Q4 2025 First Advantage Corp Earnings Call

February 26, 2026

It is now my pleasure to turn the meeting over to MS. Stephanie Goldman. Please go ahead ma'am.

Operator: Please note today's event is being recorded. It is now my pleasure to turn the meeting over to Ms. Stephanie Gorman. Please go ahead, ma'am.

Thank you Bill good morning, everyone and welcome to the first advantages fourth quarter and full year 2025 earnings conference call in.

Stephanie Gorman: Thank you, Beau. Good morning, everyone, welcome to First Advantage's Q4 and full year 2025 Earnings Conference Call. In the Investors section of our website, you will find the earnings press release and slide presentation to accompany today's discussion. This webcast is being recorded, will be available for replay on our Investor Relations website. Before we begin our prepared remarks, I would like to remind everyone that our discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are discussed in more detail in our filings with the SEC, including our 2024 Form 10-K and our 2025 Form 10-K, to be filed with the SEC.

In the investors section of our website you will find the earnings press release and slide presentation to accompany today's discussion.

Webcast is being recorded and will be available for replay on our Investor Relations website.

Before we begin our prepared remarks, I would like to remind everyone that our discussion today will include forward looking statements such forward looking statements are not guarantees of future performance actual results may differ materially from those expressed or implied in the forward looking statements due to a variety of factors. These factors are discussed in more detail in our <unk>.

Filings with the SEC, including our 2024 Form 10-K, and our 2025 Form 10-K to be filed with the SEC such factors may be updated from time to time in our periodic filings with the SEC and we do not undertake any obligation to update forward looking statements.

Operator: Please stand by. Your meeting is about to begin. Good morning, everyone. My name is Beau. I will be your conference operator today. I would like to welcome you to the First Advantage Q4 and full year 2025 Earnings Conference Call and Webcast. Hosting the call today from First Advantage is Ms. Stephanie Gorman, Vice President of Investor Relations. At this time, all participants have been placed in a listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, please press star one on your telephone. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. Lastly, if you should require any operator assistance, please press star zero. Please note, today's event is being recorded.

Stephanie Gorman: Such factors may be updated from time to time in our periodic filings with the SEC, and we do not undertake any obligation to update forward-looking statements. Throughout this conference call, we will also present and discuss non-GAAP financial measures. Reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures, to the extent available without unreasonable effort, appear in today's earnings press release and presentation, which are available on our Investor Relations website. To facilitate comparability, we will also discuss pro forma combined company results, consisting of First Advantage and Sterling Check Print historical results, and certain pro forma adjustments as if the acquisition of Sterling had occurred on 1 January 2023. The pro forma information does not constitute Article 11 pro forma information. I'm joined on our call today by Scott Staples, our Chief Executive Officer, and Steven Marks, our Chief Financial Officer.

Throughout this conference call. We will also present and discuss non-GAAP financial measures reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures to the extent available without unreasonable effort appear in today's earnings press release and presentation, which are available on our Investor Relations website.

To facilitate comparability, we will also discuss pro forma combined company results in assisting US first advantage and Sterling Czech Court historical results and certain pro forma adjustments as the acquisition of Sterling had occurred on January one 2023 the.

The pro forma information does not constitute article 11 pro forma information.

Operator: It is now my pleasure to turn the meeting over to Ms. Stephanie Gorman. Please go ahead, ma'am.

I'm joined on our call today by Scott <unk>, Our Chief Executive Officer, and Steven <unk>, Our Chief Financial Officer. After our prepared remarks, we will take your questions I will now hand, the call over to Scott.

Stephanie Gorman: Thank you, Beau. Good morning, everyone, and welcome to First Advantage's Q4 and full year 2025 Earnings Conference Call. In the investor section of our website, you will find the earnings press release and slide presentation to accompany today's discussion. This webcast is being recorded and will be available for replay on our investor relations website. Before we begin our prepared remarks, I would like to remind everyone that our discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are discussed in more detail in our filings with the SEC, including our 2024 Form 10-K and our 2025 Form 10-K to be filed with the SEC.

Stephanie Gorman: After our prepared remarks, we will take your questions. I will now hand the call over to Scott.

Thank you Stephanie and good morning, everyone.

Thank you for joining our call today, we have five key messages first we delivered what we believe was our best quarter ever with exceptional Q4 results capping off an impressive 2020.

Scott Staples: Thank you, Stephanie, and good morning, everyone. Thank you for joining our call. Today, we have 5 key messages. First, we delivered what we believe was our best quarter ever, with exceptional Q4 results capping off in an impressive 2025. We exceeded our previously updated expectations on all guidance metrics, with particularly notable Adjusted Diluted EPS growth of 67% in Q4. We continue to be a category leader, supported by our go-to-market success, with a robust 17% growth contribution from new logo and upsell cross-sell, resulting in 12% overall pro forma revenue growth in the quarter. When combined with our diverse vertical mix, consistently high customer retention, and focus on cost discipline, it is clear that we are driving outstanding results amid this dynamic macroeconomic environment.

We exceeded our previously updated expectations on all guidance metrics with particularly notable adjusted diluted EPS growth of 67% in the fourth quarter.

We continue to be a category leader supported by our go to market success with a robust 17% growth contribution from new logo and upsell cross sell resulting in 12% overall pro forma revenue growth in the quarter.

Stephanie Gorman: Such factors may be updated from time to time in our periodic filings with the SEC. We do not undertake any obligation to update forward-looking statements. Throughout this conference call, we will also present and discuss non-GAAP financial measures. Reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures, to the extent available without unreasonable effort, appear in today's earnings press release and presentation, which are available on our investor relations website. To facilitate comparability, we will also discuss pro forma combined company results, consisting of First Advantage and Sterling Check Corp.'s historical results and certain pro forma adjustments as if the acquisition of Sterling had occurred on 1 January 2023. The pro forma information does not constitute Article 11 pro forma information. I'm joined on our call today by Scott Staples, our Chief Executive Officer, and Steven Marks, our Chief Financial Officer.

When combined with our diverse vertical mix consistently high customer retention and focus on cost discipline. It is clear that we are driving outstanding results amid this dynamic macroeconomic environment.

Second we are pleased to share that we have completed our core integration activities for the Sterling acquisition, and we are seeing the strategic and financial benefits as promised.

Scott Staples: Second, we are pleased to share that we have completed our core integration activities for the Sterling acquisition, and we are seeing the strategic and financial benefits as promised. While we continue to action additional synergies, looking forward, we are turning the page from primarily an integration focus to one of innovation and are committed to accelerating our growth through our scaled, strengthened business. Which brings me to our third point. We are executing and in fact accelerating our FA 5.0 growth strategy. Through our best-of-breed product and platform approach, we are winning with our enhanced customer value proposition and expanded offerings, and are poised to capture meaningful opportunities in growth areas such as digital identity, our differentiating co-selling relationships with Workday, ongoing new product releases, and international account expansion.

While we continue to action additional synergies looking forward, we are turning the page from primarily an integration focus to one of innovation and are committed to accelerating our growth through our scaled strength in that business.

Which brings me to our third point.

We are executing and in fact accelerating our <unk> growth strategy.

Through our best of breed product and platform approach, we are winning with our enhanced customer value proposition and expanded offerings.

Stephanie Gorman: After our prepared remarks, we will take your questions. I will now hand the call over to Scott.

Scott Staples: Thank you, Stephanie. Good morning, everyone. Thank you for joining our call. Today, we have five key messages. First, we delivered what we believe was our best quarter ever, with exceptional Q4 results capping off in an impressive 2025. We exceeded our previously updated expectations on all guidance metrics, with particularly notable Adjusted Diluted EPS growth of 67% in Q4. We continue to be a category leader, supported by our go-to-market success, with a robust 17% growth contribution from new logo and upsell/cross-sell, resulting in 12% overall pro forma revenue growth in the quarter. When combined with our diverse vertical mix, consistently high customer retention, and focus on cost discipline, it is clear that we are driving outstanding results amid this dynamic macroeconomic environment.

And are poised to capture meaningful opportunities in growth areas, such as digital identity are differentiating co selling relationship with workday.

Ongoing new product releases and international account expansion.

Building upon our success in 2025, we are allocating additional resources in 2026 to further accelerate our go to market and product capabilities. We.

Scott Staples: Building upon our success in 2025, we are allocating additional resources in 2026 to further accelerate our go-to-market and product capabilities. We expect these actions will drive incremental organic revenue growth and sustainable long-term value creation. Fourth, today, we are announcing two strategic capital allocation actions, both of which are supported by the success of our business, our strong cash flow generation, and our confidence in our continued growth. First, in February, we are voluntarily prepaying $25 million of debt, maintaining our consistent trend and commitment to reducing net leverage. Second, we are announcing a new $100 million share repurchase authorization. Our strong position today gives us the ability to both pay down our debt and simultaneously buy back our shares, which we believe do not currently reflect the value of our business. Finally, we are introducing our full year 2026 guidance.

We expect these actions will drive incremental organic revenue growth and sustainable long term value creation.

Fourth today, we are announcing two strategic capital allocation actions both of which are supported by the success of our business are strong cash flow generation and our confidence in our continued growth.

First in February we are voluntary prepaying $25 million of debt, maintaining our consistent trend.

To reducing net leverage.

Scott Staples: Second, we are pleased to share that we have completed our core integration activities for the Sterling acquisition, and we are seeing the strategic and financial benefits as promised. While we continue to action additional synergies, looking forward, we are turning the page from primarily an integration focus to one of innovation and are committed to accelerating our growth through our scaled, strengthened business. Which brings me to our third point. We are executing and in fact accelerating our FA 5.0 growth strategy. Through our best-of-breed product and platform approach, we are winning with our enhanced customer value proposition and expanded offerings and are poised to capture meaningful opportunities in growth areas such as digital identity, our differentiating co-selling relationship with Workday, ongoing new product releases, and international account expansion.

Second we are announcing a new $100 million share repurchase authorization.

Our strong position today gives us the ability to both pay down our debt and simultaneously buyback our shares which we believe do not currently reflect the value of our business.

And finally, we are introducing our full year 2026 guidance.

We saw more stabilization across market conditions in the fourth quarter and we are seeing our positive top line momentum carrying into 2026.

While we continue to action additional synergies looking forward, we are turning the page from primarily, an integration Focus to 1 of innovation and our committed to accelerating our growth through our scaled strengthened business.

Which brings me to our third point.

Scott Staples: We saw more stabilization across market conditions in the Q4. We are seeing our positive top-line momentum carrying into 2026. This strong performance is reflected in our bottom-line earnings as well, with our two-year compound annual Adjusted Diluted EPS growth rate from 2024 to the 2026 guidance midpoint expected to be approximately 20%. While we are maintaining a modestly cautious outlook on base performance, expecting it to remain slightly negative for the year, we are bullish on 2026 given our go-to-market and recent pipeline success. We remain confident in our positioning to create long-term shareholder value and deliver consistent progress toward our 2028 long-term targets. Turning to slide 5, and an updated view of First Advantage at the end of 2025. We continue to be a category leader in our industry.

We are executing, and in fact accelerating, our FAA 5.0 growth strategy.

This strong performance is reflected in our bottom line earnings as well with our two year compound annual adjusted diluted EPS growth rate from 2024 to the 2026 guidance midpoint.

<unk> to be approximately 20%.

While we are maintaining a modestly cautious outlook on base performance expecting it to remain slightly negative for the year. We are bullish on 2026, given our go to market and recent pipeline success.

Through our best of breed product and platform approach. We are winning with our enhanced customer value proposition and expanded offerings, and are poised to capture meaningful opportunities. And growth, areas such as digital identity. Our differentiating co-selling relationship with workday ongoing, new product releases and international account expansion,

We remain confident in our positioning to create long term shareholder value and deliver consistent progress toward our 2028 long term targets.

Building Upon Our Success in 2025, we are allocating additional resources in 2026 to further accelerate our go to market and product capabilities.

We expect these actions will drive incremental, organic Revenue growth, and sustainable long-term value creation.

Turning to slide five and an updated view of first advantage at the end of 2025.

We continue to be a category leader in our industry, our customer value proposition offers differentiated technology platforms proprietary data and a broad collection of innovative solutions across a comprehensive and diversified range of verticals.

Forth, today we are announcing two strategic capital allocation actions, both of which are supported by the success of our business, our strong cash flow generation, and our confidence in our continued growth.

Scott Staples: Our customer value proposition offers differentiated technology platforms, proprietary data, and a broad collection of innovative solutions across a comprehensive and diversified range of verticals. In 2025, we delivered impressive full-year revenues, which grew from $1.57 billion, with $441 million of Adjusted EBITDA. Our pro forma Adjusted EBITDA growth of 11%, with pro forma Adjusted EBITDA margin expansion of 170 basis points and Adjusted Diluted EPS growth of 27%, were enabled by the completion of the core integration activities for the Sterling acquisition, successfully delivering on our synergy plan and the execution of our FA 5.0 growth strategy. We completed over 200 million screens across more than 200 countries and territories on behalf of our 80,000-plus customers, with the average tenure of our top 100 customers increasing to 13-plus years.

In 2025, we delivered impressive full year revenues, which grew from $157 billion.

first in February, we are voluntary prepaying, 25 million of debt, maintaining our consistent Trend and commit commitment to reducing net Leverage

Second, we are announcing a new 100 million. Share repurchase, authorization.

With $441 million of adjusted EBITDA.

Pro forma adjusted EBITDA growth of 11% with pro forma adjusted EBITDA margin expansion of 170 basis points and adjusted diluted EPS growth of 27% were enabled by the completion of the core integration activities for the Sterling acquisition.

Our strong position today. Gives us the ability to both pay down our debt and simultaneously. Buy back our shares which we believe do not currently reflect the value of our business.

Scott Staples: We saw more stabilization across market conditions in the Q4, and we are seeing our positive top-line momentum carrying into 2026. This strong performance is reflected in our bottom line earnings as well, with our 2-year compound annual Adjusted Diluted EPS growth rate from 2024 to the 2026 guidance midpoint, expected to be approximately 20%. While we are maintaining a modestly cautious outlook on base performance, expecting it to remain slightly negative for the year, we are bullish on 2026, given our go-to-market and recent pipeline success. We remain confident in our positioning to create long-term shareholder value and deliver consistent progress toward our 2028 long-term targets. Turning to slide 5, and an updated view of First Advantage at the end of 2025. We continue to be a category leader in our industry.

And finally, we are introducing our full year 2026 guidance.

<unk> delivering on our synergy plan and the execution of our F. A five <unk> growth strategy.

We completed over 200 million screens.

<unk> more than 200 countries and territories on behalf of our 80000 plus customers with the average tenure of our top 100 customers increasing to 13 plus years.

This strong performance is reflected in our bottom line, earnings as well. With our 2-year, compound, annual adjusted, diluted EPS growth rate from 2024 to the 2026 guidance. Midpoint expected to be approximately 20%,

Our diverse customer base includes approximately two thirds of fortune 100 companies and more than one half of fortune 500 companies.

Scott Staples: Our diverse customer base includes approximately two-thirds of Fortune 100 companies and more than one-half of Fortune 500 companies. Our growth retention remains high at approximately 96% for the year, having risen to 97% in the second half of the year. We have over 100 integrations with applicant tracking systems and human capital management partners, including our market-differentiating global co-selling relationship with Workday, giving us a unique competitive advantage in several of our key verticals. Speaking of competitive differentiation, this year, we crossed the milestone of accumulating over 1 billion records in our two proprietary databases, a 10%-plus increase year-over-year, providing our customers with a more comprehensive, powerful data foundation that enables the speed and efficiency we are known for.

While we are maintaining a modestly cautious outlook on Bass Performance, expecting it to remain slightly negative for the year, we are bullish on 2026, given our go to market and recent pipeline success.

Our gross retention remains high at approximately 96% for the year, having risen to 97% in the second half of the year.

we remain confident in our positioning to create long-term shareholder value and deliver consistent progress toward our 2028 long-term targets

We have over 100 integrations with applicant tracking system and human capital management partners, including our market differentiating global co selling relationship with workday.

Turning to slide 5 and an updated view of First Advantage at the end of 2025.

Scott Staples: Our customer value proposition offers differentiated technology platforms, proprietary data, and a broad collection of innovative solutions across a comprehensive and diversified range of verticals. In 2025, we delivered impressive full-year revenues, which grew from $1.57 billion, with $441 million of Adjusted EBITDA. Our pro forma Adjusted EBITDA growth of 11% with pro forma Adjusted EBITDA margin expansion of 170 basis points and Adjusted Diluted EPS growth of 27%, were enabled by the completion of the core integration activities for the Sterling acquisition, successfully delivering on our synergy plan and the execution of our FA 5.0 growth strategy. We completed over 200 million screens across more than 200 countries and territories on behalf of our 80,000+ customers, with the average tenure of our top 100 customers increasing to 13+ years.

<unk> us a unique competitive advantage in several of our key verticals.

And speaking of competitive differentiation. This year, we crossed the milestone of accumulating over 1 billion record and our two proprietary databases and <unk>.

We continue to be a category leader in our industry. Our customer value proposition offers differentiated technology platforms, proprietary data, and a broad collection of innovative solutions across a comprehensive and diversified range of verticals.

10% plus increase year over year, providing our customers with a more comprehensive.

In 2025 we delivered impressive full year revenues which Grew From 1.57 billion dollars.

<unk> data foundation that enables the speed and efficiency, we are known for.

With 441 million of adjusted ibida.

Our national criminal record file database now contains well over $900 million U S. Criminal history Records and our verified database contains approximately $135 million work history and education Records.

Scott Staples: Our National Criminal File database now contains well over 900 million US criminal history records. Our Verified! database contains approximately 135 million work history and education records. Our verticalized go-to-market approach remains a differentiator and a key driver of our growth strategy. We offer deep subject matter expertise in our industry segments. We use industry-specific data to advise our customers on topics such as leading practices and product optimization. Our enterprise customers, diverse vertical mix, global reach, mix of hourly and salary-focused customers, and diligent focus on controlling the controllables make our business resilient and able to perform well through macroeconomic cycles. On this slide, we have provided an updated view of our vertical mix for 2025.

Our proformer adjusted IBA growth of 11% with proforma, adjusted IBA margin expansion of 1070, basis points, and adjusted diluted EPS. Growth of 27% were enabled, by the completion of the core integration activities for the Sterling acquisition.

Our vertical is go to market approach remains a differentiator and a key driver of our growth strategy.

We offer deep subject matter expertise and our industry segments, and we use industry specific data to advise our customers on topics, such as leading practices and product optimization.

Successfully delivering on our Synergy plan and the execution of our FAA 5.0 growth strategy.

Our enterprise customers' diverse vertical mix global reach mix of hourly and salary salary focused customers and diligent focus on controlling the controllable make our business resilient and able to perform well through macroeconomic cycles.

Scott Staples: Our diverse customer base includes approximately two-thirds of Fortune 100 companies and more than one half of Fortune 500 companies. Our growth retention remains high at approximately 96% for the year, having risen to 97% in the second half of the year. We have over 100 integrations with applicant tracking systems and human capital management partners, including our market-differentiating global co-selling relationship with Workday, giving us a unique competitive advantage in several of our key verticals. Speaking of competitive differentiation, this year we crossed the milestone of accumulating over 1 billion records in our two proprietary databases, a 10%-plus increase year-over-year, providing our customers with a more comprehensive, powerful data foundation that enables the speed and efficiency we are known for.

We completed over 200 million screens across more than 200 countries and territories on behalf of our 80,000-plus customers, with the average tenure of our top 100 customers increasing to 13-plus years.

Our diverse customer base includes approximately 2/3 of Fortune 100 companies and more than 1/2 of Fortune, 500 companies.

On the slide we have provided an updated view of our vertical mix with 2025, we continue to feel confident in our strategic focus on health care transportation and retail and e-commerce, which represent our three largest verticals all with near and long term growth levers.

Our growth retention remains high at approximately 96% for the year having risen to 97% in the second half of the year.

Scott Staples: We continue to feel confident in our strategic focus on healthcare, transportation, and retail and e-commerce, which represent our 3 largest verticals, all with near and long-term growth levers. We believe that each offers substantial runway for new upsell and cross-sell expansion, supported by favorable underlying market trends. Now, turning to slide 6 and a closer look at our outstanding performance in Q4. We generated meaningful revenue, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Diluted EPS growth, with results exceeding our updated expectations. Impressively, in Q4, our combined upsell, cross-sell, and new logo growth rate was 17%, significantly outperforming our long-term growth algorithm target. This was enabled by our robust go-to-market momentum, including material contribution for a number of key 2025 wins and gives us momentum for stable yet elevated 2026 growth. Retention remained high at 97%.

We believe that each offers substantial runway for new upsell and cross sell expansion supported by favorable underlying market trends.

