Sterling Check (STER) 10-Q8 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Nov. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-40829
Entity Registrant Name	Sterling Check Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1784336
Entity Address, Address Line One	6150 Oak Tree Boulevard
Entity Address, Address Line Two	Suite 490
Entity Address, City or Town	Independence
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44131
City Area Code	800
Local Phone Number	853-3228
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	STER
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		94,285,105
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001645070

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 49,877	$ 103,095
Accounts receivable (net of allowance for credit losses of $2,670 and $2,304 at September 30, 2023 and December 31, 2022, respectively)	151,935	139,579
Insurance receivable	4,689	921
Prepaid expenses	8,595	13,433
Other current assets	23,770	13,654
Total current assets	238,866	270,682
Property and equipment, net	7,330	10,341
Goodwill	878,390	849,609
Intangible assets, net	240,482	241,036
Deferred tax assets	4,328	4,452
Operating leases right-of-use asset	7,020	20,084
Other noncurrent assets, net	10,499	11,050
TOTAL ASSETS	1,386,915	1,407,254
CURRENT LIABILITIES:
Accounts payable	39,327	38,372
Litigation settlement obligation	7,178	4,165
Accrued expenses	60,387	67,047
Current portion of long-term debt	13,125	7,500
Operating leases liability, current portion	4,233	3,717
Other current liabilities	14,435	12,939
Total current liabilities	138,685	133,740
Long-term debt, net	483,334	493,990
Deferred tax liabilities	31,584	23,707
Long-term operating leases liability, net of current portion	8,834	16,835
Other liabilities	3,737	2,336
Total liabilities	666,174	670,608
COMMITMENTS AND CONTINGENCIES (NOTE 13)
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding)	0	0
Common stock ($0.01 par value; 1,000,000,000 shares authorized; 99,889,227 shares issued and 95,045,289 shares outstanding at September 30, 2023; 97,765,120 shares issued and 96,717,883 shares outstanding at December 31, 2022)	97	76
Additional paid-in capital	971,950	942,789
Common stock held in treasury (4,843,938 and 1,047,237 shares at September 30, 2023 and December 31, 2022, respectively)	(64,499)	(14,859)
Accumulated deficit	(183,180)	(186,448)
Accumulated other comprehensive loss	(3,627)	(4,912)
Total stockholders’ equity	720,741	736,646
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,386,915	$ 1,407,254

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 2,670	$ 2,304
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	99,889,227	97,765,120
Common stock, shares outstanding (in shares)	95,045,289	96,717,883
Common stock held in treasury (in shares)	4,843,938	1,047,237

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
REVENUES	$ 180,566	$ 199,299	$ 550,224	$ 596,862
OPERATING EXPENSES:
Cost of revenues (exclusive of depreciation and amortization below)	95,882	106,422	292,692	314,954
Corporate technology and production systems	11,329	13,715	34,709	38,806
Selling, general and administrative	42,382	42,411	134,743	126,630
Depreciation and amortization	15,875	16,570	47,117	56,598
Impairments and disposals of long-lived assets	48	193	7,193	805
Total operating expenses	165,516	179,311	516,454	537,793
OPERATING INCOME	15,050	19,988	33,770	59,069
OTHER EXPENSE (INCOME):
Interest expense, net	9,305	7,764	26,903	20,719
Gain on interest rate swaps	0	0	0	(296)
Other income	(561)	(560)	(1,370)	(1,422)
Total other expense, net	8,744	7,204	25,533	19,001
INCOME BEFORE INCOME TAXES	6,306	12,784	8,237	40,068
Income tax provision	3,952	3,481	4,969	12,958
NET INCOME	2,354	9,303	3,268	27,110
Unrealized gain on hedged transactions, net of tax expense of $1,188, $0, $1,044 and $0, respectively	1,962	0	1,554	0
Foreign currency translation adjustments, net of tax of $0, $0, $0 and $0, respectively	(1,906)	(4,790)	(269)	(7,990)
Total other comprehensive income (loss)	56	(4,790)	1,285	(7,990)
COMPREHENSIVE INCOME	$ 2,410	$ 4,513	$ 4,553	$ 19,120
Net income per share attributable to stockholders
Basic (in USD per share)	$ 0.03	$ 0.10	$ 0.04	$ 0.29
Diluted (in USD per share)	$ 0.03	$ 0.09	$ 0.03	$ 0.27
Weighted average number of shares outstanding
Basic (in shares)	90,972,009	94,134,690	92,184,159	94,043,105
Diluted (in shares)	93,651,691	99,118,521	94,493,254	99,217,125

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Tax expense on unrealized gain on hedged transactions	$ 1,188	$ 0	$ 1,044	$ 0
Tax on foreign currency translation adjustments	$ 0	$ 0	$ 0	$ 0

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Common Shares Held in Treasury	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021			95,746,975
Beginning balance at Dec. 31, 2021	$ 709,624	$ (198)	$ 68	$ 916,578	$ (897)	$ (206,218)	$ (198)	$ 93
Beginning balance (in shares) at Dec. 31, 2021					107,820
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			1,112
Common stock issued for exercise of employee stock options (in shares)			8,486
Common stock issued for exercise of employee stock options	80			80
Issuance of restricted shares, net of forfeitures (in shares)			533,095
Issuance of restricted shares, net of forfeitures	0		$ 5	(5)
Stock-based compensation	5,108			5,108
Net income	6,236					6,236
Foreign currency translation adjustment, net of tax				(8)				283
Foreign currency translation adjustment, net of tax	275
Ending Balance (in shares) at Mar. 31, 2022			96,289,668
Ending Balance at Mar. 31, 2022	721,125		$ 73	921,753	$ (897)	(200,180)		376
Ending balance (in shares) at Mar. 31, 2022					107,820
Beginning balance (in shares) at Dec. 31, 2021			95,746,975
Beginning balance at Dec. 31, 2021	709,624	$ (198)	$ 68	916,578	$ (897)	(206,218)	$ (198)	93
Beginning balance (in shares) at Dec. 31, 2021					107,820
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,110
Unrealized gain (loss) on hedged transactions, net of tax	0
Foreign currency translation adjustment, net of tax	(7,990)
Ending Balance (in shares) at Sep. 30, 2022			96,548,066
Ending Balance at Sep. 30, 2022	748,214		$ 75	936,239	$ (897)	(179,306)		(7,897)
Ending balance (in shares) at Sep. 30, 2022					107,820
Beginning balance (in shares) at Mar. 31, 2022			96,289,668
Beginning balance at Mar. 31, 2022	721,125		$ 73	921,753	$ (897)	(200,180)		376
Beginning balance (in shares) at Mar. 31, 2022					107,820
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			1,812
Common stock issued for exercise of employee stock options (in shares)			76,399
Common stock issued for exercise of employee stock options	734			734
Issuance of restricted shares, net of forfeitures (in shares)			42,388
Stock-based compensation	6,023			6,023
Net income	11,571					11,571
Foreign currency translation adjustment, net of tax				(24)				(3,483)
Foreign currency translation adjustment, net of tax	(3,507)
Ending Balance (in shares) at Jun. 30, 2022			96,410,267
Ending Balance at Jun. 30, 2022	735,946		$ 73	928,486	$ (897)	(188,609)		(3,107)
Ending balance (in shares) at Jun. 30, 2022					107,820
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			1,604
Common stock issued for exercise of employee stock options (in shares)			159,350
Common stock issued for exercise of employee stock options	1,479		$ 2	1,477
Issuance of restricted shares, net of forfeitures (in shares)			(23,155)
Stock-based compensation	6,293			6,293
Net income	9,303					9,303
Unrealized gain (loss) on hedged transactions, net of tax	0
Foreign currency translation adjustment, net of tax	(4,790)			(17)				(4,790)
Foreign currency translation adjustment, net of tax	(4,807)
Ending Balance (in shares) at Sep. 30, 2022			96,548,066
Ending Balance at Sep. 30, 2022	$ 748,214		$ 75	936,239	$ (897)	(179,306)		(7,897)
Ending balance (in shares) at Sep. 30, 2022					107,820
Beginning balance (in shares) at Dec. 31, 2022	96,717,883		96,717,883
Beginning balance at Dec. 31, 2022	$ 736,646		$ 76	942,789	$ (14,859)	(186,448)		(4,912)
Beginning balance (in shares) at Dec. 31, 2022	1,047,237				1,047,237
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			4,567
Repurchases of common stock (in shares)			493,926		493,926
Repurchases of common stock	$ (7,712)				$ (7,712)
Issuance of restricted shares, net of forfeitures (in shares)			1,894,310
Issuance of restricted shares, net of forfeitures	0		$ 19	(19)
Shares withheld to cover restricted share vesting tax (in shares)			(37,128)		(37,128)
Shares withheld to cover restricted share vesting tax	(487)				$ (487)
Stock-based compensation	8,043			8,043
Net income	591					591
Unrealized gain (loss) on hedged transactions, net of tax	(5,159)							(5,159)
Foreign currency translation adjustment, net of tax	682							682
Ending Balance (in shares) at Mar. 31, 2023			98,085,706
Ending Balance at Mar. 31, 2023	$ 732,604		$ 95	950,813	$ (23,058)	(185,857)		(9,389)
Ending balance (in shares) at Mar. 31, 2023					1,578,291
Beginning balance (in shares) at Dec. 31, 2022	96,717,883		96,717,883
Beginning balance at Dec. 31, 2022	$ 736,646		$ 76	942,789	$ (14,859)	(186,448)		(4,912)
Beginning balance (in shares) at Dec. 31, 2022	1,047,237				1,047,237
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchases of common stock (in shares)	3,523,838
Repurchases of common stock	$ (46,000)
Net income	3,268
Unrealized gain (loss) on hedged transactions, net of tax	1,554
Foreign currency translation adjustment, net of tax	$ (269)
Ending Balance (in shares) at Sep. 30, 2023	95,045,289		95,045,289
Ending Balance at Sep. 30, 2023	$ 720,741		$ 97	971,950	$ (64,499)	(183,180)		(3,627)
Ending balance (in shares) at Sep. 30, 2023	4,843,938				4,843,938
Beginning balance (in shares) at Mar. 31, 2023			98,085,706
Beginning balance at Mar. 31, 2023	$ 732,604		$ 95	950,813	$ (23,058)	(185,857)		(9,389)
Beginning balance (in shares) at Mar. 31, 2023					1,578,291
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			2,363
Repurchases of common stock (in shares)			1,465,893		1,465,893
Repurchases of common stock	(17,630)				$ (17,630)
Common stock issued for exercise of employee stock options (in shares)			63,336
Common stock issued for exercise of employee stock options	611			611
Issuance of restricted shares, net of forfeitures (in shares)			80,331
Issuance of restricted shares, net of forfeitures	0		$ 1	(1)
Shares withheld to cover restricted share vesting tax (in shares)			(7,181)		(7,181)
Shares withheld to cover restricted share vesting tax	(85)				$ (85)
Stock-based compensation	9,358			9,358
Net income	323					323
Unrealized gain (loss) on hedged transactions, net of tax	4,751							4,751
Foreign currency translation adjustment, net of tax	955							955
Ending Balance (in shares) at Jun. 30, 2023			96,758,662
Ending Balance at Jun. 30, 2023	$ 730,887		$ 96	960,781	$ (40,773)	(185,534)		(3,683)
Ending balance (in shares) at Jun. 30, 2023					3,051,365
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchases of common stock (in shares)	1,564,019		1,564,019		1,564,019
Repurchases of common stock	$ (20,701)				$ (20,701)
Common stock issued for exercise of employee stock options (in shares)			165,422
Common stock issued for exercise of employee stock options	1,387		$ 2	1,385
Issuance of restricted shares, net of forfeitures (in shares)			(86,222)
Issuance of restricted shares, net of forfeitures	0		$ (1)	1
Shares withheld to cover restricted share vesting tax (in shares)			(228,554)		(228,554)
Shares withheld to cover restricted share vesting tax	(3,025)				$ (3,025)
Stock-based compensation	9,783			9,783
Net income	2,354					2,354
Unrealized gain (loss) on hedged transactions, net of tax	1,962							1,962
Foreign currency translation adjustment, net of tax	$ (1,906)							(1,906)
Ending Balance (in shares) at Sep. 30, 2023	95,045,289		95,045,289
Ending Balance at Sep. 30, 2023	$ 720,741		$ 97	$ 971,950	$ (64,499)	$ (183,180)		$ (3,627)
Ending balance (in shares) at Sep. 30, 2023	4,843,938				4,843,938

