First Advantage Corp. (FA), a leading provider of employment background screening services, saw its stock plunge around 5.17% in pre-market trading on Thursday, following the company's fourth quarter 2024 earnings release and full-year 2025 guidance.

For the fourth quarter, First Advantage reported adjusted earnings per share of $0.18, missing analyst estimates of $0.23. While revenue of $307.1 million beat expectations, it grew at a slower pace than anticipated, up 51.62% year-over-year.

The company's results were impacted by higher costs and expenses related to its recently completed acquisition of Sterling Check Corp. (STER). First Advantage is currently focused on integrating the two businesses and realizing expected synergies from the deal.

Looking ahead to 2025, First Advantage provided guidance ranges that fell short of analyst projections. The company expects full-year revenue between $1.5 billion and $1.6 billion, with adjusted earnings per share in the range of $0.86 to $1.03. Analysts had anticipated higher figures, reflecting a more cautious outlook from the company.

In a statement, First Advantage cited macroeconomic headwinds, a slower recovery in the labor market, and a prudent approach to growth projections as factors influencing its 2025 guidance. The company remains focused on maintaining its product and customer focus while continuing the integration process, reducing net leverage, and actioning synergies from the Sterling acquisition.