We have over 100 Integrations with applicant tracking systems and human Capital Management Partners including our Market differentiating Global co-selling relationship with workday.

giving us a unique competitive advantage in several of our key verticals.

Now turning to slide six and a closer look at our outstanding performance in the fourth quarter.

We generated meaningful revenue adjusted EBITDA, adjusted EBITDA margin and adjusted diluted diluted EPS growth.

With results exceeding our updated expectations.

Impressively in Q4, our combined upsell cross sell and new logo growth rate was 17%.

Scott Staples: Our National Criminal Record File database now contains well over 900 million US criminal history records, and our verified database contains approximately 135 million work history and education records. Our verticalized go-to-market approach remains a differentiator and a key driver of our growth strategy. We offer deep subject matter expertise in our industry segments, and we use industry-specific data to advise our customers on topics such as leading practices and product optimization. Our enterprise customers, diverse vertical mix, global reach, mix of hourly and salary-focused customers, and diligent focus on controlling the controllables, make our business resilient and able to perform well through macroeconomic cycles. On this slide, we have provided an updated view of our vertical mix for 2025.

And speaking of competitive differentiation, this year we crossed the milestone of accumulating over 1 billion records in our two proprietary databases—a 10% plus increase year-over-year—providing our customers with a more comprehensive, powerful data foundation that enables the speed and efficiency we are known for.

Significantly outperforming our long term growth algorithm targets.

This was enabled by our robust go to market momentum, including material contribution for a number of key 2025 wins.

Our national criminal record file database. Now contains well over 900 million us, criminal history, records and are verified database contains approximately 135 million, work history and education records.

And gives us momentum for stable will get elevated 2026 growth.

Our vertical eyes, go to market approach remains a differentiator and a key driver of our growth strategy.

Retention remained high at 97%.

Base revenue performance again improved sequentially remaining just below neutral and spot on with our expectations.

Scott Staples: Base revenue performance again improved sequentially, remaining just below neutral and spot on with our expectations. Our go-to-market teams continued to deliver, as further demonstrated by our 17 enterprise bookings in Q4, which brings us to a robust 66 for 2025, each deal with $500,000 or more of expected annual contract value. These wins are some of the many reasons we have confidence in our ability to continue generating new logo and upsell, cross-sell revenue, and help support our outlook for expected strong growth in 2026. Additionally, we are encouraged by the continued strength and increase in our late-stage pipeline, measuring at near record highs, including a meaningful volume that are incorporating our digital identity product. Looking at our verticals in Q4, our balanced and resilient vertical strategy supported our standout performance despite how headline economic data portrayed the higher environment.

We offer deep subject, matter expertise in our industry segments, and we use industry specific data to advise our customers on topics such as leading practices and product optimization.

Our go to market teams continued to deliver as further demonstrated by our 17 enterprise bookings in the fourth quarter, which brings us to a robust 66 for 2025.

Each deal with $500000 or more of expected annual contract value.

Our enterprise customers, diverse vertical mix, global reach, mix of hourly and thoroughly focused customers, and diligent focus on controlling the controllables make our business resilient and able to perform well through macroeconomic cycles.

These wins are some of the many reasons, we have confidence in our ability to continue generating new logo and upsell cross sell revenue and help support our outlook for expected strong growth in 2026.

Scott Staples: We continue to feel confident in our strategic focus on healthcare, transportation, and retail and e-commerce, which represent our three largest verticals, all with near and long-term growth levers. We believe that each offers substantial runway for new upsell and cross-sell expansion, supported by favorable underlying market trends. Turning to slide 6 and a closer look at our outstanding performance in Q4. We generated meaningful revenue, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Diluted EPS growth, with results exceeding our updated expectations. Impressively, in Q4, our combined upsell, cross-sell, and new logo growth rate was 17%, significantly outperforming our long-term growth algorithm target. This was enabled by our robust go-to-market momentum, including material contribution for a number of key 2025 wins, gives us momentum for stable yet elevated 2026 growth. Retention remained high at 97%.

Additionally, we are encouraged by the continued strength and increase in our late stage pipeline.

On the slide we have provided an updated view of our vertical mix for 2025. We continue to feel confident in our strategic focus on Healthcare transportation and Retail and e-commerce, which represent our 3 largest verticals, all with near and long-term growth levers.

Measuring at near record highs, including a meaningful volume that are incorporating our digital identity product.

We believe that each offers substantial runway for new upsell and cross-sell expansion supported by favor, favorable underlying market trends.

Looking at our verticals in the fourth quarter, our balanced and resilient vertical strategy supported our standout performance. Despite how headlines economic data portrayed the hiring environment.

Now, turning to slide 6 and a closer look at our outstanding performance in the fourth quarter.

We saw strength in retail and e-commerce, driven by new upsell and cross sell along with a stable base.

we generated meaningful Revenue adjusted ibida, adjusted ibida, margin and adjusted dilute diluted EPS growth,

Scott Staples: We saw strength in retail and e-commerce, driven by new upsell and cross-sell, along with a stable base, with the seasonal peak hiring duration and volumes improving compared to last year and more in line with historical trends. Healthcare showed nice year-over-year growth, driven by new logos, upsell, and cross-sell, despite notable base weakness in certain healthcare-related subverticals. Transportation and logistics saw growth in Q4, driven by positive base demand with strong traction during the peak season. General staffing, manufacturing and industrials, and technology also showed positive year-over-year growth in Q4, partially powered by the success in our new logo and upsell, cross-sell programs. Business and professional services, gig economy, and financial services verticals experienced some pressure in Q4, but did not meaningfully inhibit our overall Q4 performance. January and initial February order volumes reflect trends generally consistent with what we saw in Q4.

With the seasonal peak hiring duration and volumes improving compared to last year and more in line with historical trends.

Impressively in Q4 are combined upsell cross-sell and new logo growth rate was 17%.

Healthcare showed nice year over year growth driven by new logos upsell and cross sell the <unk>.

Significantly outperforming our long-term growth algorithm Target.

Notable base weakness in certain health care related sub verticals.

Transportation and logistics saw growth in Q4, driven by positive base demand with strong traction during the peak season.

This was enabled by our robust, go to market momentum, including material contribution for a number of key 2025 wins, and gives us momentum for stable yet. Elevated 2026 growth.

Retention remained, high at 97%.

General staffing manufacturing in industrials and technology also showed positive year over year growth in Q4 <unk>.

Base Revenue performance. Again improved sequentially remaining just below neutral and spot-on with our expectations.

Partially powered by the success in our new logo and upsell cross sell programs.

Business and professional services gig economy, and financial services verticals experienced some pressure in the fourth quarter, but did not meaningful meaningfully inhibited our overall fourth quarter performance.

Our go to market teams continue to deliver as further, demonstrated by our 17 Enterprise bookings. In the fourth quarter, which brings us to a robust 666 for 2025.

Each deal with dollars or more of expected, annual contract value.

January and initial February order volumes reflect trends generally consistent with what we saw in Q4.

Our international business for Q4 continued to sustain strong year over year revenue growth in all regions.

These wins are some of the many reasons we have confidence in our ability, to continue generating, new logo, and upsell cross-sell revenue, and help support our outlook for expected, strong growth in 2026,

Scott Staples: Our international business for Q4 continued to sustain strong year-over-year revenue growth in all regions, giving us confidence in our prospects for further international expansion. Although macro uncertainty persists in Q4, we saw many of our customers shifting to a more encouraging tone. We are seeing this continue into 2026, regardless of headlines you may be reading. We continue to remain confident that our diversified mix of verticals, customer segments, and geographies provides a meaningful degree of resiliency to AI impacts and will allow us to capitalize on future growth opportunities. Additionally, we recently completed our annual trends report based on insights from thousands of enterprise-focused HR leaders and job seekers worldwide. The report will be published in the coming weeks.

Giving us confidence in our prospects for further international expansion.

Although macro uncertainty persists in the fourth quarter, we saw many of our customers shifting to a more encouraging tone and we are seeing this continue into 2020 that regardless of the lines you may be reading.

Scott Staples: Looking at our verticals in Q4, our balanced and resilient vertical strategy supported our standout performance, despite how headline economic data portrayed the higher environment. We saw strength in retail and e-commerce, driven by new upsell and cross-sell, along with a stable base, with the seasonal peak hiring duration and volumes improving compared to last year and more in line with historical trends. Healthcare showed nice year-over-year growth, driven by new logos, upsell, and cross-sell, despite notable base weakness in certain healthcare-related sub verticals. Transportation and logistics saw growth in Q4, driven by positive base demand with strong traction during the peak season. General staffing, manufacturing and industrials, and technology also showed positive year-over-year growth in Q4, partially powered by the success in our new logo and upsell cross-sell programs.

Additionally, we are encouraged by the continued strength and increase in our late stage pipeline measuring at near record highs including a meaningful volume that are incorporating our digital identity product.

We continue to remain confident that our diversified mix of verticals customer segments and geographies provides a meaningful degree of resiliency through AI impact and will allow us to capitalize on future growth opportunities.

Looking at our verticals in the fourth quarter, our balanced and resilient vertical strategy, supported our standout performance, despite how headline economic data portrayed the higher environment

We saw strength in retail and eCommerce driven by new upsell and cross-sell along with a stable base.

Additionally, we recently completed our annual trends report based on insights from thousands of enterprise focused HR leaders and job seekers worldwide.

With the seasonal peak hiring duration and volumes improving compared to last year, and more in line with historical trends.

The report will be published in the coming weeks, but.

The data highlight strong demand for expanded screening services.

Healthcare showed nice year-over-year growth driven by new logos upsell and cross-sell despite notable base weakness in certain healthcare related subverts.

Scott Staples: The data highlights strong demand for expanded screening services, risk mitigation as the number one new top priority, and rising identity-related challenges as the biggest trend. These trends reinforce our growth expectations and positioning as an identity provider. Now turning to slide 7 and a summary of our key accomplishments in 2025 and focus areas for 2026. Our 2025 organizational performance exceeded our expectations. We closed on the transformational acquisition of Sterling in October 2024, and we are incredibly pleased with the results, particularly in regard to customer retention, which has actually improved over the past two quarters. Synergy capture and realization, cultural alignment, and our best-of-breed approach to technology and products, which has really resonated with our customers.

Risk mitigation as the number one new top priority and rising identity related challenges.

Transportation and Logistics saw growth in Q4 driven by positive base Demand with strong traction during the peak season.

As the biggest trend these trends reinforce our growth expectation and positioned as an identity provider.

General Staffing, Manufacturing and Industrials, and Technology also showed positive year-over-year growth in Q4.

Now turning to slide seven and a summary of our key accomplishments in 2025 and focus areas for 2026.

Scott Staples: Business and professional services, gig economy, and financial services verticals experienced some pressure in Q4, but did not meaningfully inhibit our overall Q4 performance. January and initial February order volumes reflect trends generally consistent with what we saw in Q4. Our international business for Q4 continued to sustain strong year-over-year revenue growth in all regions, giving us confidence in our prospects for further international expansion. Although macro uncertainty persists in Q4, we saw many of our customers shifting to a more encouraging tone, and we are seeing this continue into 2026, regardless of the headlines you may be reading. We continue to remain confident that our diversified mix of verticals, customer segments, and geographies provides a meaningful degree of resiliency to AI impacts and will allow us to capitalize on future growth opportunities.

Partially powered by the success in our new logo and upsell cross-sell programs.

Our 2025 organizational performance exceeded our expectations.

We closed on the transformational acquisition of Sterling in October 2024, and we are incredibly pleased with the result, particularly in regard to customer retention, which has actually improved over the past two quarters.

Business and Professional Services gig economy and financial services. Verticals experience, some pressure in the fourth quarter but did not meaningful. Meaningfully inhibit our overall fourth quarter performance.

January and initial February order volumes reflect Trends. Generally consistent with what we saw in Q4.

Synergy capture and realization cultural alignment and our best of breed approach to technology and products, which has really resonated with our customers.

In 2025, we executed and completed the core elements of our integration process, while delivering a seamless customer experience throughout as evidenced by our high retention level of 96% to 97% during the year.

Our international business, for Q4, continue to sustain, strong year-over-year Revenue growth in all regions, giving us confidence in our prospects for further International expansion.

Scott Staples: In 2025, we executed and completed the core elements of our integration process while delivering a seamless customer experience throughout, as evidenced by our high retention levels of 96% to 97% during the year, the favorable feedback we received from customers. We also significantly advanced our synergy realization efforts, reaching $55 million in run rate synergies actions and made progress on deleveraging our balance sheet. We had a number of impressive new logo wins in 2025, providing us momentum as we exited the year, and substantial revenues already booked as we enter 2026. One win, in particular, has the potential to be a top 5 customer and has already been driving significant growth.

Favorable feedback we received from customers.

Although macro uncertainty persists in the fourth quarter, we saw many of our customers shifting to a more encouraging tone and we are seeing this continued into 2026 regardless of deadlines. You may be reading

We also significantly advanced our synergy realization efforts, reaching $55 million and run rate synergies actions and made progress on deleveraging our balance sheet.

We had a number of impressive new logo wins in 2025, providing us momentum as we exited the year and substantial revenues already booked as we enter 2026.

Scott Staples: Additionally, we recently completed our annual trends report based on insights from thousands of enterprise-focused HR leaders and job seekers worldwide. The report will be published in the coming weeks. The data highlights strong demand for expanded screening services, risk mitigation as the number one new top priority, and rising identity-related challenges as the biggest trend. These trends reinforce our growth expectations and positioning as an identity provider. Now turning to slide seven, and a summary of our key accomplishments in 2025 and focus areas for 2026. Our 2025 organizational performance exceeded our expectations. We closed on the transformational acquisition of Sterling in October 2024, and we are incredibly pleased with the results, particularly in regard to customer retention, which has actually improved over the past two quarters.

We continue to remain confident that our diversified mix of verticals, customer segments, and geographies provides a meaningful degree of resiliency to AI impacts and allows us to capitalize on future growth opportunities.

Additionally, we recently completed our annual Trends report based on insights from thousands of enterprise-focused HR leaders and job seekers worldwide.

One win in particular has the potential to be a top five customer and has already been driving significant growth.

The report will be published in the coming weeks.

Adding to our success, we are seeing a very nice trend of winning back some customers who tried the competition and decided to return.

Scott Staples: Adding to our success, we are seeing a very nice trend of winning back some customers who tried the competition and decided to return due to our outstanding platform, proprietary data, speed, and service quality. As we have discussed before, we continue to take a proactive and strategic approach to AI. To be clear, we see AI as an enabler of our strategy, not a disruptor of our business model. We are executing from a foundation of long-standing technology leadership and deep tech experience across our management team. We have been building and deploying AI data and machine learning solutions since 2021, including GenAI rollout since 2024. Some of these solutions are behind the scenes, helping us operate more efficiently, and some are customer-facing, such as our agentic AI and chatbots.

The data highlights strong demand for expanded, screening services risk mitigation as the number 1 new top priority and Rising identity related challenges.

Due to our outstanding platform proprietary data speed and service quality.

As the biggest Trend, these Trends, reinforce our growth expectations and position as an identity provider.

As we have discussed before we continue to take a proactive and strategic approach to AI to.

To be clear, we see AI as an enabler of our strategy not a disruptor of our business model.

Now, turning to slide 7 and a summary of our key accomplishments in 2025 and focus areas for 2026.

We are executing from a foundation of long standing technology leadership, and deep tech experience across our management team.

We have been building and deploying AI data and machine learning solution since 2021, including Gen AI rollout since 2024.

Scott Staples: Synergy capture and realization, cultural alignment, and our best-of-breed approach to technology and products, which has really resonated with our customers. In 2025, we executed and completed the core elements of our integration process while delivering a seamless customer experience throughout, as evidenced by our high retention levels of 96% to 97% during the year, the favorable feedback we received from customers. We also significantly advanced our synergy realization efforts, reaching $55 million in run rate synergies actions, and made progress on deleveraging our balance sheet. We had a number of impressive new logo wins in 2025, providing us momentum as we exited the year, and substantial revenues already booked as we enter 2026. One win, in particular, has the potential to be a top five customer and has already been driving significant growth.

Our 2025 organizational performance, exceeded our expectations, we closed on the transformational acquisition of sterling in October 2024. And we are incredibly pleased with the results particularly in regard to customer retention, which has actually improved over the past 2 quarters.

These solutions are behind the scenes, helping us operate more efficiently and some are customer facing such as our agenda AI and chat box.

Synergy capture and realization cultural alignment and our best of breed approach to technology and products, which has really resonated with our customers.

We are also accelerating adoption of AI powered tools across the organization with hundreds of engineers, leveraging AI capabilities to optimize our platform faster than we have ever been able to do.

Scott Staples: We are also accelerating adoption of AI-powered development tools across the organization, with hundreds of engineers leveraging AI capabilities to optimize our platform faster than we have ever been able to do. With our progress, scale, and strategy, we believe we are well-positioned in our industry to be a winner with regards to AI. Examples of where we have deployed AI solutions across our products, technology, and operations include the following: AI is fully embedded in our next gen Profile Advantage applicant portal, increasing efficiency, improving the user experience, and reducing call center contact rates by approximately 50%. AI is also an essential element of our SmartHub AI intelligent router, which is now available for all US customers for use within the verification process, as well as our digital identity solutions supporting our competitive advantage....

With our progress scale and strategy. We believe we are well positioned in our industry to be a winner with regards to AI.

Core elements of our integration process while delivering a seamless customer experience throughout as evidenced by our high retention levels, of 96 to 97%. During the year, the favorable feedback we received from customers

Examples of where we have deployed AI solutions across our product technology and operations include the following.

We also significantly Advanced our Synergy realization efforts, reaching 55 million in run rate. Synergies actions and made progress on deleveraging our balance sheets.

Ah is fully embedded in our nextgen profile advantage applicant portal incur.

Increasing efficiency, improving the user experience and reducing call center contact rates by approximately 50%.

We had a number of impressive, new logo wins in 2025. Providing us momentum as we exited the year and substantial revenues already booked. As we enter 2026,

AI is also an essential element of our smart hub AI intelligent router, which is now available for all U S customers for use within the verification process.

1 win in particular, has the potential to be a top 5 customer and has already been driving significant growth.

Scott Staples: Adding to our success, we are seeing a very nice trend of winning back some customers who tried the competition and decided to return due to our outstanding platform, proprietary data, speed, and service quality. As we have discussed before, we continue to take a proactive and strategic approach to AI. To be clear, we see AI as an enabler of our strategy, not a disruptor of our business model. We are executing from a foundation of long-standing technology leadership and deep tech experience across our management team. We have been building and deploying AI data and machine learning solutions since 2021, including Gen AI rollout since 2024. Some of these solutions are behind the scenes, helping us operate more efficiently, and some are customer-facing, such as our agentic AI and chatbots.

Adding to Our Success, we are seeing a very nice trend of winning back from customers, who tried the competition and decided to return.

As well as our digital identity solutions supporting our competitive advantage.

We also began deploying AI enabled capabilities in our criminal records processing workflows to help streamline operational steps manage volumes and identify items for additional review, while maintaining a human in the loop process for all record matching dedication and report ability determinations.

Due to our outstanding Tech platform, proprietary data, speed and service quality.

Scott Staples: We also began deploying AI-enabled capabilities in our criminal records processing workflows to help streamline operational steps, manage volumes, and identify items for additional review, while maintaining a human in the loop process for all record matching, vindication, and reportability determinations. Internally, we have also leveraged AI to enhance the productivity of our engineering staff, automate tasks, enhance our product capabilities, and help our go-to-market teams with customer acquisition activities. AI governance is also critical in our industry as we operate in a highly regulated, high-stakes environment where accuracy, auditability, and compliance are non-negotiable. Our customers rely on our solutions to make informed employment decisions that carry legal, regulatory, and human consequences. Trust is foundational to our brand. Our screens and verifications must be explainable, auditable, and compliant across jurisdictions and geographies, and seamlessly integrated into customers' HCM and ATS workflows.

as we have discussed before, we continue to take a proactive and strategic approach to AI,

To be clear. We see AI as an enabler of our strategy. Not a disruptor of our business model.

Internally, we have also leveraged AI to enhance the productivity of our engineering staff automate path enhance our product capabilities and help our go to market teams with customer acquisition activity.

We are executing from a foundation of long-standing Technology leadership and deep Tech experience across our management team.

we have been building and deploying AI data and machine learning Solutions since 2021 including gen AI rollout since 2024

AI governance is also critical in our industry as we operate in a highly regulated high stakes environment, where accuracy audit ability and compliance are non negotiable.

