118,962	$	822,277

Summary of Gross Carrying Value and Accumulated Amortization of Finite-Lived Intangible Assets


	September 30, 2024
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Useful Life (in years)
Trade names	$	96,505	$	(35,515	)	$	60,990	20 years
Customer lists		521,117		(282,296	)		238,821	13-14 years
Other intangible assets		2,400		(502	)		1,898	5 years
Total	$	620,022	$	(318,313	)	$	301,709


	December 31, 2023
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Useful Life (in years)
Trade names	$	96,321	$	(30,092	)	$	66,229	20 years
Customer lists		520,105		(244,577	)		275,528	13-14 years
Other intangible assets		2,400		(143	)		2,257	5 years
Total	$	618,826	$	(274,812	)	$	344,014

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of September 30, 2024 (in thousands):


	Level 1		Level 2		Level 3
Liabilities
Interest rate swaps	$	—	$	4,984	$	—

Insider Trading Arrangements

3 Months Ended

Sep. 30, 2024

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

During the three months ended September 30, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K), except as described in the table below.

       
      Trading Arrangement

      Director/Officer Name

      Title

      Date of Adoption/Termination

      Rule 10b5-1(1)

      Non-Rule 10b5-1

      Scheduled Expiration Date of Rule 10b5-1 Trading Plan(2)

      Aggregate Number of Securities to Be Purchased or Sold

      David L. Gamsey

      Chief Financial Officer(3)

       Adopted August 9, 2024

      X

      August 8, 2025

      Sale of up to 325,000 shares of common stock in multiple transactions

      Joseph Jaeger

      President, Americas(3)

       Adopted August 12, 2024

      X

      November 21, 2025

      Sale of up to 50,000 shares of common stock in multiple transactions

      Bret T. Jardine

      Chief Legal Officer & Corporate Secretary

       Adopted August 16, 2024

      X

      August 15, 2025

      Sale of up to 40,286 shares of common stock in multiple transactions

(1)

Intended to satisfy the affirmative defense of Rule 10b5-1(c).

(2)

A trading plan may also expire on such earlier date that all transactions under the trading plan are completed.

(3)

In connection with their respective retirements, each of David L. Gamsey and Joseph Jaeger, was not an “officer” of the Company as of November 12, 2024.

Appointment of Global Chief Operating Officer

On November 11, 2024, the Company’s Board of Directors promoted Douglas Nairne to the role of Global Chief Operating Officer (principal operating officer), effective as of November 11, 2024. As Global Chief Operating Officer, Mr. Nairne will oversee all of the Company’s global operations, customer care, and customer onboarding teams.

Mr. Nairne, 58, previously served as the Company’s Chief Operations Officer – International since joining the Company in October 2021, and was responsible for First Advantage’s operations in the Asia-Pacific (APAC), India and Europe, Middle East, and Africa (EMEA) regions. Prior to joining the Company, Mr. Nairne served as the Chairman and Chief Executive Officer of Dataflow Group, a background screening company for employers recruiting high-risk, internationally mobile professionals from July 2011 to July 2018 and served in an advisory position from July 2018 to September 2021. Mr. Nairne’s past experience includes positions as an officer in the Canadian Army, a journalist for the South China Morning Post, and Chief Operating Officer of IntegraScreen. Mr. Nairne holds a B. A. from the University of Manitoba, a master’s in journalism from Hong Kong University, and a master’s in business administration from the Hong Kong University of Science and Technology and Northwestern University’s Kellogg School of Management.

In connection with the promotion of Mr. Nairne: (i) his annual base salary will increase to $500,000.00 (to be converted into HKD at the applicable exchange rate), (ii) he will be eligible to receive a discretionary annual cash bonus of up to 60% of his annual base salary, and (iii) he will receive a one-time cash bonus of $100,000.00 in connection with the Company’s acquisition of Sterling Check Corp. Additionally, on November 14, 2024, Mr. Nairne will receive a grant of equity awards, pursuant to the First Advantage 2021 Omnibus Incentive Plan (as amended) and the Company’s current forms of equity awards (substantially in the forms filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as Exhibit 10.9 (Form of Restricted Stock Unit Award Grant Notice and Agreement) and Exhibit 10.5 (Form of Standard Option Award Grant Notice and Agreement)), having a fair value equal to $1,000,000.00, comprised of 50% stock options and 50% restricted stock units, with each grant vesting annually in four equal installments from November 1, 2024. The exact number of stock options and restricted stock units subject to the awards will be determined on November 14, 2024, based on the prior twenty day average closing price of the Company’s common stock in the case of the restricted stock units and using a Black-Scholes valuation for the stock options. The per share exercise price of the stock options will be the closing price on November 14, 2024.

Mr. Nairne was not appointed pursuant to any arrangement or understanding with any other person, has no family relationships with any director or executive officer of the Company, and there are no transactions involving Mr. Nairne that would be required to be reported under Item 404(a) of Regulation S-K.

Rule 10b5-1 Arrangement Adopted

false

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Rule 10b51 Arr Modified Flag

false

Non Rule 10b51 Arr Modified Flag

false

David L. Gamsey

Trading Arrangements, by Individual

Name

David L. Gamsey

Title

Chief Financial Officer(3)

^[1]

Rule 10b5-1 Arrangement Adopted

true

Non-Rule 10b5-1 Arrangement Adopted

false

Adoption Date

August 9, 2024

Expiration Date

August 8, 2025

^[2]

Aggregate Available

325,000

Joseph Jaeger

Trading Arrangements, by Individual

Name

Joseph Jaeger

Title

President, Americas(3)

^[1]

Rule 10b5-1 Arrangement Adopted

true

Non-Rule 10b5-1 Arrangement Adopted

false

Adoption Date

August 12, 2024

Expiration Date

November 21, 2025

^[2]

Aggregate Available

50,000

Bret T. Jardine

Trading Arrangements, by Individual

Name

Bret T. Jardine

Title

Chief Legal Officer & Corporate Secretary

Rule 10b5-1 Arrangement Adopted

true

Non-Rule 10b5-1 Arrangement Adopted

false

Adoption Date

August 16, 2024

Expiration Date

August 15, 2025

^[2]

Aggregate Available

40,286

[1]	In connection with their respective retirements, each of David L. Gamsey and Joseph Jaeger, was not an “officer” of the Company as of November 12, 2024.
[2]	A trading plan may also expire on such earlier date that all transactions under the trading plan are completed.

Goodwill, Trade Names, Customer Lists and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 14.3	$ 15.5	$ 42.8	$ 46.3

Net (Loss) Income Per Share - Summary of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Basic net (loss) income per share	$ (0.06)			$ 0.08			$ (0.07)	$ 0.16
Diluted net (loss) income per share	$ (0.06)			$ 0.07			$ (0.07)	$ 0.15
Numerator:
Net (loss) income	$ (8,860)	$ 1,861	$ (2,908)	$ 10,773	$ 9,782	$ 1,925	$ (9,907)	$ 22,480
Denominator:
Weighted average number of shares outstanding - basic	144,096,312			143,231,707			143,851,357	144,392,463
Add stock options to purchase shares and restricted stock units	0			1,501,650			0	2,000,533
Weighted average number of shares outstanding - diluted	144,096,312			144,733,357			143,851,357	146,392,996

- Definition

The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Adjusted EBITDA Reconciled to Net Income