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Accounting Standards Update 2016-13
Tax on cumulative effect adjustment for adoption of CECL	$ 56

UNAUDITED CONDENSED CONSOLIDA_7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 3,268	$ 27,110
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	47,117	56,598
Deferred income taxes	(200)	4,885
Stock-based compensation	27,184	17,424
Impairments and disposals of long-lived assets	7,193	805
Provision for bad debts	556	1,016
Amortization of financing fees	808	327
Amortization of debt discount	594	1,444
Deferred rent	383	(170)
Unrealized translation loss (gain) on investment in foreign subsidiaries	94	(1,838)
Changes in fair value of derivatives	0	(4,102)
Change in fair value of contingent consideration, net	(686)	0
Interest rate swap settlements	1,323	0
Changes in operating assets and liabilities
Accounts receivable	(8,699)	(33,145)
Insurance receivable	(3,768)	0
Prepaid expenses	5,849	3,579
Other assets	(6,493)	(2,097)
Accounts payable	757	6,546
Litigation settlement obligation	3,013	0
Accrued expenses	(7,982)	84
Other liabilities	(4,635)	(4,868)
Net cash provided by operating activities	65,676	73,598
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,377)	(3,978)
Purchases of intangible assets and capitalized software	(13,364)	(11,719)
Acquisitions, net of cash acquired	(49,210)	0
Proceeds from disposition of property and equipment	121	25
Net cash used in investing activities	(63,830)	(15,672)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock	1,998	2,291
Repurchases of common stock	(46,043)	0
Payments of initial public offering issuance costs	0	(225)
Cash paid for tax withholding on vesting of restricted shares	(3,597)	0
Payments of long-term debt	(5,625)	(4,846)
Payment of contingent consideration for acquisition	(305)	(226)
Payments of finance lease obligations	0	(3)
Net cash used in financing activities	(53,572)	(3,009)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(1,492)	(3,725)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(53,218)	51,192
Beginning of period	103,095	47,998
Cash and cash equivalents at end of period	49,877	99,190
Cash paid during the period for
Interest, net of capitalized amounts of $308 and $245 for the nine months ended September 30, 2023 and 2022, respectively	29,006	24,277
Income taxes	13,219	11,513
Noncash investing activities
Purchases of property and equipment in accounts payable and accrued expenses	400	8
Noncash purchase price of business combinations	$ 4,706	$ 0

UNAUDITED CONDENSED CONSOLIDA_8

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Cash Flows [Abstract]
Interest, capitalized amounts	$ 308	$ 245

Description of Business

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Sterling Check Corp. (the “Company”), a Delaware corporation headquartered in Independence, Ohio, is a global provider of technology-enabled background and identity verification services. The Company provides the foundation of trust and safety its clients need to create effective environments for their most essential resource—people. The Company offers a comprehensive hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, employee onboarding document processing and ongoing risk monitoring. As of September 30, 2023, the Company is 52.4% owned by an investment group consisting of entities advised by or affiliated with The Goldman Sachs Group, Inc. (“Goldman Sachs”) and Caisse de dépôt et placement du Québec (“CDPQ” and, together with Goldman Sachs, our “Sponsor”). CDPQ owns its equity interest in the Company indirectly through a limited partnership controlled by Goldman Sachs.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that can affect the reported amount of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Significant estimates include the impairment of long-lived assets, goodwill impairment, the determination of the fair value of acquired assets and liabilities, collectability of receivables, the valuation of stock-based awards and stock-based compensation and sales and income tax liabilities. The Company also applies an estimated useful life of three years to internally developed software assets. This is based on the historical observed pace of change in the Company’s delivery, technology, and product offerings as well as market competition. The Company believes that the estimates used in the preparation of these unaudited condensed consolidated financial statements are reasonable; however, actual results could differ materially from these estimates. Segment Information The Company has one operating and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Cash and Cash Equivalents Cash and cash equivalents of $49.9 million and $103.1 million as of September 30, 2023 and December 31, 2022, respectively, include money market instruments with maturities of three months or less. The Company maintained cash outside the U.S. as of September 30, 2023 of $33.4 million with the largest deposits being held in India and Canada, with balances of $4.1 million and $6.0 million , respectively. Cash outside the U.S. was $28.0 million as of December 31, 2022, with the largest deposits being held in Canada and India, with balances of $9.2 million and $5.1 million , respectively. Foreign Currency Assets and liabilities of operations having non-USD functional currencies are translated at period-end exchange rates, and income statement accounts are translated at weighted average exchange rates for the period. Gains or losses resulting from translating foreign currency financial statements, net of any related tax effects, are reflected in Accumulated Other Comprehensive Income or Loss (“OCI”), a separate component of stockholders’ equity on the unaudited condensed consolidated balance sheets. Gains or losses resulting from foreign currency transactions incurred in currencies other than the local functional currency are included in other income in the unaudited condensed consolidated statements of operations and comprehensive income. The cumulative translation adjustment resulted in losses of $5.5 million and $5.6 million as of September 30, 2023 and December 31, 2022, respectively. Accounts Receivable and Allowance for Credit Losses Accounts receivable balances consist of trade receivables that are recorded at the invoiced amount, net of allowances for expected credit losses and for potential sales credits and reserves. Sales credits and reserves were $0.7 million and $0.9 million as of September 30, 2023 and December 31, 2022 , respectively. The Company adopted the Fin ancial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments—Credit Losses (“CECL”) on January 1, 2022. The adoption of CECL resulted in a $0.3 million cumulative effect adjustment recorded in retained earnings as of January 1, 2022. CECL requires an entity to utilize an impairment model to estimate its lifetime expected credit losses and record an allowance that, when deducted from the amortized cost basis of a financial asset, presents the net amount expected to be collected on the financial asset. The Company maintains an allowance for expected credit losses in order to record accounts receivable at their net realizable value. Inherent in the assessment of the allowance for expected credit losses are certain judgments and estimates relating to, among other things, the Company’s customers’ access to capital, customers’ willingness and ability to pay, general economic conditions and the ongoing relationship with customers. Allowances have been recorded for receivables believed to be uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices. The allowance for expected credit losses is determined by analyzing the Company’s historical write-offs, the current aging of receivables, the financial condition of customers and the general economic climate. Adjustments to the allowance may be required in future periods depending on how such potential issues are resolved or if the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments. The Company has not historically had material write-offs due to uncollectible accounts receivable. Allowances for expected credit losses were $2.7 million and $2.3 million as of September 30, 2023 and December 31, 2022, respectively. The following table summarizes changes in the allowance for expected credit losses for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 2,658 $ 2,161 $ 2,304 $ 2,949 Cumulative effect of accounting change upon adoption of CECL — — — 254 Additions 97 351 556 1,010 Write-offs, net of recoveries (82) (36) (190) (1,727) Foreign currency translation adjustment (3) (14) — (24) Balance at end of period $ 2,670 $ 2,462 $ 2,670 $ 2,462 Corporate Technology and Production Systems Corporate technology and production systems includes costs related to maintaining the Company’s corporate information technology infrastructure and non-capitalizable costs to develop and maintain its production systems. The following table sets forth expenses included in each category of corporate technology and production systems for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Corporate information technology $ 4,665 $ 7,012 $ 14,854 $ 19,425 Development of platform and product initiatives 4,371 4,433 13,065 12,797 Production support and maintenance 2,293 2,270 6,790 6,584 Total production systems 6,664 6,703 19,855 19,381 Total corporate technology and production systems $ 11,329 $ 13,715 $ 34,709 $ 38,806 Corporate information technology consists of salaries and benefits of personnel (including stock-based compensation expense) supporting internal operations such as information technology support and the maintenance of information security and business continuity functions. Also included are third-party costs including cloud computing costs that support the Company’s corporate internal systems, software licensing and maintenance, telecommunications and other technology infrastructure costs. Production systems costs consist of non-capitalizable personnel costs including contractor costs incurred for the development of platform and product initiatives and production support and maintenance. Platform and product initiatives facilitate the development of the Company’s technology platform and the launch of new screening products. Production support and maintenance includes costs to support and maintain the technology underlying the Company’s existing screening products and to enhance the ease of use of the Company’s cloud applications. Certain personnel costs related to new products and features are capitalized and amortized to depreciation and amortization. Included within corporate technology and production systems are non-capitalizable production system and corporate information technology expenses related to Project Ignite, a three-phase strategic investment initiative. Phase one of Project Ignite modernized client and candidate experiences and is complete. Phase two of Project Ignite focused on decommissioning the Company’s on-premises data centers and migrating the Company’s production systems and corporate information technological infrastructure to a managed service provider in the cloud. During the first half of 2021, the Company completed phase two initiatives related to the migration of its production and fulfillment systems to the cloud, and as a result, approximately 98% of revenue is processed through platforms hosted in the cloud. The Company incurred expenses related to phase two to complete the decommissioning of on-premises data centers for internal corporate technology infrastructure and migration to the cloud which was completed as of September 30, 2022. Phase three of Project Ignite was decommissioning of the platforms purchased over the prior ten years and the migration of the clients to one global platform. This third and final phase, which was completed in the first quarter of 2023, unified clients onto a single global platform. The Company’s core platform now processes approximately 80% of its global revenue.

Recent Accounting Standards Upd

Recent Accounting Standards Updates	9 Months Ended
Recent Accounting Standards Updates	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Standards Updates	Recent Accounting Standards Updates The Company qualifies as an emerging growth company under the Jumpstart Our Business Startups Act (the “JOBS Act”). The JOBS Act permits extended transition periods for complying with new or revised accounting standards affecting public companies. The Company has elected to use the extended transition periods and is adopting new or revised accounting standards on the FASB’s non-public company timeline. As such, the Company’s financial statements may not be comparable to financial statements of public entities that comply with new or revised accounting standards on a non-delayed basis. The Company will cease to be an emerging growth company upon the earliest of (a) the last day of the fiscal year in which it has total annual gross revenues of $1.235 billion or more; (b) the last day of its fiscal year following the fifth anniversary of the date of its initial public offering (“IPO”); (c) the date on which it has issued more than $1.0 billion in nonconvertible debt during the previous three years; or (d) the date on which it is deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur as of the last day of a fiscal year in which the market value of its common stock held by non-affiliates equals or exceeds $700 million as of the last business day of the second fiscal quarter of such fiscal year, which threshold was not exceeded as of June 30, 2023.