Scott Staples: We are also accelerating adoption of AI-powered development tools across the organization, with hundreds of engineers leveraging AI capabilities to optimize our platform faster than we have ever been able to do. With our progress, scale, and strategy, we believe we are well positioned in our industry to be a winner with regards to AI. Examples of where we have deployed AI solutions across our products, technology, and operations include the following: AI is fully embedded in our next gen Profile Advantage applicant portal, increasing efficiency, improving the user experience, and reducing call center contact rates by approximately 50%. AI is also an essential element of our SmartHub AI intelligent router, which is now available for all US customers for use within the verification process, as well as our digital identity solutions supporting our competitive advantage.

Some of these Solutions are behind the scenes. Helping us operate more efficiently and some are customer facing such as our agentic, Ai and chat Bots.

Our customers rely on our solutions to make informed employment decisions.

Kerry legal regulatory and human consequences.

Trust is foundational to our brand.

We are also accelerating adoption of AI. Powered development tools across the organization with hundreds of Engineers leveraging, AI capabilities to optimize our platform faster than we have ever been able to do.

Our screens verifications must be explainable, auditable and compliant across jurisdictions, and geography, and seamlessly integrated into customers' ATM and Ats workflows.

With our progress, scale and strategy. We believe we are well positioned in our industry to be a winner with regards to AI

What we offer is not simply a software problem or a data search exercise.

Examples of where we have deployed AI solutions across our products, technology, and operations include the following.

Scott Staples: What we offer is not simply a software problem or a data search exercise. What we offer requires deep domain expertise, regulatory infrastructure, and a consultative service model that is tailored to the specific regulatory and operational needs of the industries we serve. It also requires knowledge about the complexities of compliance with federal, state, and regional laws, like the FCRA in the US and GDPR in Europe, along with many subject matter-specific regulations like DOT and BIPA, which makes operational scale well beyond software and data all that more important. We operate in a fragmented global landscape that often extends beyond the digital world. The data we use is not simply consumed off the internet.

What we offer required deep domain expertise and regulatory infrastructure and a consultative service model that is tailored to the specific regulatory and operational needs of the industries we serve.

AI is fully embedded in our next-gen profile Advantage applicant portal.

Increasing efficiency improving the user experience and reducing Call Center contact rates by approximately 50%.

It also requires knowledge about the complexities of compliance with federal state and regional laws like the CRA and the U S and GDP are in Europe, along with many subject matter a specific regulation like EOG, and BP, which makes operational scale well beyond software and data all.

AI is also an essential element of our Smart Hub, AI intelligent router, which is now available for all us. Customers for use within the verification process.

Scott Staples: We also began deploying AI-enabled capabilities in our criminal records processing workflows to help streamline operational steps, manage volumes, and identify items for additional review while maintaining a human-in-the-loop process for all record matching, authentication, and reportability determinations. Internally, we have also leveraged AI to enhance the productivity of our engineering staff, automate tasks, enhance our product capabilities, and help our go-to-market teams with customer acquisition activities. AI governance is also critical in our industry as we operate in a highly regulated, high-stakes environment where accuracy, auditability, and compliance are non-negotiable. Our customers rely on our solutions to make informed employment decisions that carry legal, regulatory, and human consequences. Trust is foundational to our brand. Our screens and verifications must be explainable, auditable, and compliant across jurisdictions and geographies and seamlessly integrated into customers' HCM and ATS workflows.

As well as our digital identity Solutions supporting our competitive advantage.

That more important.

We operate in a fragmented global landscape that often extends beyond the digital world. The data. We use is not simply consumed off the internet. Our platform is supported by thousands of direct relationships for criminal records access.

We also be employing AI enabled capabilities in our criminal records processing workflows to help streamline operational steps manage volumes and identify items for additional review while maintaining a human in the loop process for all record, matching communication, and reportability determinations.

Scott Staples: Our platform is supported by thousands of direct relationships for criminal records access, both digitally and many jurisdictions physically, a proprietary third-party network of over 20,000 brick-and-mortar locations for drug testing and health screening, and a proprietary network of over 1,000 in-person physical fingerprinting collection kiosks that enable a number of our solutions. The combination of proprietary data assets with more than 1 billion proprietary records, large-scale proprietary physical fulfillment networks, long-standing compliance capabilities, consultative expertise, and deep system integration is difficult to replicate and positions us to continue to responsibly deploy AI, enhance efficiency, and create durable, long-term shareholder value in a rapidly evolving technology landscape. Looking at 2026, we have multiple other initiatives in flight, focusing on scaling AI in ways that continue to improve speed, consistency, and efficiency. Our focus is on redesigning key workflows with AI at the center.

Digitally in many jurisdictions.

Physically.

Proprietary third party network of over 20000 brick and mortar locations for drug testing and health screening and a proprietary network of over 1000 in person physical fingerprinting collection kiosks at a number of our solution.

Internally we have also leveraged AI to enhance the productivity of our engineering staff. Automate tasks, enhance our product capabilities and help our go to market teams with customer acquisition activities.

AI governance is also critical in our industry as we operate in a highly regulated high-stakes environment where accuracy auditability and compliance are non-negotiable.

The combination of proprietary data assets with more than a billion proprietary record large scale power Terry physical fulfillment networks long standing compliance capabilities consultative expertise and deep system integration is difficult to replicate and positions us to continue to responsibly deploy.

Our customers rely on our solutions to make informed employment decisions that carry legal Regulatory and human consequences.

Trust is foundational to our brand.

AI.

Enhanced efficiency and create durable long term shareholder value in a rapidly evolving technology landscape.

Scott Staples: What we offer is not simply a software problem or a data search exercise. What we offer requires deep domain expertise, regulatory infrastructure, and a consultative service model that is tailored to the specific regulatory and operational needs of the industries we serve. It also requires knowledge about the complexities of compliance with federal, state, and regional laws like the FCRA in the US and GDPR in Europe, along with many subject matter-specific regulations like DOT and BIPA, which makes operational scale well beyond software and data all that more important. We operate in a fragmented global landscape that often extends beyond the digital world. The data we use is not simply consumed off the Internet.

Our screens and verifications must be explainable auditable and compliant across jurisdictions and geographies and seamlessly integrated into customers HDM and ATS workflows.

Looking at 2026, we have multiple other initiatives in flight focusing on scaling.

And ways that continue to improve speed consistency and efficiency.

Our focus is on redesigning key workflows with the Senate. This includes expanding our use of AI agents enhancing document classification and extraction capabilities and applying AI enabled automation and verification and fulfillment.

What we offer is not simply a software problem or a data search exercise. What we offer requires deep domain, expertise regulatory infrastructure and a consultative service model that is tailored to the specific Regulatory and operational needs of the industries. We serve

Scott Staples: This includes expanding our use of AI agents, enhancing document classification and extraction capabilities, and applying AI-enabled automation and verification and fulfillment processes, all while maintaining disciplined governance to support and ensure responsible and compliance use of AI. We believe our focused, innovative approach to leveraging AI positions First Advantage to create long-term value. Also, in 2025 and into 2026, we continue to see strong and growing customer interest in our market-differentiating digital identity products, which enable our customers to address the increasing concerns of identity fraud. Customers are seeing the benefits of our cohesive offering, and it is helping us win in the market, creating opportunities that were not there before. Digital identity is a key selling point for customers, despite being a small component of overall contract value. In several recent large wins, we actually started with digital identity as the focus of an RFP.

All while maintaining disciplined governance to support an insurer responsible and compliant use of AI.

We believe our focused innovative approach to leveraging AI positioned first advantage to create long term value.

It also requires knowledge about the complexities of compliance with federal state and Regional laws, like the fcra in the US and gdpr in Europe, along with many subject matter specific regulations like Dot and bipa which makes operational scale. Well, beyond software, and data, all that more important.

Also in 2025 and into 'twenty two 'twenty six we can see to see strong and growing customer interest in our market differentiating digital identity products, which enable our customers to address the increasing concerns of identity fraud.

By thousands of direct relationships for criminal records access both digitally and many jurists jurisdictions, physically.

Customers are seeing the benefits of our cohesive offering and it is helping us win in the market, creating opportunities that were not there before.

Digital identity is a key selling point for customers, despite being a small component of overall contract value and.

A proprietary third-party network of over 20,000 brick-and-mortar locations for drug testing and health screening, and a proprietary network of over 1,000 in-person physical fingerprinting collection kiosks that enable a number of our solutions.

Several recent large wins, we actually started with digital identity as the focus of an RFP. Then we were able to significantly expand our scope when our customers recognize the benefits of our integrated solution.

Scott Staples: We were able to significantly expand our scope when our customers recognized the benefits of our integrated solution, driving pipeline momentum with a bundled solution. During 2025, a number of Fortune 500 companies went live with our digital identity product, and we expect to see this momentum continue. We are building on the early successes of these products, and we expect penetration to accelerate meaningfully in 2026 as customers increasingly recognize the need for the benefits of our highly sophisticated, fully integrated solutions. As we progress in 2026, we are well positioned to maximize the benefits of our strengthened business to continue to win in the market, drive synergy realization, and further accelerate our performance.

Living pipeline momentum with a bundled solution.

During 2025, a number of Fortune 500 companies went live with our digital identity product and we expect to see this momentum continue.

The combination of proprietary data assets with more than a billion proprietary records, large scale priority physical fulfillment networks long-standing, compliance capabilities, consultative expertise, and deep system. Integration is difficult to replicate and positions us to continue to responsibly deploy. AI

We are building on the early successes of these products and we expect penetration to accelerate meaningfully in 2026 as customers increasingly recognize the need for the benefits of our highly sophisticated fully integrated solutions.

Enhance efficiency and create durable. Long-term shareholder value in a rapidly evolving technology. Landscape.

looking at 2026, we have multiple other initiatives in Flight, focusing on scaling in ways that continue to improve speed consistency and efficiency

As we progressed through 2026, we are well positioned to maximize the benefits of our strengthened business to continue to win in the market drive synergy realization and further accelerate our performance.

Scott Staples: This includes expanding our use of AI agents, enhancing document classification and extraction capabilities, and applying AI-enabled automation in verification and fulfillment processes, all while maintaining disciplined governance to support and ensure responsible and compliance use of AI. We believe our focused, innovative approach to leveraging AI positions First Advantage to create long-term value. In 2025 and into 2026, we continue to see strong and growing customer interest in our market-differentiating digital identity products, which enable our customers to address the increasing concerns of identity fraud. Customers are seeing the benefits of our cohesive offering, and it is helping us win in the market, creating opportunities that were not there before. Digital identity is a key selling point for customers, despite being a small component of overall contract value.

Our focus is on redesigning key workflows with AI at the center. This includes expanding our use of AI agents enhancing document classification and extraction capabilities, and applying AI enabled Automation and verification and fulfillment processes.

Building upon the great success, we have seen to date with our <unk> growth strategy in 2026th we are enhancing our product sales and marketing capabilities to continue to deliver meaningful sustained value for our customers and stakeholders.

Scott Staples: Building upon the great success we have seen to date with our FA 5.0 growth strategy, in 2026, we are enhancing our product, sales, and marketing capabilities to continue to deliver meaningful, sustained value for our customers and stakeholders. These efforts include further leveraging AI across our product portfolio, increasing our identity fraud-related product penetration, creating brand-new products, and expanding our international business. We will keep you updated on our progress in the coming quarters. With that, I will now turn the call over to Steven.

All while maintaining discipline governance to support and ensure responsible and compliance use of AI.

We believe our focused Innovative approach to leveraging AI positions First Advantage to create long-term value.

These efforts include further leveraging AI across our product portfolio, increasing our identity fraud related product penetration.

Creating brand new products and expanding our international business.

We will keep you updated on our progress in the coming quarters.

Also in 2025, and into 2026. We continue to see strong and growing customer interest in our Market differentiating, digital identity products, which enable our customers to address the increasing concerns of identity fraud.

With that I will now turn the call over to Steven.

Thank you Scott and good morning, everyone I'll start with fourth quarter results on slide nine.

Customers are seeing the benefits of our cohesive offering and it is helping us win in the market. Creating opportunities that were not there before.

Steven Marks: Thank you, Scott, good morning, everyone. I'll start with Q4 results on slide 9. As Scott mentioned, we believe Q4 was the best quarter in First Advantage's history. Our Q4 revenues were up 12% versus last year on a pro forma basis, coming in at $420 million, with our year-over-year revenue growth rate meaningfully increasing from Q3. Our go-to-market success significantly exceeded our long-term growth algorithm, as the combined contribution of new logo, upsell, and cross-sell revenues delivered exceptional growth of 17% in the quarter, our highest in recent history. Part of the uptick in Q4 new logo, upsell, and cross-sell relates to order volume in Q4 from our new wins, part of which would have otherwise been recognized in Q3 as certain new customers deferred their screening until they were live on our platform.

As Scott mentioned, we believe Q4 was the best quarter in first advantages history. Our first our fourth quarter revenues were up 12% versus last year on a pro forma basis coming in at $420 million with our year over year revenue growth rate meaningfully increasing from Q3.

Scott Staples: In several recent large wins, we actually started with digital identity as the focus of an RFP, then we were able to significantly expand our scope when our customers recognized the benefits of our integrated solution, driving pipeline momentum with a bundled solution. During 2025, a number of Fortune 500 companies went live with our digital identity product, and we expect to see this momentum continue. We are building on the early successes of these products, and we expect penetration to accelerate meaningfully in 2026 as customers increasingly recognize the need for the benefits of our highly sophisticated, fully integrated solutions. As we progress into 2026, we are well positioned to maximize the benefits of our strengthened business to continue to win in the market, drive synergy realization, and further accelerate our performance.

Digital identity is a key selling point for customers despite being a small component of overall contract value.

In several recent large wins. We actually started with digital identity as the focus of an RFP, then we were able to significantly expand our Scope when our customers recognize the benefits of our integrated solution.

Our go to market success significantly exceeded our long term growth algorithm.

Driving pipeline momentum with a bundled solution.

The combined contribution of new logo upsell and cross sell revenues delivered exceptional growth of 17% in the quarter our highest in recent history.

During 2025 a number of Fortune, 500 companies went live with our digital identity product and we expect to see this momentum continued.

Part of the uptick in Q4, new logo upsell and cross sell relates to order volume in Q4 from our new wins part of which would have otherwise been recognized in the third quarter as certain new customers deferred their screening until they were live on our platform.

We are building on the early successes of these products and we expect penetration to accelerate meaningfully in 2026 as customers increasingly recognized, the need for the benefits of our highly sophisticated fully Integrated Solutions.

Into 2026 as these customers ramp, we expect quarterly revenue to normalize and translate into steady sustainable growth going forward.

Steven Marks: Into 2026, as these customers ramp, we expect quarterly revenue to normalize and translate into steady, sustainable growth going forward. Our retention remained extremely high at 97%. We saw more consistent customer demand during the peak hiring season than last year, closer to being in line with historical norms. The trends in our base performance continued to improve, on par with how we had forecast Q4, with base remaining slightly negative. Adjusted EBITDA for Q4 was $117 million, up an impressive 17% versus last year on a pro forma basis. Our Adjusted EBITDA margin of 27.8% exceeded our expectations, representing an improvement of 110 basis points versus the prior year on a pro forma basis, despite being slightly lower sequentially from Q3 due to mix.

As we progress through 2026, we are well positioned to maximize the benefits of our strength and business to continue to win in the Market Drive Synergy. Realization and further, accelerate our performance.

Our retention remains extremely high at 97%, we saw more consistent customer demand during the peak hiring season than last year.

Closer to being in line with historical norms.

Building upon the great success. We have seen to date with our FAA 5.0 growth strategy in 2026. We are enhancing our product sales and marketing capabilities, to continue to deliver meaningful. Sustained value for our customers and stakeholders.

Trends in our base performance continued to improve on par with how we had forecast the fourth quarter with base remaining slightly negative.

Adjusted EBITDA for the fourth quarter was $117 million up an impressive 17% versus last year on a pro forma basis.

These efforts include further leveraging AI across our product portfolio, increasing our identity fraud related product, penetration, creating brand new products, and expanding our international business.

We will keep you updated on our progress in the coming quarters.

Steven Marks: Thank you, Scott. Good morning, everyone. I'll start with Q4 results on slide 9. As Scott mentioned, we believe Q4 was the best quarter in First Advantage's history. Our Q4 revenues were up 12% versus last year on a pro forma basis, coming in at $420 million, with our year-over-year revenue growth rate meaningfully increasing from Q3. Our go-to-market success significantly exceeded our long-term growth algorithm, as the combined contribution of new logo, upsell, and cross-sell revenues delivered exceptional growth of 17% in the quarter, our highest in recent history. Part of the uptick in Q4 new logo, upsell, and cross-sell relates to order volume in Q4 from our new wins, part of which would have otherwise been recognized in Q3 as certain new customers deferred their screening until they were live on our platform.

Our adjusted EBITDA margin of 27, 8% exceeded our expectations, representing an improvement of 110 basis points versus the prior year on a pro forma basis, despite being slightly lower sequentially from Q3 due to mix. This mix shift was driven by the sizable incremental op.

With that, I will now turn the call over to Stevens.

Sell cross sell our new logo revenue from our go to market wins in 2025, which had a larger mix of products with higher relative to third party data pass through costs. Overall, a robust revenues were enabled by our continued focus on accelerating synergies our disciplined approach to cost management and.

Steven Marks: This mix shift was driven by the sizable incremental upsell, cross-sell, and new logo revenue from our go-to-market wins in 2025, which had a larger mix of products with higher relative third-party data pass-through costs. Overall, our robust revenues were enabled by our continued focus on accelerating synergies, our disciplined approach to cost management, and the scalable nature of our business. Adjusted Diluted EPS was $0.30, a 67% increase year-over-year, and also ahead of our expectations. The benefits of our greater scale, expense, and capital management, and lower interest expense as a result of our debt repricing and voluntary debt repayments to date, have supported our per-share earnings growth. Turning to full-year results on slide 10, not only do we believe Q4 was our best quarter ever, but we believe 2025 was our best year ever.

Thank you, Scott and good morning everyone. I'll start with fourth quarter results on slide 9, as Scott mentioned, we believe Q4 was the best quarter and first advantages history. Our first, our fourth quarter revenues were up 12% versus last year on a pro forma basis. Coming in at 420 million with

Our year-over-year revenue growth rate increased meaningfully from Q3.

The scalable nature of our business.

Adjusted diluted EPS was <unk> 30.

Our go to market success significantly exceeded our long-term growth algorithm as the combined contribution of new logo, upsell and cross-sell. Revenues delivered exceptional growth of 17% in the quarter our highest in recent history.

A 67% increase year over year and also ahead of our expectations the benefits of our greater scale expense and capital management and lower interest expense as a result of our debt repricing in voluntary debt repayments to date has supported our per share earnings growth.

Steven Marks: Into 2026, as these customers ramp, we expect quarterly revenue to normalize and translate into steady, sustainable growth going forward. Our retention remained extremely high at 97%. We saw more consistent customer demand during the peak hiring season than last year. Closer to being in line with historical norms. The trends in our base performance continued to improve on par with how we had forecast Q4, with base remaining slightly negative. Adjusted EBITDA for Q4 was $117 million, up an impressive 17% versus last year on a pro forma basis. Our Adjusted EBITDA margin of 27.8% exceeded our expectations, representing an improvement of 110 basis points versus the prior year on a pro forma basis, despite being slightly lower sequentially from Q3 due to mix.

Part of the uptick in Q4 new logo, upsell and cross-sell relates to order volume. And Q4 from our new Wins part of which would have otherwise been recognized in the third quarter as certain new customers deferred their screening until they were live on our platform.

Turning to full year results on slide 10, not only do we believe Q4 was our best quarter ever, but we believe 2025 was our best year ever.

Late into steady, sustainable growth going forward.

Our full year 2025 performance exceeded our most recent guidance ranges for revenues adjusted EBITDA adjusted net income and adjusted diluted EPS. This is further evidence that we continue to be diligent and successful at controlling what can be controlled within our business and the resilient.

Steven Marks: Our full-year 2025 performance exceeded our most recent guidance ranges for revenues, Adjusted EBITDA, adjusted net income, and Adjusted Diluted EPS. This is further evidence that we continue to be diligent and successful at controlling what can be controlled within our business, and the resiliency of our diversified business model and our industry leadership position enable us to navigate the uncertain macro environment. On slide 11, you can see how we are continuing to make great progress on our synergy program. As of quarter-end, we had actioned $55 million in acquisition synergies, moving closer to our total synergy goal. We realized $8 million of incremental synergies in Q4, bringing our total 2025 incremental realization to $38 million, or $42 million realized over the transaction lifetime.

<unk> of our diversified business model and our industry leadership position enable us to navigate the uncertainty uncertain macro environment.

Our retention remained, extremely high at 97%, we saw more consistent customer demand during the peak hiring season than last year and closer to being in line with historical Norms. The trends in our base, performance continue to improve on par with how we had forecast. The fourth quarter with base remaining slightly negative adjusted ebitda for the fourth. Quarter was 117 million up and impressive 17% versus last year on a pro-forma basis.