A reconciliation of Segment Adjusted EBITDA to net (loss) income for the three and nine months ended September 30, 2024 and 2023 is as follows (in thousands):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024			2023
Adjusted EBITDA
Americas	$	58,637		$	60,188	$	153,900		$	157,168
International		5,409			4,603		12,465			12,154
Total	$	64,046		$	64,791	$	166,365		$	169,322
Adjustments to reconcile to net (loss) income:
Interest expense, net		17,191			7,557		28,114			20,125
Provision for income taxes		782			4,881		83			9,530
Depreciation and amortization		30,168			32,419		89,968			96,341
Share-based compensation		9,504			4,790		19,303			10,449
Transaction and acquisition-related charges(a)		13,218			1,571		35,083			3,832
Integration, restructuring, and other charges(b)		2,043			2,800		3,721			6,565
Net (loss) income	$	(8,860	)	$	10,773	$	(9,907	)	$	22,480

(a)

(b)

Schedule of Revenues by Geographic Region

The following summarizes revenues by geographical region (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenues
Americas	$	174,905		$	176,046		$	486,410		$	490,784
International		26,624			25,805			72,834			74,766
Eliminations		(2,410	)		(1,487	)		(6,163	)		(4,351	)
Total revenues	$	199,119		$	200,364		$	553,081		$	561,199

Summary of Long Lived Assets by Geographical Area

The following table sets forth net long-lived assets by geographic area (in thousands):


	September 30, 2024		December 31, 2023
Long-lived assets, net
United States, country of domicile	$	1,021,330	$	1,083,318
All other countries		163,393		168,068
Total long-lived assets, net	$	1,184,723	$	1,251,386

Goodwill, Trade Names, Customer Lists and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Line Items]
Balance - December 31, 2023	$ 820,654
Adjustments to initial purchase price allocations	(368)
Foreign currency translation	1,991
Balance - September 30, 2024	822,277
Americas
Goodwill [Line Items]
Balance - December 31, 2023	703,797
Adjustments to initial purchase price allocations	(368)
Foreign currency translation	(114)
Balance - September 30, 2024	703,315
International
Goodwill [Line Items]
Balance - December 31, 2023	116,857
Adjustments to initial purchase price allocations	0
Foreign currency translation	2,105
Balance - September 30, 2024	$ 118,962

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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+ Details

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2024

Summary of Consideration Paid and Amounts Recognized for Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed (in thousands):


Consideration
Cash purchase price	$	41,000
Other transaction adjustments		97
Total fair value of consideration transferred	$	41,097
Current assets	$	1,335
Property and equipment, including software developed for internal use		5,959
Trade name		2,300
Customer lists		3,800
Other intangible assets		2,400
Other assets		236
Total liabilities		(1,084	)
Total identifiable net assets	$	14,946
Goodwill	$	26,151

Acquisitions

9 Months Ended

Sep. 30, 2024

Business Combinations [Abstract]

Acquisitions

Note 3. Acquisitions

Acquisition of Sterling Check Corp.

On February 28, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among First Advantage, Sterling Check Corp., a Delaware corporation (“Sterling”), and Starter Merger Sub, Inc., a Delaware corporation and an indirect, wholly owned subsidiary of First Advantage (“Merger Sub”).

On October 31, 2024, following the satisfaction or waiver of the applicable closing conditions, including receipt of the requisite regulatory approvals, First Advantage completed its acquisition of Sterling, pursuant to the Merger Agreement. Under the terms of the Merger Agreement, Merger Sub merged with and into Sterling, with Sterling continuing as the surviving corporation in such merger and becoming an indirect, wholly owned subsidiary of First Advantage. The Sterling stockholders received approximately $1,224.6 million in cash and 27.15 million shares of First Advantage common stock with a fair value of $507.7 million. The transaction extends First Advantage’s high-quality and cost-effective background screening, identity, and verification technology solutions for the benefit of both companies' customers across industry verticals and geographies. The cash-and-stock transaction values Sterling at approximately $2.2 billion and was financed through cash on hand and the issuance of new debt and common stock as described in Note 6, “Long-term Debt”.

Due to the limited amount of time since closing the transaction, the preliminary allocation of the purchase price is not yet complete. The initial purchase price allocation will be provided within our Annual Report on Form 10-K for fiscal year ended December 31, 2024, and we expect most of the purchase price will be allocated to goodwill and other identifiable intangible assets. The acquisition will be accounted for in accordance with ASC 805, Business Combinations and Sterling’s results of operations will be consolidated in the Company’s financial statements effective November 1, 2024. Acquisition-related costs through October 31, 2024 were approximately $48.9 million and expensed as incurred.

2023 Acquisition

On September 1, 2023, the Company acquired 100% of the equity interest of a digital identity and biometrics solutions company headquartered in New York, for $41.0 million. The acquired company operates under the trade name Infinite ID. The acquisition expanded the Company’s network and portfolio of identity solutions in the United States. The Company determined that the acquired company constitutes a business and the Company was deemed to be the acquirer under ASC 805. The Company recorded a preliminary allocation of the purchase price to assets acquired and liabilities assumed based on their estimated fair values as of September 1, 2023. The allocation was finalized as of June 30, 2024 with an immaterial adjustment recorded related to the valuation of deferred taxes.

The allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date. The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed (in thousands):


Consideration
Cash purchase price	$	41,000
Other transaction adjustments		97
Total fair value of consideration transferred	$	41,097
Current assets	$	1,335
Property and equipment, including software developed for internal use		5,959
Trade name		2,300
Customer lists		3,800
Other intangible assets		2,400
Other assets		236
Total liabilities		(1,084	)
Total identifiable net assets	$	14,946
Goodwill	$	26,151

Goodwill recognized is not expected to be deductible for tax purposes. Results of operations have been included in the condensed consolidated financial statements of the Company’s Americas segment since the date of acquisition. The acquisition is not material to the Company’s financial position as of September 30, 2024 or results of operations for the three and nine months ended September 30, 2024, and therefore, pro forma operating results and other disclosures for the acquisition are not presented.

Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Fair Value of Company’s Long-term Debt Obligations

The fair value of the Company’s long-term debt obligation approximated its book value as of September 30, 2024 and December 31, 2023 and consisted of the following (in thousands):


	September 30, 2024			December 31, 2023
First Lien Credit Facility	$	564,724		$	564,724
Less: Deferred financing costs		(4,880	)		(6,268	)
Long-term debt, net	$	559,844		$	558,456

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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-Paragraph 1
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+ Details

Derivatives - Summary of outstanding derivatives that were not designated as a hedge in qualifying hedging relationships (Parenthetical) (Details) - Interest Rate Swaps [Member]	Jun. 30, 2023
SOFR [Member]
Derivative [Line Items]
Derivative, swap interest rate	4.32%
LIBOR [Member]
Derivative [Line Items]
Derivative, swap interest rate	4.36%

Related Party Transactions - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Related Party Transaction [Line Items]
Related party transactions	$ 0

Related Party Transactions

9 Months Ended

Sep. 30, 2024

Related Party Transactions

Note 13. Related Party Transactions

The Company had no material related party transactions for the nine months ended September 30, 2024.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts Receivable (net of allowance for doubtful accounts)	$ 1,284	$ 1,036
Long term debt (net of deferred financing costs)	$ 4,880	$ 6,268
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	145,558,948	145,074,802
Common stock, shares outstanding	145,558,948	145,074,802

Revenues - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract asset balance	$ 8.3	$ 4.8
Contract liability balance	$ 2.5	$ 1.9