Acquisitions

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions Socrates and A-Check Acquisitions On January 4, 2023, the Company acquired all of the outstanding shares of Socrates Limited and its affiliates (“Socrates”), a screening company in Latin America, pursuant to a share purchase agreement. The Socrates acquisition expands the Company’s global presence into Latin America to serve the rapidly growing regional hiring needs of both multi-national and local clients. On March 1, 2023, the Company acquired all of the outstanding shares of A-Check Global (“A-Check”), a U.S.-based employment screening organization, pursuant to a share purchase agreement. The A-Check acquisition provides the Company access to a high quality, enterprise-focused customer base diversified across verticals including healthcare and telecom. The aggregate purchase price for the acquisitions totaled approximately $66.2 million, was funded with available cash on hand and is subject to certain closing adjustments specified in the share purchase agreements and includes initial contingent consideration related to the A-Check acquisition of $4.7 million recorded at fair value. The contingent consideration will be determined based on actual future results. The initial fair value of the contingent consideration consisted of $2.6 million for an earn-out payable one year after the acquisition based upon revenue retention and a $2.1 million payable throughout the second and third year following the acquisition based on revenue retention and referral revenue. The Company recorded a preliminary allocation of the purchase price to assets acquired and liabilities assumed based on their estimated fair values as of their respective purchase dates. Additionally, in connection with the Socrates acquisition, $5.0 million is payable to certain senior employees two years after the acquisition date based on certain retention requirements. The Company incurred approximately $2.0 million of transaction expenses related to the acquisitions during the nine months ended September 30, 2023. The preliminary allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed as of the applicable acquisition date. The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed: Preliminary Purchase Price Allocation Adjusted Purchase Price Allocation (in thousands) March 31, Purchase Price Adjustments September 30, Consideration Cash $ 11,935 $ — $ 11,935 Other current assets Accounts receivable 4,279 (3) 4,276 Other current assets 805 447 1,252 Property and equipment 177 (1) 176 Intangible assets 32,141 (1,268) 30,873 Other long-term assets 6 — 6 Total assets acquired $ 49,343 $ (825) $ 48,518 Accounts payable and accrued expenses 1,156 94 1,250 Other current liabilities 1,291 (72) 1,219 Deferred tax liability 8,388 77 8,465 Other liabilities 2 — 2 Total liabilities assumed $ 10,837 $ 99 $ 10,936 Total identifiable net assets 38,506 (924) 37,582 Goodwill 27,352 1,218 28,570 Total consideration $ 65,858 $ 294 $ 66,152 Goodwill recognized is primarily attributable to assembled workforce and expected synergies and is not tax deductible in future years. Intangible assets acquired consist largely of customer lists in the amount of $28.0 million to be amortized over 15 years. The remaining intangible assets include trade names, developed technology and a non-compete agreement, which will be amortized over two years, eight years, and five years, respectively. The acquisitions are not material to the Company's financial position as of September 30, 2023 or results of operations for the three and nine months ended September 30, 2023, and therefore, pro forma operating results and other disclosures for the acquisitions are not presented. EBI Acquisition On November 30, 2021, the Company acquired all of the outstanding shares of Employment Background Investigations, Inc. (“EBI”) for a purchase price of $67.8 million, consisting of $66.3 million of cash and $1.5 million of contingent consideration recorded at fair value. As of December 31, 2022, the purchase price was reduced by $0.3 million reflecting the final determination of the post-closing adjustment of the purchase price in accordance with the purchase agreement with EBI, resulting in an adjusted purchase price of $67.5 million. The receivable related to this adjustment was collected in February 2023.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
Property and Equipment, Net	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net (in thousands) September 30, December 31, Furniture and fixtures $ 1,621 $ 2,568 Computers and equipment 37,763 41,084 Leasehold improvements 2,048 6,565 41,432 50,217 Less: Accumulated depreciation (34,102) (39,876) Total property and equipment, net $ 7,330 $ 10,341 Depreciation expense on property and equipment was $0.8 million and $1.1 million during the three months ended September 30, 2023 and 2022, respectively, and $2.8 million and $3.3 million for the nine months ended September 30, 2023 and 2022, respectively. Write down of abandoned property and equipment no longer in use totaled less than $0.1 million and $1.7 million during the three and nine months ended September 30, 2023, respectively. Write down of abandoned property and equipment no longer in use was $0.2 million and $0.8 million for the three and nine months ended September 30, 2022, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
Goodwill and Intangible Assets	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the periods presented were as follows: (in thousands) Goodwill at December 31, 2022 $ 849,609 Acquisitions 28,570 Foreign currency translation adjustment 211 Goodwill at September 30, 2023 $ 878,390 Intangible Assets Intangible assets, net consisted of the following for the periods presented: September 30, 2023 December 31, 2022 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer lists $ 532,376 $ (365,853) $ 166,523 $ 506,015 $ (340,579) $ 165,436 Trademarks 77,659 (42,135) 35,524 77,198 (37,519) 39,679 Non-compete agreement 3,969 (2,781) 1,188 3,179 (2,584) 595 Technology 261,573 (229,257) 32,316 246,220 (216,330) 29,890 Domain names 10,118 (5,187) 4,931 10,118 (4,682) 5,436 $ 885,695 $ (645,213) $ 240,482 $ 842,730 $ (601,694) $ 241,036 Included within technology is $30.2 million and $28.1 million of internal-use software, net of accumulated amortization, as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, $6.1 million of technology assets have not yet been put in service. The Company capitalized $13.4 million of costs to develop internal-use software included in technology during the nine months ended September 30, 2023 (consisting of internal costs of $11.5 million and external costs of $1.8 million). The Company cap italized $11.7 million of costs to develop internal-use software included in technology during the nine months ended September 30, 2022 (consisting of internal costs of $9.4 million and external costs of $2.3 million ). For the three and nine months ended September 30, 2023, the Company recorded a write-down related to the impairment of capitalized software in the amount of less than $0.1 million and $0.2 million , respectively . For the three and nine months ended September 30, 2022, the Company recorded no write-down of capitalized software. Amortization expense was $15.1 million and $15.5 million for the three months ended September 30, 2023 and 2022, respectively, and $44.3 million and $53.3 million for the nine months ended September 30, 2023 and 2022, respectively. Except for the customer lists, which are amortized utilizing an accelerated method, all other intangible assets are amortized on a straight-line basis, which approximates the pattern in which economic benefits are consumed. Estimated amortization expense as of September 30, 2023 is as follows for each of the next five years: (in thousands) Year Ending December 31, Remainder of fiscal year 2023 $ 15,144 2024 52,636 2025 42,591 2026 32,526 2027 24,991 Thereafter 72,594 $ 240,482

Accrued Expenses

Accrued Expenses	9 Months Ended
Accrued Expenses	Sep. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses on the unaudited condensed consolidated balance sheets as of the periods presented consisted of the following: (in thousands) September 30, December 31, Accrued compensation $ 22,274 $ 29,835 Accrued cost of revenues 21,721 15,721 Accrued interest 223 3,143 Other accrued expenses 16,169 18,348 Total accrued expenses $ 60,387 $ 67,047

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2023
Leases [Abstract]
Leases	Leases Effective January 1, 2022 using the effective date method, the Company adopted the FASB’s Accounting Standards Update No. 2016-02, “Leases” (“ASC 842”), which requires the recognition of all leases, including operating leases on the unaudited condensed consolidated balance sheets by recording a right-of-use (“ROU”) asset and related liability, and elected to exclude short-term leases from adoption. The lease liability and ROU asset will be remeasured when there is a change in the lease term (or upon the occurrence of another reassessment trigger). Upon adoption on January 1, 2022, the Company recognized a ROU asset of $23.5 million and a lease liability of $23.8 million. The Company determines if a contract is a lease or contains a lease at inception. Operating lease liabilities are measured, on each reporting date, based on the present value of the future minimum lease payments over the remaining lease term. The Company’s leases generally do not provide an implicit rate and, therefore, the Company uses the interest rate on its term loan credit agreement as its incremental borrowing rate under ASC 842. Operating lease assets are measured by adjusting the lease liability for lease incentives, initial direct costs incurred and asset impairments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term with the operating lease asset reduced by the amount of the expense. Lease terms may include options to extend or terminate a lease when they are reasonably certain to occur. The Company leases real estate and equipment for use in its operations. The Company has 16 operating leases with remaining lease terms ranging from 1 to 64 months as of September 30, 2023. In connection with the real estate consolidation program, during the three months ended June 30, 2023, the Company exited additional offices including the Company’s former principal executive office and headquarters in New York. A reduction of the operating leases ROU asset of $5.3 million for impairment charges was recorded in impairments and disposals of long-lived assets in the unaudited condensed consolidated statements of operations and comprehensive income. The Company exercised termination options reducing the lease terms on certain operating leases and recorded lease remeasurements to the operating lease liability and corresponding reductions to the operating leases ROU asset in the amount of $4.7 million during the three months ended June 30, 2023. $1.5 million was recorded to de-recognize the operating lease ROU asset related to certain leases in selling, general and administrative expense due to abandonment, during the three months ended June 30, 2023. The components of lease expense for the periods presented are as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Components of total lease costs Operating lease expense (1) $ 810 $ 1,357 $ 4,796 $ 3,958 Sublease income (278) (216) (843) (504) Total net lease costs $ 532 $ 1,141 $ 3,953 $ 3,454 _________________________ (1) The nine months ended September 30, 2023 includes $1.5 million of lease expense to de-recognize certain operating ROU assets which were abandoned during the three months ended June 30, 2023. Information related to the Company’s ROU assets and lease liabilities for the period presented is as follows: (dollars in thousands) September 30, December 31, Operating leases Operating leases right-of-use asset $ 7,020 $ 20,084 Operating leases liability, current portion $ 4,233 $ 3,717 Long-term operating leases liability, net of current portion 8,834 16,835 Total operating leases liability $ 13,067 $ 20,552 Weighted average remaining lease term in years - operating leases 3.7 4.8 Weighted average discount rate - operating leases 5.07 % 4.50 % Total remaining lease payments under the Company’s operating leases for the period presented are as follows: (in thousands) September 30, 2023 Remainder of fiscal year 2023 $ 1,229 2024 5,243 2025 2,337 2026 2,117 2027 2,149 Thereafter 1,113 Total future minimum lease payments $ 14,188 Less: imputed interest (1,121) Total $ 13,067

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt On November 29, 2022, Sterling Infosystems, Inc. (the “Borrower”), a Delaware corporation and a subsidiary of the Company, entered into a credit agreement (the “2022 Credit Agreement”) by and among the Borrower, as borrower, Sterling Intermediate Corp., KeyBank National Association, as administrative agent (the “Administrative Agent”), certain guarantors party thereto and the lenders party thereto. The 2022 Credit Agreement provides for aggregate principal borrowings of $700.0 million, comprised of $300.0 million aggregate principal amount of term loans (the “Term Loans”) and a $400.0 million revolving credit facility (the “Revolving Credit Facility”). The Term Loans and the Revolving Credit Facility mature on November 29, 2027. The table below sets forth the Company’s long-term debt as presented in the unaudited condensed consolidated balance sheets for the periods presented: (in thousands) September 30, December 31, Current portion of long-term debt Term Loans $ 13,125 $ 7,500 Total current portion of long-term debt $ 13,125 $ 7,500 Long-term debt Term Loans, due November 29, 2027 (7.67% and 6.76% at September 30, 2023 and December 31, 2022, respectively) 281,250 292,500 Revolving Credit Facility 205,494 205,494 Unamortized discount and debt issuance costs (3,410) (4,004) Total long-term debt, net $ 483,334 $ 493,990 The estimated fair value of the Company’s 2022 Credit Agreement was $482.2 million and $487.1 million as of September 30, 2023 and December 31, 2022, respectively. These fair values were determined based on quoted prices in markets with similar instruments that are less active (Level 2 inputs as defined below) as an observable price of the 2022 Credit Agreement or similar liabilities is not readily available. The Company was in compliance with all financial covenants under its credit agreement as of September 30, 2023.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. An asset or liability’s level in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flows methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses to approximate the fair value of the respective assets and liabilities as of September 30, 2023 and December 31, 2022 based upon the short-term nature of such assets and liabilities (Level 1). See Note 9, “Debt” for discussion of the fair value of the Company’s debt. Interest rate swaps are measured at fair value on a recurring basis in the Company’s financial statements and are considered Level 2 financial instruments. Interest rate swaps are measured based on quoted prices for similar financial instruments and other observable inputs recognized. The currency forward agreements are typically cash settled in U.S. dollars for their fair value at or close to their settlement date. Contingent consideration related to acquisitions is considered a Level 3 financial instrument. As of September 30, 2023, the fair value of contingent consideration related to the March 1, 2023 acquisition of A-Check and the November 30, 2021 acquisition of EBI. As of December 31, 2022, the contingent consideration related to the acquisition of EBI. The contingent consideration consists of estimated future payments related to the Company’s acquisitions, based on metrics such as revenue retention and referral revenue. The fair value is determined using various assumptions and estimates, including revenue and customer projections to forecast a range of outcomes for the contingent consideration. The Company reassesses the estimated fair value of the contingent consideration at the end of each reporting period based on the information available at the time. Changes in the significant unobservable inputs used may result in a significantly higher or lower fair value measurement. Changes in fair value of contingent consideration are recorded in selling, general and administrative expense in the statement of operations and comprehensive income. The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of the periods presented: September 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Interest rate swaps $ — $ 3,073 $ — $ 3,073 Liabilities Interest rate swaps — 475 — 475 Contingent consideration — — 4,934 4,934 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Liabilities Contingent consideration $ — $ — $ 1,219 $ 1,219 The following table summarizes the change in fair value of the Level 3 liabilities with significant unobservable inputs for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Fair value of contingent consideration, beginning of period $ 5,620 $ 1,230 $ 1,219 $ 1,445 Acquired liabilities — — 4,706 — Cash payments — (11) (305) (226) Change in fair value of contingent consideration, net (686) — (686) — Fair value of contingent consideration, end of period $ 4,934 $ 1,219 $ 4,934 $ 1,219 During the three and nine months ended September 30, 2023 and 2022, the Company did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. There were no transfers between levels during the periods presented.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
Derivative Instruments and Hedging Activities	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities Interest Rate Swap Hedges To reduce exposure to variability in expected future cash outflows on variable rate debt attributable to the changes in the applicable interest rates under the 2022 Credit Agreement, the Company entered into interest rate swaps to economically offset a portion of this risk. For interest rate swap derivatives designated and that qualify as hedges for accounting purposes, the unrealized gain or loss on the derivative is initially recorded in OCI, reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. As of September 30, 2023, the Company had the following outstanding interest rate swap derivatives that were used to hedge its interest rate risks: Product Number of Instruments Effective Date Maturity Date Current Notional (1) Interest Rate Swaps 4 February 28, 2023 November 29, 2027 $300.0 million USD _________________________ (1) The notional value steps down from $300.0 million to $150.0 million on February 27, 2026. All financial derivative instruments are carried at their fair value on the balance sheet. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of the dates presented: Asset Derivatives September 30, 2023 December 31, 2022 (in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ 3,073 Other current assets $ — Liability Derivatives September 30, 2023 December 31, 2022 (in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other liabilities $ 475 Other liabilities $ — The tables below present the effect of cash flow hedge accounting on accumulated OCI for the periods presented: Three Months Ended Three Months Ended (in thousands) 2023 2022 2023 2022 Derivatives designated as hedging instruments: Amount of Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Interest rate swaps $ 3,910 $ — Interest expense $ 761 $ — Nine Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Derivatives designated as hedging instruments: Amount of Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Interest rate swaps $ 4,008 $ — Interest expense $ 1,410 $ — The table below presents the effect of the Company’s cash flow hedge accounting on the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) Interest Expense Total amounts of income and expense line items in which the effects of cash flow hedges are recorded $ 9,305 $ 7,764 $ 26,903 $ 20,719 Gain or (loss) on cash flow hedging relationships Interest rate swaps: Amount of gain or (loss) reclassified from accumulated OCI into income $ 761 $ — $ 1,410 $ — Amounts reported in accumulated OCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. Based on current interest rates, during the next twelve months, the Company estimates that an additional $3.1 million net gain will be reclassified from accumulated OCI as a decrease to interest expense. No gain or loss was reclassified from accumulated OCI into earnings as a result of forecasted transactions that failed to occur during the periods presented. Non-designated Derivatives Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2023, the Company did not have any outstanding derivatives not designated as a hedge in qualifying hedging relationships. The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate swaps Gain on interest rate swaps $ — $ — $ — $ 296