On Slide 11, you can see how we are continuing to make great progress on our synergy program.

As of quarter end, we had action to $55 million and acquisition synergies moving closer to our total synergy goal, we realized $8 million of incremental synergies in the fourth quarter, bringing our total 2025 incremental realization to $38 million or <unk> $42 million really.

Steven Marks: This mix shift was driven by the sizable incremental upsell, cross-sell, and new logo revenue from our go-to-market wins in 2025, which had a larger mix of products with higher relative third-party data pass-through costs. Overall, our robust revenues were enabled by our continued focus on accelerating synergies, our disciplined approach to cost management, and the scalable nature of our business. Adjusted Diluted EPS was $0.30, a 67% increase year-over-year, and also ahead of our expectations. The benefits of our greater scale, expense, and capital management, and lower interest expense as a result of our debt repricing and voluntary debt repayments to date, have supported our per share earnings growth. Turning to full-year results on slide 10. Not only do we believe Q4 was our best quarter ever, but we believe 2025 was our best year ever.

Our adjusted ibaon margin of 27.8% exceeded. Our expectations representing an improvement of 110 basis points versus the prior year on a pro forma basis. Despite being slightly lower sequentially from Q3 due to mix.

And over the the transaction lifetime.

This mixed shift was driven by the sizeable incremental upsell cross-sell and new logo revenue from our go to market wins in 2025 which had a larger mix of products with higher relative third-party data pass through costs.

Now turning to cash flow net leverage and capital allocation on slide 12.

Steven Marks: Now turning to cash flow, net leverage, and capital allocation on slide 12. We are incredibly pleased that for the year, we generated Adjusted Operating Cash Flows of $232 million, a substantial increase of $67 million or 41% on a year-over-year basis. This impressive performance was driven by the larger scale of our business, the benefit of the OBBBA tax law, which reduced our required cash tax payments, and our overall focus on cash flow. Our cash balance at 31 December 2025 was $240 million. Our synergized Adjusted EBITDA net leverage ratio at year-end was 4 times and represents a decrease of 0.4 times from a year ago when we had closed the Sterling acquisition. Additionally, as Scott mentioned, today we are announcing two key capital allocation actions.

We are incredibly pleased that for the year, we generated adjusted operating cash flows of $232 million a.

Overall, our robust revenues were enabled by our continued focus on accelerating synergies. Our disciplined approach to cost management and the scalable nature of our business.

Stanchion increase of $67 million or 41% on a year over year basis.

This impressive performance was driven by the larger scale of our business the benefit of the BBB, a tax law, which reduced our required tax cash tax payments and our overall focus on cash flow our cash balance at December 31, 2025 with $240 million.

Adjusted diluted EPS was 30 cents, a 67% increase year-over-year and also ahead of our expectations, the benefits of our greater scale expends in Capital Management and lower interest expense. As a result of our debt repricing and voluntary, debt payments to date have supported our per share earnings growth.

Our synergize adjusted EBITDA net leverage ratio at year end was four times and represents a decrease of <unk> four times from a year ago. When we had closed the Sterling acquisition.

Steven Marks: Our full year 2025 performance exceeded our most recent guidance ranges for revenues, Adjusted EBITDA, adjusted net income, and Adjusted Diluted EPS. This is further evidence that we continue to be diligent and successful at controlling what can be controlled within our business, and the resiliency of our diversified business model and our industry leadership position enable us to navigate the uncertain macro environment. On slide 11, you can see how we are continuing to make great progress on our synergy program. As of quarter end, we had actioned $55 million in acquisition synergies, moving closer to our total synergy goal. We realized $8 million of incremental synergies in Q4, bringing our total 2025 incremental realization to $38 million, or $42 million realized over the transaction lifetime.

Turning to full year results on slide, 10. Not only do we believe Q4 was our best quarter ever, but we believe 2025 was our best year ever.

Our our full year 2025 performance. Exceeded our most recent guidance ranges for revenues adjusted, EBA adjusted, net income, and adjusted diluted eps.

Additionally, as Scott mentioned today, we are announcing two key capital allocation actions.

First continuing our commitment to consistently paying down debt.

Steven Marks: First, continuing our commitment to consistently paying down debt, and subsequent to the end of quarter, this week, we are making an additional voluntary prepayment of $25 million, bringing our total debt repayment since closing to $95.5 million. Second, today we have announced a new $100 million share repurchase authorization, which we will opportunistically execute over the coming quarters. The success of our business strategy and the strength of our balance sheet and cash flow profile have allowed us to make the strategic decision to allocate a portion of our capital towards share repurchases. The reality of our recent valuation levels makes share repurchases a strategic use of capital that maximizes shareholder value creation and is an opportunistic method to deploy capital in an environment where we believe the market is not reflecting the long-term prospects of our company....

And subsequent to the end of quarter. This week, we are making an additional voluntary prepayment of $25 million, bringing our total debt repayment since closing.

This is further evidence that we continue to be diligent and successful at controlling, what can be controlled within our business and the resiliency of our Diversified business model and our industry leadership position, enable us to navigate the uncertainty uncertain macro environments.

$95 5 million.

On slide 11. You can see how we are continuing to make great progress on our Synergy program.

Second today, we have announced a new $100 million share repurchase authorization, which we will opportunistically execute over the coming quarters.

For the success of our business strategy and the strength of our balance sheet and cash flow profile have allowed us to make the strategic decision to allocate a portion of our capital toward share repurchases. The reality of our recent valuation levels make share repurchases a strategic use of capital that maximizes.

Steven Marks: Now turning to cash flow, net leverage, and capital allocation on slide 12. We are incredibly pleased that for the year, we generated adjusted operating cash flows of $232 million, a substantial increase of $67 million, or 41% on a year-over-year basis. This impressive performance was driven by the larger scale of our business, the benefit of the OBBBA tax law, which reduced our required cash tax payments, and our overall focus on cash flow. Our cash balance at 31 December 2025 was $240 million. Our synergized Adjusted EBITDA net leverage ratio at year-end was 4x, and represents a decrease of 0.4x from a year ago when we had closed the Sterling acquisition. Additionally, as Scott mentioned, today we are announcing 2 key capital allocation actions.

As of quarter end, we had actioned 55 million in acquisition synergies. Moving closer to our total Synergy goal. We realized 8 million dollars of incremental synergies. In the fourth quarter, bringing our total 2025 incremental, realization to 38 million, or 42 million realized over the track, the transaction lifetime,

Now turning to cash flow, net, leverage and capital allocation on slide 12.

Their value creation and as an opportunistic method to deploy capital in an environment, where we believe the market is not reflecting the long term prospects of our company.

Said simply at our current valuation this is Jeff prudent corporate finance.

We are incredibly pleased that for the year. We generated adjusted operating cash, flows of 232 million, a substantial increase of 67 million or 41% on a year-over-year basis.

Steven Marks: Said simply, at our current valuation, this is just prudent corporate finance. Enabled by the strength of our financial position, we are able to pursue a balanced capital allocation strategy that includes both voluntary debt repayments and opportunistic share repurchases, while maintaining our focus on deleveraging, liquidity, and long-term value creation. As we strategically balance our capital allocation priorities, our near-term deleveraging timeline may change modestly. However, our long-term leverage objectives remain unchanged, and we expect to continue to reduce leverage towards our long-term target of 2 to 3 times. Moving to Slide 13 and our 2026 guidance. We expect 2026 total revenues in the range of $1.625 to 1.7 billion, Adjusted EBITDA of $460 to 485 million, and Adjusted Diluted EPS of $1.15 to 1.25 per share.

Enabled by the strength of our financial position, we are able to pursue a balanced capital allocation strategy that includes both voluntary debt repayment.

And opportunistic share repurchases, while maintaining our focus on deleveraging liquidity and long term value creation as.

This impressive performance was driven by the larger scale of our business, the benefit of the OBBA tax law, which reduced our required tax payments, and our overall focus on cash flow. Our cash balance at December 31, 2025, was $240 million.

As we strategically balance our capital allocation priorities are near term deleveraging timeline may change modestly. However, our long term leverage objectives remain unchanged and we expect to continue to reduce leverage towards our long term target of two to three times.

Our synergized adjusted eva.net leverage ratio at year end was 4 times. And represent a decrease of 0.4 times from a year ago, when we had closed the Sterling acquisition

Steven Marks: First, continuing our commitment to consistently paying down debt, subsequent to the end of quarter, this week, we are making an additional voluntary prepayment of $25 million, bringing our total debt repayment since closing to $95.5 million. Second, today, we have announced a new $100 million share repurchase authorization, which we will opportunistically execute over the coming quarters. The success of our business strategy and the strength of our balance sheet and cash flow profile have allowed us to make the strategic decision to allocate a portion of our capital towards share repurchases. The reality of our recent valuation levels make share repurchases a strategic use of capital that maximizes shareholder value creation and is an opportunistic method to deploy capital in an environment where we believe the market is not reflecting the long-term prospects of our company.

Additionally as Scott mentioned today we are announcing 2 key Capital allocation actions.

Moving.

To slide 13, and our 2020 guidance, we expect 2026 total revenues in the range of 1625 to $1 7 billion.

first continuing our commitment to consistently paying down debt

Adjusted EBITDA of $460 million to $485 million and adjusted diluted EPS of $1 15 to $1 25 per share.

And subsequent to the end of the quarter this week, we are making an additional voluntary prepayment of $25 million, bringing our total debt repayment since closing to $95.5 million.

For revenue this represents approximately 6% year over year growth at the midpoint with upside potential driven by the success of our go to market initiatives.

Second today, we have announced a new 100 million, share, repurchase authorization, which we will opportunistically execute over the coming quarters.

Steven Marks: For revenue, this represents approximately 6% year-over-year growth at the midpoint, with upside potential driven by the success of our go-to-market initiatives. We expect to expand full-year Adjusted EBITDA margins by approximately 40 basis points at the midpoint as we continue to leverage synergies and scale our growth. On top of this, we expect impressive Adjusted Diluted EPS growth of 15% at the midpoint. When compared to our 2024 Adjusted Diluted EPS following the Sterling acquisition, this represents a robust 20% two-year CAGR. Our 2026 guidance builds off the success we had in 2025, including our outstanding go-to-market wins, as we maximize the benefits of our stronger business and enhance our competitive strength. Our guidance includes assumptions for synergies, go-to-market strength, investment in organic growth, shifting product mix, and our current view of the macro environment.

We expect to expand our full year adjusted EBITDA margin by approximately 40 basis points at the midpoint as we continue to leverage synergies and scale our growth.

The success of our business strategy and the strength of our balance sheet and cash flow profile have allowed us to make the Strategic decision to allocate a portion of our Capital toward share repurchases.

On top of this we expect impressive adjusted diluted EPS growth of 15% at the midpoint.

When compared to our 2024 adjusted diluted EPS following the Sterling acquisition. This represents a robust 20% two year CAGR.

Steven Marks: Said simply, at our current valuation, this is just prudent corporate finance. Enabled by the strength of our financial position, we are able to pursue a balanced capital allocation strategy that includes both voluntary debt repayment and opportunistic share repurchases, while maintaining our focus on deleveraging, liquidity, and long-term value creation. As we strategically balance our capital allocation priorities, our near-term deleveraging timeline may change modestly. However, our long-term leverage objectives remain unchanged, and we expect to continue to reduce leverage towards our long-term target of two to three times. Moving to Slide 13 and our 2026 guidance. We expect 2026 total revenues in the range of $1.625 to $1.7 billion, Adjusted EBITDA of $460 to $485 million, and Adjusted Diluted EPS of $1.15 to $1.25 per share.

Stick method to deploy capital and an environment where we believe the market is not reflecting. The long-term prospects of our company.

Our 2026 guidance builds off the success, we had in 2025, including our outstanding go to market wins as we maximize the benefits of our stronger business and enhance our competitive strength.

Said, simply at our current valuation, this is just prudent, corporate finance.

Our guidance includes assumptions for synergies go to market strength investment inorganic growth shifting product mix and our current view of the macro environment.

Enabled by the strength of our financial position. We are able to pursue a balanced Capital, allocation strategy, that includes both voluntary, debt, repayment and opportunistic, share repurchases, while maintaining our focus on deleveraging liquidity, and long-term value creation,

Specifically it assumes action synergies within our full year target range of $65 million to $80 million by the end of the year.

Steven Marks: Specifically, it assumes action synergies within our full year target range of $65 to $80 million by the end of the year. We expect our exceptional go-to-market productivity to continue, with robust upsell, cross-sell, and new logo growth during the year, coming in at the high end, if not slightly above our long-term growth algorithm. As we have mentioned, in 2026, we expect order volumes from our newer wins to normalize more evenly over the course of the year. We expect momentum in the first half of the year, continuing what we saw in Q3 and Q4, driven by the large deals that went live in 2025. We also expect customer retention to remain in line with our strong historical performance of around 96% to 97%.

We expect our exceptional go to market productivity to continue with robust upsell cross sell and new logo growth during the year coming in at the high end, if not slightly above our long term growth algorithm as.

As we strategically balance our capital allocation priorities, our near-term deleveraging timeline may change modestly. However, our long-term leverage objectives remain unchanged, and we expect to continue to reduce leverage towards our long-term target of 2 to 3 times.

Moving to slide 13 and our 2026 guidance. We expect 2026 total revenues and the range of 1.625 to 1.7 billion dollars.

As we have mentioned in 2026, we expect order volumes from our newer wins to normalize more evenly over the course of the year.

We expect momentum in the first half of the year continuing what we saw in Q3 and Q4 driven by the large deals that went live in 2025, we also expect to customer retention to remain in line with our strong historical performance of around 96% to 97%.

Steven Marks: For revenue, this represents approximately 6% year-over-year growth at the midpoint, with upside potential driven by the success of our go-to-market initiatives. We expect to expand full-year Adjusted EBITDA margins by approximately 40 basis points at the midpoint, as we continue to leverage synergies and scale our growth. On top of this, we expect impressive Adjusted Diluted EPS growth of 15% at the midpoint. When compared to our 2024 Adjusted Diluted EPS following the Sterling acquisition, this represents a robust 20% two-year CAGR. Our 2026 guidance builds off the success we had in 2025, including our outstanding go-to-market wins, as we maximize the benefits of our stronger business and enhance our competitive strength. Our guidance includes assumptions for synergies, go-to-market strength, investment in organic growth, shifting product mix, and our current view of the macro environment.

Adjusted Evita of 460 to 485 million and adjusted diluted EPS of a $1.15 to a $125 per share.

For Revenue, this represents approximately 6% year-over-year growth at the midpoint with upside potential driven by the success of our go to market initiatives.

Factored into our 2026 guidance are the impacts of our strategic investments and organic growth, including enhancing our product sales and marketing capabilities as well as expanding our international business opportunities.

Steven Marks: Factored into our 2026 guidance are the impacts of our strategic investments in organic growth, including enhancing our product, sales, and marketing capabilities, as well as expanding our international business opportunities. While we anticipate the near-term revenue and margin contributions to be more limited due to the offsetting effects of the investments themselves, we will establish a solid foundation for additional future growth. We expect growth to accelerate in the second half and meaningfully by year-end, propelling revenue performance and margin expansion in the mid and long term. In addition to these factors, we also expect the more recent impacts of higher out-of-pocket pass-through fees and our current product mix to continue as the newer deals mentioned before roll over into 2026, providing a modest headwind to margin percentages, although dollar profitability of these deals is very attractive.

We expect to expand full year adjusted ibaa margins by approximately 40 basis points at the midpoint as we continue to leverage synergies and scale our growth.

On top of this, we expect impressive, adjusted diluted EPS growth of 15% at the midpoint.

While also while we anticipate the near term revenue and margin contributions to be more limited during more limited due to the offsetting effects of the investments themselves. We will establish a solid foundation for additional future growth.

When compared to our 2024 adjusted diluted EPS following, the Sterling acquisition, this represents a robust, 20% 2year kager.

We expect growth to accelerate in the second half and meaningfully by year end propelling revenue performance and margin expansion in the mid and long term.

Our 2026 guidance builds off the success we had in 2025, including our outstanding go-to-market wins, as we maximize the benefits of our stronger business and enhance our competitive strength.

In addition to these factors. We also expect our more recent impacts of higher out of pocket pass through fees and our current product mix to continue as the newer deals mentioned before rollover into 2026, providing a modest headwind to margin percentages. Although dollar profitability of these deals is very attractive.

Steven Marks: Specifically, it assumes action synergies within our full year target range of $65 to 80 million by the end of the year. We expect our exceptional go-to-market productivity to continue, with robust upsell, cross-sell, and new logo growth during the year, coming in at the high end, if not slightly above our long-term growth algorithm. As we have mentioned, in 2026, we expect order volumes from our newer wins to normalize more evenly over the course of the year. We expect momentum in the first half of the year, continuing what we saw in Q3 and Q4, driven by the large deals that went live in 2025. We also expect customer retention to remain in line with our strong historical performance of around 96% to 97%.

Our guidance includes assumptions for synergies, go to market strength investment in organic growth, shifting product mix, and our current view of the macro environment.

Specifically. It assumes action synergies within our full year, target range of 65 to 80 million by the end of the year.

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As it relates to the macro environment the labor market, we broadly serve looks to be more stable entering into 2026, continuing the trend of a relatively flat hiring environment. We saw in 2025.

Steven Marks: As it relates to the macro environment, the labor market we broadly serve looks to be more stable entering into 2026, continuing the trend of a relatively flat hiring environment we saw in 2025. With this in mind, for 2026, we expect that base growth will remain modestly negative, between 0 and -2% for the year. Looking at quarterly phasing in 2026, with a more stable macro backdrop, strong rollover from upsell, cross-sell, and new logo, and our go-to-market growth initiatives driving second half growth, we expect all four quarters to have revenue growth rates in the mid to high single digits. We do expect base growth to be slightly higher in Q3 and then lower in Q4 as revenue smooths out to a more normalized quarterly distribution, which includes the impacts of the 2025 wins I just mentioned.

With this in mind for 2026, we expect that base growth will remain modestly negative between zero and negative 2% for the year.

we, we expect our exceptional, go to market productivity to continue with robust, upsell cross-sell, and new logo growth during the year coming in at the high end, if not slightly above our long-term growth algorithm

As we have mentioned in 2020 X6, we expect order volumes from our newer wins to normalize more evenly. Over the course of the year

Looking at quarterly phasing in 2026 with a more stable macro backdrop strong rollover from upsell cross sell and new logo and our go to market growth initiatives driving second half growth. We expect all four quarters to have revenue growth rates in the mid to high single digits.

We expect momentum and the first half of the Year continuing what we saw in Q3 and Q4 driven by the large deals that went live in 2025.

We also expect customer retention to remain in line with our strong historical performance of not around, 96 to 97%.

We do expect base growth to be slightly higher in Q3, and then lower in Q4 as revenue smooths out to a more normalized quarterly distribution, which includes the impacts of the 2025 wins I just mentioned.

Factored into our 2026 guidance are the impacts of our strategic investments in organic growth, including enhancing our product sales and marketing capabilities.

As well as expanding our international business opportunities.

We expect Q1, adjusted EBITDA margins to be around 26%.

Steven Marks: We expect Q1 Adjusted EBITDA margins to be around 26%. While we have some incremental benefit from the more recent synergies, the impact of revenue mix and initial growth investments impact early year margin appreciation. As revenue scales up seasonally, we expect margins to improve meaningfully in Q2 towards 28% before reaching the 29% range in the second half of the year. Similarly, for Adjusted Diluted EPS, we expect meaningful year-on-year expansion in all four quarters, with Q1 expected to be at or just above $0.20 per share, with a ramp to the high $0.20 range in Q2, then improving to the mid to upper $0.30 range in both Q3 and Q4. We anticipate free cash flow for the year in the range of $160 to 190 million.

While we have some incremental benefit from the more recent synergies the impact of revenue mix and initial growth investments impact early year margin appreciation as revenue scales up seasonally we expect margins to improve meaningfully in Q2 towards 28% before reaching the 29% range.

While also while we anticipate the near-term revenue and margin contributions to be more limited, during more limited due to the, offsetting effects of the Investments themselves, we will establish a solid foundation for additional future growth.

We expect growth to accelerate in the second half, and meaningfully, by year-end—propelling revenue, performance, and margin expansion in the mid and long term.

In the second half of the year.

Similarly for adjusted diluted EPS, we expect meaningful year on year expansion in all four quarters with Q1 expected to be at or just above 20 per share with a ramp to the high 20 range in Q2 and improving to the mid to upper 30 <unk> right.