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
REVENUES	$ 199,119	$ 200,364	$ 553,081	$ 561,199
OPERATING EXPENSES:
Cost of services (exclusive of depreciation and amortization below)	100,879	101,410	280,419	285,468
Product and technology expense	12,909	13,107	39,052	38,374
Selling, general, and administrative expense	46,050	30,217	125,352	88,881
Depreciation and amortization	30,168	32,419	89,968	96,341
Total operating expenses	190,006	177,153	534,791	509,064
INCOME FROM OPERATIONS	9,113	23,211	18,290	52,135
OTHER EXPENSE, NET:
Interest expense, net	17,191	7,557	28,114	20,125
Total other expense, net	17,191	7,557	28,114	20,125
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES	(8,078)	15,654	(9,824)	32,010
Provision for income taxes	782	4,881	83	9,530
NET (LOSS) INCOME	(8,860)	10,773	(9,907)	22,480
Foreign currency translation income (loss)	5,531	(1,610)	2,460	(523)
COMPREHENSIVE (LOSS) INCOME	(3,329)	9,163	(7,447)	21,957
Net (loss) income	$ (8,860)	$ 10,773	$ (9,907)	$ 22,480
Basic net (loss) income per share	$ (0.06)	$ 0.08	$ (0.07)	$ 0.16
Diluted net (loss) income per share	$ (0.06)	$ 0.07	$ (0.07)	$ 0.15
Weighted average number of shares outstanding - basic	144,096,312	143,231,707	143,851,357	144,392,463
Weighted average number of shares outstanding - diluted	144,096,312	144,733,357	143,851,357	146,392,996

Derivatives - Summary of outstanding derivatives that were not designated as a hedge in qualifying hedging relationships (Details) - Derivatives Not Designated as Hedging Instruments [Member]
$ in Millions

9 Months Ended

Sep. 30, 2024

USD ($)

Interest Rate Swaps [Member]

Derivative [Line Items]

Effective Date

Jun. 30, 2023

^[1]

Maturity Date

Feb. 28, 2026

^[1]

Notional

$ 100.0

^[1]

Derivative, swap interest rate

4.32%

^[1]

Interest Rate Swap 1 [Member]

Derivative [Line Items]

Effective Date

Dec. 29, 2023

Maturity Date

Dec. 31, 2026

Notional

$ 150.0

Derivative, swap interest rate

3.86%

Interest Rate Swap 2 [Member]

Derivative [Line Items]

Effective Date

Mar. 01, 2024

Maturity Date

Dec. 31, 2026

Notional

$ 150.0

Derivative, swap interest rate

3.76%

Interest Rate Swap 3 [Member]

Derivative [Line Items]

Effective Date

Aug. 31, 2024

Maturity Date

Dec. 31, 2026

Notional

$ 160.0

Derivative, swap interest rate

3.72%

[1]	In conjunction with the June 2023 transition of the reference rate from LIBOR to SOFR, the fixed rate was reduced from 4.36% to 4.32%.

Derivatives (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of outstanding derivatives that were not designated as a hedge in qualifying hedging relationships

As of September 30, 2024, the Company had the following outstanding derivatives that were not designated as a hedge in qualifying hedging relationships:


Product	Effective Date	Maturity Date	Notional	Rate
Interest rate swap(a)	June 30, 2023	February 28, 2026	$100.0 million	4.32%
Interest rate swap	December 29, 2023	December 31, 2026	$150.0 million	3.86%
Interest rate swap	March 1, 2024	December 31, 2026	$150.0 million	3.76%
Interest rate swap	August 31, 2024	December 31, 2026	$160.0 million	3.72%

(a)

In conjunction with the June 2023 transition of the reference rate from LIBOR to SOFR, the fixed rate was reduced from 4.36% to 4.32%.

Summary of Location and Fair Value of Financial Position and Location of Derivative Instruments

The following is a summary of location and fair value of the financial positions recorded related to the derivative instruments (in thousands):


		Fair Value
Derivatives not designated as hedging instruments	Balance Sheet Location	As of September 30, 2024		As of December 31, 2023
Interest rate collars	Prepaid expenses and other current assets	$	—	$	1,986
Interest rate swaps	Accrued liabilities	$	4,984	$	1,576

The following is a summary of location and amount of gains recorded related to the derivative instruments (in thousands):


		Gain (Loss)
		Three Months Ended September 30,					Nine Months Ended September 30,
Derivatives not designated as hedging instruments	Income Statement Location	2024			2023		2024		2023
Interest rate collars	Interest expense, net	$	—		$	109	$	951	$	878
Interest rate swaps	Interest expense, net	$	(8,171	)	$	857	$	55	$	1,323

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Reportable Segments - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	$ 199,119	$ 200,364	$ 553,081	$ 561,199
Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	(2,410)	(1,487)	(6,163)	(4,351)
Americas
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	174,905	176,046	486,410	490,784
International
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	$ 26,624	$ 25,805	$ 72,834	$ 74,766

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

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+ Details

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) Customer	Sep. 30, 2023 USD ($) Customer	Sep. 30, 2024 USD ($) Customer	Sep. 30, 2023 USD ($) Customer
Summary Of Significant Accounting Policies [Line Items]
Gain (loss) on foreign currency exchange rates			$ 0	$ (26)
No Customers [Member] \| Customer Concentration Risk [Member] \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Number of Customers \| Customer	0	0	0	0
Concentration risk, percentage	10.00%	10.00%	10.00%	10.00%
One Customer [Member] \| Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of Customers \| Customer	1	1	1	1
Concentration risk, percentage	15.00%	11.00%	13.00%	11.00%
Other Comprehensive Income (Loss) [Member]
Summary Of Significant Accounting Policies [Line Items]
Gain (loss) on foreign currency exchange rates	$ 5,500	$ (1,600)	$ 2,500	$ (500)
Operations and Comprehensive Income (Loss) [Member]
Summary Of Significant Accounting Policies [Line Items]
Gain (loss) on foreign currency exchange rates	$ (600)	$ 100	$ (40)	$ (200)

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
Income Taxes - Additional Information (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	(9.70%)	31.20%	(0.80%)	29.80%
U.S. Federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 08, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Registrant Name	First Advantage Corporation
Entity Central Index Key	0001210677
Entity Tax Identification Number	84-3884690
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity File Number	001-31666
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1 Concourse Parkway NE
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Atlanta
Entity Address, Country	GA
Entity Address, Postal Zip Code	30328
City Area Code	888
Local Phone Number	314-9761
Trading Symbol	FA
Entity Common Stock, Shares Outstanding		172,652,487
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ

Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Equity

Note 11. Equity

Preferred Stock

As of September 30, 2024 and December 31, 2023, 250,000,000 shares of Preferred Stock were authorized, and no Preferred Stock was issued or outstanding.

Share Repurchase Program

The Company did not repurchase any shares of common stock during the nine months ended September 30, 2024. As of September 30, 2024, the remaining authorized value of shares available to be repurchased under the Repurchase Program was approximately $80.5 million. In connection with the execution of the Merger Agreement, the Company suspended purchases under its Repurchase Program.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Derivatives

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 7. Derivatives

To reduce exposure to variability in expected future cash outflows on variable rate debt attributable to the changes in one-month LIBOR, the Company has historically entered into interest rate derivative instruments to economically offset a portion of this risk and may do so in the future. In June 2023, the Company transitioned the reference rate for its interest rate derivative agreements from one-month LIBOR to one-month SOFR.

