First Advantage (NASDAQ: FA) posts Q1 2026 growth and reaffirms 2026 outlook
Rhea-AI Filing Summary
First Advantage Corporation reported strong first quarter 2026 results, with revenues of $385.2 million, an 8.6% increase from $354.6 million a year earlier. Net income was $2.2 million, compared with a $41.2 million loss, reflecting a return to profitability.
Adjusted EBITDA rose to $105.3 million with a 27.3% margin, while Adjusted Net Income reached $45.1 million and Adjusted Diluted EPS was $0.26, up from $0.17. The company generated $49.4 million in operating cash flow, prepaid $50 million of debt across February and May, repurchased $19.5 million of shares, and reaffirmed its full year 2026 guidance ranges.
Positive
- Revenues increased 8.6% year-over-year to $385.2 million, while net income swung from a $41.2 million loss to a $2.2 million profit, signaling a notable improvement in profitability.
- Adjusted EBITDA rose to $105.3 million with a 27.3% margin, and Adjusted Net Income climbed to $45.1 million with Adjusted Diluted EPS up to $0.26 from $0.17, indicating strong underlying earnings growth.
- The company generated $49.4 million in operating cash flow, made $50 million of voluntary debt prepayments, repurchased $19.5 million of shares, and reaffirmed full year 2026 guidance ranges, reflecting balance sheet improvement and continued confidence.
Negative
- None.
Insights
First Advantage shows solid growth, margin improvement, debt paydown, and continued confidence via reaffirmed guidance.
First Advantage delivered Q1 2026 revenue of $385.2 million, up 8.6% year-over-year, with income from operations rising sharply to $33.5 million. Net income improved to $2.2 million from a prior $41.2 million loss, indicating better cost control and lower interest expense.
Non-GAAP metrics were notably stronger: Adjusted EBITDA reached $105.3 million with a 27.3% margin, and Adjusted Net Income grew to $45.1 million. Adjusted Diluted EPS increased from $0.17 to $0.26, highlighting underlying earnings expansion even though GAAP net margin remains modest.
Cash flow from operations was $49.4 million, supporting voluntary debt prepayments totaling $50 million and share repurchases of $19.5 million. These actions, alongside reaffirmed full year 2026 guidance ranges, suggest continued management confidence in the business trajectory based on the disclosed figures.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted Net Income financial
loss on extinguishment of debt financial
integration, restructuring, and other charges financial
Earnings Snapshot
Reaffirmed full year 2026 guidance ranges.
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 May 7, 2026, First Advantage Corporation issued a press release announcing its financial results for the quarter ended March 31, 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 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
|
Description |
99.1 |
|
Press Release of First Advantage Corporation dated May 7, 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: |
May 7, 2026 |
By: |
/s/ Steven Marks |
|
|
|
Name: Steven Marks |
Exhibit 99.1
First Advantage Reports First Quarter 2026 Results
Delivers Another Record Quarter and Reaffirms Full Year 2026 Guidance
First Quarter 2026 Highlights1
ATLANTA, May 7, 2026 – First Advantage Corporation (NASDAQ: FA), a global software and data company, today announced financial results for the first quarter ended March 31, 2026.
Key Financials
(Amounts in millions, except per share data and percentages)
|
Three Months Ended March 31, |
|
|||||||||
|
2026 |
|
|
2025 |
|
|
Change |
|
|||
Revenues |
$ |
385.2 |
|
|
$ |
354.6 |
|
|
|
8.6 |
% |
Net income (loss) |
$ |
2.2 |
|
|
$ |
(41.2 |
) |
|
NM |
|
|
Net income (loss) margin |
|
0.6 |
% |
|
|
(11.6 |
)% |
|
NA |
|
|
Diluted net income (loss) per share |
$ |
0.01 |
|
|
$ |
(0.24 |
) |
|
NM |
|
|
Adjusted EBITDA1 |
$ |
105.3 |
|
|
$ |
92.1 |
|
|
|
14.3 |
% |
Adjusted EBITDA Margin1 |
|
27.3 |
% |
|
|
26.0 |
% |
|
NA |
|
|
Adjusted Net Income1 |
$ |
45.1 |
|
|
$ |
30.5 |
|
|
|
48.0 |
% |
Adjusted Diluted Earnings Per Share1 |
$ |
0.26 |
|
|
$ |
0.17 |
|
|
|
52.9 |
% |
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.