Steven Marks: As it relates to the macro environment, the labor market we broadly serve looks to be more stable entering into 2026, continuing the trend of a relatively flat hiring environment we saw in 2025. With this in mind, for 2026, we expect that base growth will remain modestly negative between 0% and -2% for the year. Looking at quarterly phasing in 2026, with a more stable macro backdrop, strong rollover from upsell, cross-sell, and new logo, and our go-to-market growth initiatives driving second-half growth, we expect all four quarters to have revenue growth rates in the mid to high single digits. We do expect base growth to be slightly higher in Q3 and then lower in Q4 as revenue smooths out to a more normalized quarterly distribution, which includes the impacts of the 2025 wins I just mentioned.

In addition to these factors, we also expect the more recent impacts of higher out of pocket, pass through fees and our current product mix to continue as the newer deals mentioned before, roll over into 2026, providing a modest headwind to margin percentages. Although dollar profitability of these deals is very attractive.

<unk> in both Q3 and Q4, we anticipate free cash flow for the year in the range of $160 million to $190 million. This notable year over year increase reflects our ability to generate incremental cash flow from better working capital management and a significant decline in.

As it relates to the macro environment, the labor market, we broadly serve looks to be more stable entering into 2026 continuing the trend of a relatively flat hiring environment. We saw in 2025

Steven Marks: This notable year-over-year increase reflects our ability to generate incremental cash flow from better working capital management and a significant decline in integration-related costs, while also investing and accelerating our growth. We have provided additional assumptions in the appendix of our presentation. Overall, we enter 2026 in a position of strength, with opportunity to continue to build on our success through our FA 5.0 growth strategy. With that, let me turn it back to Scott for closing remarks before we open the line for questions.

<unk> integration related cost, while also investing and accelerating our growth we have provided.

With this in mind for 2026, we expect that base growth will remain modestly negative between 0 and -2 for the year.

Additional assumptions in the appendix of our presentation.

Overall, we enter 2026 and a position of strength with opportunity to continue to build on our success through our <unk> growth strategy.

Upsell cross-sell and new logo and our go to market growth initiatives, driving second, half growth. We expect all 4 quarters to have Revenue growth rates in the mid to high single digits.

With that let me turn it back to Scott for closing remarks before we open the line for questions.

Thank you Steven.

In closing we delivered outstanding results in 2025 and are carrying our strong execution momentum into 2026 looking ahead as a clear leader in our space. We remain focused on consistently winning by delivering best in class solutions for our customers.

Scott Staples: Thank you, Steven. In closing, we delivered outstanding results in 2025 and are carrying our strong execution momentum into 2026. Looking ahead, as a clear leader in our space, we remain focused on consistently winning by delivering best-in-class solutions for our customers. We remain confident in our ability to achieve consistently strong results and are progressing well toward the four-year financial targets we established during our Investor Day in May 2025. I would like to thank the First Advantage team for your continued dedication to supporting our customers. With that, we will open the line for questions.

We do expect base growth to be slightly higher in Q3 and then lower in Q4 as Revenue Smooths out to a more normalized quarterly distribution which includes the impacts of the 2025 wins. I just mentioned we expect q1 adjusted ibaon margins to be around 26%

We remain confident in our ability to achieve consistently strong results and are progressing well towards the four year financial targets, we established during our Investor day in May 2025.

while we have some incremental benefit from the more recent synergies, the impact of Revenue, mix and initial growth Investments impact, early year, margin appreciation.

I would like to thank the first advantage team for your continued dedication to supporting our customers with that we will open the line for questions.

As Revenue scales up, seasonally we expect margins to improve meaningfully in Q2 towards 28% before reaching the 29% range in the second half of the year.

Thank you Mr Staples, ladies and gentlemen at this time, we will begin the question and answer session. If you do have a question. Please press star one on your telephone if at any point. Your question has been answered you may remove yourself from the queue by pressing star. Two if you are using a speaker phone. We do request that you pick up your handset, while asking a question to.

Operator: Thank you, Mr. Staples. Ladies and gentlemen, at this time, we will begin the question-and-answer session. If you do have a question, please press star one on your telephone. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. If you are using a speakerphone, we do request that you pick up your handset while asking your question to provide optimal sound quality. We'll go first this morning to Shlomo Rosenbaum of Stifel.

Similarly, for adjusted diluted EPS, we expect meaningful year-on-year. Expansion in all 4 quarters with q1 expected to be at or or just above 20 cents per share with a ramp to the high 20 cent range in Q2 then improving to the mid to Upper 30 Cent range in both Q3 and Q4

I'd optimal sound quality will go first this morning to Shlomo Rosenbaum of Stifel.

Steven Marks: This notable year-over-year increase reflects our ability to generate incremental cash flow from better working capital management and a significant decline in inter-integration related costs, while also investing and accelerating our growth. We have provided additional assumptions in the appendix of our presentation. Overall, we enter 2026 in a position of strength, with opportunity to continue to build on our success through our FA 5.0 growth strategy. With that, let me turn it back to Scott for closing remarks before we open the line for questions.

Hi, Good morning, Thank you for taking my questions.

Really strong quarter.

Shlomo Rosenbaum: Hi, good morning. Thank you for taking my questions. Really a strong quarter and, you know, the commentary seems like things are improving and getting better. The question I have is to start out with is: What are your clients telling you about their own hiring plans, and in particular, how are they taking the AI evolution into consideration? You know, are you concerned at all that their plans might change on a dime because all of a sudden they feel that they may not need the amount of people that they were thinking of having before? Because the business is subject to, you know, short-term changes, and with the visibility not necessarily as great for, you know, when things all of a sudden change on a dime.

The commentary seems like things are improving and getting better.

The question I have is just start out with is what are your clients, telling you about their own hiring plans and in particular how.

We anticipate free cash flow for the year in the range of $160 to $190 million. This notable year-over-year increase reflects our ability to generate incremental cash flow from better working capital management and a significant decline in integration-related costs, while also investing in accelerating our growth.

We have provided additional assumptions and the appendix of our presentation.

How are they taking the AI.

Evolution into consideration.

Are you concerned at all that Theyre plans might change on a dime because all of a sudden they feel that they may not need the amount of people that they were thinking of doing having before because of the business.

Overall, we enter 2026 in a position of strength with opportunity to continue to build on our success, through our FAA, 5.0 growth strategy with that. Let me turn it back to Scott for closing remarks before we open the line for questions.

Thank you, Stephen.

It is subject to short term changes in it.

The visibility that necessarily is as great for when things all of a sudden change on a dime.

That's one.

Thanks, Great question, I think I'll start by reminding everybody about how customer focused we are and I think you know we spend a lot of time with our customers. We are talking to them Daily weekly monthly quarterly.

Scott Staples: Yes, Shlomo, thanks. Great question. I think I'll start by reminding everybody about how customer-focused we are, and I think you know, we spend a lot of time with our customers. We are talking to them daily, weekly, monthly, quarterly. We are actively involved in their hiring process and in their planning. We have pretty good visibility and a lot of what I would call sample data to basically base our 2026 plans off of. What you're seeing in the media doesn't match what our customers are saying. Keep in mind, we primarily have an enterprise focus, so we're talking to the larger customers.

In closing, we delivered outstanding results in 2025, and our carrying our strong execution, momentum into 2026. Looking ahead. As a clear leader, in our space. We remain focused on consistently winning by delivering best-in-class solutions for our customers. We remain confident in our ability to achieve consistently strong results in our progressing. Well, toward the 4-year Financial targets we established during our investor Day in May 2025.

We are actively.

Involved in there their hiring process and and in their planning. So we have pretty good visibility and a lot of what I would call sample data to to basically base, our 2026 plants.

I would like to thank the First Advantage team for your continued dedication to supporting our customers. With that. We will open the line for questions.

What we're what you're seeing in the media doesn't match, what our customers are saying.

And keep in mind, we primarily have an enterprise focus so we were talking to the larger customers.

Thank you Mr. Staples, ladies and gentlemen, at this time, we will begin the question and answer session. If you do have a question, please press star 1 on your telephone. If at any point, your question has been answered. You may remove yourself from the queue, by pressing star 2. If you are using a speaker-phone, we, we do request that you pick up your handset while asking your question to provide optimal sound quality.

I'd say if you.

You know look at the media Youll hear a a neutral to negative tone, but when you talk to our customers. We're hearing a neutral to positive.

Shlomo Rosenbaum: Hi, good morning. Thank Thank you for taking my questions. Really a strong quarter and, you know, the commentary seems like things are improving and getting better. The question I have to start out with is, what are your clients telling you about their own hiring plans? In particular, how are they taking the AI evolution into consideration? You know, are you concerned at all that their plans might change on a dime because all of a sudden they feel that they may not need the amount of people that they were thinking of having before? Because the business is subject to, you know, short-term changes and the visibility not necessarily as great for, you know, when things all of a sudden change on a dime.

we'll go first this morning to Shlomo Rosen, bomb of stifel

Scott Staples: I'd say if you know, look at the media, you'll hear a neutral to negative tone. When you talk to our customers, we're hearing a neutral to positive tone. I don't recall a single customer conversation that I've had going into 2026, where a customer has mentioned a decline in hiring. We are only hearing flat to positive. We're actually also hearing that in certain verticals, which are surprising, where, you know, you feel like there may be AI disruption. We are not hearing that at all. We're hearing that they're actually hiring more people or planning to hire more people in 2026. We're hearing a neutral to positive tone from our customers, and that's encouraging.

I don't recall, a single customer conversation that I have had going into 2026, where a customer has mentioned.

Hi, good morning. Thank you for taking my questions, um, really, uh, strong quarter, and, you know, the, the, uh, commentary seems like things are are improving and getting better. Um, the question I, I have is to start out with is what are your clients telling you about their own hiring plans and in particular,

The decline in hiring we're only hearing flat to positive.

And we're if we're actually also hearing that in certain verticals, which are surprising where you feel like there may be AI disruption. We are not hearing that at all we are hearing that they are actually hiring more people are planning to hire more people and 'twenty six so we're hearing a neutral to positive tone from our customers and us.

How are they taking, uh, the AI, uh, Evolution into consideration and, you know, are you concerned at all that? Their plans might change on a dime because all of a sudden they feel that they may not need the amount of people that they were thinking of doing having before. Because the business,

Encouraging.

Okay. Thank you and then there was a comment.

is is subject to, you know, short-term changes and and the visibility not necessarily as as great for, you know, when things all of a sudden change on a dime,

About there was a certain amount of delayed volumes in <unk> that ended up in <unk> because of the timing I guess.

Shlomo Rosenbaum: Okay, thank you. There was a comment about there was a certain amount of delayed volumes in Q3 that ended up in Q4, because of the timing, I guess, of full implementation. Are you able to quantify what the impact of that was or at least estimate what that was in terms of the revenue growth? Wouldn't that contribute to the revenue growth in Q4?

Implementation are you doing.

But to quantify what the impact of that was.

Or at least to estimate what that was in terms of the revenue growth.

Contribute to the revenue growth in the fourth quarter.

Yeah. So it actually wasn't a delay what ended up happening is that a couple of customers waiting to go onboard with us on health screening volume back from their previous providers. So it's not really a delay it's more of a kind of a reflection of the value proposition we bring.

Steven Marks: Yeah, Shlomo, it actually wasn't a delay. What ended up happening is that, you know, a couple customers were waiting to go on board with us and held screening volume back from their previous provider. It's not really a delay, it's more of a kind of a reflection of the value proposition we bring. That's why I kind of mentioned in the prepared remarks that there'll be a small flip in base growth between Q3 and Q4, you know, if you're just doing your quarterly pacing, because when that normalizes out, we'll just have a shift. It's not huge, but it's a couple percentage points probably that shift between the two quarters.

Yeah. So uh, thanks. Great question. I think I'll start by reminding everybody about how customer focused we are. And I think you, you know, we spend a lot of time with our customers, we are talking to them daily, weekly, monthly quarterly. Um we are actively uh involved in their their hiring process and and in their planning. So we have pretty good visibility and and a lot of what I would call sample data to to basically base our 2026 plans off of

That's why I kind of mentioned in the prepared remarks that there'll be a small flip in base growth between Q3 and Q4.

Doing your quarterly pacing.

When that normalizes out, we'll just have a shift in it it's not huge but its a couple of percentage points, probably that shift between the two quarters.

Scott Staples: I'd say if you know, look at the media, you'll hear a neutral to negative tone, but when you talk to our customers, we're hearing a neutral to positive tone. I don't recall a single customer conversation that I've had going into 2026, where a customer has mentioned a decline in hiring. We are only hearing flat to positive. We're actually also hearing that in certain verticals, which are surprising, where, you know, you feel like there may be AI disruption. We're not hearing that at all. We're hearing that they're actually hiring more people or planning to hire more people in 2026. We're hearing a neutral to positive tone from our customers, and that's encouraging.

Okay, great. Thank you.

Thank you. We'll go next now to Ashish <unk> of RBC capital markets.

Shlomo Rosenbaum: Okay, great. Thank you.

I'd say if you if you, you know look at the media you hear a a neutral to negative tone but when you talk to our customers, we're hearing a neutral d-positive tone.

Operator: Thank you. We'll go next now to Ashish Sabadra of RBC Capital Markets.

Thanks for taking my question and thanks for providing those detailed insights in the prepared remarks around the more that hanmi integration implementation plans and efficiency I was just wondering if it's possible to quantify or provide anecdotal example of the benefit from the AD auction.

Ashish Sabadra: Thanks for taking my question, and thanks for providing those detailed insights in the prepared remark around the move around AI, the AI integration, implementation plans, and efficiency. I was just wondering if it's possible to quantify or provide anecdotal examples of the benefits from the AI adoption, and even if you could provide any insights into like, software development, product rollouts, customer service, and also if you've started to see any benefit from your AI adoption in terms of new wins on upsell, cross-sell. Any kind of benefits, both internal or external, from AI? Thanks.

If you can provide any insights into like software development product Rollouts customer service and also if you're starting to see any benefit from your option in terms of the new wins and upsell cross sell so any kind of benefit moving to analytics still note from me. Thanks.

Um, I don't recall a single customer conversation that I've had going into 2026 where a customer has mentioned a decline in hiring, we are only hearing flat to positive. Um and we're we're actually also hearing that in certain verticals which are surprising where you know you feel like there may be AI disruption, we are not hearing that at all. We're hearing that they're actually hiring more people or planning to hire more people in 2026. So we're hearing a neutral deposit of tone from our customers and that's encouraging.

Shlomo Rosenbaum: Okay, thank you. Then there was a comment about there was a certain amount of delayed volumes in Q3 that ended up in Q4 because of the timing, I guess, of full implementation. Are you able to quantify what the impact of that was in, or at least estimate what that was in terms of the revenue growth? What did that contribute to the revenue growth in Q4?

Yes.

I will.

I'll give you a broad answer to that question because it's extremely hard to quantify because it's literally everywhere and it's embedded in all of our products in it and in a lot of our new wins.

Scott Staples: Ashish, I will give you a broad answer to that question because it's extremely hard to quantify, because it's literally everywhere, and it's embedded in all of our products and in a lot of our new wins. As I mentioned in the prepared script that, you know, we've got AI all throughout our product platform, whether it's our SmartHub technology, which has, you know, a very large impact on verifications. We actually have a number of wins in 2025, where they have specifically told us that they came to us because of our SmartHub verification product. It's starting to catch on.

So as I mentioned in the in.

In the prepared script that we've got AI all throughout.

Okay, thank you. And then do as a, a comment uh, about there was a certain amount of delayed volumes in 3 q that ended up in 4 quid timing, I guess of of full implementation. Are you able to quantify what the impact of that was, uh, in in, or at least estimate? What that was in terms of the revenue growth? What did they contribute to the revenue? New growth in the fourth quarter?

Steven Marks: Yeah, Sholom, it actually wasn't a delay. What ended up happening is that, you know, a couple customers were waiting to go on board with us and held screening volume back from their previous provider. It's not really a delay, it's more of a kind of a reflection of the value proposition we bring. That's why I kind of mentioned in the prepared remarks that there'll be a small flip in base growth between Q3 and Q4, you know, if you're just doing your quarterly pacing, because when that normalizes out, we'll just have a shift. It's not huge, but it's a couple percentage points probably that shift between the two quarters.

Our product platform, whether it's our smart hub.

Technology, which has a very large impact on verifications.

We actually have a number of wins in 2025, where they have specifically told us that they came to us.

<unk> of our smart hub verification product.

So it is starting to catch on.

AI is embedded in our digital identity products and we have a lot of wins in 2025, where a digital identity has been the tip of the spear.

Shlomo Rosenbaum: Okay, great. Thank you.

Yeah, Shalom, it actually wasn't a delay. What, what ended up happening is that, you know, a couple customers were waiting to go on board with us and held screening volume back from their previous provider. So it's not really a delay. It's more of a kind of a reflection of the value proposition we bring. Uh, and that's why I kind of mentioned in the prepared remarks that there'll be a small flip in in base growth between Q3 and Q4. You know, if you're just doing your, your quarterly pacing, um, because when we when that normalizes out, we'll just have a a shift and it it it's not huge. Um, but it's a couple percentage points probably that shift between the 2 quarters.

Scott Staples: AI is embedded in our digital identity products. We have a lot of wins in 2025, where a digital identity has been the tip of the spear. It's amazing. I will call it an absolute epidemic right now that customers are experiencing with identity fraud, and our products are really resonating with our customers. Yes, there's been cost savings from AI, whether it's in our customer care center, where we don't need as many agents because we're doing things through chatbots. There's been wins because of AI and because of technology. It's just so hard to quantify because I just think this is the new First Advantage. This is all of what you're asking is embedded in everything we're talking about from a sales standpoint to an operational standpoint.

Okay, great. Thank you.

Operator: Thank you. We'll go next now to Ashish Sabadra of RBC Capital Markets.

It's amazing I would call it an absolute.

Ashish Sabadra: Thanks for taking my question, thanks for providing those detailed insights in the prepared remark around the motor, on the AI, the AI integration, implementation plans, and efficiency. I was just wondering if it's possible to quantify or provide anecdotal example of the benefits from the AI adoption. Maybe if you could provide any insights into like software development, product rollouts, customer service, and also if you've started to see any benefit from your AI adoption in terms of new wins and upsell, cross-sell. Any kind of benefits, both internal or external, from AI? Thanks.

Thank you, we go next. Now to, uh, sheesh sabadra of RBC Capital markets.

Demick right now that customers are experiencing with identity fraud.

And Arthur our products are are are really resound resonating with with our customers. So.

Yes, there has been cost savings from AI, whether it's in.

Our customer care.

Center, where we don't need as many agents, because we're doing things or chatbot theres been wins because of AI and because of technology, but it's just so hard to quantify because I. Just think this is the new first advantage. This is all of what you're asking is is embedded in everything we're talking about.

Scott Staples: Yeah, Ashish, I will give you a broad answer to that question, because it's extremely hard to quantify because it's literally everywhere, and it's embedded in all of our products and in a lot of our new wins. As I mentioned in the prepared script that, you know, we've got AI all throughout our product platform, whether it's our SmartHub technology, which has, you know, a very large impact on verifications. We actually have a number of wins in 2025, where they have specifically told us that they came to us because of our SmartHub verification product. It's starting to catch on.

All right, thanks for taking my question and thanks for providing. Those detailed insights in the prepared, Mark around the motor around Ai and the AI integration implementation plans and efficiency. I was just wondering if it's possible to quantify or provide anecdotal, example of the benefits from the AI option. Uh, maybe if you could provide any insights into like, uh, software development product, rollouts customer service. And also, if you have started to see any benefit from your AI adoption in terms of new wins and upsell crosselle. So, any kind of benefits both internal or external from AI. Thanks.

From a sales standpoint to an operational standpoint, so very hard to carve out, but I would say the impact is phenomenal.

Scott Staples: Very hard to carve out, but I would say the impact is phenomenal.

That's great color and obviously, it's reflected in the results as well.

I also wanted to hone in on the on the solid cross sell upsell momentum.

Ashish Sabadra: That's great, color, and obviously, it's reflected in the results as well. I also wanted to hone in further on the solid cross-sell, upsell momentum of 12% in the quarter. I understand a lot of it is driven by this new win momentum. I was wondering if you could provide incremental color around what's driving that cross-sell. Are they adding more business units, geographic expansion, and where are you winning these businesses from? Any more color on those fronts will be very helpful. Thanks.

In the quarter I understand a lot of it is driven by this new win momentum, but I was wondering if you could provide incremental color around.

What's driving that cross sell adding more business unit geography expansion and.

You've been in these businesses from so any more color on those funds would be very helpful.

Yeah again.

Keeping in mind that our focus is more on the enterprise side. So a lot of these deals are with our with the larger companies, but I'll make a couple of high level comments first of all in general our sales engine is humming.