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The computation of the provision for or benefit from income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date income before tax and adjusting for discrete tax items recorded in the period, if any. The Company recorded a tax provision of $4.0 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively, which resulted in an effective tax rate of 62.7% and 27.2%, respectively. The Company recorded a tax provision of $5.0 million and $13.0 million for the nine months ended September 30, 2023 and 2022, respectively, which resulted in an effective tax rate of 60.3% and 32.3%, respectively. For the three and nine months ended September 30, 2023 and 2022, the effective rate differs from the statutory rate mainly due to a jurisdictional mix of earnings and permanent items.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is party to both class actions and individual actions in the ordinary course of business. The matters typically allege violations of the Fair Credit Reporting Act (“FCRA”), as well as other claims. In addition, from time to time, the Company receives inquiries from regulatory bodies regarding its business. The Company accrues for the cost of resolving matters where it can be determined that a loss is both estimable and probable. Certain matters are in litigation and an estimate of the outcome and potential losses, if any, cannot be determined. Certain of these matters are covered by the Company’s insurance policies, subject to policy terms, including retentions. The Company does not believe that the resolution of current matters will result in a material adverse effect on the financial position, results of operations, or cash flows of the Company. As of September 30, 2023, the Company had a legal settlement obligation of $7.2 million and an offsetting insurance receivable of $4.7 million for the settlement of legal matters. As of December 31, 2022, the Company had a legal settlement obligation of $4.2 million and an offsetting insurance receivable of $0.9 million for the settlement of legal matters. Net legal settlement expense recorded in selling, general and administrative expense in the unaudited consolidated statements of operations and comprehensive income for the three months ended September 30, 2023 and 2022 totaled $0.5 million and $0.2 million, respectively, and $0.6 million and $0.5 million for the nine months ended September 30, 2023 and 2022, respectively.

Equity

Equity	9 Months Ended
Equity	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
Equity	Equity Under the Company’s Amended and Restated Certificate of Incorporation, a total of 1,100,000,000 shares of all classes of stock are authorized, divided as follows: (i) 1,000,000,000 shares of common stock, par value $0.01 per share (“common stock”); and (ii) 100,000,000 shares of undesignated preferred stock, par value $0.01 per share (“preferred stock”). Each share of common stock is entitled to one vote on all matters on which holders of common stock are entitled to vote generally. Holders of common stock are entitled to be paid ratably any dividends as may be declared by the Board of Directors (in its sole discretion), subject to any preferential dividend rights of outstanding preferred stock (if any). No dividends have been declared or paid on the Company’s common stock through September 30, 2023. The Board of Directors is authorized to direct the issuance of the undesignated preferred stock in one or more series and to fix the designation of such series, the powers (including voting powers), preferences and relative, participating, optional and other special rights, and the qualifications, limitations or restrictions thereof, of such series of preferred stock and the number of shares of such series. On November 23, 2022, the Company’s board of directors authorized the repurchase of up to $100.0 million of the Company’s shares of common stock over a period through December 31, 2024. The share repurchase program is being executed on a discretionary basis through open market repurchases, private transactions, or other transactions, including through block trades and Rule 10b-18 and Rule 10b5-1 trading plans. The Company is not obligated to repurchase any specific number of shares, and the timing and amount of any share repurchases will be subject to several factors including share price, trading volume, market conditions and capital allocation priorities. The share repurchase program may be suspended, terminated or modified without notice at any time. For the three and nine months ended September 30, 2023, the Company repurchased 1,564,019 shares of its common stock for $20.7 million and 3,523,838 shares of its common stock for $46.0 million, respectively, inclusive of commissions and taxes.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense is recognized in cost of revenues, corporate technology and production systems, and selling, general and administrative expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Stock-based compensation expense Cost of revenues $ 396 $ 384 $ 1,218 $ 1,208 Corporate technology and production systems 776 774 1,993 1,803 Selling, general and administrative 8,611 5,135 23,973 14,413 Total stock-based compensation expense $ 9,783 $ 6,293 $ 27,184 $ 17,424 Prior to the IPO, all share-based awards were issued to employees under the Company’s 2015 Long-Term Equity Incentive Plan (the “2015 Plan”). Upon the adoption of the Sterling Check Corp. 2021 Omnibus Incentive Plan (the “2021 Equity Plan”) on August 4, 2021 and as of September 22, 2021, all newly granted share-based awards have been issued under the 2021 Equity Plan. As of September 30, 2023, the Company had approximately $90.1 million of unrecognized pre-tax non-cash stock-based compensation expense related to awards granted under the 2021 Equity Plan, consisting of approximately $28.5 million related to non-qualified stock options (“NQSOs”), $60.1 million related to restricted stock, and approximately $1.5 million related to restricted stock units (“RSUs”), all of which the Company expects to recognize over a weighted average period of 2.41 years. 2015 Long-Term Equity Incentive Plan The table below provides a summary of service-based vesting options (“SVOs”) and performance-based stock options (“PSOs”) currently outstanding under the 2015 Plan for the nine months ended September 30, 2023: Outstanding SVOs Outstanding PSOs Number of Weighted Weighted Aggregate Number of Weighted Weighted Aggregate (in thousands, except shares and per share amounts) Balances at December 31, 2022 6,208,274 $ 9.59 5.00 $ 36,513 3,081,855 $ 10.05 3.32 $ 16,699 Granted — — — — Forfeited / Expired — — — — Exercised (213,783) 9.44 (14,975) 9.68 Balances at September 30, 2023 (1) 5,994,491 $ 9.59 4.30 $ 18,139 3,066,880 $ 10.05 2.58 $ 7,872 _________________________ (1) All SVOs and PSOs are exercisable as of September 30, 2023. On August 4, 2021, the Company amended each option outstanding under the 2015 Plan to (i) accelerate vesting upon an initial public offering and (ii) permit each option to be exercised following termination for any reason for the period set forth in the applicable award agreement or, if longer, an extended post-termination exercise period that would end on the date that is six months following the second anniversary of the effective date of the initial public offering, provided that if such date falls during a blackout period, the post-termination exercise period will be extended until the date that is thirty days after the commencement of the Company’s next open trading window. In connection with the option agreement amendments, the option holders agreed that any shares of common stock acquired by such individuals upon exercise of any options outstanding under the 2015 plan (the “LTIP Option Shares”) will be subject to the following transfer restrictions, in addition to any other lock-up restrictions, securities trading policies, and other limitations to which such individuals may be subject: (i) the holder will be able to transfer up to 25% of the LTIP Option Shares at any time after six months following the effectiveness of the registration statement of which the IPO Prospectus formed a part (or such earlier time as the transfer restrictions expire under the lock-up agreements described in the IPO Prospectus under “Shares Eligible for Future Sale—Lock-up Agreements”) but prior to the first anniversary of the effectiveness of the registration statement of which the IPO Prospectus formed a part; (ii) on or after the first anniversary but prior to the second anniversary of the effectiveness of the registration statement of which the IPO Prospectus formed a part, the holder will be able to transfer up to 50% of the LTIP Option Shares (reduced by any of the LTIP Option Shares sold prior to the first anniversary) and (iii) on or after the second anniversary of the effectiveness of the registration statement of which the IPO Prospectus forms a part, the holder will be able to transfer all of his or her LTIP Option Shares. The foregoing transfer restrictions will not apply to any shares of common stock held by any such individual that are not LTIP Option Shares. 2021 Omnibus Incentive Plan On August 4, 2021, the Company’s Board of Directors adopted, and on August 13, 2021 the Company’s stockholders approved, the 2021 Equity Plan. Equity awards under the 2021 Equity Plan are intended to retain and motivate the Company’s officers and employees, consultants and non-employee directors and to promote the success of the Company’s business by providing such participating individuals with a proprietary interest in the performance of the Company. The 2021 Equity Plan will terminate on the ten awards and other share-based awards. Upon its adoption, the 2021 Equity Plan provided that up to 9,433,000 shares may be issued pursuant to awards granted under the 2021 Equity Plan (the “Share Limit”); provided, that, the Share Limit shall be automatically increased on the first day of each calendar year commencing on January 1, 2022 and ending on January 1, 2030 in an amount equal to the lesser of (x) 5% of the total number of shares outstanding on the last day of the immediately preceding calendar year, and (y) such number of shares as determined by the Board of Directors, and no more than 9,433,000 shares may be issued upon the exercise of ISOs. As of September 30, 2023, 8,303,713 shares were available for issuance pursuant to future granted awards under the 2021 Equity Plan. Stock Options Options issued under the 2021 Equity Plan generally vest on various schedules over one The table below provides a summary of stock option activity under the 2021 Equity Plan for the nine months ended September 30, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2022 4,387,501 $ 22.91 8.81 $ — Granted 909,431 12.77 Forfeited / Expired — — Exercised — — Outstanding at September 30, 2023 5,296,932 $ 21.17 8.30 $ 7,516 Exercisable at September 30, 2023 1,779,123 $ 22.98 7.99 $ — Restricted Stock Restricted stock issued under the 2021 Equity Plan in connection with the Company’s initial public offering vests 50% on the second anniversary of the grant date and 25% on each of the third and four one The table below provides a summary of restricted stock activity under the 2021 Equity Plan for the nine months ended September 30, 2023: Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 3,421,920 $ 20.32 Granted 2,177,482 12.46 Forfeited / Cancelled (306,240) 16.10 Vested (792,403) 22.21 Unvested at September 30, 2023 4,500,759 $ 16.48 Restricted Stock Units Restricted stock units issued under the 2021 Equity Plan in connection with the Company’s initial public offering vest 50% on the second anniversary of the grant date and 25% on each of the third and four one Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 51,249 $ 21.18 Granted 93,026 14.36 Forfeited / Cancelled (3,287) 17.99 Vested (17,177) 22.87 Unvested at September 30, 2023 123,811 $ 15.79 Employee Stock Purchase Plan The 2021 Employee Stock Purchase Plan (the “ESPP”) was launched on July 1, 2023. The ESPP allows eligible employees to voluntarily make after-tax contributions of up to 15% of such employee’s cash compensation for the purchase of the Company’s stock. Consecutive offering periods of six months in duration have been established, with the first one commencing on July 1, 2023. During each offering period, such contributions will be accumulated and applied to purchase shares at the end of the offering period. The purchase price for shares purchased in the initial offering period will be, and for subsequent offering periods will not be less than, 85% of the lesser of the closing price of the shares on the first day of the offering period or the last day of the offering period. During the three and nine months ended September 30, 2023, the amount the Company recorded for stock-based compensation expense associated with the ESPP was immaterial.