“Continuing our positive momentum from 2025, we generated exceptional financial results in the first quarter, with year-over-year revenue growth of 8.6%. Our sales engine is clearly humming. Our verticalized go-to-market strategy and diversified customer base, with our focus on enterprise customers, have enabled us to consistently outpace broader hiring market trends. We are seeing positive momentum across key verticals including retail & e-commerce, transportation & logistics, and gig economy, and are continuing to deliver upsell, cross-sell, and new logo wins through our innovative solutions, while also maintaining our high customer retention rate of 97%. Spanning across the employee lifecycle, our comprehensive solutions, including Digital Identity, continue to resonate with customers and open up meaningful growth opportunities,” said Scott Staples, Chief Executive Officer.
“We are building on our position of strength through the disciplined execution of our FA 5.0 growth strategy. First Advantage operates at scale, leveraging our AI-enabled products and technologies to help customers navigate increasingly complex human capital risks. Our proprietary data assets, large scale physical fulfillment networks, compliance expertise, consultative approach, and deep system integrations uniquely position us to deliver durable, long-term shareholder value in an evolving technology landscape,” Staples concluded.
Reaffirming Full Year 2026 Guidance
“We are reaffirming our full year 2026 guidance in light of our strong performance in the first quarter and our latest view of the macroeconomic environment,” commented Steven Marks, Chief Financial Officer. “We continue to generate strong cash flow, and consistent with our balanced capital allocation strategy, we are both repurchasing shares and continuing to reduce net leverage. During the quarter, we repurchased $19.5 million in shares under our recently announced $100 million authorization and voluntarily paid down $25 million of debt, as previously announced. Subsequent to the end of the quarter, we repurchased an additional $13.8 million in shares through May 1 and made another voluntary principal prepayment of $25 million in early May. We remain focused on accelerating growth while steadily reducing net leverage and advancing toward our long-term financial objectives.”
The following table summarizes our full year 2026 guidance.
|
|
As of May 7, 2026 |
Revenues |
|
$1,625 million – $1,700 million |
Adjusted EBITDA3 |
|
$460 million – $485 million |
Adjusted Net Income3 |
|
$200 million – $220 million |
Adjusted Diluted Earnings Per Share3 |
|
$1.15 – $1.25 |
3 A reconciliation of the foregoing guidance for the non-GAAP metrics of Adjusted EBITDA and Adjusted Net Income to GAAP net income (loss) and Adjusted Diluted Earnings Per Share to GAAP diluted net income (loss) 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 first quarter 2026 results today, May 7, 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 first quarter 2026 earnings call or provide the conference code FA1Q26. 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/5299677/C9C3CC4A5F89F22F622AC6FC6E51BB7B.