Yeah, she, I, I will, um, I, I'll give you a broad answer to that question because it's extremely hard to quantify because it's literally everywhere and it's embedded in all of our products and and in a lot of our new wins. Um, so as I mentioned in the, uh, in the prepared script that, you know, we've got AI all throughout, um, our product platform. Whether it's our Smart Hub, uh, technology which has, you know, a very large impact on on verifications. We, we actually have a number of wins in 2025 where they have specifically told us that they came to us.

Scott Staples: Again, keeping in mind that our focus is, you know, more on the enterprise side, so a lot of these deals are with, you know, with the larger companies. I'll make a couple of high-level comments. First of all, you know, in general, our sales engine is humming. I mean, this is, this is the best I've ever seen it. The, the pipeline is the highest it's ever been. If you look at our total enterprise new business across new logos, upsell and cross-sell, it's actually up 24% year-over-year. That's, that's a massive increase. What we're also seeing is our average deal size is increasing. Not only are we winning deals, we're winning larger deals. I would say these larger deals are more bundled, and they're more complex.

Scott Staples: AI is embedded in our digital identity products, and we have a lot of wins in 2025, where a digital identity has been the tip of the spear. It's amazing. I will call it an absolute epidemic right now that customers are experiencing with identity fraud, and our products are really resonating with our customers. Yes, there's been cost savings from AI, whether it's in our customer care center, where we don't need as many agents because we're doing things through chatbots. There's been wins because of AI and because of technology. It's just so hard to quantify because I just think this is the new First Advantage.

I mean this is this is the best I've ever seen it the pipeline is the highest its ever been.

And if you look at our total enterprise.

<unk> new.

New business across new logos, upsell and cross sell it's actually up 24% year over year.

That's a massive increase and what we're also seeing is our average deal size is increasing so not only are we winning deals we are winning larger deals and I would say with these larger deals are are more bundled in and they are more complex.

Because of our our Smart Hub, uh, verification product. Um, so it's starting to catch on. Um, AI is embedded in our digital identity products and we have a lot of wins in 2025 where a digital identity has been the tip of the spear. Um, it's amazing. I will call it an absolute EP epidemic. Right now that customers are experiencing with identity fraud and our s, our products are are, are are really ReSound resonating with with our customers. So

An average deal size is up high double digits.

Scott Staples: Average deal size is up high double digits. There's a lot of good momentum on the sales side. In general, what's driving it is package density. Package density is booming. I will tell you that right now. I mentioned in the script that we, again, we talk about, you know, how we're talking to customers every day. I also mentioned in the script how we launched our annual trend survey just recently, and we talked to, you know, literally, you know, well over 2,000 HR professionals. It's very interesting what we're hearing from them. You know, 89% of employers plan to add additional screening products in the next 1 to 2 years.

So there's a lot of good momentum on the sales side. So in general what's driving it is is package density package density is booming I would tell you that right now so I mentioned in the script that we.

Scott Staples: This is all of what you're asking is embedded in everything we're talking about from a sales standpoint to an operational standpoint. Very hard to carve out, but I would say the impact is phenomenal.

Again, we talk about how we're talking to customers every.

Ashish Sabadra: That's great color. Obviously, it's reflected in the results as well. I also wanted to hone in further on the solid cross-sell, upsell momentum of 12% in the quarter. I understand a lot of it is driven by this new win momentum. I was wondering if you could provide incremental color around what's driving that cross-sell. Are they adding more business units, geographic expansion, and where are you winning these businesses from? Any more color on those fronts will be very helpful. Thanks.

Every day, but I also mentioned in the script.

Um, yes, there's been cost-savings from AI, whether it's in our, our customer care, um, Center where we don't need as many agents, because we're doing things through chat Bots. There's been wins because of AI and because of Technology. Um, but it's just so hard to quantify because I just think this is the new First Advantage. This is all of what you're asking is, is embedded in in everything we're talking about, uh, from a sales standpoint to an operational standpoint, so very hard to carve out, but I would say, the impact is phenomenal.

<unk> launched our annual trend survey, just recently and we talked to you literally well over 2000 HR professionals.

And very interesting what we're hearing from them, 89% of employers plan to add additional screening.

Products and the next one to two years.

And a lot of that is driven by the challenging and even at sometimes dangerous world that we live in and our customers are looking for more risk protection. So what was.

Scott Staples: A lot of that is driven by the challenging and even at sometimes dangerous world that we live in. Our customers are looking for more risk protection. What was also mentioned in the script was risk is now the number one, by far, top priority for our customers. If you asked me that question three, four, or five years ago, it was always speed, and then it was cost. Now it's risk, speed, and then cost, and that's a dramatic shift. A lot of this has been driven by, again, the epidemic that we're seeing in identity fraud. Again, going back to that survey, which we will release over the next couple of weeks, 76% have experienced falsified employment details, and 45% have experienced candidate identity misrepresentation.

Scott Staples: Yeah. Again, keeping in mind that our focus is, you know, more on the enterprise side, a lot of these deals are with, you know, with the larger companies. I'll make a couple of high-level comments. First of all, you know, in general, our sales engine is humming. I mean, this is the best I've ever seen it. The pipeline is the highest it's ever been. If you look at our total enterprise new business across new logos, upsell, and cross-sell, it's actually up 24% year-over-year. That's a massive increase. What we're also seeing is our average deal size is increasing. Not only are we winning deals, we're winning larger deals. I would say these larger deals are more bundled, and they're more complex.

Driving that cross sell are they adding more business units? Geographic expansion and uh uh where are you winning these businesses from? So any more color on those fronts will be very helpful. Thanks.

It was also mentioned in the script was risk is now the number one by far top priority.

Yeah, again, uh, keeping in mind that our focus is, you know, more on the Enterprise side. So a lot of these deals are with, you know, with the larger companies. But I

For our customers. If you asked me that question 345 years ago. It was always speed and then it was cost now its risk.

Feed and then cost.

That's a dramatic shift a lot of this has been driven by again the epidemic that we're seeing in identity fraud again going back to that survey, which will we will release over the next couple of weeks.

76% have experienced falsified employment details and 45% have experienced Kennedy identity misrepresented misrepresentations. These are huge openings for us as I mentioned digital identity as a tip of the spear, but what's beautiful about our product offerings.

Scott Staples: Average deal size is up high double digits. There's a lot of good momentum on the sales side. In general, what's driving it is package density. Package density is booming. I will tell you that right now. I mentioned in the script that we, again, we talk about, you know, how we're talking to customers every day, you know, every day. I also mentioned in the script how we launched our annual trend survey just recently, and we talked to, you know, literally, you know, well over 2,000 HR professionals. Very interesting what we're hearing from them. You know, 89% of employers plan to add additional screening products in the next 1 to 2 years.

Scott Staples: These are huge openings for us, as I mentioned, digital identity as the tip of the spear. What's beautiful about our product offerings is that we can integrate all of this for the customer. Just think about where we touch. We touch everywhere from recruiting through the background screening, through onboarding, all the way to I-9 and their first day of work, and even beyond through monitoring. Customers are really liking our product suite because it's not a point solution, it's an embedded workflow that touches all the things that they're worrying about.

We can integrate all of this for the customer just think about where we touch we touch everywhere from recruiting.

Through the background screening through Onboarding, all the way to I nine and their first day of work and even beyond through monitoring so customers are really liking our product suite because it is not a point solution. It's an embedded workflow that touches all the things that they are worrying about.

I'll make a couple of high-level comments. First of all, you know, in general our sales engine is humming. Um, I mean, this is this is the best I've ever seen it. The the pipeline is the highest it's ever been. And if you look at our total, um, Enterprise, uh, new business across new logos upsell and procell, it's actually up 24%. Year-over-year, that's that's a massive increase. And what we're also seeing is, our average deal size is increasing. So not only are we winning deals. We're renting larger deals and I would say these larger deals are are more bundled and they're more complex. Um, and average deal size is up high, double digits. Uh, so there's a lot of good um, momentum on the sales side. So in general, what's driving. It is is packaged density package density is booming. I will tell you that right now. So I mentioned in the script that we, um,

This is very helpful color and congrats on such a strong business. Thank.

Thank you.

Ashish Sabadra: This is very helpful, Kyle, and congrats on such a strong results. Thanks.

Thank you well go next now to Andrew Steinman of J P. Morgan.

Scott Staples: Thank you.

Scott Staples: A lot of that is driven by the challenging and even at sometimes dangerous world that we live in. Our customers are looking for more risk protection. What was also mentioned in the script was risk is now the number one, by far, top priority for our customers. If you asked me that question 3, 4, or 5 years ago, it was always speed, and then it was cost. Now it's risk, speed, and then cost. That's a dramatic shift. A lot of this has been driven by, again, the epidemic that we're seeing in identity fraud. Again, going back to that survey, which we will release over the next couple of weeks, 76% have experienced falsified employment details, and 45% have experienced candidate identity misrepresentation.

Operator: Thank you. We go next now to Andrew Steinerman of J.P. Morgan.

Hey, everybody. This is Alex has on for Andrew Steinman.

Wanted to just ask a quick question about the margin guide for 2026 can you walk us through some of the puts and takes there.

Alex Hess: Hey, everybody, this is Alex Hess on for Andrew Steinerman. Wanted to just ask a quick question about the margin guide for 2026. Can you walk us through some of the puts and takes there? You know, how to think about the degree to which you're reinvesting and sort of the why now behind reinvesting so much of the, what seems to be the cost synergy benefit. As well as can you highlight any of the mixed headwinds from newer logos? Maybe unpack that a little more.

About the degree to which.

You're reinvesting and sort of why now.

Behind reinvesting so much of the what seems to be the cost synergy benefits.

Again, we we talked about, you know, how we're talking to customers every, you know, every day. But I also mentioned to the script, how we, uh, launched our annual Trend survey just recently and we talked to, you know, literally you know, well over 2,000, uh, HR professionals um, and very interesting what we're hearing from them. You know, 89% of employers plan to add additional screening, uh, products in the next 1 to 2 years. Um, and a lot of that is driven by the challenging and even at sometimes dangerous world that we live in and our customers are looking for more risk protection. So what was um what was also mentioned in the script was risk is now the number 1 by far top priority.

As well as can you highlight any of the mix headwinds from newer logos, maybe unpack that a little more.

For our customers. If you ask me that question 345 years ago, it was always speed and then it was cost. Now it's risk.

Speed, and then cost.

Yes, Alex good question, and obviously kind of a core theme of the guidance that we talked about.

Steven Marks: Yeah, Alex, it's a good question, and obviously kind of a core theme of the guidance that we talked about. A few factors that are, you know, headwinds and tailwinds in terms of just margin percentages, but overall, you know, really feel good about the net dollar productivity out of margin. You know, I think we've talked about margin mix for the last couple of quarters, and especially with some of these newer deals and the verticals that they're in and the product suites that were sold, there's just a relatively higher mix of those out-of-pocket fees, which are all pass-throughs to the customer, but that do dilute you on a margin percentage basis. That's certainly a factor in there.

A few factors that are that are.

Headwinds <unk> in terms of just margin percentages, but overall really feel good about the net dollar productivity out of margin. So.

I think we've talked about margin mix for the last couple of quarters, and especially with some of these newer deals and the verticals that they're in and the product suites that were sold there is just a a relatively higher mix of those out of pocket fees, which are all pass throughs to the customer, but that do dilute you on a margin percentage basis.

Scott Staples: These are huge openings for us, as I mentioned, digital identity as the tip of the spear. What's beautiful about our product offerings is that we can integrate all of this for the customer. Just think about where we touch. We touch everywhere from recruiting through the background screening, through onboarding, all the way to I-9 and their first day of work, and even beyond, through monitoring. Customers are really liking our product suite because it's not a point solution, it's an embedded workflow that touches all the things that they're worrying about.

And that's a dramatic shift. A lot of this has been driven by again, the epidemic that we're seeing in identity fraud. Again, going back to that survey which we will, we will release over the next couple of weeks. 76% have experienced falsified employment details and 45% have experienced Kennedy identity misrepresented misrepresentation. These are huge openings

That's certainly a factor in there.

For us, as I mentioned, digital identity as a tip of the spear. But what's beautiful about our product offerings is that we can integrate all of this for the customer. Just think about where we touch. We Touch everywhere from recruiting.

You saw that a little bit in Q4, and obviously with as that rolls over through the through Q1, two and three next year that'll normalize out a little bit obviously spending some work that needs to be initiatives, Scott talked about automation and some of our data products to try and offset some of that but that's certainly a factor.

Steven Marks: You saw that a little bit in Q4, and we, you know, obviously, as that rolls over through Q1, Q2, and Q3 next year, that'll normalize out a little bit. Obviously, spending some work, you know, the initiative Scott talked about, you know, automation and some of our data products to try and offset some of that, but that's certainly a factor. You know, on the headwind or the tailwind side, we'll have some of the rollover from synergies and incremental synergies. As you called out, you know, we are prioritizing some incremental investment, and I think the rationale there is really, you know. We see ourselves creating some really strong competitive differentiation.

Through the background, screening through onboarding, all the way to I9 and their first day of work and even Beyond through monitoring. So, customers are really liking our product Suite because it's not a point solution, it's an embedded workflow, that touches all the things that they're wearing about.

Ashish Sabadra: This is very helpful color. Congrats on such a strong results. Thanks.

On the headwinds or the tailwind side, we'll have some of the rollover from synergies and incremental synergies, but as you've called out we are prioritizing some incremental investment and I think the rationale there is really we see ourselves, creating some really strong competitive differentiation. If you look at some of the.

Scott Staples: Thank you.

This is very helpful color and congrats on such a strong results. Thanks, thank you.

Operator: Thank you. We go next now to Andrew Steinerman of J.P. Morgan.

Alex Hess: Hey, everybody, this is Alex Hess on for Andrew Steinerman. Wanted to just ask a quick question about the margin guide for 2026. Can you walk us through some of the puts and takes there? You know, how to think about the degree to which you're reinvesting, and sort of the why now behind reinvesting so much of the, what seems to be the cost synergy benefit? As well as can you highlight any of the mix headwinds from newer logos? Maybe unpack that a little more.

Thank you, we go next. Now, to Andrew, Steinman of JP Morgan.

The HCM and Etfs partner success that Scott highlighted in the prepared remarks, some of the product success.

Steven Marks: If you look at some of the HCM and ATS partner success that Scott highlighted in the prepared remarks, some of the product success, and really just, you know, using the success of the integration, the stability in the customer base, and looking at how we're positioned in the market right now, it's just an opportunistic time to invigorate incremental growth by putting some dollars towards, you know, product sales, marketing, which are areas that we've invested in the past and always seen really strong returns out of.

And really just using the success of the integration the stability in the customer base and looking at how we're positioned in the market right now, it's just an opportunistic time to.

Hey, everybody. This is Alex Hess on for Andrew Steinman. Um, wanted to just ask a quick question about the margin guide for 2026. Can you walk us through some of the puts and takes there, you know, how to think about the degree to which you— You

Invigorate incremental growth by by putting some dollars towards product sales marketing, which are areas that we've invested in the past and always seeing really strong returns out of.

Steven Marks: Yeah, Alex, it's a good question, and obviously kind of a core theme of the guidance that we talked about. Few factors that are, you know, headwinds and tailwinds in terms of just margin percentages, but overall, you know, really feel good about the net dollar productivity at a margin. You know, I think we've talked about margin mix for the last couple of quarters, and especially with some of these newer deals and the verticals that they're in and the product suites that were sold, there's just a relatively higher mix of those out-of-pocket fees, which are all pass-throughs to the customer, but that do dilute you on a margin percentage basis. That's certainly a factor in there.

Investing and and sort of the why now uh, behind reinvesting. Uh, so much of the, what seems to be the the cost Synergy of benefit uh, as well as can. You highlight any of the, uh, the mix headwinds from newer logos, maybe unpack that a little more?

And Alex I'd just add on.

Why now.

As I mentioned.

Scott Staples: Alex, I'll just add on, why now? You know, as I mentioned, we're talking to our customers every day, they're sending us really good buying signals. It's, why now is really become an easy decision for us. We've got actual pipeline that is backing up a lot of these investments that we're making. We're not making these investments in a build it, and they will come model. We're actually making these investments with already defined pipeline, where our customers are saying: If you build this, we'll buy it. These decisions actually became pretty easy, but that gives you a little more color on why now.

We're talking to our customers every day and they're sending us really good buying cycle.

So it's why now is is really become an easy decision for us.

Yeah. Alex uh it's a good question and obviously kind of a Core theme of the guidance that we talked about. So um a few factors that are that are you know uh headwinds and Tailwinds in terms of just margin percentages but overall you know, really feel good about the the the net dollar productivity at a margin. So

We've got actual pipeline that will that is backing up a lot of these investments that we're making so we're not making these investments in a build it and they will come model, we're actually making these investments with already defined pipeline, where our customers are saying if you build this well buy it.

Steven Marks: You saw that a little bit in Q4. We, you know, obviously, as that rolls over through Q1, Q2, and Q3 next year, that'll normalize out a little bit. Obviously, spending some work, you know, the initiative Scott talked about, you know, automation and some of our data products to try and offset some of that, but that's certainly a factor. You know, what we'll have on the headwind or the tailwind side, we'll have some of the rollover from synergies and incremental synergies. As you called out, you know, we are prioritizing some incremental investment, and I think the rationale there is really, you know, we see ourselves creating some really strong competitive differentiation.

So these decisions actually became pretty easy, but that gives you a little more color on why now.

Got it that's super helpful. And then as we think about those.

That pipeline is defined investments.

Alex Hess: Got it. That's super helpful. Then as we think about those in, you know, that pipeline of defined investments, you know, can you walk us through internally how you think about the payback period that's required to make incremental investments back into the business? You know, is this something where in you know, we see the momentum on the top line continue into 2027 because of these investments, or is this a 2028, 2029, 2030 type of payoff?

Can you walk us through internally, how you're thinking about payback period thats required.

To make incremental investments back into the business.

Something we're.

She's momentum on the top line and continue into 2017, because these investments.

'twenty 'twenty sorry.

No you won't see it.

Yeah, you'll see you'll see impact in the second half of this year there'll be some in year impact because of these investments and they certainly will carry into 27% and 28 and the good news about a lot of these investments as we don't think we need to actually do them again in 2728, so that what that's going to help EBITDA in the future as well, but Steven you might have a little more color.

Scott Staples: No, you'll see-

Steven Marks: Yes.

Scott Staples: You'll see impact in the second half of this year. There'll be some in-year impact because of these investments, and they certainly will carry into 2027 and 2028. The good news about a lot of these investments is we don't think we need to actually do them again in 2027 and 2028, so that will, you know, that's gonna help EBITDA in the future as well. Steven, you might have a little more color.

Exactly right Scott I think obviously you invest early in the year. We expect good returns in the second half of the year like a lot of our go to market success. When you have that back half of the year success, you'll get the rollover impact into the future periods and like Scott said. These are a lot of these are permanent addition, these are either one time development.

Steven Marks: Exactly right, Scott. I think, you know, obviously, you invest early in the year, we expect good returns in the second half of the year. Like, a lot of our go-to-market success, you know, when you have that back half of the year success, you'll get the rollover impact into the future periods. Like Scott said, you know, a lot of these aren't permanent additions. These are, you know, either one-time development exercises or rebranding and some other stuff like that, of making sure that we can accelerate over the short term and then create long-term value.

Through through q1 2 and 3 next year. That'll normalize out a little bit. Obviously, spending some work at, you know, the initiative, Scott talked about, you know, Automation and some of our data products to try and offset some of that. Um, but that's certainly a factor, you know, what? We'll have on the headwind or the Tailwind side, we'll have some of the roll over from synergies and and incremental synergies. But as you called out, you know, we are prioritizing some, some incremental investment. And I think the, the rationale there is really, you know, we we see ourselves creating some really strong competitive differentiation. If you look at some of the, uh, the HCM and ATS, partner success, that Scott highlighted in the prepared remarks, some of the products success, uh, and really just, you know, using the, the success of the integration, the stability and the customer base and looking at how we're positioned in the market right now, it's just an opportunistic time to, uh, invigorate incremental growth by by putting some dollars towards, you know, product sales marketing which are areas that we've invested in the past and always seen really strong returns out of

Scott Staples: Alex, I'll just add on, why now? You know, as I mentioned, we're talking to our customers every day, and they're sending us really good buying signals. Why now is really become an easy decision for us. We've got actual pipeline that is backing up a lot of these investments that we're making. We're not making these investments in a build it and they will come model. We're actually making these investments with already defined pipeline, where our customers are saying, if you build this, we'll buy it. These decisions actually became pretty easy, but that gives you a little more color on why now.

And Alex, I'll just add on. Um, why now, um, you know, as I mentioned uh,

As is our rebranding and some other stuff like that they are making sure that.

We can accelerate over the short term and create long term value.

Thank you so much.

Thank you well go next now to Andrew Nicholas of William Blair.