Net Income per Share

Net Income per Share	9 Months Ended
Net Income per Share	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income per Share	Net Income Per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: Three Months Ended Nine Months Ended (in thousands, except share and per share amounts) 2023 2022 2023 2022 Numerator: Net income attributable to stockholders $ 2,354 $ 9,303 $ 3,268 $ 27,110 Denominator: Weighted average number of shares outstanding—basic 90,972,009 94,134,690 92,184,159 94,043,105 Weighted average additional shares assuming conversion of potential common shares 2,679,682 4,983,831 2,309,095 5,174,020 Weighted average common shares outstanding—diluted 93,651,691 99,118,521 94,493,254 99,217,125 Net income per share attributable to stockholders, basic $ 0.03 $ 0.10 $ 0.04 $ 0.29 Net income per share attributable to stockholders, diluted $ 0.03 $ 0.09 $ 0.03 $ 0.27 The following table summarizes the weighted average potentially dilutive securities that were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options 5,296,932 8,964,397 5,064,658 8,964,397 Restricted stock 1,156,291 2,131,704 2,971,926 2,131,704 Restricted stock units 6,421 44,560 34,612 44,560

Related Party Transactions

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsGoldman Sachs and some of its affiliates, each an affiliate of our Sponsor, are clients of the Company and the Company had sales to Goldman Sachs and some of its affiliates in the amount of $0.8 million and $1.2 million for the three months ended September 30, 2023 and 2022, respectively, and $2.5 million and $4.8 million for the nine months ended September 30, 2023 and 2022, respectively. Outstanding accounts receivable from Goldman Sachs as of September 30, 2023 and December 31, 2022 were $0.4 million and $0.2 million, respectively. Additionally, the Company is currently a party to a $75.0 million notional value interest rate swap through November 29, 2027 with J. Aron & Company LLC, a wholly-owned subsidiary of Goldman Sachs. During the three months ended June 30, 2023, in connection with the Secondary Public Offering, the Company repurchased 1,000,000 shares of common stock for $11.7 million directly from BSPI, an affiliate of Goldman Sachs. See Note 14, “Equity” for discussion of the Secondary Public Offering and the share repurchase. An affiliate of certain stockholders that, to the Company’s knowledge, collectively own greater than 10% of the Company’s outstanding shares of common stock (the “Stockholders”) is a client of the Company, and the Company had sales to an affiliate of the Stockholders in the amount of $0.1 million for the three months ended September 30, 2023 and 2022, and $0.2 million for the nine months ended September 30, 2023 and 2022. Outstanding accounts receivable from an affiliate of the Stockholders were less than $0.1 million as of September 30, 2023 and December 31, 2022.

Revenue

Revenue	9 Months Ended
Revenue	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Performance Obligations Substantially all of the Company’s revenues are recognized at a point in time as results from services are provided through a screening report and the customer takes control of the product when the report is completed. Accordingly, revenue is generally recognized at the point in time when the customer receives and can use the report. For revenue arrangements containing multiple products or services, the Company accounts for the individual products or services as separate performance obligations if they are distinct, the product or service is separately identifiable from other terms in the contract, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised products or services are accounted for as a combined performance obligation. The Company allocates the contract price to each performance obligation based on the standalone selling prices of each distinct product or service in the contract. Disaggregation of Revenues The following tables set forth total revenue by type of service for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Screening services $ 178,809 $ 197,870 $ 544,330 $ 591,900 Other services 1,757 1,429 5,894 4,962 Total revenue $ 180,566 $ 199,299 $ 550,224 $ 596,862 The following table sets forth total revenue by geographic area in which the revenues and invoicing are recorded for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 United States $ 153,577 $ 168,615 $ 465,517 $ 502,047 All other countries 26,989 30,684 84,707 94,815 Total revenue $ 180,566 $ 199,299 $ 550,224 $ 596,862 Other than the U.S., no single country accounted for more than 10% of the Company’s total revenues during the three and nine months ended September 30, 2023 and 2022. Substantially all of the Company’s long-lived assets were located in the U.S. as of September 30, 2023 and December 31, 2022. Contract Assets and Liabilities Incremental costs of obtaining a contract with a customer are recognized as an asset if the benefit of such costs is expected to be longer than one year, with a majority of contracts being multi-year. Incremental costs include commissions to the sales force and are amortized over three years, as management estimates that this corresponds to the period over which a customer benefits from the contract. As of September 30, 2023 and December 31, 2022, $3.3 million of deferred commissions are included in other current assets on the unaudited condensed consolidated balance sheets and approximately $2.8 million and $2.7 million, respectively, of deferred commissions are included in other noncurrent assets, net on the unaudited condensed consolidated balance sheets. The Company did not have any material contract liabilities as of September 30, 2023 and December 31, 2022. Concentrations For the three and nine months ended September 30, 2023 and 2022, no single customer accounted for more than 10% of the Company’s revenue. No single customer had an accounts receivable balance greater than 10% of total accounts receivable as of September 30, 2023 and December 31, 2022.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 2,354	$ 323	$ 591	$ 9,303	$ 11,571	$ 6,236	$ 3,268	$ 27,110

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and ConsolidationThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include accounts of the Company and its wholly-owned subsidiaries.These unaudited condensed consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2023.
Consolidation	All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that can affect the reported amount of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Significant estimates include the impairment of long-lived assets, goodwill impairment, the determination of the fair value of acquired assets and liabilities, collectability of receivables, the valuation of stock-based awards and stock-based compensation and sales and income tax liabilities. The Company also applies an estimated useful life of three years to internally developed software assets. This is based on the historical observed pace of change in the Company’s delivery, technology, and product offerings as well as market competition. The Company believes that the estimates used in the preparation of these unaudited condensed consolidated financial statements are reasonable; however, actual results could differ materially from these estimates.
Segment Information	Segment InformationThe Company has one operating and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents of $49.9 million and $103.1 million as of September 30, 2023 and December 31, 2022, respectively, include money market instruments with maturities of three months or less. The Company maintained cash outside the U.S. as of September 30, 2023 of $33.4 million with the largest deposits being held in India and Canada, with balances of $4.1 million and $6.0 million , respectively. Cash outside the U.S. was $28.0 million as of December 31, 2022, with the largest deposits being held in Canada and India, with balances of $9.2 million and $5.1 million , respectively.
Foreign Currency	Foreign CurrencyAssets and liabilities of operations having non-USD functional currencies are translated at period-end exchange rates, and income statement accounts are translated at weighted average exchange rates for the period. Gains or losses resulting from translating foreign currency financial statements, net of any related tax effects, are reflected in Accumulated Other Comprehensive Income or Loss (“OCI”), a separate component of stockholders’ equity on the unaudited condensed consolidated balance sheets. Gains or losses resulting from foreign currency transactions incurred in currencies other than the local functional currency are included in other income in the unaudited condensed consolidated statements of operations and comprehensive income.
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Accounts receivable balances consist of trade receivables that are recorded at the invoiced amount, net of allowances for expected credit losses and for potential sales credits and reserves. Sales credits and reserves were $0.7 million and $0.9 million as of September 30, 2023 and December 31, 2022 , respectively. The Company adopted the Fin ancial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments—Credit Losses (“CECL”) on January 1, 2022. The adoption of CECL resulted in a $0.3 million cumulative effect adjustment recorded in retained earnings as of January 1, 2022. CECL requires an entity to utilize an impairment model to estimate its lifetime expected credit losses and record an allowance that, when deducted from the amortized cost basis of a financial asset, presents the net amount expected to be collected on the financial asset. The Company maintains an allowance for expected credit losses in order to record accounts receivable at their net realizable value. Inherent in the assessment of the allowance for expected credit losses are certain judgments and estimates relating to, among other things, the Company’s customers’ access to capital, customers’ willingness and ability to pay, general economic conditions and the ongoing relationship with customers. Allowances have been recorded for receivables believed to be uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices. The allowance for expected credit losses is determined by analyzing the Company’s historical write-offs, the current aging of receivables, the financial condition of customers and the general economic climate. Adjustments to the allowance may be required in future periods depending on how such potential issues are resolved or if the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments. The Company has not historically had material write-offs due to uncollectible accounts receivable.
Corporate Technology and Production Systems	Corporate Technology and Production Systems Corporate technology and production systems includes costs related to maintaining the Company’s corporate information technology infrastructure and non-capitalizable costs to develop and maintain its production systems. Corporate information technology consists of salaries and benefits of personnel (including stock-based compensation expense) supporting internal operations such as information technology support and the maintenance of information security and business continuity functions. Also included are third-party costs including cloud computing costs that support the Company’s corporate internal systems, software licensing and maintenance, telecommunications and other technology infrastructure costs. Production systems costs consist of non-capitalizable personnel costs including contractor costs incurred for the development of platform and product initiatives and production support and maintenance. Platform and product initiatives facilitate the development of the Company’s technology platform and the launch of new screening products. Production support and maintenance includes costs to support and maintain the technology underlying the Company’s existing screening products and to enhance the ease of use of the Company’s cloud applications. Certain personnel costs related to new products and features are capitalized and amortized to depreciation and amortization. Included within corporate technology and production systems are non-capitalizable production system and corporate information technology expenses related to Project Ignite, a three-phase strategic investment initiative. Phase one of Project Ignite modernized client and candidate experiences and is complete. Phase two of Project Ignite focused on decommissioning the Company’s on-premises data centers and migrating the Company’s production systems and corporate information technological infrastructure to a managed service provider in the cloud. During the first half of 2021, the Company completed phase two initiatives related to the migration of its production and fulfillment systems to the cloud, and as a result, approximately 98% of revenue is processed through platforms hosted in the cloud. The Company incurred expenses related to phase two to complete the decommissioning of on-premises data centers for internal corporate technology infrastructure and migration to the cloud which was completed as of September 30, 2022. Phase three of Project Ignite was decommissioning of the platforms purchased over the prior ten years and the migration of the clients to one global platform. This third and final phase, which was completed in the first quarter of 2023, unified clients onto a single global platform. The Company’s core platform now processes approximately 80% of its global revenue.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
Summary of Significant Accounting Policies (Tables)	Sep. 30, 2023
Accounting Policies [Abstract]
Schedule of Accounts Receivable, Allowance for Credit Losses	The following table summarizes changes in the allowance for expected credit losses for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 2,658 $ 2,161 $ 2,304 $ 2,949 Cumulative effect of accounting change upon adoption of CECL — — — 254 Additions 97 351 556 1,010 Write-offs, net of recoveries (82) (36) (190) (1,727) Foreign currency translation adjustment (3) (14) — (24) Balance at end of period $ 2,670 $ 2,462 $ 2,670 $ 2,462
Summary of Corporate Technology and Production Systems Expense	The following table sets forth expenses included in each category of corporate technology and production systems for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Corporate information technology $ 4,665 $ 7,012 $ 14,854 $ 19,425 Development of platform and product initiatives 4,371 4,433 13,065 12,797 Production support and maintenance 2,293 2,270 6,790 6,584 Total production systems 6,664 6,703 19,855 19,381 Total corporate technology and production systems $ 11,329 $ 13,715 $ 34,709 $ 38,806