As of September 30, 2024, the Company had the following outstanding derivatives that were not designated as a hedge in qualifying hedging relationships:


Product	Effective Date	Maturity Date	Notional	Rate
Interest rate swap(a)	June 30, 2023	February 28, 2026	$100.0 million	4.32%
Interest rate swap	December 29, 2023	December 31, 2026	$150.0 million	3.86%
Interest rate swap	March 1, 2024	December 31, 2026	$150.0 million	3.76%
Interest rate swap	August 31, 2024	December 31, 2026	$160.0 million	3.72%

(a)

In conjunction with the June 2023 transition of the reference rate from LIBOR to SOFR, the fixed rate was reduced from 4.36% to 4.32%.

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements; however, the Company has not elected to apply hedge accounting for these instruments.

The following is a summary of location and fair value of the financial positions recorded related to the derivative instruments (in thousands):


		Fair Value
Derivatives not designated as hedging instruments	Balance Sheet Location	As of September 30, 2024		As of December 31, 2023
Interest rate collars	Prepaid expenses and other current assets	$	—	$	1,986
Interest rate swaps	Accrued liabilities	$	4,984	$	1,576

The following is a summary of location and amount of gains recorded related to the derivative instruments (in thousands):


		Gain (Loss)
		Three Months Ended September 30,					Nine Months Ended September 30,
Derivatives not designated as hedging instruments	Income Statement Location	2024			2023		2024		2023
Interest rate collars	Interest expense, net	$	—		$	109	$	951	$	878
Interest rate swaps	Interest expense, net	$	(8,171	)	$	857	$	55	$	1,323

Net (Loss) Income Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net (Loss) Income Per Share

Note 14. Net (Loss) Income Per Share

Basic weighted-average shares outstanding excludes nonvested restricted stock. Diluted weighted average shares outstanding is similar to basic weighted-average shares outstanding, except that the weighted-average number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common share had been issued, including the dilutive impact of nonvested restricted stock. The potentially dilutive securities outstanding during the three and nine months ended September 30, 2024, had an anti-dilutive effect and were therefore not included in the calculation of diluted net (loss) income per share. Basic and diluted net (loss) income per share was calculated as follows:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024			2023
Basic net (loss) income per share	$	(0.06	)	$	0.08	$	(0.07	)	$	0.16
Diluted net (loss) income per share	$	(0.06	)	$	0.07	$	(0.07	)	$	0.15
Numerator:
Net (loss) income (in thousands)	$	(8,860	)	$	10,773	$	(9,907	)	$	22,480
Denominator:
Weighted average number of shares outstanding - basic		144,096,312			143,231,707		143,851,357			144,392,463
Add stock options to purchase shares and restricted stock units		—			1,501,650		—			2,000,533
Weighted average number of shares outstanding - diluted		144,096,312			144,733,357		143,851,357			146,392,996

For the three months ended September 30, 2024 and 2023, 3,312,675 and 4,739,037 stock options and RSUs were excluded from the calculation of diluted net (loss) income per share, respectively, because their effect was anti-dilutive. For the nine months ended September 30, 2024 and 2023, 3,244,309 and 4,754,689 stock options and RSUs were excluded from the calculation of diluted net (loss) income per share, respectively, because their effect was anti-dilutive.

Share-Based Compensation - Summary of the RSU Activity (Details) - 2021 Equity Plan [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Restricted Stock Units [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units, outstanding beginning balance \| shares	507,143
Number of units, granted \| shares	287,383
Number of units, vested \| shares	(145,241)
Number of units, forfeited \| shares	(56,387)
Number of units, outstanding ending balance \| shares	592,898
Weighted Average Grant Date Fair Value, beginning value \| $ / shares	$ 15.1
Weighted Average Grant Date Fair Value, Granted \| $ / shares	16.8
Weighted Average Grant Date Fair Value, Vested \| $ / shares	14.5
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	14.78
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 16.02
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units, outstanding beginning balance \| shares	1,954,630
Number of units, vested \| shares	(586,927)
Number of units, outstanding ending balance \| shares	1,367,703
Weighted Average Grant Date Fair Value, beginning value \| $ / shares	$ 8.5
Weighted Average Grant Date Fair Value, Vested \| $ / shares	7.73
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 10.24

Subsequent Events (Additional Information) (Details) - Subsequent Event [Member] - Interest Rate Swaps [Member] $ in Millions	Nov. 04, 2024 USD ($)
Subsequent Event [Line Items]
Notional amount	$ 275.0
Fixed rate	3.94%
Debt instrument effective date	Oct. 31, 2024
Maturity Date	Oct. 31, 2027

Statement - Condensed Consolidated Statement of Changes in Stockholder's Equity (Unaudited) (Parenthetical)	3 Months Ended
	Sep. 30, 2023 $ / shares
Cash dividends declared	$ 1.5

Derivatives - Summary of Location and Fair Value of Financial Position and Location of Derivative Instruments (Details) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Interest Rate Swaps [Member]
Derivative [Line Items]
Gain/(Loss)	$ (8,171)	$ 857	$ 55	$ 1,323
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest expense (income), net	Interest expense (income), net	Interest expense (income), net	Interest expense (income), net
Interest Rate Swaps [Member] \| Accrued Liabilities [Member]
Derivative [Line Items]
Fair Value	$ 4,984		$ 4,984		$ 1,576
Interest Rate Collar [Member]
Derivative [Line Items]
Gain/(Loss)	$ 0	$ 109	$ 951	$ 878
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest expense (income), net	Interest expense (income), net	Interest expense (income), net	Interest expense (income), net
Interest Rate Collar [Member] \| Prepaid Expenses and Other Current Assets [Member]
Derivative [Line Items]
Fair Value	$ 0		$ 0		$ 1,986

Equity - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Class Of Stock [Line Items]
Preferred stock, shares authorized	250,000,000	250,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Share Repurchase Program [Member]
Class Of Stock [Line Items]
Remaining authorized repurchase amount	$ 80.5

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Long-term Debt - Fair Value of Company's Long-term Debt Obligation (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Less: Deferred financing costs	$ (4,880)	$ (6,268)
Long-term debt, net	559,844	558,456
First Lien Credit Facility [Member]
Debt Instrument [Line Items]
Total debt	$ 564,724	$ 564,724

- Definition

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+ Details

Summary of Significant Accounting Policies - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Interest Rate Swaps [Member] $ in Thousands	Sep. 30, 2024 USD ($)
Level 1 [Member]
Summary Of Significant Accounting Policies [Line Items]
Fair value of net assets and liabilities	$ 0
Level 2 [Member]
Summary Of Significant Accounting Policies [Line Items]
Fair value of net assets and liabilities	4,984
Level 3 [Member]
Summary Of Significant Accounting Policies [Line Items]
Fair value of net assets and liabilities	$ 0

Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of Recognition of Share-Based Compensation related to Employees

Share-based compensation expense is recognized in cost of services, product and technology expense, and selling, general, and administrative expense, in the accompanying condensed consolidated statements of operations and comprehensive (loss) income as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Share-based compensation expense
Cost of services	$	414	$	330	$	1,181	$	918
Product and technology expense		703		640		2,040		1,665
Selling, general, and administrative expense		8,387		3,820		16,082		7,866
Total share-based compensation expense	$	9,504	$	4,790	$	19,303	$	10,449

Summary of Outstanding Stock Option Grants Issued

A summary of the stock option activity for the nine months ended September 30, 2024 is as follows:


		Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
December 31, 2023	Grants outstanding		1,915,252		$	5.15
	Grants exercised		(156,107	)	$	5.23
	Grants cancelled/forfeited		(16,978	)	$	5.11
September 30, 2024	Grants outstanding		1,742,167		$	5.15	5.4 Years	$25.6 million
September 30, 2024	Grants vested		726,095		$	5.12	5.4 Years	$10.7 million
September 30, 2024	Grants unvested		1,016,072		$	5.18