Alex Hess: Thank you so much.

Okay.

Operator: Thank you. We'll go next now to Andrew Nicholas of William Blair.

Hi, guys. This is Daniel Maxwell on for Andrew Tonight.

We're talking to our customers every day and they're sending us really good buying signals. Um, so it's why now is is really becoming an easy decision for us. Um, we've got actual pipeline that will that is backing up a lot of these Investments that we're making. So we're not making these Investments.

I was wondering if you can give a little more detail on how you're thinking about the ROI from each of your capital allocation priorities heading into the new year. It.

Daniel Maxwell: Hi, guys. This is Daniel Maxwell on for Andrew tonight. I was wondering if you can give a little more detail on how you're thinking about the ROI from each of your capital allocation priorities heading into the new year. Definitely sounds like repurchases are incrementally attractive at this price. Is there a willingness to sacrifice, you know, some free cash flow that would go to deleveraging in favor of repurchases, or are those truly, you know, not mutually exclusive?

It sounds like the purchases are incremental attractive at this price.

Alex Hess: Got it. That's super helpful. As we think about those in, you know, that pipeline of defined investments, you know, can you walk us through internally how you think about the payback period that's required to make the incremental investments back into the business? You know, is this something where in 2027, you know, we see the momentum on the top line continue into 2027 because of these investments, or is this a 2028, 2029, 2030 type of payoff?

In a build it and they will come model. We're actually making these Investments with already, uh, defined pipeline where our customers are saying. If you build this, we'll buy it. Um, so these decisions actually became pretty easy, but that gives you a little more color on why now.

Is there a willingness to sacrifice some some free cash flow that will go to deleveraging in favor of repurchases or are those truly.

Got it it's super helpful. And then as we think about those, you know that pipeline of defined Investments

Exclusive.

No.

As you heard in my prepared remarks, it's an and equation not in or I think we're very fortunate. We've got you heard our free cash flow guide of 160 to 190 million finished the 2025 with a $240 million of cash on the balance sheet, we generated $70 million of net cash flow last year.

Steven Marks: No, you know, as you heard in my prepared remarks, it's an and equation, not an or. I think we're very fortunate, you know, you heard our free cash flow guide, $160 to $190 million, finished, you know, 2025 with a $240 million of cash on the balance sheet. We generated $70 million of net cash flow last year in 2025. You know, we're able to, you know, as you heard us announce, pay down $25 million of debt this quarter and, you know, able to also announce a $100 million of buyback authorization. With the buybacks, we'll obviously be a little bit opportunistic there.

Scott Staples: No, you'll see-

Alex Hess: Nothing.

Scott Staples: Yeah, you'll see impact in the second half of this year. There'll be some in-year impact because of these investments, and they certainly will carry into 2027 and 2028. The good news about a lot of these investments is we don't think we need to actually do them again in 2027 and 2028, so that would, you know, that's going to help EBITDA in the future as well. Steven, you might have a little more color.

25 so.

We're able to as you heard us analysis pay down $25 million of debt this quarter and able to also announce a $100 million.

Back authorization with the buybacks will obviously be a little bit opportunistic there at the current valuation levels, it's very accretive from an EPS and just.

You know, can you walk us through internally? How you think about the payback period, that's required to to make incremental Investments back into the business? You know, is this something where in 20, you know, we see the momentum on the top line continue into 27 because of these Investments or is this a 28 to 29.230. Uh, type of payoff know you'll see you. Yeah, you'll see you'll see impact in the second half of this year there. There'll be some in-ear impact because of these Investments and they certainly will carry into 27 and 28 and the good news about a lot of these Investments is we don't think we need to actually do them again in 27 to 28. So that would, you know that's going to help ibida in the future as well. But Stephen, you might have a little more color.

Steven Marks: At the current valuation levels, it's very accretive from an EPS and just, you know, any kind of corporate finance math you run, it makes sense to do share repurchases at this valuation, especially with our numbers and PE ratios and things like that. We have the ability and flexibility of generating good cash flow. You know, the success of the integration, we talked about this on the prepared remarks, but to finish the integration with 96 and 97% customer retention, curtailing a lot of the one-time expenses, and now having strong, you know, free cash flow into the future, it was an opportunistic time to look back and say: We don't think we're being valued correctly, and if the market doesn't correct, we'll happily buy back some of those shares.

Any any kind of corporate finance Matthew run it makes sense to do share repurchases at this valuation, especially with our numbers and p/e ratios and things like that.

But we have the ability and flexibility of generating good cash flow.

The success of the integration and we talked about this on the prepared remarks, but.

Exactly. Right. Scott. I think, you know, obviously you invest early in the year. We expect good returns in the second half of the year, like a lot of our go to market success. You know, when when you have that back half of the Year success, you'll get the rollover impact into the future periods. And like and like Scott said, you know, these aren't a lot of these aren't permanent additions. These are, you know, either 1-time development, exercises or rebranding and some other stuff like that, that making sure that

Finished the integration with 96%, 97% customer retention curtailing a lot of the one time expenses and now having strong free cash flow into the future.

Scott Staples: Thank you so much.

We can accelerate over the short term and then create long-term value.

Operator: Thank you. We'll go next now to Andrew Nicholas of William Blair.

It was an opportunistic time to look back and say, we don't think we're being valued correctly and if the market doesn't correct, we'll happily buy back some of those shares but it's not to the sacrifice of debt prepayment. It will do both at the same time.

thank you, we'll go next now to Andrew, Nicholas of William Blair

Daniel Maxwell: Hi, guys. This is Daniel Maxwell on for Andrew tonight. I was wondering if you can give a little more detail on how you're thinking about the ROI from each of your capital allocation priorities heading into the new year? Definitely sounds like repurchases are incrementally attractive at this price. Is there a willingness to sacrifice, you know, some free cash flow that would go to deleveraging in favor of repurchases, or are those truly, you know, not mutually exclusive?

Steven Marks: It's not to the sacrifice of debt prepayment. It's we'll do both at the same time.

Great.

Helpful and then.

That was my follow up.

You guys had some good commentary on which verticals we are doing well.

Daniel Maxwell: ... That's helpful. As my follow-up, you guys had some good commentary on which verticals were doing well and which are still kind of lagging, moving into the new year. I'm curious if there was anything in the quarterly results that kind of came as a surprise, particularly on base growth front, or if there was an especially strong momentum in any given area on the sales front?

Hi guys, this is Daniel, Maxwell on for Andrew today. Um I was wondering if you can give uh a little more detail uh on how you're thinking about the ROI from each of your Capital allocation priorities heading into the new year. Um definitely sounds like repurchases are incrementally attractive at this price.

Or still kind of lagging moving into the new here.

I was curious if there were anything in the in the quarterly results that kind of came as a surprise, particularly.

Steven Marks: No, you know, as you heard in my prepared remarks, it's an and equation, not an or. I think we're very fortunate, you know, we've got, you heard our free cash flow guide, $160 to $190 million, finished, you know, 2025 with a $240 million of cash on the balance sheet. We generated $70 million of net cash flow last year in 2025. You know, we're able to, you know, as you heard us announce, pay down $25 million of debt this quarter and, you know, able to also announce a $100 million of buyback authorization. With the buybacks, we'll obviously be a little bit opportunistic there.

Our base growth front.

Um, but is there a willingness to, to sacrifice, you know, some, some free cash flow that would go to deleveraging in favor of repurchases or are those truly, you know, not mutually exclusive.

There was an especially strong moment.

Given area.

Sure.

Yes, I mean, just a couple of things there one.

What we were what we were happily surprised about was the quarter.

Scott Staples: Yeah, I mean, just a couple of things there. One, what we were happily surprised about was the quarter resembled what our normal peak season would look like. If you recall, we had back-to-back years of a sluggish peak. We had a great peak. It started when we thought it would start. It lasted, you know, well past Thanksgiving into December. We had a great December as well. Peak was very encouraging, and that's great for retail, e-commerce, and transportation. They're all kind of aligned there. I don't think we had any surprises, either negative or positive across any of the verticals. They all kind of came in line with what we thought, and I think geographically as well.

Resembled what are normal.

<unk> season would look like so.

You recall, we had we had back to back years of sluggish peak.

A great peak.

It started when we thought it would start it lasted well into well past. Thanks.

Steven Marks: At the current valuation levels, it's very accretive from an EPS and just, you know, any kind of corporate finance math you run, it makes sense to do share repurchases at this valuation, especially with our numbers and PE ratios and things like that. We have the ability and flexibility of generating good cash flow. You know, the success of the integration, we talked about this on the prepared remarks, but to finish the integration with 96% and 97% customer retention, curtailing a lot of the one-time expenses and now having strong, you know, free cash flow into the future, it was an opportunistic time to look back and say: We don't think we're being valued correctly, and if the market doesn't correct, we'll happily buy back some of those shares.

Thanks, giving into December.

Had a great December as well so.

No, you know there if you as you heard in my prepared remarks, it it's an and equation. Not an ore. I think we're we're very fortunate, you know, we've got a you know, you heard our free cash flow guy at 160 to 190 million finished. You know, the 2025 with a 240 million dollars of cash on the balance sheet, we generated 70 million dollars of net cash flow last year in 2025. So, you know, we're able to, you know, as you heard us announced pay down 25 million dollars of debt this quarter and and you know, able to also announce a hundred million dollar of buyback authorization. With the BuyBacks will, obviously be a little bit opportunistic there at, at the current valuation levels. It it's very accretive from an EPs and just, you know, any any kind of corporate finance matter,

Peak was very encouraging and that's great for retail E Commerce transportation, they're all kind of aligned there I don't think we had any surprises either negative or positive across any of the verticals.

They all kind of came in line with what we thought and I think geographically as well as.

As we mentioned our international business was firing on all cylinders across all regions.

Scott Staples: As we mentioned, our international business was firing on all cylinders across all regions, not singling out a single one as a star performer or a laggard. They were all firing on all cylinders, which was great. I think the, you know, the signaling to us that peak season was back was great. It obviously made for our best quarter ever in Q4. It's just I think what's interesting maybe is it sort of goes against what you read in the media or you're seeing and hearing, because this is not what our customers are feeling.

Not singling out a single one as a star performer our laggard they were all firing on all cylinders, which is great. So.

Steven Marks: It's not to the sacrifice of debt prepayment. It's we'll do both at the same time.

I think the the <unk>.

Signaling to us that that peak season was back was great and obviously you can't.

Uh, it it was an opportunistic time to look back and say we don't think we're being valued correctly. And and if the, the market doesn't correct, we'll happily buy back some of those shares, but it's not to the sacrifice of debt prepayment. It's we'll do both at the same time.

Daniel Maxwell: Great. That's helpful. As my follow-up, you guys had some good commentary on which verticals were doing well and which are still kind of lagging moving into the new year. I'm curious if there were anything in the quarterly results that kind of came as a surprise, particularly on base growth front, or if there was an especially strong momentum, you know, in a given area on the sales front?

Made for our best quarter ever in Q4.

It's just I think what's interesting maybe is it sort of goes against what you read in the media or or Youre seeing.

Because this is not what our customers are feeling.

Okay. Thanks, Bob.

Thank you well go next now to Manav Patnaik at Barclays.

Daniel Maxwell: Thanks. Thanks, Scott.

Great, that's helpful. Um, and then as my follow-up, um, you guys had some, some good commentary on on which verticals were doing well, and and which are are still kind of lagging moving into the new year. Um, but curious, if there's, there were anything in the, uh, in the quarterly results that kind of came as a surprise, uh, particularly on base growth front or if there was any, you know, especially strong momentum and and given area on the sales front

Scott Staples: Yeah, I mean, just a couple things there. One, what we were happily surprised about was the quarter resembled what our normal peak season would look like. If you recall, we had back-to-back years of a sluggish peak. We had a great peak. It started when we thought it would start. It lasted, you know, well into, well past Thanksgiving into December. We had a great December as well. Peak was very encouraging, and that's great for retail, e-commerce, and transportation. They're all kind of aligned there. I don't think we had any surprises, either negative or positive, across any of the verticals. They all kind of came in line with what we thought, and I think geographically as well.

Operator: Thank you. We'll go next now to Manav Patnaik at Barclays.

Hi, Good morning. This is roni Kennedy on for Manav. Thank you for taking our questions can you. Please talk on a high level through the puts and takes that would take you to the respective low and high ends of the guided revenue range.

Ronan Kennedy: Hi, good morning. This is Ronan Kennedy, on for Manav. Thank you for taking our questions. Can you please talk at a high level to the puts and takes that would take you to the respective low and high ends of the guided revenue range, whether it be the macro and your base or cross-sell, new or other components, please?

It would be the macro and.

Ace or cross sell.

Newer other components.

Yes, Ryan Good question and you kind of hit on the two main ones. So certainly.

As we talked about 6% growth at the midpoint kind of assumes that that flat hiring environment as I shared.

Steven Marks: Yeah, Ronan, good question, and you kind of hit on the two main ones. Certainly, you know, as we talked about, 6% growth at the midpoint, kind of assumes that that flat hiring environment, you know, as I shared, you know, embedded in the range at the upper and lower ends, is we think base is still, you know, between 0 and -2. It's that continuing flat environment. Obviously, there's still all the, you know, policy uncertainty that comes out of Washington these days that could always, you know, move that towards that upper or lower end. You know, as Scott just mentioned, you know, we're hearing, you know, very positive tones and very consistent tones across the enterprise customer portfolio.

Embedded in the range of the upper and lower ends as we think base is still between zero and negative two is that continuing flat environment.

Obviously, there is still all the policy uncertainty that comes out of Washington. These days that can always move that towards that upper or lower end, but as Scott just mentioned, we're hearing very positive tone to very consistent across the enterprise customer portfolio.

Yeah, I mean, just a couple things there 1, uh, what we were, what we were happily surprised about was the quarter, uh, resembled what our normal, uh, peak season would look like. So, as if you recall, we had, we had back-to-back years of a sluggish Peak. Um, we had a great peek, uh, it it it started when we thought it would start. It lasted, you know, well, into well past, uh, Thanksgiving into December. Uh, we had a great December as well, so, uh, Peak was very encouraging and that's great for retail, e-commerce Transportation. They're all kind of aligned there. I don't think we had any

Scott Staples: As we mentioned, our international business was firing on all cylinders across all regions, not singling out a single one as a star performer or a laggard. They were all firing on all cylinders, which was great. I think the, you know, the signaling to us that peak season was back, was great. It obviously made for our best quarter ever in Q4. It's just I think what's interesting maybe is it sort of goes against what you read in the media or you're seeing and hearing, because this is not what our customers are feeling.

Certainly we've got good rollover momentum going into 2026, so we feel good about <unk>.

Steven Marks: Certainly, you know, we've got good rollover momentum going into 2026, so we feel good about, you know, delivering, you know, higher end of our algorithm on the new logo and upsell, cross-sell front. As we have our deals that are already in pipeline, to how those ramp, plus the investments we're making in the incremental growth that we can get there, that's what pushes us probably from that midpoint towards the upper parts of the guidance range, would be the success of those as well. Those are really the two main factors.

Delivering.

Higher end of our algorithm on the new logo and upsell cross sell front.

But but as we have our deals that are already in pipeline, how those ramp up the investments, we're making and the incremental growth that we can get there that's what pushes us probably from that midpoint towards the upper parts of the guidance range would be the success of those as well so.

Those are the really the two main factors, we are very pleased with the consistency and stability within retention.

Steven Marks: You know, we are very pleased with the consistency and stability within retention, and that part of the algorithm, you know, we don't take it for granted, but, you know, it's such a core part of what we do here and our focus on our customers, that 96% or 97% retention number can be modeled in, you know, very consistently.

That part of the algorithm, we don't take it for granted but it's such a core part of what we do here and our focus on our customers.

Surprises either negative or po or positive across any of the verticals. Um, they all kind of came in line with what we thought and I think geographically as well. Um, as we mentioned, our international business, was firing on all cylinders across all regions. Um, not singling out a single 1. As a star performer or a lagard. They were all firing on all cylinders, which was great. So, um, I think this the, you know, the signaling to us that that that peak season was back was was great and obviously made for our best quarter ever. Uh in Q4 uh it's just I think what's interesting maybe is it goes against what you read in the media or or you're seeing and hearing, because this is not what our customers are feeling.

Daniel Maxwell: Great. Thanks a lot.

Great. Thanks a lot.

Operator: Thank you. We'll go next now to Manav Patnaik at Barclays.

96%, 97% retention number can be modeled and very consistently.

Thank you. Well, the next now to Pat at Barclays.

Steven Marks: Hi, good morning. This is Ronan Kennedy on for Manav. Thank you for taking our questions. Can you please talk at a high level to the puts and takes that would take you to the respective low and high ends of the guided revenue range, whether it be the macro and your base or cross-sell, new or other components, please? Yeah, Ronan, good question, you kind of hit on the two main ones. Certainly, you know, as we talked about, 6% growth at the midpoint, kind of assumes that flat hiring environment, you know, as I shared, you know, embedded in the range at the upper and lower ends, is we think base is still, you know, between 0 and -2. It's that continuing flat environment.

Got it thank you and then on the.

Synergies can I confirm I think you've actually 55 run rate as of 25 targeting 65% to 80%.

Ronan Kennedy: Got it. Thank you. Then on the synergies, can I confirm, I think you've actioned 55 run rate as of 2025, targeting 65 to 80. Can you reconfirm reported synergy benefit realized in 2025 Q4, and what the guide assumes for synergy-

Can you reconfirm reported synergy benefit realized 25 for Q and what the guide assumes for synergy realization benefit.

Hi, good morning. This is Ron and Kennedy on for Manoff. Thank you for taking our questions. Can you please talk at a high level to the puts and takes that would take you the respective low and high ends of the guided Revenue range, whether it be the macro, and your base or cross sell

Uh, new or other components please.

Yeah, So you're right answer.

As of the end of the year, we had <unk> 55 of the 65% to 80 target.

Steven Marks: Yeah.

Ronan Kennedy: realization benefits?

Steven Marks: Yeah. You're right on. We've, you know, as of the end of the year, we had actioned 55 of the 65 to 80 target. $8 million was incrementally realized in Q4 of 2025. If you recall, when we closed the deal on 31 October 2024, we did some day one synergies and realized $4 million in 2024. That $8 million is incremental to that. You know, for the year, the incremental mental synergy realization was $38 million.

$8 million was incrementally realized in Q4 of 2025, if you recall when we closed the deal in October 31, 24, we did some day, one synergies and realized $4 million in 2024, so that $8 million is incremental to that.

Steven Marks: Obviously, there's still all the, you know, policy uncertainty, yeah, that comes out of Washington these days that could always, you know, move that towards that upper or lower end. As Scott just mentioned, you know, we're hearing, you know, very positive tones and very consistent tones across the enterprise customer portfolio. Certainly, you know, we've got good rollover momentum going into 2026. We feel good about, you know, delivering, you know, higher end of our algorithm on the new logo and upsell, cross-sell front.

So.

The year, the incremental middle synergy realization was $38 million.

Okay. Thank you and what's assumed for realization towards 'twenty six.

Ronan Kennedy: Okay, thank you. What's assumed for the realization for 2026?

Yes.

Obviously, we have some rollover from what we've already action our first priority for the year is growth.

Steven Marks: Yeah, I mean, obviously, we have some rollover from what we've already actioned. You know, our first priority for the year is growth. You know, the synergies, you know, we said we'll get to the targets by year-end. It's probably more second half of the year when we action those synergies, just because, you know, as we've talked about on some of the last few questions, you know, we're using 2026 and the momentum we have going into the year to help propel incremental growth. We've got a great action plan on getting those synergies, which are primarily in cost of sales and optimizing data acquisition costs and things like that. We know we'll get it. It'll just be a little later in the year. That's just kind of the balance of growth versus synergies.

Steven Marks: As we have our deals that are already in pipeline, how those ramp, plus the investments we're making and the incremental growth that we can get there, that's what pushes us probably from that midpoint towards the upper parts of the guidance range, would be the success of those as well. Those are really the two main factors. We know we are very pleased with the consistency and stability within retention, and that part of the algorithm, you know, we don't take it for granted, but, you know, it's such a core part of what we do here and our focus on our customers, that 96% or 97% retention number can be modeled and you know, very consistently. Got it. Thank you.

The synergies, we said we will get to the targets by year end, it's probably more second half of the year. When we action those synergies just because as we've talked about on what some of the last few questions.

Using 2026, and the momentum we have going into the year to help propel it incremental growth.