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
Acquisitions (Tables)	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed: Preliminary Purchase Price Allocation Adjusted Purchase Price Allocation (in thousands) March 31, Purchase Price Adjustments September 30, Consideration Cash $ 11,935 $ — $ 11,935 Other current assets Accounts receivable 4,279 (3) 4,276 Other current assets 805 447 1,252 Property and equipment 177 (1) 176 Intangible assets 32,141 (1,268) 30,873 Other long-term assets 6 — 6 Total assets acquired $ 49,343 $ (825) $ 48,518 Accounts payable and accrued expenses 1,156 94 1,250 Other current liabilities 1,291 (72) 1,219 Deferred tax liability 8,388 77 8,465 Other liabilities 2 — 2 Total liabilities assumed $ 10,837 $ 99 $ 10,936 Total identifiable net assets 38,506 (924) 37,582 Goodwill 27,352 1,218 28,570 Total consideration $ 65,858 $ 294 $ 66,152

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
Property and Equipment, Net (Tables)	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, net	(in thousands) September 30, December 31, Furniture and fixtures $ 1,621 $ 2,568 Computers and equipment 37,763 41,084 Leasehold improvements 2,048 6,565 41,432 50,217 Less: Accumulated depreciation (34,102) (39,876) Total property and equipment, net $ 7,330 $ 10,341

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
Goodwill and Intangible Assets (Tables)	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the periods presented were as follows: (in thousands) Goodwill at December 31, 2022 $ 849,609 Acquisitions 28,570 Foreign currency translation adjustment 211 Goodwill at September 30, 2023 $ 878,390
Summary of Intangible Assets	Intangible assets, net consisted of the following for the periods presented: September 30, 2023 December 31, 2022 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer lists $ 532,376 $ (365,853) $ 166,523 $ 506,015 $ (340,579) $ 165,436 Trademarks 77,659 (42,135) 35,524 77,198 (37,519) 39,679 Non-compete agreement 3,969 (2,781) 1,188 3,179 (2,584) 595 Technology 261,573 (229,257) 32,316 246,220 (216,330) 29,890 Domain names 10,118 (5,187) 4,931 10,118 (4,682) 5,436 $ 885,695 $ (645,213) $ 240,482 $ 842,730 $ (601,694) $ 241,036
Summary of Estimated Future Amortization Expense	Estimated amortization expense as of September 30, 2023 is as follows for each of the next five years: (in thousands) Year Ending December 31, Remainder of fiscal year 2023 $ 15,144 2024 52,636 2025 42,591 2026 32,526 2027 24,991 Thereafter 72,594 $ 240,482

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
Accrued Expenses (Tables)	Sep. 30, 2023
Payables and Accruals [Abstract]
Summary of Accrued Expenses	Accrued expenses on the unaudited condensed consolidated balance sheets as of the periods presented consisted of the following: (in thousands) September 30, December 31, Accrued compensation $ 22,274 $ 29,835 Accrued cost of revenues 21,721 15,721 Accrued interest 223 3,143 Other accrued expenses 16,169 18,348 Total accrued expenses $ 60,387 $ 67,047

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2023
Leases [Abstract]
Schedule of Lease Expense	The components of lease expense for the periods presented are as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Components of total lease costs Operating lease expense (1) $ 810 $ 1,357 $ 4,796 $ 3,958 Sublease income (278) (216) (843) (504) Total net lease costs $ 532 $ 1,141 $ 3,953 $ 3,454 _________________________ (1) The nine months ended September 30, 2023 includes $1.5 million of lease expense to de-recognize certain operating ROU assets which were abandoned during the three months ended June 30, 2023.
Schedule of Right-of-Use Assets and Lease Liabilities	Information related to the Company’s ROU assets and lease liabilities for the period presented is as follows: (dollars in thousands) September 30, December 31, Operating leases Operating leases right-of-use asset $ 7,020 $ 20,084 Operating leases liability, current portion $ 4,233 $ 3,717 Long-term operating leases liability, net of current portion 8,834 16,835 Total operating leases liability $ 13,067 $ 20,552 Weighted average remaining lease term in years - operating leases 3.7 4.8 Weighted average discount rate - operating leases 5.07 % 4.50 %
Schedule of Remaining Lease Payments	Total remaining lease payments under the Company’s operating leases for the period presented are as follows: (in thousands) September 30, 2023 Remainder of fiscal year 2023 $ 1,229 2024 5,243 2025 2,337 2026 2,117 2027 2,149 Thereafter 1,113 Total future minimum lease payments $ 14,188 Less: imputed interest (1,121) Total $ 13,067

Debt (Tables)

Debt (Tables)	9 Months Ended
Debt (Tables)	Sep. 30, 2023
Debt Disclosure [Abstract]
Summary of Company's Long-term Debt	The table below sets forth the Company’s long-term debt as presented in the unaudited condensed consolidated balance sheets for the periods presented: (in thousands) September 30, December 31, Current portion of long-term debt Term Loans $ 13,125 $ 7,500 Total current portion of long-term debt $ 13,125 $ 7,500 Long-term debt Term Loans, due November 29, 2027 (7.67% and 6.76% at September 30, 2023 and December 31, 2022, respectively) 281,250 292,500 Revolving Credit Facility 205,494 205,494 Unamortized discount and debt issuance costs (3,410) (4,004) Total long-term debt, net $ 483,334 $ 493,990

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis	The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of the periods presented: September 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Interest rate swaps $ — $ 3,073 $ — $ 3,073 Liabilities Interest rate swaps — 475 — 475 Contingent consideration — — 4,934 4,934 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Liabilities Contingent consideration $ — $ — $ 1,219 $ 1,219
Schedule of Fair Value of the Level 3 Liabilities with Significant Unobservable Inputs	The following table summarizes the change in fair value of the Level 3 liabilities with significant unobservable inputs for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Fair value of contingent consideration, beginning of period $ 5,620 $ 1,230 $ 1,219 $ 1,445 Acquired liabilities — — 4,706 — Cash payments — (11) (305) (226) Change in fair value of contingent consideration, net (686) — (686) — Fair value of contingent consideration, end of period $ 4,934 $ 1,219 $ 4,934 $ 1,219

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
Derivative Instruments and Hedging Activities (Tables)	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Company's Outstanding Derivatives	As of September 30, 2023, the Company had the following outstanding interest rate swap derivatives that were used to hedge its interest rate risks: Product Number of Instruments Effective Date Maturity Date Current Notional (1) Interest Rate Swaps 4 February 28, 2023 November 29, 2027 $300.0 million USD _________________________ (1) The notional value steps down from $300.0 million to $150.0 million on February 27, 2026.
Summary of Fair Value of Derivative Financial Instruments	All financial derivative instruments are carried at their fair value on the balance sheet. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of the dates presented: Asset Derivatives September 30, 2023 December 31, 2022 (in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ 3,073 Other current assets $ — Liability Derivatives September 30, 2023 December 31, 2022 (in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other liabilities $ 475 Other liabilities $ —
Schedule of Effect of Cash Flow Hedges on Accumulated OCI	The tables below present the effect of cash flow hedge accounting on accumulated OCI for the periods presented: Three Months Ended Three Months Ended (in thousands) 2023 2022 2023 2022 Derivatives designated as hedging instruments: Amount of Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Interest rate swaps $ 3,910 $ — Interest expense $ 761 $ — Nine Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Derivatives designated as hedging instruments: Amount of Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Interest rate swaps $ 4,008 $ — Interest expense $ 1,410 $ —
Schedule of Derivative Instruments on Statements of Operations and Comprehensive Income	The table below presents the effect of the Company’s cash flow hedge accounting on the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) Interest Expense Total amounts of income and expense line items in which the effects of cash flow hedges are recorded $ 9,305 $ 7,764 $ 26,903 $ 20,719 Gain or (loss) on cash flow hedging relationships Interest rate swaps: Amount of gain or (loss) reclassified from accumulated OCI into income $ 761 $ — $ 1,410 $ — The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate swaps Gain on interest rate swaps $ — $ — $ — $ 296

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary Of Stock-Based Compensation Expense	Stock-based compensation expense is recognized in cost of revenues, corporate technology and production systems, and selling, general and administrative expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Stock-based compensation expense Cost of revenues $ 396 $ 384 $ 1,218 $ 1,208 Corporate technology and production systems 776 774 1,993 1,803 Selling, general and administrative 8,611 5,135 23,973 14,413 Total stock-based compensation expense $ 9,783 $ 6,293 $ 27,184 $ 17,424
Schedule of Share-based Payment Arrangement, Option, Activity	The table below provides a summary of service-based vesting options (“SVOs”) and performance-based stock options (“PSOs”) currently outstanding under the 2015 Plan for the nine months ended September 30, 2023: Outstanding SVOs Outstanding PSOs Number of Weighted Weighted Aggregate Number of Weighted Weighted Aggregate (in thousands, except shares and per share amounts) Balances at December 31, 2022 6,208,274 $ 9.59 5.00 $ 36,513 3,081,855 $ 10.05 3.32 $ 16,699 Granted — — — — Forfeited / Expired — — — — Exercised (213,783) 9.44 (14,975) 9.68 Balances at September 30, 2023 (1) 5,994,491 $ 9.59 4.30 $ 18,139 3,066,880 $ 10.05 2.58 $ 7,872 _________________________ (1) All SVOs and PSOs are exercisable as of September 30, 2023. The table below provides a summary of stock option activity under the 2021 Equity Plan for the nine months ended September 30, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2022 4,387,501 $ 22.91 8.81 $ — Granted 909,431 12.77 Forfeited / Expired — — Exercised — — Outstanding at September 30, 2023 5,296,932 $ 21.17 8.30 $ 7,516 Exercisable at September 30, 2023 1,779,123 $ 22.98 7.99 $ —
Schedule of Share-based Payment Arrangement, Restricted Stock Activity	The table below provides a summary of restricted stock activity under the 2021 Equity Plan for the nine months ended September 30, 2023: Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 3,421,920 $ 20.32 Granted 2,177,482 12.46 Forfeited / Cancelled (306,240) 16.10 Vested (792,403) 22.21 Unvested at September 30, 2023 4,500,759 $ 16.48 Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 51,249 $ 21.18 Granted 93,026 14.36 Forfeited / Cancelled (3,287) 17.99 Vested (17,177) 22.87 Unvested at September 30, 2023 123,811 $ 15.79

Net Income per Share (Tables)

Net Income per Share (Tables)	9 Months Ended
Net Income per Share (Tables)	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: Three Months Ended Nine Months Ended (in thousands, except share and per share amounts) 2023 2022 2023 2022 Numerator: Net income attributable to stockholders $ 2,354 $ 9,303 $ 3,268 $ 27,110 Denominator: Weighted average number of shares outstanding—basic 90,972,009 94,134,690 92,184,159 94,043,105 Weighted average additional shares assuming conversion of potential common shares 2,679,682 4,983,831 2,309,095 5,174,020 Weighted average common shares outstanding—diluted 93,651,691 99,118,521 94,493,254 99,217,125 Net income per share attributable to stockholders, basic $ 0.03 $ 0.10 $ 0.04 $ 0.29 Net income per share attributable to stockholders, diluted $ 0.03 $ 0.09 $ 0.03 $ 0.27
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table summarizes the weighted average potentially dilutive securities that were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options 5,296,932 8,964,397 5,064,658 8,964,397 Restricted stock 1,156,291 2,131,704 2,971,926 2,131,704 Restricted stock units 6,421 44,560 34,612 44,560

Revenue (Tables)

Revenue (Tables)	9 Months Ended
Revenue (Tables)	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following tables set forth total revenue by type of service for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Screening services $ 178,809 $ 197,870 $ 544,330 $ 591,900 Other services 1,757 1,429 5,894 4,962 Total revenue $ 180,566 $ 199,299 $ 550,224 $ 596,862
Schedule of Revenue from External Customers by Geographic Areas	The following table sets forth total revenue by geographic area in which the revenues and invoicing are recorded for the periods presented: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 United States $ 153,577 $ 168,615 $ 465,517 $ 502,047 All other countries 26,989 30,684 84,707 94,815 Total revenue $ 180,566 $ 199,299 $ 550,224 $ 596,862