2021 Equity Plan [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of Assumptions Applied to Establish Fair Value of Options Granted Using Black-Scholes Option Pricing Model

The fair value for stock options granted for the nine months ended September 30, 2024 was estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


	Options
Expected stock price volatility		35.09	%
Risk-free interest rate		3.88	%
Expected term (in years)		6.25
Fair-value of the underlying unit	$	17.55

Summary of Option Unit Activity

A summary of the stock option activity for the nine months ended September 30, 2024 is as follows:


		Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
December 31, 2023	Grants outstanding		4,686,659		$	13.61
	Grants issued		307,136		$	17.55
	Grants exercised		(252,784	)	$	13.56
	Grants cancelled/forfeited		(94,323	)	$	13.87
September 30, 2024	Grants outstanding		4,646,688		$	13.87	7.0 Years	$27.8 million
September 30, 2024	Grants vested		2,159,459		$	13.65	6.9 Years	$13.2 million
September 30, 2024	Grants unvested		2,487,229		$	14.06

Summary of the RSU activity

A summary of the restricted stock units (“RSU”) activity for the nine months ended September 30, 2024 is as follows:


		Shares			Weighted Average Grant Date Fair Value
December 31, 2023	Nonvested RSUs		507,143		$	15.10
	Granted		287,383		$	16.80
	Vested		(145,241	)	$	14.50
	Forfeited		(56,387	)	$	14.78
September 30, 2024	Nonvested RSUs		592,898		$	16.02

2021 Equity Plan [Member] | Restricted Stock [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of Restricted Stock Activity

A summary of the restricted stock activity for the nine months ended September 30, 2024 is as follows:


		Shares			Weighted Average Grant Date Fair Value
December 31, 2023	Nonvested restricted stock		1,954,630		$	8.50
	Vested		(586,927	)	$	7.73
September 30, 2024	Nonvested restricted stock		1,367,703		$	10.24

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 307,392	$ 213,774
Restricted cash	88	138
Accounts receivable (net of allowance for doubtful accounts of $1,284 and $1,036 at September 30, 2024 and December 31, 2023, respectively)	143,020	142,690
Prepaid expenses and other current assets	13,667	13,426
Income tax receivable	2,808	3,710
Total current assets	466,975	373,738
Property and equipment, net	55,403	79,441
Goodwill	822,277	820,654
Trade name, net	60,990	66,229
Customer lists, net	238,821	275,528
Other intangible assets, net	1,898	2,257
Deferred tax asset, net	3,172	2,786
Other assets	7,598	10,021
TOTAL ASSETS	1,657,134	1,630,654
CURRENT LIABILITIES
Accounts payable	71,108	47,024
Accrued compensation	18,687	16,379
Accrued liabilities	22,962	16,162
Current portion of operating lease liability	2,566	3,354
Income tax payable	3,534	264
Deferred revenues	2,495	1,856
Total current liabilities	121,352	85,039
Long-term debt (net of deferred financing costs of $4,880 and $6,268 at September 30, 2024 and December 31, 2023, respectively)	559,844	558,456
Deferred tax liability, net	48,181	71,274
Operating lease liability, less current portion	4,340	5,931
Other liabilities	2,703	3,221
Total liabilities	736,420	723,921
COMMITMENTS AND CONTINGENCIES (Note 12)
EQUITY
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 145,558,948 and 145,074,802 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	146	145
Additional paid-in-capital	998,707	977,290
Accumulated deficit	(59,442)	(49,545)
Accumulated other comprehensive loss	(18,697)	(21,157)
Total equity	920,714	906,733
TOTAL LIABILITIES AND EQUITY	$ 1,657,134	$ 1,630,654

Goodwill, Trade Names, Customer Lists and Other Intangible Assets - Summary of Gross Carrying Value and Accumulated Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 620,022	$ 618,826
Accumulated Amortization	(318,313)	(274,812)
Net Carrying Value	301,709	344,014
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	96,505	96,321
Accumulated Amortization	(35,515)	(30,092)
Net Carrying Value	$ 60,990	$ 66,229
Useful Life (in years)	20 years	20 years
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 521,117	$ 520,105
Accumulated Amortization	(282,296)	(244,577)
Net Carrying Value	$ 238,821	$ 275,528
Customer Lists [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	13 years	13 years
Customer Lists [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	14 years	14 years
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 2,400	$ 2,400
Accumulated Amortization	(502)	(143)
Net Carrying Value	$ 1,898	$ 2,257
Useful Life (in years)	5 years	5 years

Acquisitions (Additional Information) (Details) - USD ($) $ in Thousands		1 Months Ended	9 Months Ended
	Oct. 31, 2024	Sep. 30, 2023	Sep. 30, 2024
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Debt instrument, net leverage ratio			0.0775
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Debt instrument, net leverage ratio			0.01
Infinite ID [Member]
Restructuring Cost and Reserve [Line Items]
Business acquisition, Percentage acquired			100.00%
Cash and Stock purchase price		$ 41,000	$ 41,000
Sterling [Member]
Restructuring Cost and Reserve [Line Items]
Cash and Stock purchase price	$ 2,200,000
Sterling Check Corp [Member]
Restructuring Cost and Reserve [Line Items]
Acquisition Related Costs in Cash	48,900
Sterling Check Corp [Member] \| Subsequent Event [Member]
Restructuring Cost and Reserve [Line Items]
Acquisition Related Costs in Cash	$ 1,224,600
Business Acquisition, Number of Shares, Issued	27,150,000
Business Acquisition, Fair Value of Shares Issued	$ 507,700

Long-term Debt - Additional Information (Details) $ in Millions		9 Months Ended
	Oct. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)
Debt Instrument [Line Items]
Description of borrowing capacity not subject to net leverage ratio covenant		In the event the Company’s outstanding indebtedness under the Revolver exceeds 35% of the aggregate principal amount of the revolving commitments then in effect, it is required to maintain a consolidated first lien leverage ratio no greater than 7.75 to 1.00.
Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, net leverage ratio		0.01
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, net leverage ratio		0.0775
Revolver [Member]
Debt Instrument [Line Items]
Maturity Date		Jul. 31, 2026
Outstanding borrowing under revolver		$ 0.0
Maximum borrowing capacity under successor revolver		100.0
Amended Revolver [Member]
Debt Instrument [Line Items]
Maturity Date	Oct. 31, 2029
Description of borrowing capacity not subject to net leverage ratio covenant	In the event the Company’s outstanding indebtedness under the Amended Revolver exceeds 40% of the aggregate principal amount of the revolving commitments then in effect, it is required to maintain a consolidated first lien leverage ratio no greater than 7.75 to 1.00.
Maximum borrowing capacity under successor revolver	$ 250.0
Amended Revolver [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, net leverage ratio	0.01
Amended Revolver [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, net leverage ratio	0.0775
First Lien Credit Agreement [Member]
Debt Instrument [Line Items]
Maturity Date	Oct. 31, 2031
Term Loan	$ 2,185.0
First Lien Credit Agreement [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Interest rate	3.25%
First Lien Credit Agreement [Member] \| SOFR [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Interest rate	3.00%
Term Loan due January 31, 2027 [Member]
Debt Instrument [Line Items]
Carrying amount of the amount outstanding under the facility		564.7
Term loan at time of issuance		$ 766.6
Maturity Date		Jan. 31, 2027
Term Loan due January 31, 2027 [Member] \| LIBOR [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Interest rate		2.75%
Term Loan due January 31, 2027 [Member] \| LIBOR [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Interest rate		3.00%