Yeah, running good question and you you kind of hit on the 2 main ones. So certainly you know as we talked about 6% growth at the midpoint kind of assumes that that flat hiring environment, you know, as I shared you know, in the range at the upper and lower ends is we think base is still, you know, between zero and negative -2. It's that continuing flat environment. Um, obviously there's still all the, you know, policy uncertainty, you know, that that comes out of Washington. These days that could always, you know, move that towards that upper or lower end. But you know, as Scott just mentioned, you know, we're hearing you know, very positive tones, and very consistent tones across the Enterprise customer portfolio. Uh, and then certainly, you know, we've got good rollover momentum going into 2026. So we feel good about um, you know, delivering, you know, higher end of our algorithm on the new logo and upsell crosselle front. Um, but, but as we have our, our deals that are already in pipeline, how those ramp plus the Investments we're making in the incremental growth that we can get there. That's what pushes us probably from that midpoint towards the, the upper parts of the

Got a great action plan on getting those synergies, which are primarily in cost of sales and optimizing data acquisition costs and things like that.

guidance range, um, would be the success of those as well. So, um,

But we know we will get it will just be a little later in the year, that's just kind of the balance of growth versus synergies.

Thank you Steve I appreciate it.

We'll go next now to Jeff Silber of BMO capital markets.

Ronan Kennedy: Thank you, Stephen. Appreciate it.

Those are really the 2 main factors. We know we we we are very pleased with the consistency and and stability within retention. Um, and and that part of the algorithm, you know, it we don't take it for granted, but, you know, it, it's, it's such a core part of what we do here and, and our focus on our customers, um, that that 96 or 97% retention number can be modeled in, you know, very consistently.

Thanks, So much I know, it's late I'll just ask one you alluded a few times in your prepared remarks to the digital identity practice is it possible to quantify that for us either as a percentage of revenues or growth and what's embedded in guidance for 2026.

Operator: We'll go next now to Jeff Silber of BMO Capital Markets.

Steven Marks: On the synergies, can I confirm, I think you've actioned 55 run rate as of 2025, targeting the 65 to 80? Can you reconfirm reported synergy benefit realized in 2025 Q4, and what the guide assumes for?

Scott Staples: Thanks so much. I know it's late. I'll just ask one. You alluded a few times in your prepared remarks to the digital identity practice. Is it possible to quantify that for us, either as a percentage of revenues or growth, and what's embedded in guidance for 2026? Yeah, I think it's becoming harder and harder to quantify because it's embedded in a bundled solution. We will try to give you some sort of quantification of the impact of digital ID probably in another six months. We just let this pan out a little further, there's really two aspects to it. There's one where it, you know, it can be quantified as a standalone, you know, operation, and two, where it's embedded in with a number of other products, a little harder to quantify.

Jeff Silber: Thanks so much. I know it's late. I'll just ask one. You alluded a few times in your prepared remarks to the digital identity practice. Is it possible to quantify that for us, either as a percentage of revenues or growth, and what's embedded in guidance for 2026?

Yeah I think.

It's becoming harder and harder to quantify because it's embedded in a bundled solution.

Scott Staples: Yeah, I think it's becoming harder and harder to quantify because it's embedded in a bundled solution. We will try to give you some sort of quantification of the impact of digital ID probably in another six months. We just let this pan out a little further, there's really two aspects to it. There's one where it, you know, it can be quantified as a standalone, you know, operation, and two, where it's embedded in with a number of other products, a little harder to quantify.

Scott Staples: Yeah.

Steven Marks: realization benefits?

Scott Staples: Yep. You're right on. We've, you know, as of the end of the year, we had actioned 55 of the 65 to 80 target. $8 million was incrementally realized in Q4 2025. If you recall, when we closed the deal on 31 October 2024, we did some day one synergies and realized $4 million in 2024. That $8 million is incremental to that. You know, for the year, the incremental synergy realization was $38 million.

Got it. Thank you. And then on, on the, uh, synergies can I confirm I think you've actioned 55 run rate as of 25 targeting the 65 to 80. Uh, can you reconfirm reported Synergy benefit realized in 254 q and what the guide assumes for Synergy realization benefits

We.

We will try to give you some sort of quantification of the impact of digital I'd.

Probably in another six months.

We just let this pan out a little further.

But there is there's really two aspects to it there's one where it can be quantified as a standalone.

Operations, and two where it's embedded in with a number of other products, a little harder to quantify but I.

October 31st, the 24th. We did some day 1 synergies and realized 4 million in in in 2024 so that 8 million is incremental to that. Um so you know for for the year, the incremental mental Synergy realization was 38 million

Steven Marks: Okay, thank you. What's assumed for the realization for 2026?

I can tell you anecdotally that it's having a tremendous impact on the pipeline.

Scott Staples: Yeah, I mean, obviously, we have some rollover from what we've already actioned. You know, our first priority for the year is growth. You know, the synergies, you know, we said we'll get to the targets by year end. It's probably more second half of the year when we action those synergies, just because, you know, as we've talked about on some of the last few questions, you know, we're using 2026 and the momentum we have going into the year to help propel incremental growth. We've got a great action plan on getting those synergies, which are primarily in cost of sales and optimizing data acquisition costs and things like that. We know we'll get it. We'll just be a little later in the year.

Okay, thank you. And what what's assumed for the realization for 26?

Scott Staples: I can tell you anecdotally that it's having a tremendous impact on the pipeline and a number of go lives in Q4 with very large customers. One, we're gonna get a quantification of a revenue lift. Two, we believe it also brings a lot of stickiness with it, so it should even help retention, because now you're really embedded with a customer when you're handling their digital ID all through their background check and onboarding. We will try to give you a little more quantification flavor of that in about another six months, but I can anecdotally tell you it's having a really nice impact.

And on our end and a number of go lives in Q4 with very large customers. So.

One we're going to get a quantification of a revenue lift.

Two we believe it also brings a lot of stickiness with it so it should even help retention because now you really embedded with the customer when you're handling their digital ideal through their background check in on boarding.

Scott Staples: That's just kind of the balance of growth versus synergies.

So we will give try to give you a little more quantification flavor of that in about another six months, but I can anecdotally tell you, it's having a really nice impact.

Steven Marks: Thank you, Steven. Appreciate it.

Yeah. I mean I mean obviously we have some roll over from what we've already actioned. You know, our our first priority for the year is growth. Um, you know, the Synergy is, you know, we said, we'll get to the targets by year end. It's probably more second half of the year when we action those synergies just because, you know, as we've talked about on some of the last few questions, you know, we're using 2026 in the momentum, we have going into the year to help Propel and incremental growth. Um, we've got a great action plan on getting to those synergies which are primarily in cost of sales and optimizing data acquisition costs and things like that. Um, but we, we know, we'll get it, we'll just be a little later in the year. That's just kind of the balance of growth versus synergies.

Thank you, Stephen. Appreciate it.

Operator: We'll go next now to Jeff Silber of BMO Capital Markets.

Alright, I appreciate the color Scott Thanks.

We'll go next. Now to Jeff silver of BMO Capital markets.

Thank you. We'll go next now to Scott Wurtzel of Wolfe Research.

Operator: All right. Appreciate the call, Scott. Thanks. Thank you. We'll go next now to Scott Wurtzel of Wolfe Research.

Jeff Silber: All right. Appreciate the call, Scott. Thanks.

Operator: Thank you. We'll go next now to Scott Wurtzel of Wolfe Research.

Hey, Good morning, guys, Hey, I'll, just ask one as well and actually on the on identity to it just in the context of like mix impact on margins, what sort of I guess, what sort of impact is that it would be have on on margins I guess relative to some of the other products.

Scott Wurtzel: Hey, good morning, guys. Yeah, I'll just ask one as well, and actually on identity too, just in the context of, like, mixed impact on margins. What sort of impact does identity have on, you know, on margins, I guess, relative to, you know, some of the other products that you have? Thanks.

Scott Staples: Yeah. I think it's becoming harder and harder to quantify because it's embedded in a bundled solution. We will try to give you some sort of quantification of the impact of digital ID, probably in another six months. We just let this pan out a little further. There's really two aspects to it. There's one where you know, it can be quantified as a standalone, you know, operation, and two, where it's embedded in with a number of other products, a little harder to quantify. I can tell you anecdotally that it's having a tremendous impact on the pipeline and a number of go lives in Q4 with very large customers. One, we're going to get a quantification of a revenue lift.

Thanks so much. I know it's late. I'll just ask 1 um you alluded a few times in your prepared remarks to the digital identity practice. Is it possible to quantify that for us either as a percentage of revenues or growth and what's embedded in guidance for 2026?

Yes again, yes.

Oh go ahead Steve.

I know, it's certainly a higher margin product because if you don't have to go out and acquire important data or driver record data or drug screening data.

Scott Staples: Yeah.

Steven Marks: Yeah, I think-

Scott Staples: Oh, go ahead, Steven. Yeah. Over to you.

Steven Marks: Yeah, no, it's certainly a higher margin product because if you don't have to go out and acquire court data or driver record data or drug screening data, you know, cost, things like that. It is a higher margin product. It's, you know, really a core tech service at its heart. As Scott mentioned, it's getting harder and harder to break apart the discrete impact of it because it's either, you know, embedded and bundled into other services. To Scott's other point, you know, it's driving and it's the reason a lot of customers are looking at and/or choosing First Advantage. You could argue it's tremendously benefit from a margin standpoint because you're winning opportunity.

Things like that so.

So it is a it is a higher margin product, it's really our core tech service, it's harder but.

But as Scott mentioned, it's getting harder and harder to break apart the discrete impact of it because it's either embedded embedded in bundled into other services and just got the other point, it's driving and it's the reason a lot of a lot of customers are looking at <unk> choosing first advantage.

So you could argue it's tremendously benefit from a margin standpoint, because youre winning opportunity, it's almost a marketing mechanism at this point.

Got it thanks guys.

Steven Marks: It's almost a marketing mechanism at this point.

Thank you we'll go next now to Kyle Peterson with Needham.

Scott Wurtzel: Got it. Thanks, guys.

Hey.

Operator: Thank you. We'll go next now to Kyle Peterson with Needham.

Scott Staples: 2, we believe it also brings a lot of stickiness with it, so it should even help retention because now you're really embedded with a customer when you're handling their digital ID all through their background check and onboarding. We will try to give you a little more quantification flavor of that in about another 6 months, but I can anecdotally tell you, it's having a really nice impact.

Good morning, Nice results. Thanks for squeezing me in I'll, just ask one as well I wanted to ask a little bit on upsell cross sell particularly a package density that's been a really nice tailwind for you guys for quite a while here I guess, if you guys had a guess and what inning would you say that we're in here.

Yeah, I I think it's becoming harder and harder to quantify because it's embedded in a bundled solution. Um, we we will try to give you some sort of quantification of the impact of digital ID probably in another 6 months. Um, we just let this pan out a little further, um, but there's, there's really 2 aspects to it. There's 1 where it, you know, it can be Quantified as a standalone, you know, operation and 2. Where it's embedded in with a number of other products, a little harder to quantify, but I, I can tell you anecdotally that, um, it's having a tremendous impact on the pipeline, um, and on our and a, and a number of go lives in, in Q4 with very large customers. So 1, we're going to get a quantification of a revenue lift, uh, to

Kyle Peterson: Hey, good morning. Nice results. Thanks for squeezing me in. I'll just ask one as well. I wanted to ask a little bit on, you know, upsell, cross-sell to great package density. That's been, you know, a really nice tailwind for you guys for quite a while here. I guess if you guys had to guess, you know, what inning would you say that we're in here? Like, is there still a lot of progress, you know, this can continue to support, you know, pretty sustained growth over the next, you know, couple of years, or are a lot of the packages kind of fully densified? Just any color as to where we are would be really helpful.

Is there still a lot of progress.

We can continue to support.

Pretty sustained growth over the next.

Jeff Silber: All right. Appreciate the color, Scott. Thanks.

2. We believe it also brings a lot of stickiness with it, so it should even help retention. Um, because now you're really embedded with a customer. When you're handling their digital ID all through their background to check in on boarding. Um, so we will give try to give you a little more quantification flavor of that in about another 6 months, but I can anecdotally tell you, it's having a, a really nice impact.

And a couple of years or are the package I was kind of fully densify just any color as to where we are would be really helpful.

All right, appreciate the color Scott. Thanks.

Operator: Thank you. We'll go next now to Scott Wurtzel of Wolfe Research.

Thank you. We go next now to Scott Wortzel of Wolfe Research.

Scott Wurtzel: Hey, good morning, guys. Yeah, I'll just ask one as well, and actually on identity, too, just in the context of, like, mixed impact on margins. What sort of impact does identity have on, you know, on margins, I guess, relative to, you know, some of the other products that you have? Thanks.

Staying with the sports analogy, Scott I would say that actually the <unk>. The game has started all over again.

Scott Staples: Staying with the sports analogy, Scott, I would say that actually the game has started all over again. You know, where we were probably you know, a year ago is maybe halfway through the game. I'd say the game has completely started over. It's, it's first inning of the next generation of package density with digital identity being at the center. It, it's also, you know, you know, I, you know, I hate, I hate to say this, you know, turn your TV on at night and, you know, the world is very challenging right now. As I mentioned with our trends report, risk and risk mitigation, it has leapfrogged to our customers, our buyers' number one concern.

So.

Where we were probably.

A year ago as maybe halfway through the game.

Scott Staples: Yeah.

Steven Marks: Yeah, Scott, I mean.

Hey, good morning guys. Yeah I'll just ask 1 as well and actually on on identity 2 and just in the context of like mixed impact on margins, what sort of I guess what sort of impact does identity have on, you know, on margins I guess relative to you know some of the other products that you have nice.

Scott Staples: Oh, go ahead, Steven. Yeah. Over to you.

Steven Marks: Yeah, no, it's certainly a higher margin product because if you don't have to go out and acquire court data or driver record data or drug screening data, you know, costs, things like that. It is a higher margin product. It's, you know, really a core tech service in its heart. As Scott mentioned, it's getting harder and harder to break apart the discrete impact of it because it's either, you know, embedded in, bundled into other services. To Scott's other point, you know, it's driving and it's the reason a lot of customers are looking at and/or choosing First Advantage. You could argue it's tremendously benefit from a margin standpoint because you're winning opportunity.

But I'd say the game has completely started over so that's first inning of the next generation of package density with digital identity being at the center.

It's also you know.

I hate to say this but turn your TV on at night and.

The World is is very challenging right now.

And as I mentioned with our trends report.

Risk and risk mitigation has leapfrogged to arm our customers our buyers number one concern.

And what that then means is package density because theyre, just looking for more and more protection they want to protect their employees. They want their brand. They wanted to protect their offices their physical infrastructure. They want to protect their shareholder value. So anytime we can come up with.

Steven Marks: It's almost a marketing mechanism at this point.

Scott Staples: What that then means is package density, because they're just looking for more and more protection. They want to protect their employees, they want to protect their brand, they want to protect their offices, their physical infrastructure, they want to protect their shareholder value. Anytime we can come up with, you know, more data searches, better data searches, we can come up with new offerings, new product lines, new ways of doing verifications, new ways of doing identity, we seem to be catching a very welcoming ear at our customers because their C-suite and their boards are continuously asking them: What else can we be doing?

Yeah, again I mean go ahead Stephen. Yeah, yeah, no. It's certainly a higher margin product because it you don't have to go out and acquire Court data or or or driver record data or drug screening data, you know, you know, cost things like that. Um, so it, it is a it is a higher margin product. It's, you know, really a core tech service in in its heart. Um, but as Scott mentioned, it's it's getting harder and harder to break apart the, the, uh, discrete impact of it. Because it's either, you know, embedded embedded in bundled into other services. And to Scott's other point, you know, it's driving and, and it's the reason a lot of, a lot of customers are looking at and or choosing First Advantage. Um, so you could argue, it's it's, it's tremendously benefit from a margin standpoint because you're winning opportunity. It's almost a marketing mechanism at this point.

Scott Wurtzel: Got it. Thanks, guys.

Got it. Thanks guys.

Operator: Thank you. We'll go next now to Kyle Peterson with Needham.

Kyle Peterson: Hey, good morning. Nice results. Thanks for squeezing me in. I'll just ask 1 as well. Wanted to ask a little bit on, you know, upsell, cross-sell, particularly package density. That's been, you know, a really nice tailwind for you guys for quite a while here. I guess, if you guys had to guess, you know, what inning would you say that we're in here? Like, is there still a lot of progress, you know, this can continue to support, you know, pretty sustained growth over the next, you know, 2 years? Or, are a lot of the packages kinda fully densified? Just any color as to where we are would be really helpful.

Thank you. We'll go next now to Kyle Peterson with Needham.

More data searches better data searches, we could come up with new offerings, new product lines, new ways of doing verifications, new ways of doing identity.

We seem to be catching a very welcoming year at our customers because their C suite and their boards are continuously asking them what else can we be doing so I'd say the game has started over with digital identity being the cleanup hitter and your and your metaphor.

Scott Staples: I'd say the game has started over with digital identity being the cleanup hitter in your metaphor, where it's really an epidemic right now, and First Advantage is really in a good position.

Where.

It's really an epidemic right now.

Scott Staples: Yes, staying with the sports analogy, Scott, I would say that actually the game has started all over again. You know, where we were probably a year ago is maybe halfway through the game. I'd say the game has completely started over. It's first inning of the next generation of package density, with digital identity being at the center. It's also, you know, I hate to say this, turn your TV on at night and, you know, the world is very challenging right now. As I mentioned with our trends risk and risk mitigation, it has leapfrogged to our customers, our buyers number one concern.

Hey uh, good morning. Uh, nice results. Thanks for squeezing me in. I'll just ask, uh, 1 as well. I want to ask a little bit on, you know, upsell crosselle particular package density. That's been you know, really nice Tailwind for you guys for quite a while here. I guess if you guys had to guess, you know what inning would you say that we're in here? Like is there still a lot of progress you know, this can continue to support you know pretty sustained growth over the next uh you know a couple years or or or the a lot of the packages kind of fully densify just any color as to where we are would be really helpful.

First advantages is is really in a good position.

Okay.

Great. Thank you very much and nice results.

Yes, staying with the sports analogy Scott. I would say that actually, the, it's the game I started all over again.

Kyle Peterson: Great. Thank you very much, and nice results.

Thank you and ladies and gentlemen that is all the questions. We have today, so that will bring us to the conclusion of today's conference call. We'd like to thank you. All so much for joining the first advantage fourth quarter and full year 2025 earnings conference call and webcast. At this time you may disconnect your line.

Operator: Thank you. Ladies and gentlemen, that is all the questions we have today. That will bring us to the conclusion of today's conference call. We'd like to thank you all so much for joining the First Advantage Q4 and full year 2025 earnings conference call and webcast. At this time, you may disconnect your line.

Scott Staples: What that then means is package density, because they're just looking for more and more protection. They want to protect their employees, their brand, their offices, their physical infrastructure. They want to protect their shareholder value. Anytime we can come up with, you know, more data searches, better data searches, we can come up with new offerings, new product lines, new ways of doing verifications, new ways of doing identity, we seem to be catching a very welcoming ear at our customers because their C-suite and their boards are continuously asking them: What else can we be doing? I'd say the game has started over, with digital identity being the cleanup hitter in your metaphor, where it's really an epidemic right now.

You know, where we were probably, you know, a year ago is maybe halfway through the game, um but I'd say the game has completely started over. Uh, so it's, it's first inning of the next generation of package density with digital identity being at the center. Um, it's also, you know, you know, I, you know, I hate, I hate to say this but you know, turn your TV on at night and, you know, the the world is is very challenging right now. Um, and as I mentioned with our Trends report risk and risk mitigation, it has leapfrogged to our our customers, our buyers number 1 concern. Um, and what that then means is packaged density because they're just looking for more and more protection. They want to protect their employees. They want to attack their brand, they want to protect their offices, their physical infrastructure, they want to protect their shareholder value. So anytime we can come up with, you know,

More data searches better data searches, we can come up with new offerings, new product lines, uh, new ways of doing verifications new ways of doing identity. Um, we seem to be catching a very welcoming year at our customers because their sea suite and their boards are continuously asking them what else can we be doing? So I'd say the game has started over with digital identity being the cleanup hitter in your

In your uh, metaphor. Um, where, uh,

Scott Staples: First Advantage is really in a good position.

It's really an epidemic right now. Um and uh First Advantage is is, is really in a good position.

Operator: Great. Thank you very much. Nice results.

Great. Thank you very much and nice results.

Operator: Thank you. Ladies and gentlemen, that is all the questions we have today. That will bring us to the conclusion of today's conference call. We'd like to thank you all so much for joining the First Advantage Q4 and full year 2025 Earnings Conference Call and webcast. At this time, you may disconnect your line and have a wonderful day. Goodbye.

Thank you, and ladies and gentlemen, that is all the questions we have today. So that will bring us to the conclusion of today's conference call. We'd like to thank you all so much for joining the First Advantage. Fourth quarter and full year, 2025 earnings conference call and webcast. At this time, you may disconnect your line and have a wonderful day. Goodbye.

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