FAFIRST ADVANTAGE CORP

Services-Computer Processing & Data Preparation

Revenue: $1.6B; 83% YoY
Operating margin: 8.4%; 216% YoY
EBITDA: $244M; 1549% YoY
Market cap: $3.7B
Employees: 9,500; $166K revenue each
Net debt / EBITDA: 7.7×; $1.9B net debt
AI in 10-K: 6.1; mentions per 10K words

Takeover score 6 of 13

Fixable underperformance 3 of 7

TSR below peersYes
3 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$758K median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
2% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
30% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
57% of assets
Over 40% of assets
Shareholder dissentYes
79% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeYes
$166K · 9th pct
Bottom quartile of its SIC industry
Quiet on AINo
6.1 per 10K words · 86th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
7.7× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$3.7B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$276M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$712M	$810M	$764M	$860M	$1.6B	83%
Operating income	$64M	$94M	$82M	−$62M	$132M	312%
Net income	$16M	$65M	$37M	−$110M	−$35M	68%
Operating cash flow	$149M	$213M	$163M	$28M	$195M	592%
Capex	$7M	$6M	$2M	$2M	$7M	286%
Stock-based comp	$10M	$8M	$15M	$32M	$24M	23%
Buybacks	—	$61M	$59M	—	—

Deal filings

Filed	Form	Acquirer	Price	Premium
Nov 18, 2009	SC TO-T/A	FIRST AMERICAN CORP	—	—
Nov 12, 2009	SC TO-T/A	FIRST AMERICAN CORP	—	—
Nov 3, 2009	SC TO-T/A	FIRST AMERICAN CORP	—	—
Oct 30, 2009	SC TO-T/A	FIRST AMERICAN CORP	—	—
Oct 9, 2009	SC TO-T	FIRST AMERICAN CORP	—	—

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $107K · 1
Open-market sells, 12 mo: $276M · 8
Net: −$276M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$1M	−$1M	82	112
FY2024	$617K	$4M	106	92
FY2023	$705K	$11M	94	92
FY2022	$758K	−$14M	66	80
FY2021	$7M	$39M	97	101