Property and Equipment, net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Note 4. Property and Equipment, net

Property and equipment, net as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):


	September 30, 2024			December 31, 2023
Furniture and equipment	$	27,616		$	26,576
Capitalized software for internal use, acquired by business combination		232,434			232,505
Capitalized software for internal use, developed internally or otherwise purchased		107,994			86,704
Leasehold improvements		2,816			2,275
Total property and equipment		370,860			348,060
Less: accumulated depreciation and amortization		(315,457	)		(268,619	)
Property and equipment, net	$	55,403		$	79,441

Depreciation and amortization expense of property and equipment was approximately $15.9 million and $16.9 million for the three months ended September 30, 2024 and 2023, respectively. Depreciation and amortization expense of property and equipment was approximately $47.1 million and $50.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	May 10, 2023	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized pre-tax noncash compensation	$ 29.4		$ 29.4
ESPP percentage			15.00%
Weighted Average Remaining Contractual Term, Grants Vested			10 months 24 days
Impact of Divided to stock option awards and ESPP purchases					$ 1.5
Incremental compensation expense	4.2		$ 4.2
Employee stock purchase plan expenses	$ 0.2	$ 0.2	$ 0.5	$ 0.7
2021 Equity Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, reserved for future issuance						17,525,000
Share available for issuance	19,896,715		19,896,715
Weighted Average Remaining Contractual Term, Grants Vested			6 years 10 months 24 days
First Advantage Corporations [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, issued			0
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized pre-tax noncash compensation	$ 12.8		$ 12.8
Restricted Stock Agreements [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized pre-tax noncash compensation	8.5		8.5
Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized pre-tax noncash compensation	$ 8.1		$ 8.1

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Indemnity liability	$ 4.3	$ 5.2

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated. The Company includes the results of operations of acquired companies prospectively from the date of acquisition.

The condensed consolidated financial statements included herein are unaudited, but in the opinion of management, such financial statements include all adjustments, consisting of normal recurring adjustments, necessary to summarize fairly the Company’s financial position, results of operations, and cash flows for the interim periods presented. The interim results reported in these condensed consolidated financial statements should not be taken as indicative of results that may be expected for future interim periods or the full year. For a more comprehensive understanding of the Company and its condensed consolidated financial statements, these interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The Company has historically experienced seasonality with respect to certain customer industries as a result of fluctuations in hiring volumes and other economic activities. Generally, the Company’s highest revenues have historically occurred between October and November of each year, driven by many customers’ pre-holiday season hiring initiatives.

Use of Estimates

Use of Estimates — The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Changes in these estimates and assumptions may have a material impact on the condensed consolidated financial statements and accompanying notes.

Significant estimates, judgments, and assumptions, include, but are not limited to, the determination of the fair value and useful lives of assets acquired and liabilities assumed through business combinations, goodwill impairment, revenue recognition, capitalized software, assumptions used for purposes of determining share-based compensation, and income tax liabilities and assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.

Fair Value of Financial Instruments

Fair Value of Financial Instruments — Certain financial assets and liabilities are reported at fair value in the accompanying consolidated balance sheets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurement. ASC 820 establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 defines fair value as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques required by ASC 820 are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 — Significant inputs to the valuation model are unobservable (supported by little or no market activities). These inputs may be used with internally developed methodologies that reflect the Company’s best estimate of fair value from a market participant.

The carrying amounts of cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturities of these financial instruments (Level 1). The fair values and carrying values of the Company’s long-term debt are disclosed in Note 6, “Long-term Debt”.


	Level 1		Level 2		Level 3
Liabilities
Interest rate swaps	$	—	$	4,984	$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Other intangible assets are subject to nonrecurring fair value measurement as the result of business acquisitions. The fair values of these assets were estimated using the present value of expected future cash flows through unobservable inputs (Level 3)

Business Combinations

Business Combinations— The Company records business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method of accounting, identifiable assets acquired and liabilities assumed are recorded at their acquisition-date fair values. The excess of the purchase price over the estimated fair value is recorded as goodwill. Changes in the estimated fair values of net assets recorded for acquisitions prior to the finalization of more detailed analysis, but not to exceed one year from the date of acquisition, will adjust the amount of the purchase price allocable to goodwill. Measurement period adjustments are reflected in the period in which they occur.

In valuing the trade names, customer lists, and software developed for internal use, the Company utilizes variations of the income approach, which relies on historical financial and qualitative information, as well as assumptions and estimates for projected financial information. The Company considers the income approach the most appropriate valuation technique because the inherent value of these assets is their ability to generate current and future income. Projected financial information is subject to risk if estimates are incorrect. The most significant estimate relates to projected revenues and profitability. If the projected revenues and profitability used in the valuation calculations are not met, then the asset could be impaired.

Concentrations of Credit Risk

Concentrations of Credit Risk — Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash is deposited with major financial institutions and, at times, such balances with each financial institution may be in excess of insured limits. The Company has not experienced, and does not anticipate, any losses with respect to its cash deposits. Accounts receivable represent credit granted to customers for services provided. The Company performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral on accounts receivable. The Company had one customer which represented approximately 15% and 13% of its consolidated revenues during the three and nine months ended September 30, 2024, respectively. The Company had one customer which represented approximately 11% of its consolidated revenues during both the three and nine months ended September 30, 2023. Additionally, the Company did not have any customers which represented 10% or more of its consolidated accounts receivable, net for any period presented.

The Company has entered into interest rate derivative agreements with a counterparty bank to reduce its exposure to interest rate volatility. The Company has determined the counterparty bank to be a high credit quality institution. The Company does not enter into financial instruments for trading or speculative purposes.

Foreign Currency

Foreign Currency — The functional currency of all of the Company’s foreign subsidiaries is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenues and expense accounts using average exchange rates prevailing during the fiscal year. Adjustments resulting from the translation of foreign currency financial statements are accumulated net of tax in a separate component of equity. Currency translation (loss) income included in accumulated other comprehensive loss was approximately $5.5 million and $(1.6) million for the three months ended September 30, 2024 and 2023, respectively. Currency translation (loss) income included in accumulated other comprehensive loss was approximately $2.5 million and $(0.5) million for the nine months ended September 30, 2024 and 2023, respectively.

Gains or losses resulting from foreign currency transactions are included in the accompanying condensed consolidated statements of operations and comprehensive (loss) income, except for those relating to intercompany transactions of a long-term investment nature, which are captured in a separate component of equity as accumulated other comprehensive loss. Currency transaction income (loss) included in the accompanying condensed consolidated statements of operations and comprehensive (loss) income was approximately $(0.6) million and $0.1 million for the three months ended September 30, 2024 and 2023, respectively. Currency transaction income (loss) included in the accompanying condensed consolidated statements of operations and comprehensive (loss) income was approximately $(0.04) million and $(0.2) million for the nine months ended September 30, 2024 and 2023, respectively.

Recent Accounting Pronouncements

Recent Accounting Pronouncements — There were no accounting pronouncements issued during the nine months ended September 30, 2024 that are expected to have a material impact on the condensed consolidated financial statements.