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) |
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
225,908 |
|
|
$ |
239,998 |
|
Restricted cash |
|
|
111 |
|
|
|
86 |
|
Accounts receivable (net of allowance for doubtful accounts of $8,327 and $8,084 at March 31, 2026 and December 31, 2025, respectively) |
|
|
287,676 |
|
|
|
297,281 |
|
Prepaid expenses and other current assets |
|
|
21,317 |
|
|
|
15,323 |
|
Income tax receivable |
|
|
4,306 |
|
|
|
9,010 |
|
Total current assets |
|
|
539,318 |
|
|
|
561,698 |
|
Property and equipment, net |
|
|
237,039 |
|
|
|
250,865 |
|
Goodwill |
|
|
2,138,399 |
|
|
|
2,143,604 |
|
Intangible assets, net |
|
|
820,653 |
|
|
|
857,111 |
|
Deferred tax asset, net |
|
|
4,151 |
|
|
|
4,183 |
|
Other assets |
|
|
14,604 |
|
|
|
16,341 |
|
TOTAL ASSETS |
|
$ |
3,754,164 |
|
|
$ |
3,833,802 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
107,193 |
|
|
$ |
109,888 |
|
Accrued compensation |
|
|
42,246 |
|
|
|
60,537 |
|
Accrued liabilities |
|
|
42,347 |
|
|
|
49,140 |
|
Current portion of operating lease liability |
|
|
3,372 |
|
|
|
3,568 |
|
Income tax payable |
|
|
3,128 |
|
|
|
2,298 |
|
Deferred revenues |
|
|
5,211 |
|
|
|
5,028 |
|
Total current liabilities |
|
|
203,497 |
|
|
|
230,459 |
|
Long-term debt (net of deferred financing costs of $32,603 and $34,498 at March 31, 2026 and December 31, 2025, respectively) |
|
|
2,056,934 |
|
|
|
2,080,039 |
|
Deferred tax liability, net |
|
|
181,024 |
|
|
|
190,255 |
|
Operating lease liability, less current portion |
|
|
4,862 |
|
|
|
5,525 |
|
Other liabilities |
|
|
14,063 |
|
|
|
13,972 |
|
Total liabilities |
|
|
2,460,380 |
|
|
|
2,520,250 |
|
EQUITY |
|
|
|
|
|
|
||
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 172,705,863 and 174,190,461 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively |
|
|
173 |
|
|
|
174 |
|
Additional paid-in-capital |
|
|
1,532,985 |
|
|
|
1,528,315 |
|
Accumulated deficit |
|
|
(212,149 |
) |
|
|
(194,632 |
) |
Accumulated other comprehensive loss |
|
|
(27,225 |
) |
|
|
(20,305 |
) |
Total equity |
|
|
1,293,784 |
|
|
|
1,313,552 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
3,754,164 |
|
|
$ |
3,833,802 |
|
First Advantage Corporation
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
|
|
Three Months Ended March 31, |
|
|||||
(in thousands, except share and per share amounts) |
|
2026 |
|
|
2025 |
|
||
REVENUES |
|
$ |
385,201 |
|
|
$ |
354,588 |
|
|
|
|
|
|
|
|
||
OPERATING EXPENSES: |
|
|
|
|
|
|
||
Cost of services (exclusive of depreciation and amortization below) |
|
|
211,411 |
|
|
|
192,565 |
|
Product and technology expense |
|
|
24,605 |
|
|
|
27,155 |
|
Selling, general, and administrative expense |
|
|
53,475 |
|
|
|
65,585 |
|
Depreciation and amortization |
|
|
62,190 |
|
|
|
61,666 |
|
Total operating expenses |
|
|
351,681 |
|
|
|
346,971 |
|
INCOME FROM OPERATIONS |
|
|
33,520 |
|
|
|
7,617 |
|
|
|
|
|
|
|
|
||
OTHER EXPENSE, NET: |
|
|
|
|
|
|
||
Interest expense, net |
|
|
29,841 |
|
|
|
46,580 |
|
Loss on extinguishment of debt |
|
|
374 |
|
|
|
— |
|
Total other expense, net |
|
|
30,215 |
|
|
|
46,580 |
|
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES |
|
|
3,305 |
|
|
|
(38,963 |
) |
