First Advantage (NASDAQ: FA) boosts 2026 guidance after strong Q2 results
Rhea-AI Filing Summary
First Advantage Corporation reported strong second-quarter 2026 results, with revenues of $448.8 million, up 14.9% year over year. Net income was $16.9 million, a 3.8% margin, and diluted EPS was $0.10. Non-GAAP performance was higher, with Adjusted EBITDA of $128.5 million (28.6% margin) and Adjusted Net Income of $61.4 million, or $0.35 per diluted share. Cash flows from operations were $73.6 million for the quarter, and management highlighted voluntary debt prepayments of $25 million on May 6 and $45 million on August 4, plus $18.7 million of share repurchases under a $100 million authorization.
The company raised full-year 2026 guidance, targeting revenues of $1.67–$1.71 billion, Adjusted EBITDA of $472–$486 million, Adjusted Net Income of $214–$225 million, and Adjusted Diluted EPS of $1.23–$1.292.
The Board of Directors expanded to nine members and appointed Sharon Binger, a Silver Lake designee, as an independent Class I director and member of the Nominating and Corporate Governance Committee, with a term running to the 2028 annual meeting.
Positive
- Revenue growth and profitability improvement: Q2 2026 revenues rose 14.9% to $448.8 million, net income increased to $16.9 million, and Adjusted Net Income grew 30.8% to $61.4 million, with Adjusted Diluted EPS up 29.6% to $0.35.
- Raised full-year 2026 outlook: The company increased guidance to $1.67–$1.71 billion in revenues, $472–$486 million Adjusted EBITDA, and $214–$225 million Adjusted Net Income, signaling expectations of continued growth.
- Debt reduction and capital return: Voluntary debt prepayments of $70 million (two transactions of $25 million and $45 million) and share repurchases of $18.7 million under a $100 million program indicate active balance sheet and capital allocation management.
Negative
- None.
Filing Explained
By June 30, reported shares and long-term debt were lower than year-end, while cash was also lower.
This Form 8-K furnishes the company’s second-quarter results under Item 2.02 and reports a
The filing reports share repurchases during the six months ended
Long-term debt and cash and cash equivalents were both lower at
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
loss on extinguishment of debt financial
Amended and Restated Stockholders’ Agreement regulatory
First Lien Credit Facility financial
ASC 805, Business Combinations financial
Earnings Snapshot
Full-year 2026 guidance raised to revenues of $1.67–$1.71 billion, Adjusted EBITDA of $472–$486 million, Adjusted Net Income of $214–$225 million, and Adjusted Diluted EPS of $1.23–$1.292.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did First Advantage (FA) perform financially in Q2 2026?
Did First Advantage (FA) change its full-year 2026 guidance?
What is notable about First Advantage (FA)’s cash flow and debt in 2026?
What board changes did First Advantage (FA) disclose?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: ( |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02. Results of Operations and Financial Condition.
On August 6, 2026, First Advantage Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated by specific reference in any such filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 5, 2026, the Company’s Board of Directors (the “Board”), upon the recommendation of its Nominating and Corporate Governance Committee, increased the size of the Board to nine directors and appointed Sharon Binger as a Class I director of the Board, effective August 6, 2026, to serve until the Company’s 2028 Annual Meeting of Stockholders and until the election and qualification of her successor or earlier death, resignation, retirement, disqualification or removal.
Additionally, the Board appointed Ms. Binger as a member of the Nominating and Corporate Governance Committee of the Board, effective upon becoming a director, in substitution for Joseph Osnoss who remains as Chairman of the Board.
The Board has determined that Ms. Binger qualifies as an independent director for service on the Board, under the Nasdaq listing standards and the Company’s Corporate Governance Guidelines.
Ms. Binger, a current Silver Lake employee, was designated and appointed to the Board and Nominating and Corporate Governance Committee at the request of Silver Lake, pursuant to the terms of the Amended and Restated Stockholders’ Agreement, dated as of February 28, 2024, by and among the Company, SLP Fastball Aggregator, L.P. and certain stockholders of the Company party thereto and in accordance with the Company’s Amended and Restated Charter and Amended and Restated Bylaws, the Silver Lake Transferee Group (as defined in the Stockholders’ Agreement).