Acquisitions - Summary of Consideration Paid and Amounts Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Dec. 31, 2023
Consideration
Other intangible assets		$ 1,898	$ 2,257
Infinite ID [Member]
Consideration
Cash purchase price	$ 41,000	41,000
Other transaction adjustments		97
Total fair value of consideration transferred		41,097
Total identifiable net assets		14,946
Current assets		1,335
Property and equipment, including software developed for internal use		5,959
Trade name		2,300
Customer lists		3,800
Other intangible assets		2,400
Other Assets		236
Total liabilities		(1,084)
Goodwill		$ 26,151

Property and Equipment, net - Summary of Property and Equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property Plant And Equipment [Line Items]
Total property and equipment	$ 370,860	$ 348,060
Less: accumulated depreciation and amortization	(315,457)	(268,619)
Property and equipment, net	55,403	79,441
Furniture and equipment [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	27,616	26,576
Capitalized software for internal use, acquired by business combination [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	232,434	232,505
Capitalized software for internal use, developed internally or otherwise purchased [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	107,994	86,704
Leasehold improvements [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	$ 2,816	$ 2,275

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (8,860)	$ 1,861	$ (2,908)	$ 10,773	$ 9,782	$ 1,925	$ (9,907)	$ 22,480

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Reportable Segments - Schedule of Adjusted EBITDA Reconciled to Net Income (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Sep. 30, 2024

Sep. 30, 2023

Segment Reporting Information [Line Items]

Interest expense, net

$ 17,191

$ 7,557

$ 28,114

$ 20,125

Provision for income taxes

782

4,881

9,530

Depreciation and amortization

30,168

32,419

89,968

96,341

Shares based compensation

9,504

4,790

19,303

10,449

Net (loss) income

(8,860)

$ 1,861

$ (2,908)

10,773

$ 9,782

$ 1,925

(9,907)

22,480

Total Segments

Segment Reporting Information [Line Items]

Total Adjusted EBITDA

64,046

64,791

166,365

169,322

Interest expense, net

17,191

7,557

28,114

20,125

Provision for income taxes

782

4,881

9,530

Depreciation and amortization

30,168

32,419

89,968

96,341

Shares based compensation

9,504

4,790

19,303

10,449

Transaction and acquisition-related charges

^[1]

13,218

1,571

35,083

3,832

Integration, restructuring, and other charges

^[2]

2,043

2,800

3,721

6,565

Net (loss) income

(8,860)

10,773

(9,907)

22,480

Americas | Total Segments

Segment Reporting Information [Line Items]

Total Adjusted EBITDA

58,637

60,188

153,900

157,168

International | Total Segments

Segment Reporting Information [Line Items]

Total Adjusted EBITDA

$ 5,409

$ 4,603

$ 12,465

$ 12,154

[1]

[2]

Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 16. Subsequent Events

In connection with the refinancing of the First Lien Credit Facility as part of the acquisition of Sterling, the Company will record the related accounting in the fourth quarter of 2024. Additionally, in connection with the acquisition of Sterling, the Company entered into separation agreements with certain Sterling executives. The Company will incur incremental compensation expense related to separation payments and accelerated vesting of certain equity awards in the fourth quarter of 2024.

On November 4, 2024, the Company entered into an interest rate swap agreement with a notional amount of $275.0 million. The interest rate swap will hedge a portion of the floating one-month SOFR rate on the Company’s 2024 First Lien Credit Agreement with a fixed rate of 3.94%. The interest rate swap agreement is effective as of October 31, 2024 and matures on October 31, 2027.

Share-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

Note 10. Share-based Compensation


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Share-based compensation expense
Cost of services	$	414	$	330	$	1,181	$	918
Product and technology expense		703		640		2,040		1,665
Selling, general, and administrative expense		8,387		3,820		16,082		7,866
Total share-based compensation expense	$	9,504	$	4,790	$	19,303	$	10,449

Prior to the Company’s Initial Public Offering (“IPO”), all share-based awards were issued by Fastball Holdco, L.P., the Company’s previous parent company, under individual grant agreements and the partnership agreement of such parent company (collectively, the “2020 Equity Plan”). In connection with the IPO, the Company adopted the 2021 Omnibus Incentive Plan (as amended by the First Amendment, dated as of May 10, 2023, the “2021 Equity Plan”).

In May 2023, the Company’s Board of Directors approved a modification of the vesting terms of outstanding unvested and unearned performance-based options, restricted stock units, and restricted stock (collectively, “Performance Awards”) previously issued under its equity plans. The modification, effective May 10, 2023, allowed for unvested and unearned Performance Awards outstanding as of the date of the modification, to vest based on time on the fourth, fifth, and sixth anniversaries of the relevant vesting commencement date, as set forth in each grant agreement (the “Vesting Commencement Date”), while preserving the eligibility to vest upon the Company’s investors receiving a targeted money-on-money return, subject to continued service.

In connection with the Company’s declaration of a one-time special dividend in August 2023, the exercise price of outstanding stock option awards and stock purchases under the Company’s employee stock purchase plan (“ESPP”) was reduced by $1.50, in accordance with the non-discretionary anti-dilution provisions of the equity and stock purchase plans.

In August 2024 and September 2024, the Company modified the equity award agreements for its Chief Financial Officer and President, Americas, respectively, as part of each executive’s retirement agreement. The modifications allowed for accelerated vesting of certain unvested equity awards that would have otherwise been forfeited at retirement and modified certain provisions of the outstanding stock option agreements. As a result of the modifications, the related awards were revalued, resulting in an incremental $4.2 million of compensation expense to be recognized in 2024.

2020 Equity Plan

Awards issued under the 2020 Equity Plan consist of options and profit interests. No awards have been issued under the plan since the Company’s IPO.

A summary of the stock option activity for the nine months ended September 30, 2024 is as follows:


		Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
December 31, 2023	Grants outstanding		1,915,252		$	5.15
	Grants exercised		(156,107	)	$	5.23
	Grants cancelled/forfeited		(16,978	)	$	5.11
September 30, 2024	Grants outstanding		1,742,167		$	5.15	5.4 Years	$25.6 million
September 30, 2024	Grants vested		726,095		$	5.12	5.4 Years	$10.7 million
September 30, 2024	Grants unvested		1,016,072		$	5.18

2021 Equity Plan

The 2021 Equity Plan is intended to provide a means through which to attract and retain key personnel and to provide a means whereby our directors, officers, employees, consultants, and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, thereby strengthening their commitment to our welfare and aligning their interests with those of our stockholders. The 2021 Equity Plan provides for the grant of awards of stock options, stock appreciation rights, restricted shares, restricted stock units, and other equity-based or cash-based awards as determined by the Company’s Compensation Committee. The 2021 Equity Plan initially had a total of 17,525,000 shares of common stock reserved. The number of reserved shares automatically increases on the first day of each calendar year commencing on January 1, 2022 and ending on January 1, 2030, in an amount equal to the lesser of (x) 2.5% of the total number of shares of common stock outstanding on the last day of the immediately preceding calendar year and (y) a number of shares as determined by the Board of Directors. As of September 30, 2024, 19,896,715 shares were available for issuance under the 2021 Equity Plan.