Provision for income taxes |
|
|
1,137 |
|
|
|
2,231 |
|
NET INCOME (LOSS) |
|
$ |
2,168 |
|
|
$ |
(41,194 |
) |
|
|
|
|
|
|
|
||
Foreign currency translation (loss) income |
|
|
(6,920 |
) |
|
|
5,453 |
|
COMPREHENSIVE LOSS |
|
$ |
(4,752 |
) |
|
$ |
(35,741 |
) |
|
|
|
|
|
|
|
||
NET INCOME (LOSS) |
|
$ |
2,168 |
|
|
$ |
(41,194 |
) |
Basic net income (loss) per share |
|
$ |
0.01 |
|
|
$ |
(0.24 |
) |
Diluted net income (loss) per share |
|
$ |
0.01 |
|
|
$ |
(0.24 |
) |
Weighted average number of shares outstanding - basic |
|
|
173,903,625 |
|
|
|
172,756,497 |
|
Weighted average number of shares outstanding - diluted |
|
|
174,922,780 |
|
|
|
172,756,497 |
|
First Advantage Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Three Months Ended March 31, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
2,168 |
|
|
$ |
(41,194 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
62,190 |
|
|
|
61,666 |
|
Loss on extinguishment of debt |
|
|
374 |
|
|
|
— |
|
Amortization of deferred financing costs |
|
|
1,520 |
|
|
|
1,608 |
|
Bad debt expense (recovery) |
|
|
572 |
|
|
|
(712 |
) |
Deferred taxes |
|
|
(9,227 |
) |
|
|
(7,553 |
) |
Share-based compensation |
|
|
4,430 |
|
|
|
7,967 |
|
Loss on disposal and impairment of long-lived assets |
|
|
6,631 |
|
|
|
132 |
|
Change in fair value of interest rate swaps |
|
|
(4,945 |
) |
|
|
3,936 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
8,339 |
|
|
|
1,927 |
|
Prepaid expenses and other assets |
|
|
(5,502 |
) |
|
|
(993 |
) |
Accounts payable |
|
|
(1,857 |
) |
|
|
(6,038 |
) |
Accrued compensation and accrued liabilities |
|
|
(19,892 |
) |
|
|
(8,615 |
) |
Deferred revenues |
|
|
201 |
|
|
|
482 |
|
Operating lease liabilities |
|
|
87 |
|
|
|
(91 |
) |
Other liabilities |
|
|
(1,183 |
) |
|
|
(366 |
) |
Income taxes receivable and payable, net |
|
|
5,525 |
|
|
|
7,315 |
|
Net cash provided by operating activities |
|
|
49,431 |
|
|
|
19,471 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Capitalized software development costs |
|
|
(13,204 |
) |
|
|
(10,628 |
) |
Purchases of property and equipment |
|
|
(2,812 |
) |
|
|
(485 |
) |
Other investing activities |
|
|
2,000 |
|
|
|
37 |
|
Net cash used in investing activities |
|
|
(14,016 |
) |
|
|
(11,076 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Repayments of First Lien Credit Facility |
|
|
(25,000 |
) |
|
|
(5,463 |
) |
Share repurchases |
|
|
(19,492 |
) |
|
|
— |
|
Proceeds from issuance of common stock under share-based compensation plans |
|
|
1,152 |
|
|
|
1,688 |
|
Net settlement of share-based compensation plan awards |
|
|
(911 |
) |
|
|
(2,204 |
) |
Cash dividends paid |
|
|
(10 |
) |
|
|
(11 |
) |
Payments on finance lease obligations |
|
|
— |
|
|
|
(3 |
) |
Net cash used in financing activities |
|
|
(44,261 |
) |
|
|
(5,993 |
) |
Effect of exchange rate on cash, cash equivalents, and restricted cash |
|
|
(5,219 |
) |
|
|
906 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(14,065 |
) |
|
|
3,308 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
240,084 |
|
|
|
169,483 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
226,019 |
|
|
$ |
172,791 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for income taxes, net of refunds received |
|
$ |
5,768 |
|
|
$ |
3,003 |
|
Cash paid for interest |
|
$ |
34,714 |
|
|
$ |
41,881 |
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Property and equipment acquired on account |
|
$ |
2,386 |
|
|
$ |
973 |
|
Excise taxes on share repurchases incurred but not paid |
|
$ |
195 |
|
|
$ |
— |
|
Reconciliation of Consolidated Non-GAAP Financial Measures
|
|
Three Months Ended March 31, |
|
|||||
(in thousands, except percentages) |
|
2026 |
|
|
2025 |
|
||
Net income (loss) |
|
$ |
2,168 |
|
|
$ |
(41,194 |
) |
Interest expense, net |
|
|
29,841 |
|
|
|
46,580 |
|
Provision for income taxes |
|
|
1,137 |
|
|
|
2,231 |
|
Depreciation and amortization |
|
|
62,190 |
|
|
|
61,666 |
|
Loss on extinguishment of debt |
|
|
374 |
|
|
|
— |
|
Share-based compensation(a) |
|
|
4,430 |
|
|
|
7,967 |
|
Transaction and acquisition-related charges(b) |
|
|
565 |
|
|
|
3,996 |
|
Integration, restructuring, and other charges(c) |
|
|
4,582 |
|
|
|
10,866 |
|
Adjusted EBITDA |
|
$ |
105,287 |
|
|
$ |
92,112 |
|
Revenues |
|
|
385,201 |
|
|
|
354,588 |
|
Net income (loss) margin |
|
|
0.6 |
% |
|
|
(11.6 |
)% |
Adjusted EBITDA Margin |
|
|
27.3 |
% |
|
|
26.0 |
% |
Reconciliation of Consolidated Non-GAAP Financial Measures (continued)
|
|
Three Months Ended March 31, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
Net income (loss) |
|
$ |
2,168 |
|
|
$ |
(41,194 |
) |
Provision for income taxes |
|
|
1,137 |
|
|
|
2,231 |
|
Income (loss) before provision for income taxes |
|
|
3,305 |
|
|
|
(38,963 |
) |
Debt-related charges(a) |
|
|
(3,169 |
) |
|
|
6,803 |
|
Acquisition-related depreciation and amortization(b) |
|
|
50,914 |
|
|
|
50,039 |
|
Share-based compensation(c) |
|
|
4,430 |
|
|
|
7,967 |
|
Transaction and acquisition-related charges(d) |
|
|
565 |
|
|
|
3,996 |
|
Integration, restructuring, and other charges(e) |
|
|
4,582 |
|
|
|
10,866 |
|
Adjusted Net Income before income tax effect |
|
|
60,627 |
|
|
|
40,708 |
|
Less: Adjusted income taxes(f) |
|
|
15,508 |
|
|
|
10,222 |
|
Adjusted Net Income |
|
$ |
45,119 |
|
|
$ |
30,486 |
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Diluted net income (loss) per share (GAAP) |
|
$ |
0.01 |
|
|
$ |
(0.24 |
) |
Adjusted Net Income adjustments per share |
|
|
|
|
|
|
||
Provision for income taxes |
|
|
0.01 |
|
|
|
0.01 |
|
Debt-related charges(a) |
|
|
(0.02 |
) |
|
|
0.04 |
|
Acquisition-related depreciation and amortization(b) |
|
|
0.29 |
|
|
|
0.29 |
|
Share-based compensation(c) |
|
|
0.03 |
|
|
|
0.05 |
|
Transaction and acquisition related charges(d) |
|
|
0.00 |
|
|
|
0.02 |
|
Integration, restructuring, and other charges(e) |
|
|
0.03 |
|
|
|
0.06 |
|
Adjusted income taxes(f) |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
Adjusted Diluted Earnings Per Share (Non-GAAP) |
|
$ |
0.26 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
||
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) |
|
|
174,922,780 |
|
|
|
172,756,497 |
|
Options and restricted stock not included in weighted average number of shares outstanding—diluted (GAAP) (using treasury stock method) |
|
|
— |
|
|
|
2,217,580 |
|
Adjusted weighted average number of shares outstanding—diluted (Non-GAAP) |
|
|
174,922,780 |
|
|
|
174,974,077 |
|