There are no transactions between Ms. Binger and the Company required to be reported under Item 404(a) of Regulation S-K.
In connection with Ms. Binger’s appointment, the Company has entered into an indemnification agreement with Ms. Binger in substantially the same form of agreement that the Company has executed with its other directors and executive officers.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
|
Description |
99.1 |
|
Press Release of First Advantage Corporation dated August 6, 2026. |
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
FIRST ADVANTAGE CORPORATION |
|
|
|
|
Date: |
August 6, 2026 |
By: |
/s/ Steven Marks |
|
|
|
Name: Steven Marks |
Exhibit 99.1
First Advantage Reports Second Quarter 2026 Results
Posts Record Quarter and Raises Full Year 2026 Guidance
Second Quarter 2026 Highlights1
Raising Full Year 2026 Guidance
ATLANTA, August 6, 2026 – First Advantage Corporation (NASDAQ: FA), a global software and data company, today announced financial results for the second quarter ended June 30, 2026.
Key Financials
(Amounts in millions, except per share data and percentages)
|
Three Months Ended June 30, |
|
|||||||||
2026 |
|
|
2025 |
|
|
Change |
|
||||
Revenues |
$ |
448.8 |
|
|
$ |
390.6 |
|
|
|
14.9 |
% |
Net income |
$ |
16.9 |
|
|
$ |
0.3 |
|
|
NM |
|
|
Net income margin |
|
3.8 |
% |
|
|
0.1 |
% |
|
NA |
|
|
Diluted net income per share |
$ |
0.10 |
|
|
$ |
0.00 |
|
|
NM |
|
|
Adjusted EBITDA1 |
$ |
128.5 |
|
|
$ |
113.9 |
|
|
|
12.8 |
% |
Adjusted EBITDA Margin1 |
|
28.6 |
% |
|
|
29.2 |
% |
|
NA |
|
|
Adjusted Net Income1 |
$ |
61.4 |
|
|
$ |
47.0 |
|
|
|
30.8 |
% |
Adjusted Diluted Earnings Per Share1 |
$ |
0.35 |
|
|
$ |
0.27 |
|
|
|
29.6 |
% |
1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are non-GAAP measures. Please see the end of this earnings release for definitions and schedules with reconciliations of these measures to their most directly comparable respective GAAP measures.
Note: "NA" indicates not applicable information; "NM" indicates not meaningful information.
“Our outstanding second quarter performance, highlighted by 15% year-over-year revenue growth and exceptional per share earnings growth, demonstrated the strength of our AI-driven proprietary technology platform and our continued go-to-market momentum. In addition to our team’s excellent execution, our results benefited from sustained momentum driven by our recent large contract wins and continued improvement in base revenue performance. We further showcased the agility, flexibility, and scalability of our operations by seamlessly absorbing increased volumes and continuing to enable our customers to hire with speed and confidence,” said Scott Staples, Chief Executive Officer.
“We continue to see increased customer demand across a number of our verticals, including in transportation & logistics, retail & e-commerce, industrials & manufacturing, and general staffing. We outpaced our previously stated expectations for the quarter as well as our long-term revenue growth algorithm target, supported by exceptional base growth, upsell and cross-sell outperformance, consistent new logo wins, including 20 enterprise bookings in the quarter, and healthy customer retention. As we mark the fifth anniversary of our IPO, we continue to win with our differentiated suite of products, including Digital Identity, underpinned by our proprietary data sets, deep customer relationships, and focused FA 5.0 strategy,” Staples concluded.
Raising Full Year 2026 Guidance
“We are progressing toward our long-term financial targets, with revenue growth, Adjusted EBITDA Margins, and robust cash flow reflecting the consistency and durability of our business. We continue to deploy capital in a balanced and disciplined manner, with a focus on deleveraging, as reflected by our previously announced $25 million debt prepayment during the quarter and an additional, upsized $45 million prepayment subsequent to quarter-end. We also repurchased $18.7 million of common stock during the quarter under our $100 million share repurchase program, with total repurchases through July 31, 2026 of $38.2 million, or approximately 1.9% of total shares outstanding,” said Steven Marks, Chief Financial Officer. “In view of our strong year-to-date performance, current labor market trends, and our confidence in our outlook for the remainder of the year, we are raising our full year guidance.”
The following table summarizes our updated full year 2026 guidance.
|
Updated Guidance As of August 6, 2026 |
Prior Guidance As of May 7, 2026 |
Revenues |
$1,670 million – $1,710 million |
$1,625 million – $1,700 million |
Adjusted EBITDA2 |
$472 million – $486 million |
$460 million – $485 million |
Adjusted Net Income2 |
$214 million – $225 million |
$200 million – $220 million |
Adjusted Diluted Earnings Per Share2 |
$1.23 – $1.29 |
$1.15 – $1.25 |
2 A reconciliation of the foregoing guidance for the non-GAAP metrics of Adjusted EBITDA and Adjusted Net Income to GAAP net income and Adjusted Diluted Earnings Per Share to GAAP diluted net income per share cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
Actual results may differ materially from First Advantage’s full year 2026 guidance as a result of, among other things, the factors described under “Forward-Looking Statements” below.
Conference Call and Webcast Information
First Advantage will host a conference call to review its second quarter 2026 results today, August 6, 2026, at 8:30 a.m. ET.
To participate in the conference call, please dial 800-274-8461 (domestic) or 203-518-9814 (international) approximately ten minutes before the 8:30 a.m. ET start. Please mention to the operator that you are dialing in for the First Advantage second quarter 2026 earnings call or provide the conference code FA2Q26. The call will also be webcast live on the Company’s investor relations website at https://investors.fadv.com under the “News & Events” and then “Events & Presentations” section, where related presentation materials will be posted prior to the conference call.
Following the conference call, a replay of the webcast will be available on the Company’s investor relations website, https://investors.fadv.com. Alternatively, the live webcast and subsequent replay will be available at https://event.on24.com/wcc/r/5409234/68E3AC95DE943B08FC0B97F9AA813C80.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. In some cases, you can identify these forward-looking statements by the use of words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “target,” “guidance,” the negative version of these words, or similar terms and phrases.
These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Such risks and uncertainties include, but are not limited to, the following:
For additional information on these and other factors that could cause First Advantage’s actual results to differ materially from expected results, please see our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in our filings with the SEC, which are or will be accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.
Non-GAAP Financial Information
This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Net Income,” and “Adjusted Diluted Earnings Per Share.”
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share have been presented in this press release as supplemental measures of financial performance that are not required by or presented in accordance with GAAP because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are not recognized terms under GAAP and should not be considered as an alternative to net income as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) 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 define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues. We define Adjusted Net Income for a particular period as net income before taxes adjusted for debt-related costs, acquisition-related depreciation and amortization, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges, to which we then apply the related effective tax rate. We define Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by adjusted weighted average number of shares outstanding—diluted.
For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release.
The presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
Certain monetary amounts, percentages, and other figures have been subject to rounding adjustments. Percentage amounts have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts may vary from those obtained by performing the same calculations using the figures in our press release. Certain other amounts that appear in this press release may not sum due to rounding.
About First Advantage
First Advantage (NASDAQ: FA) is a global software and data company. We provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Combining AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data, we help organizations hire with confidence and manage risk across the entire employee lifecycle. With over 80,000 customers worldwide – including approximately two-thirds of the Fortune 100 – we deliver fast, comprehensive, and reliable solutions for employers, their candidates, and their employees. We conduct more than 200 million screens annually across over 200 countries and territories, supported by our verticalized go-to-market strategy, decades of experience, and proprietary databases containing over 1 billion records. For more information, please visit our website at https://fadv.com/.
Investor Contact
Stephanie Gorman
Vice President, Investor Relations
Investors@fadv.com
(678) 868-4151
Condensed Financial Statements
First Advantage Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and par value amounts) |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
237,900 |
|
|
$ |
239,998 |
|
Restricted cash |
|
|
110 |
|
|
|
86 |
|
Accounts receivable (net of allowance for doubtful accounts of $7,792 and $8,084 at June 30, 2026 and December 31, 2025, respectively) |
|
|
309,282 |
|
|
|
297,281 |
|
Prepaid expenses and other current assets |
|
|
26,472 |
|
|
|
15,323 |
|
Income tax receivable |
|
|
7,282 |
|
|
|
9,010 |
|
Total current assets |
|
|
581,046 |
|
|
|
561,698 |
|
Property and equipment, net |
|
|
227,267 |
|
|
|
250,865 |
|
Goodwill |
|
|
2,135,158 |
|
|
|
2,143,604 |
|
Intangible assets, net |
|
|
785,062 |
|
|
|
857,111 |
|
Deferred tax asset, net |
|
|
4,289 |
|
|
|
4,183 |
|
Other assets |
|
|
14,424 |
|
|
|
16,341 |
|
TOTAL ASSETS |
|
$ |
3,747,246 |
|
|
$ |
3,833,802 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
124,250 |
|
|
$ |
109,888 |
|
Accrued compensation |
|
|
55,432 |
|
|
|
60,537 |
|
Accrued liabilities |
|
|
40,564 |
|
|
|
49,140 |
|
Current portion of operating lease liability |
|
|
3,125 |
|
|
|
3,568 |
|
Income tax payable |
|
|
1,319 |
|
|
|
2,298 |
|
Deferred revenues |
|
|
5,251 |
|
|
|
5,028 |
|
Total current liabilities |
|
|
229,941 |
|
|
|
230,459 |
|
Long-term debt (net of deferred financing costs of $30,756 and $34,498 at June 30, 2026 and December 31, 2025, respectively) |
|
|
2,033,781 |
|
|
|
2,080,039 |
|
Deferred tax liability, net |
|
|
172,266 |
|
|
|
190,255 |
|
Operating lease liability, less current portion |
|
|
4,155 |
|
|
|
5,525 |
|
Other liabilities |
|
|
13,149 |
|
|
|
13,972 |
|
Total liabilities |
|
|
2,453,292 |
|
|
|
2,520,250 |
|
EQUITY |
|
|
|
|
|
|
||
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 171,571,364 and 174,190,461 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively |
|
|
172 |
|
|
|
174 |
|
Additional paid-in-capital |
|
|
1,541,000 |
|
|
|
1,528,315 |
|
Accumulated deficit |
|
|
(214,107 |
) |
|
|
(194,632 |
) |
Accumulated other comprehensive loss |
|
|
(33,111 |
) |
|
|
(20,305 |
) |
Total equity |
|
|
1,293,954 |
|
|
|
1,313,552 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
3,747,246 |
|
|
$ |
3,833,802 |
|
First Advantage Corporation
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
|
|
Three Months Ended June 30, |
|
|||||
(in thousands, except share and per share amounts) |
|
2026 |
|
|
2025 |
|
||
REVENUES |
|
$ |
448,763 |
|
|
$ |
390,633 |
|
|
|
|
|
|
|
|
||
OPERATING EXPENSES: |
|
|
|
|
|
|
||
Cost of services (exclusive of depreciation and amortization below) |
|
|
244,771 |
|
|
|
207,841 |
|
Product and technology expense |
|
|
27,265 |
|
|
|
25,676 |
|
Selling, general, and administrative expense |
|
|
57,811 |
|
|
|
57,473 |
|
Depreciation and amortization |
|
|
61,893 |
|
|
|
61,906 |
|
Total operating expenses |
|
|
391,740 |
|
|
|
352,896 |
|
INCOME FROM OPERATIONS |
|
|
57,023 |
|
|
|
37,737 |
|
|
|
|
|
|
|
|
||
OTHER EXPENSE, NET: |
|
|
|
|
|
|
||
Interest expense, net |
|
|
31,608 |
|
|
|
44,785 |
|
Loss on extinguishment of debt |
|
|
359 |
|
|
|
254 |
|
Total other expense, net |
|
|
31,967 |
|
|
|
45,039 |
|
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES |
|
|
25,056 |
|
|
|
(7,302 |
) |
Provision (benefit) for income taxes |
|
|
8,142 |
|
|
|
(7,610 |
) |
NET INCOME |
|
$ |
16,914 |
|
|
$ |
308 |
|
|
|
|
|
|
|
|
||
Foreign currency translation (loss) income |
|
|
(5,886 |
) |
|
|
14,384 |
|
COMPREHENSIVE INCOME |
|
$ |
11,028 |
|
|
$ |
14,692 |
|
|
|
|
|
|
|
|
||
NET INCOME |
|
$ |
16,914 |
|
|
$ |
308 |
|
Basic net income per share |
|
$ |
0.10 |
|
|
$ |
0.00 |
|
Diluted net income per share |
|
$ |
0.10 |
|
|
$ |
0.00 |
|
Weighted average number of shares outstanding - basic |
|
|
171,747,641 |
|
|
|
173,288,662 |
|
Weighted average number of shares outstanding - diluted |
|
|
173,225,170 |
|
|
|
175,069,451 |
|
First Advantage Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Six Months Ended June 30, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
19,082 |
|
|
$ |
(40,886 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
124,083 |
|
|
|
123,572 |
|
Loss on extinguishment of debt |
|
|
733 |
|
|
|
254 |
|
Amortization of deferred financing costs |
|
|
3,009 |
|
|
|
3,205 |
|
Bad debt expense (recovery) |
|
|
792 |
|
|
|
(1,495 |
) |
Deferred taxes |
|
|
(18,124 |
) |
|
|
(26,965 |
) |
Share-based compensation |
|
|
9,670 |
|
|
|
13,709 |
|
Loss on disposal and impairment of long-lived assets |
|
|
6,864 |
|
|
|
527 |
|
Change in fair value of interest rate swaps |
|
|
(8,172 |
) |
|
|
6,419 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(13,486 |
) |
|
|
(13,033 |
) |
Prepaid expenses and other assets |
|
|
(9,854 |
) |
|
|
1,878 |
|
Accounts payable |
|
|
16,470 |
|
|
|
(12,049 |
) |
Accrued compensation and accrued liabilities |
|
|
(7,452 |
) |
|
|
2,585 |
|
Deferred revenues |
|
|
241 |
|
|
|
501 |
|
Operating lease liabilities |
|
|
149 |
|
|
|
(155 |
) |
Other liabilities |
|
|
(1,835 |
) |
|
|
(308 |
) |
Income taxes receivable and payable, net |
|
|
857 |
|
|
|
(943 |
) |
Net cash provided by operating activities |
|
|
123,027 |
|
|
|
56,816 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Capitalized software development costs |
|
|
(28,075 |
) |
|
|
(22,180 |
) |
Purchases of property and equipment |
|
|
(7,464 |
) |
|
|
(1,718 |
) |
Other investing activities |
|
|
2,028 |
|
|
|
82 |
|
Net cash used in investing activities |
|
|
(33,511 |
) |
|
|
(23,816 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Repayments of First Lien Credit Facility |
|
|
(50,000 |
) |
|
|
(20,462 |
) |
Share repurchases |
|
|
(38,179 |
) |
|
|
— |
|
Proceeds from issuance of common stock under share-based compensation plans |
|
|
4,334 |
|
|
|
2,219 |
|
Net settlement of share-based compensation plan awards |
|
|
(1,318 |
) |
|
|
(2,761 |
) |
Cash dividends paid |
|
|
(79 |
) |
|
|
(103 |
) |
Net cash used in financing activities |
|
|
(85,242 |
) |
|
|
(21,107 |
) |
Effect of exchange rate on cash, cash equivalents, and restricted cash |
|
|
(6,348 |
) |
|
|
2,969 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(2,074 |
) |
|
|
14,862 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
240,084 |
|
|
|
169,483 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
238,010 |
|
|
$ |
184,345 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for income taxes, net of refunds received |
|
$ |
26,457 |
|
|
$ |
24,273 |
|
Cash paid for interest |
|
$ |
69,327 |
|
|
$ |
84,140 |
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Property and equipment acquired on account |
|
$ |
1,177 |
|
|
$ |
426 |
|
Excise taxes on share repurchases incurred but not paid |
|
$ |
381 |
|
|
$ |
— |
|
Reconciliation of Consolidated Non-GAAP Financial Measures
|
|
Three Months Ended June 30, |
|
|||||
(in thousands, except percentages) |
|
2026 |
|
|
2025 |
|
||
Net income |
|
$ |
16,914 |
|
|
$ |
308 |
|
Interest expense, net |
|
|
31,608 |
|
|
|
44,785 |
|
Provision (benefit) for income taxes |
|
|
8,142 |
|
|
|
(7,610 |
) |
Depreciation and amortization |
|
|
61,893 |
|
|
|
61,906 |
|
Loss on extinguishment of debt |
|
|
359 |
|
|
|
254 |
|
Share-based compensation(a) |
|
|
5,240 |
|
|
|
5,742 |
|
Transaction and acquisition-related charges(b) |
|
|
497 |
|
|
|
2,390 |
|
Integration, restructuring, and other charges(c) |
|
|
3,868 |
|
|
|
6,171 |
|
Adjusted EBITDA |
|
$ |
128,521 |
|
|
$ |
113,946 |
|
Revenues |
|
|
448,763 |
|
|
|
390,633 |
|
Net income margin |
|
|
3.8 |
% |
|
|
0.1 |
% |
Adjusted EBITDA Margin |
|
|
28.6 |
% |
|
|
29.2 |
% |
Reconciliation of Consolidated Non-GAAP Financial Measures (continued)
|
|
Three Months Ended June 30, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
Net income |
|
$ |
16,914 |
|
|
$ |
308 |
|
Provision (benefit) for income taxes |
|
|
8,142 |
|
|
|
(7,610 |
) |
Income (loss) before provision for income taxes |
|
|
25,056 |
|
|
|
(7,302 |
) |
Debt-related charges(a) |
|
|
(1,632 |
) |
|
|
5,239 |
|
Acquisition-related depreciation and amortization(b) |
|
|
49,877 |
|
|
|
50,885 |
|
Share-based compensation(c) |
|
|
5,240 |
|
|
|
5,742 |
|
Transaction and acquisition-related charges(d) |
|
|
497 |
|
|
|
2,390 |
|
Integration, restructuring, and other charges(e) |
|
|
3,868 |
|
|
|
6,171 |
|
Adjusted Net Income before income tax effect |
|
|
82,906 |
|
|
|
63,125 |
|
Less: Adjusted income taxes(f) |
|
|
21,480 |
|
|
|
16,160 |
|
Adjusted Net Income |
|
$ |
61,426 |
|
|
$ |
46,965 |
|
|
|
Three Months Ended June 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Diluted net income per share |
|
$ |
0.10 |
|
|
$ |
0.00 |
|
Adjusted Net Income adjustments per share |
|
|
|
|
|
|
||
Provision (benefit) for income taxes |
|
|
0.05 |
|
|
|
(0.04 |
) |
Debt-related charges(a) |
|
|
(0.01 |
) |
|
|
0.03 |
|
Acquisition-related depreciation and amortization(b) |
|
|
0.29 |
|
|
|
0.29 |
|
Share-based compensation(c) |
|
|
0.03 |
|
|
|
0.03 |
|
Transaction and acquisition related charges(d) |
|
|
0.00 |
|
|
|
0.01 |
|
Integration, restructuring, and other charges(e) |
|
|
0.01 |
|
|
|
0.04 |
|
Adjusted income taxes(f) |
|
|
(0.12 |
) |
|
|
(0.09 |
) |
Adjusted Diluted Earnings Per Share (Non-GAAP) |
|
$ |
0.35 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
||
Weighted average number of shares outstanding used in computation of Adjusted Diluted Earnings Per Share: |
|
|
|
|
|
|
||
Weighted average number of shares outstanding—diluted (GAAP and Non-GAAP) |
|
|
173,225,170 |
|
|
|
175,069,451 |
|