Stock Options

A summary of the stock option activity for the nine months ended September 30, 2024 is as follows:


		Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
December 31, 2023	Grants outstanding		4,686,659		$	13.61
	Grants issued		307,136		$	17.55
	Grants exercised		(252,784	)	$	13.56
	Grants cancelled/forfeited		(94,323	)	$	13.87
September 30, 2024	Grants outstanding		4,646,688		$	13.87	7.0 Years	$27.8 million
September 30, 2024	Grants vested		2,159,459		$	13.65	6.9 Years	$13.2 million
September 30, 2024	Grants unvested		2,487,229		$	14.06


	Options
Expected stock price volatility		35.09	%
Risk-free interest rate		3.88	%
Expected term (in years)		6.25
Fair-value of the underlying unit	$	17.55

Restricted Stock Units

A summary of the restricted stock units (“RSU”) activity for the nine months ended September 30, 2024 is as follows:


		Shares			Weighted Average Grant Date Fair Value
December 31, 2023	Nonvested RSUs		507,143		$	15.10
	Granted		287,383		$	16.80
	Vested		(145,241	)	$	14.50
	Forfeited		(56,387	)	$	14.78
September 30, 2024	Nonvested RSUs		592,898		$	16.02

Restricted Stock

A summary of the restricted stock activity for the nine months ended September 30, 2024 is as follows:


		Shares			Weighted Average Grant Date Fair Value
December 31, 2023	Nonvested restricted stock		1,954,630		$	8.50
	Vested		(586,927	)	$	7.73
September 30, 2024	Nonvested restricted stock		1,367,703		$	10.24

As of September 30, 2024, the Company had approximately $29.4 million of unrecognized pre-tax non-cash compensation expense, comprised of approximately $8.5 million related to restricted stock, $8.1 million related to RSUs, and approximately $12.8 million related to stock options, which the Company expects to recognize over a weighted average period of 0.9 years.

2021 Employee Stock Purchase Plan

The Company adopted the ESPP, which allows eligible employees to voluntarily make after-tax contributions of up to 15% of such employee’s cash compensation to acquire Company stock during designated offering periods. Each offering period consists of one six-month purchase period. During the holding period, ESPP purchased shares are not eligible for sale or broker transfer. The Company recorded an associated expense of approximately $0.2 million for both the three months ended September 30, 2024 and 2023. The Company recorded an associated expense of approximately $0.5 million and $0.7 million for the nine months ended September 30, 2024 and 2023, respectively.

Property and Equipment, net (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, net

Property and equipment, net as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):


	September 30, 2024			December 31, 2023
Furniture and equipment	$	27,616		$	26,576
Capitalized software for internal use, acquired by business combination		232,434			232,505
Capitalized software for internal use, developed internally or otherwise purchased		107,994			86,704
Leasehold improvements		2,816			2,275
Total property and equipment		370,860			348,060
Less: accumulated depreciation and amortization		(315,457	)		(268,619	)
Property and equipment, net	$	55,403		$	79,441

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (9,907)	$ 22,480
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	89,968	96,341
Amortization of deferred financing costs	1,388	1,362
Bad debt expense	92	134
Deferred taxes	(23,115)	(8,723)
Share-based compensation	19,303	10,449
Loss on foreign currency exchange rates	0	26
(Gain) loss on disposal of fixed assets and impairment of ROU assets	(272)	1,724
Change in fair value of interest rate swaps	(1,006)	(2,201)
Changes in operating assets and liabilities:
Accounts receivable	(151)	(12,162)
Prepaid expenses and other assets	1,184	8,661
Accounts payable	23,115	531
Accrued compensation and accrued liabilities	9,917	(8,389)
Deferred revenues	591	87
Operating lease liabilities	(722)	(1,134)
Other liabilities	(673)	(198)
Income taxes receivable and payable, net	4,150	(2,908)
Net cash provided by operating activities	113,862	106,080
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalized software development costs	(20,384)	(18,781)
Purchases of property and equipment	(1,386)	(1,798)
Other investing activities	29	(231)
Acquisitions of businesses, net of cash acquired	25	(41,122)
Net cash used in investing activities	(21,716)	(61,932)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock under share-based compensation plans	5,862	4,089
Net settlement of share-based compensation plan awards	(3,790)	(254)
Payments on deferred purchase agreements	(703)	(703)
Cash dividends paid	(211)	(217,683)
Payments on finance lease obligations	(3)	(97)
Share repurchases	0	(55,917)
Net cash provided by (used in) financing activities	1,155	(270,565)
Effect of exchange rate on cash, cash equivalents, and restricted cash	267	(372)
Increase (decrease) in cash, cash equivalents, and restricted cash	93,568	(226,789)
Cash, cash equivalents, and restricted cash at beginning of period	213,912	391,796
Cash, cash equivalents, and restricted cash at end of period	307,480	165,007
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes, net of refunds received	19,168	21,006
Cash paid for interest	36,174	33,787
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment acquired on account	926	25
Non-cash property and equipment additions	540	0
Excise taxes on share repurchases incurred but not paid	(10)	558
Dividends declared but not paid	$ 0	$ 701

Organization, Nature of Business, and Basis of Presentation

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Nature of Business, and Basis of Presentation

Note 1. Organization, Nature of Business, and Basis of Presentation

First Advantage Corporation, a Delaware corporation, was formed on November 15, 2019. Hereafter, First Advantage Corporation and its subsidiaries will collectively be referred to as the “Company.”

The Company derives its revenues from a variety of background check and compliance services performed across all phases of the workforce lifecycle from pre-onboarding services to post-onboarding and ongoing monitoring services, covering employees, contractors, contingent workers, tenants, and drivers. We generally classify our service offerings into three categories: pre-onboarding, post-onboarding, and adjacent products.

Pre-onboarding services are comprised of an extensive array of products and solutions that customers typically utilize to enhance their evaluation process and support compliance from the time a job or other application is submitted to a successful applicant’s onboarding date. This includes searches such as criminal background checks, drug / health screenings, extended workforce screening, biometrics and identity checks, education / workforce verification, driver records and compliance, healthcare credentials, and executive screening.

Post-onboarding services are comprised of continuous monitoring and re-screening solutions, which are important tools to help keep their end customers, workforces, and other stakeholders safer, more productive, and more compliant. Our post-monitoring solutions include criminal records, healthcare sanctions, motor vehicle records, social media, and global sanctions screening continuously or at regular intervals selected by our customers.

Adjacent products include products that complement our pre-onboarding and post-onboarding products and solutions. This includes fleet / vehicle compliance, hiring tax credits and incentives, resident / tenant screening, employment eligibility, and investigative research.

Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 8. Income Taxes

The Company’s income tax expense and balance sheet accounts reflect the results of the Company and its subsidiaries.

In accordance with ASC 740-270, Interim Reporting, at the end of each interim period, the Company is required to determine the best estimate of its annual effective tax rate and then apply that rate in providing for income taxes on an interim period. However, in certain circumstances where the Company is unable to make a reliable estimate of the annual effective tax rate, ASC 740-270 allows the actual effective tax rate for the interim period to be used. As of September 30, 2024, the Company calculated its effective rate and applied that rate to the results for the three and nine months ended September 30, 2024. The Company used this approach because it was unable to reasonably estimate its annual effective rate due to the variability of the rate as a result of small changes in forecasted income and fluctuations in annual pre-tax income and loss between quarters.

The effective income tax rate for the three and nine months ended September 30, 2024 was (9.7)% and (0.8)%, respectively. The Company’s effective income tax rate for the three and nine months ended September 30, 2024 was lower than the U.S. federal statutory rate of 21% primarily due to a jurisdictional mix of earnings with the Company recording significant Sterling acquisition expenses in the U.S., nondeductible share-based compensation, and U.S. state income taxes.

The effective income tax rate for the three and nine months ended September 30, 2023 was 31.2% and 29.8%, respectively. The Company’s effective income tax rate for the three and nine months ended September 30, 2023 was higher than the U.S. federal statutory rate of 21%, primarily due to nondeductible share-based compensation, the Global Intangible Low-Taxed Income (“GILTI”) inclusion, and U.S. state income taxes.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
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-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Level 1 — Quoted prices for identical instruments in active markets.


	Level 1		Level 2		Level 3
Liabilities
Interest rate swaps	$	—	$	4,984	$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis