Kyle Peterson's questions to First Advantage Corp (FA) leadership • Q2 2025
Question
Kyle Peterson from Needham & Company asked for clarification on the assumptions within the updated interest expense guidance, including the impact of debt repricing and rate cuts. He also inquired about the competitive environment and whether the company's increased scale post-Sterling acquisition is improving win rates.
Answer
CFO Steven Marks confirmed the interest expense guidance incorporates the recent debt repricing and voluntary prepayment, and conservatively assumes only one 25 bps rate cut in December. CEO Scott Staples noted that while win rates are improving, he attributes this to their focused execution on software, data, and AI-driven client experience improvements, rather than scale alone.