Description of Business (Detail

Description of Business (Details)	Sep. 30, 2023
Sterling Check Corp.
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Ownership percentage	52.40%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional information (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jan. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021
Accounting Policies [Line Items]
Number of operating segments \| Segment	1
Cash and cash equivalents	$ 49,877	$ 103,095
Cumulative translation adjustment losses	(5,500)	(5,600)
Sales credits and reserves	700	900
Allowance for expected credit losses	$ 2,670	2,304	$ 2,658	$ 2,462	$ 2,161		$ 2,949
Percentage of cloud-hosted revenue platforms	80%							98%
Cumulative Effect, Period of Adoption, Adjustment
Accounting Policies [Line Items]
Allowance for expected credit losses		0	$ 0		$ 0		$ 254
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Accounting Policies [Line Items]
Retained earnings						$ 300
Outside US
Accounting Policies [Line Items]
Cash	$ 33,400	28,000
India
Accounting Policies [Line Items]
Cash	4,100	5,100
Canada
Accounting Policies [Line Items]
Cash	$ 6,000	$ 9,200
Internally Developed Software Assets
Accounting Policies [Line Items]
Estimated useful life	3 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Accounts Receivable, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 2,658	$ 2,161	$ 2,304	$ 2,949
Additions	97	351	556	1,010
Write-offs, net of recoveries	(82)	(36)	(190)	(1,727)
Foreign currency translation adjustment	(3)	(14)	0	(24)
Balance at end of period	2,670	2,462	2,670	2,462
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 0	$ 0	$ 0	$ 254

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Corporate Technology and Production Systems Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounting Policies [Abstract]
Corporate information technology	$ 4,665	$ 7,012	$ 14,854	$ 19,425
Development of platform and product initiatives	4,371	4,433	13,065	12,797
Production support and maintenance	2,293	2,270	6,790	6,584
Total production systems	6,664	6,703	19,855	19,381
Total corporate technology and production systems	$ 11,329	$ 13,715	$ 34,709	$ 38,806

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($)				6 Months Ended	9 Months Ended		13 Months Ended
Acquisitions - Additional Information (Details) - USD ($)	Mar. 01, 2023	Dec. 31, 2022	Nov. 30, 2021	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Contingent consideration					$ 4,706,000	$ 0
Socrates and A-Check
Business Acquisition [Line Items]
Purchase price	$ 66,200,000
Transaction expenses					$ 2,000,000
Tax deductible goodwill	0
Total consideration, purchase price adjustment				$ (294,000)
Socrates and A-Check \| Customer lists
Business Acquisition [Line Items]
Finite lived assets acquired	$ 28,000,000
Useful life of assets acquired	15 years
Socrates and A-Check \| Trade Names
Business Acquisition [Line Items]
Useful life of assets acquired	2 years
Socrates and A-Check \| Developed Technology
Business Acquisition [Line Items]
Useful life of assets acquired	8 years
Socrates and A-Check \| Non-compete agreement
Business Acquisition [Line Items]
Useful life of assets acquired	5 years
A-Check Global
Business Acquisition [Line Items]
Contingent consideration	$ 4,700,000
Current portion of contingent consideration	$ 2,600,000
Contingent consideration period	1 year
Noncurrent portion of contingent consideration	$ 2,100,000
Socrates
Business Acquisition [Line Items]
Retention requirements payable	$ 5,000,000
Period of retention requirements payable	2 years
Contingent consideration
Business Acquisition [Line Items]
Purchase price		$ 67,500,000	$ 67,800,000
Contingent consideration			1,500,000
Cash purchase price			$ 66,300,000
Total consideration, purchase price adjustment							$ (300,000)

Acquisitions - Assets and Liabi

Acquisitions - Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Other current assets
Goodwill	$ 878,390		$ 849,609
Socrates and A-Check
Consideration
Cash	11,935	$ 11,935
Other current assets
Accounts receivable	4,276	4,279
Other current assets	1,252	805
Property and equipment	176	177
Intangible assets	30,873	32,141
Other long-term assets	6	6
Total assets acquired	48,518	49,343
Accounts payable and accrued expenses	1,250	1,156
Other current liabilities	1,219	1,291
Deferred tax liability	8,465	8,388
Other liabilities	2	2
Total liabilities assumed	10,936	10,837
Total identifiable net assets	37,582	38,506
Goodwill	28,570	27,352
Total consideration	66,152	$ 65,858
Purchase Price Adjustments
Accounts receivable	(3)
Other current assets	447
Property and equipment	(1)
Intangible assets	(1,268)
Total assets acquired	(825)
Accounts payable and accrued expenses	94
Other current liabilities	(72)
Deferred tax liability	77
Total liabilities assumed	99
Total identifiable net assets	(924)
Goodwill	1,218
Total consideration	$ 294

Property and Equipment, Net - S

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 41,432	$ 50,217
Less: Accumulated depreciation	(34,102)	(39,876)
Total property and equipment, net	7,330	10,341
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,621	2,568
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	37,763	41,084
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,048	$ 6,565

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 0.8	$ 1.1	$ 2.8	$ 3.3
Write down no longer use in property and equipment	$ 0.1	$ 0.2	$ 1.7	$ 0.8

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 849,609
Acquisitions	28,570
Foreign currency translation adjustment	211
Goodwill, ending balance	$ 878,390

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 885,695	$ 842,730
Accumulated Amortization	(645,213)	(601,694)
Net	240,482	241,036
Customer lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	532,376	506,015
Accumulated Amortization	(365,853)	(340,579)
Net	166,523	165,436
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	77,659	77,198
Accumulated Amortization	(42,135)	(37,519)
Net	35,524	39,679
Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,969	3,179
Accumulated Amortization	(2,781)	(2,584)
Net	1,188	595
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	261,573	246,220
Accumulated Amortization	(229,257)	(216,330)
Net	32,316	29,890
Domain names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,118	10,118
Accumulated Amortization	(5,187)	(4,682)
Net	$ 4,931	$ 5,436

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Indefinite-lived Intangible Assets [Line Items]
Net intangibles	$ 240,482,000		$ 240,482,000		$ 241,036,000
Capitalized computer software, impairments	100,000	$ 0	200,000	$ 0
Amortization of intangible assets	15,100,000	$ 15,500,000	44,300,000	53,300,000
Software and Software Development Costs
Indefinite-lived Intangible Assets [Line Items]
Net intangibles	30,200,000		30,200,000		$ 28,100,000
Finite lived intangible assets, not yet in service	$ 6,100,000		6,100,000
Capitalized computer software, additions			13,400,000	11,700,000
Software and Software Development Costs \| Internal Cost
Indefinite-lived Intangible Assets [Line Items]
Capitalized computer software, additions			11,500,000	9,400,000
Software and Software Development Costs \| External Cost
Indefinite-lived Intangible Assets [Line Items]
Capitalized computer software, additions			$ 1,800,000	$ 2,300,000

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Summary of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of fiscal year 2023	$ 15,144
2024	52,636
2025	42,591
2026	32,526
2027	24,991
Thereafter	72,594
Net	$ 240,482	$ 241,036

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation	$ 22,274	$ 29,835
Accrued cost of revenues	21,721	15,721
Accrued interest	223	3,143
Other accrued expenses	16,169	18,348
Total accrued expenses	$ 60,387	$ 67,047

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	3 Months Ended
Leases - Additional Information (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Sep. 30, 2023 USD ($) lease	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use asset		$ 7,020	$ 20,084
Lease liability		$ 13,067	$ 20,552
Number of operating leases \| lease		16
Reduction of operating leases ROU asset for impairment charges	$ 5,300
Increase to lease liability resulting from lease remeasurement	4,700
Reduction to operating ROU asset resulting from lease remeasurement	4,700
De-recognition of operating lease ROU asset related to certain leases due to abandonment	$ 1,500
Minimum
Lessee, Lease, Description [Line Items]
Remaining operating lease term		1 month
Maximum
Lessee, Lease, Description [Line Items]
Remaining operating lease term		64 months
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use asset				$ 23,500
Lease liability				$ 23,800

Leases - Schedule of Lease Expe

Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Components of total lease costs
Operating lease expense	$ 810		$ 1,357	$ 4,796	$ 3,958
Sublease income	(278)		(216)	(843)	(504)
Total net lease costs	$ 532		$ 1,141	$ 3,953	$ 3,454
Lease expense to de-recognized certain operating ROU assets abandoned		$ 1,500

Leases - Schedule of Right-of-U

Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating leases right-of-use asset	$ 7,020	$ 20,084
Operating leases liability, current portion	4,233	3,717
Long-term operating leases liability, net of current portion	8,834	16,835
Total operating leases liability	$ 13,067	$ 20,552
Weighted average remaining lease term in years - operating leases	3 years 8 months 12 days	4 years 9 months 18 days
Weighted average discount rate - operating leases	5.07%	4.50%

Leases - Schedule of Remaining

Leases - Schedule of Remaining Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Remainder of fiscal year 2023	$ 1,229
2024	5,243
2025	2,337
2026	2,117
2027	2,149
Thereafter	1,113
Total future minimum lease payments	14,188
Less: imputed interest	(1,121)
Total	$ 13,067	$ 20,552

Debt - Additional Information (

Debt - Additional Information (Details) - Line of Credit - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Nov. 29, 2022
Debt Instrument [Line Items]
Aggregate amount of borrowings permitted			$ 700,000,000
Level 2
Debt Instrument [Line Items]
Estimated fair value	$ 482,200,000	$ 487,100,000
Secured Debt \| Term Loans
Debt Instrument [Line Items]
Aggregate amount of borrowings permitted			300,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate amount of borrowings permitted			$ 400,000,000

Debt - Summary of Company's Lon

Debt - Summary of Company's Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current portion of long-term debt
Total current portion of long-term debt	$ 13,125	$ 7,500
Long-term debt
Unamortized discount and debt issuance costs	(3,410)	(4,004)
Total long-term debt, net	483,334	493,990
Line of Credit \| Secured Debt \| Term Loans
Current portion of long-term debt
Total current portion of long-term debt	13,125	7,500
Long-term debt
Long-term debt, gross	$ 281,250	$ 292,500
Interest rates	7.67%	6.76%
Line of Credit \| Revolving Credit Facility
Long-term debt
Long-term debt, gross	$ 205,494	$ 205,494

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Liabilities
Contingent consideration	$ 4,934	$ 1,219
Interest rate swaps
Assets
Interest rate swaps	3,073
Liabilities
Interest rate swaps	475
Level 1
Liabilities
Contingent consideration	0	0
Level 1 \| Interest rate swaps
Assets
Interest rate swaps	0
Liabilities
Interest rate swaps	0
Level 2
Liabilities
Contingent consideration	0	0
Level 2 \| Interest rate swaps
Assets
Interest rate swaps	3,073
Liabilities
Interest rate swaps	475
Level 3
Liabilities
Contingent consideration	4,934	$ 1,219
Level 3 \| Interest rate swaps
Assets
Interest rate swaps	0
Liabilities
Interest rate swaps	$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of contingent consideration, net			$ (686)	$ 0
Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of contingent consideration, beginning of period	$ 5,620	$ 1,230	1,219	1,445
Acquired liabilities	0	0	4,706	0
Cash payments	0	(11)	(305)	(226)
Change in fair value of contingent consideration, net	(686)	0	(686)	0
Fair value of contingent consideration, end of period	$ 4,934	$ 1,219	$ 4,934	$ 1,219

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Summary of Company's Outstanding Derivatives (Details) - Interest rate swaps $ in Millions	Feb. 27, 2026 USD ($)	Sep. 30, 2023 USD ($) instrument
Derivative [Line Items]
Number of Instruments \| instrument		4
Current Notional		$ 300
Forecast
Derivative [Line Items]
Current Notional	$ 150

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Summary of Fair Value of Derivative Financial Instruments (Details) - Derivatives designated as hedging instruments: - Interest rate swaps - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other current assets
Derivative [Line Items]
Asset Derivatives	$ 3,073	$ 0
Other liabilities
Derivative [Line Items]
Liability Derivatives	$ 475	$ 0

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Summary of Effect of Cash Flow Hedge Accounting on Accumulated OCI (Loss) (Details) - Derivatives designated as hedging instruments: - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest expense
Derivative [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	$ 761	$ 0	$ 1,410	$ 0
Interest rate swaps
Derivative [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative	$ 3,910	$ 0	$ 4,008	$ 0

Derivative Instruments and He_6

Derivative Instruments and Hedging Activities - Impact Of The Companies Derivative Financial Instruments On The Consolidated Statement Of Operations And Comprehensive Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative [Line Items]
Interest expense, net	$ 9,305	$ 7,764	$ 26,903	$ 20,719
Cash Flow Hedging \| Interest rate swaps \| Interest expense
Derivative [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	761	0	1,410	0
Derivatives designated as hedging instruments: \| Interest expense
Derivative [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	761	0	1,410	0
Derivatives designated as hedging instruments: \| Cash Flow Hedging
Derivative [Line Items]
Interest expense, net	$ 9,305	$ 7,764	$ 26,903	$ 20,719

Derivative Instruments and He_7

Derivative Instruments and Hedging Activities - Additional Information (Details)	9 Months Ended
	Sep. 30, 2023 USD ($) instrument
Derivative [Line Items]
Estimated reclassification from other comprehensive income during next twelve months	$ 3,100,000
Gain (loss) reclassified from accumulated OCI into earnings from forecasted transaction that failed to occur	$ 0
Derivatives designated as hedging instruments:
Derivative [Line Items]
Number of Instruments \| instrument	0

Derivative Instruments and He_8

Derivative Instruments and Hedging Activities - Summary of Derivative Financial Instruments that are Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivatives designated as hedging instruments: \| Interest rate swaps \| Gain on interest rate swaps
Derivative [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 0	$ 0	$ 0	$ 296

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 3,952	$ 3,481	$ 4,969	$ 12,958
Effective tax rate	62.70%	27.20%	60.30%	32.30%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement obligation	$ 7,178		$ 7,178		$ 4,165
Insurance receivable	4,700		4,700		$ 900
Net legal settlement expense	$ 500	$ 200	$ 600	$ 500

Equity (Details)

Equity (Details)		3 Months Ended			9 Months Ended
Equity (Details)	Jun. 07, 2023 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) vote $ / shares shares	Jun. 30, 2023 USD ($) shares	Mar. 31, 2023 USD ($) shares	Sep. 30, 2023 USD ($) vote $ / shares shares	Dec. 31, 2022 $ / shares shares	Nov. 23, 2022 USD ($)
Class of Stock [Line Items]
Total shares authorized (in shares)		1,100,000,000			1,100,000,000
Common stock, shares authorized (in shares)		1,000,000,000			1,000,000,000	1,000,000,000
Common stock, par value (in USD per share) \| $ / shares		$ 0.01			$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)		100,000,000			100,000,000	100,000,000
Preferred stock, par value (in USD per share) \| $ / shares		$ 0.01			$ 0.01	$ 0.01
Number of votes entitled to each share of common stock \| vote		1			1
Dividends declared (in USD per share) \| $ / shares					$ 0
Authorized common stock repurchase amount \| $							$ 100,000,000
Common stock repurchased (in shares)		1,564,019			3,523,838
Value of common stock repurchased \| $		$ 20,701,000	$ 17,630,000	$ 7,712,000	$ 46,000,000
Common Shares Held in Treasury
Class of Stock [Line Items]
Common stock repurchased (in shares)		1,564,019	1,465,893	493,926
Value of common stock repurchased \| $		$ 20,701,000	$ 17,630,000	$ 7,712,000
BSPI \| Common Shares Held in Treasury
Class of Stock [Line Items]
Common stock repurchased (in shares)			1,000,000
Value of common stock repurchased \| $			$ 11,700,000
Secondary Public Offering \| Underwriters
Class of Stock [Line Items]
Number of shares issued in transaction (in shares)	0
Proceeds from sale of stock \| $	$ 0
Secondary Public Offering \| Selling Stockholders
Class of Stock [Line Items]
Common stock, par value (in USD per share) \| $ / shares	$ 0.01
Number of shares issued in transaction (in shares)	8,000,000
Over-Allotment Option \| Selling Stockholders \| Underwriters
Class of Stock [Line Items]
Number of shares issued in transaction (in shares)	1,145,486
Period for option to purchase additional shares	30 days
Over-Allotment Option \| Selling Stockholders \| Underwriters \| Maximum
Class of Stock [Line Items]
Number of shares issued in transaction (in shares)	1,200,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 9,783	$ 6,293	$ 27,184	$ 17,424
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	396	384	1,218	1,208
Corporate technology and production systems
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	776	774	1,993	1,803
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 8,611	$ 5,135	$ 23,973	$ 14,413

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions			3 Months Ended	9 Months Ended
	Jul. 01, 2023	Aug. 04, 2021	Sep. 30, 2023	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 90.1	$ 90.1
Weighted average period of recognition				2 years 4 months 28 days
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Post-termination exercise period		6 months
Extended post-termination exercise period		30 days
Maximum threshold percentage transfer of long term option shares within one year		25%
Effectiveness period of transfer of long term option shares within one year		6 months
Maximum threshold percentage transfer of long term option shares after one year		50%
2021 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award expiration term		10 years
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares)		9,433,000
Percentage of outstanding stock maximum		5%
Share based compensation by share based award number of shares authorized for issuance (in shares)		9,433,000
Share based compensation by share based award number of shares available for grant (in shares)			8,303,713	8,303,713
NQSOs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to options			$ 28.5	$ 28.5
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to restricted stock			60.1	$ 60.1
Restricted stock \| 2021 Equity Plan \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				2 years
Share based compensation by share based award vesting percentage				50%
Restricted stock \| 2021 Equity Plan \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				3 years
Share based compensation by share based award vesting percentage				25%
Restricted stock \| 2021 Equity Plan \| Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Share based compensation by share based award vesting percentage				25%
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to restricted stock			$ 1.5	$ 1.5
Restricted stock units \| 2021 Equity Plan \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				2 years
Share based compensation by share based award vesting percentage				50%
Restricted stock units \| 2021 Equity Plan \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				3 years
Share based compensation by share based award vesting percentage				25%
Restricted stock units \| 2021 Equity Plan \| Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Share based compensation by share based award vesting percentage				25%
Restricted stock units \| 2021 Equity Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				1 year
Restricted stock units \| 2021 Equity Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Stock Options \| 2021 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award expiration term				10 years
Stock Options \| 2021 Equity Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				1 year
Stock Options \| 2021 Equity Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Other Restricted Stock \| 2021 Equity Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				1 year
Other Restricted Stock \| 2021 Equity Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Employee Stock \| ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate	15%
Share-based compensation arrangement by share based payment award, offering period	6 months
Share-based compensation arrangement by share based payment award, purchase price of common stock, percent			85%

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
2015 Plan \| Service-Based Vesting Stock Options
Number of Shares
Balance at beginning of period (in shares) \| shares	6,208,274
Granted (in shares) \| shares	0
Forfeited / Expired (in shares) \| shares	0
Exercised (in shares) \| shares	(213,783)
Balance at end of period (in shares) \| shares	5,994,491	6,208,274
Weighted Average Exercise Price
Balance at beginning of period (in USD per share) \| $ / shares	$ 9.59
Granted (in USD per share) \| $ / shares	0
Forfeited / Expired (in USD per share) \| $ / shares	0
Exercised (in USD per share) \| $ / shares	9.44
Balance at end of period (in USD per share) \| $ / shares	$ 9.59	$ 9.59
Weighted Average Remaining Contractual Life (years)
Weighted average contractual term of options outstanding	4 years 3 months 18 days	5 years
Aggregate Intrinsic Value
Balance at beginning of period \| $	$ 36,513
Exercised \| $
Balance at beginning of period \| $	$ 18,139	$ 36,513
2015 Plan \| Performance-Based Stock Options
Number of Shares
Balance at beginning of period (in shares) \| shares	3,081,855
Granted (in shares) \| shares	0
Forfeited / Expired (in shares) \| shares	0
Exercised (in shares) \| shares	(14,975)
Balance at end of period (in shares) \| shares	3,066,880	3,081,855
Weighted Average Exercise Price
Balance at beginning of period (in USD per share) \| $ / shares	$ 10.05
Granted (in USD per share) \| $ / shares	0
Forfeited / Expired (in USD per share) \| $ / shares	0
Exercised (in USD per share) \| $ / shares	9.68
Balance at end of period (in USD per share) \| $ / shares	$ 10.05	$ 10.05
Weighted Average Remaining Contractual Life (years)
Weighted average contractual term of options outstanding	2 years 6 months 29 days	3 years 3 months 25 days
Aggregate Intrinsic Value
Balance at beginning of period \| $	$ 16,699
Exercised \| $
Balance at beginning of period \| $	$ 7,872	$ 16,699
2021 Equity Plan
Number of Shares
Balance at beginning of period (in shares) \| shares	4,387,501
Granted (in shares) \| shares	909,431
Forfeited / Expired (in shares) \| shares	0
Exercised (in shares) \| shares	0
Balance at end of period (in shares) \| shares	5,296,932	4,387,501
Exercisable (in shares) \| shares	1,779,123
Weighted Average Exercise Price
Balance at beginning of period (in USD per share) \| $ / shares	$ 22.91
Granted (in USD per share) \| $ / shares	12.77
Forfeited / Expired (in USD per share) \| $ / shares	0
Exercised (in USD per share) \| $ / shares	0
Balance at end of period (in USD per share) \| $ / shares	21.17	$ 22.91
Exercisable (in USD per share) \| $ / shares	$ 22.98
Weighted Average Remaining Contractual Life (years)
Weighted average contractual term of options outstanding	8 years 3 months 18 days	8 years 9 months 21 days
Weighted average contractual term of options exercisable	7 years 11 months 26 days
Aggregate Intrinsic Value
Balance at beginning of period \| $	$ 0
Exercised \| $
Balance at beginning of period \| $	7,516	$ 0
Aggregate intrinsic value of options exercisable \| $	$ 0

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - 2021 Equity Plan	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Restricted stock
Number of Shares
Balance at beginning of period (in shares) \| shares	3,421,920
Granted (in shares) \| shares	2,177,482
Forfeited / cancelled (in shares) \| shares	(306,240)
Vested (in shares) \| shares	(792,403)
Balance at end of period (in shares) \| shares	4,500,759
Weighted Average Fair Value (per share)
Balance at beginning of period (in USD per share) \| $ / shares	$ 20.32
Granted (in USD per share) \| $ / shares	12.46
Forfeited / cancelled (in USD per share) \| $ / shares	16.10
Vested (in USD per share) \| $ / shares	22.21
Balance at end of period (in USD per share) \| $ / shares	$ 16.48
Restricted stock units
Number of Shares
Balance at beginning of period (in shares) \| shares	51,249
Granted (in shares) \| shares	93,026
Forfeited / cancelled (in shares) \| shares	(3,287)
Vested (in shares) \| shares	(17,177)
Balance at end of period (in shares) \| shares	123,811
Weighted Average Fair Value (per share)
Balance at beginning of period (in USD per share) \| $ / shares	$ 21.18
Granted (in USD per share) \| $ / shares	14.36
Forfeited / cancelled (in USD per share) \| $ / shares	17.99
Vested (in USD per share) \| $ / shares	22.87
Balance at end of period (in USD per share) \| $ / shares	$ 15.79

Net Income per Share - Schedule

Net Income per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income attributable to stockholders	$ 2,354	$ 323	$ 591	$ 9,303	$ 11,571	$ 6,236	$ 3,268	$ 27,110
Denominator:
Weighted average number of shares outstanding, basic (in shares)	90,972,009			94,134,690			92,184,159	94,043,105
Weighted average additional shares assuming conversion of potential common shares (in shares)	2,679,682			4,983,831			2,309,095	5,174,020
Weighted average shares of common stock outstanding - diluted (in shares)	93,651,691			99,118,521			94,493,254	99,217,125
Net income per share attributable to stockholders, basic (in USD per share)	$ 0.03			$ 0.10			$ 0.04	$ 0.29
Net income per share attributable to stockholders, diluted (in USD per share)	$ 0.03			$ 0.09			$ 0.03	$ 0.27

Net Income per Share - Schedu_2

Net Income per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,296,932	8,964,397	5,064,658	8,964,397
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,156,291	2,131,704	2,971,926	2,131,704
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	6,421	44,560	34,612	44,560

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Sales to related parties	$ 180,566			$ 199,299	$ 550,224	$ 596,862
Accounts receivable from related parties	$ 151,935				$ 151,935		$ 139,579
Common stock repurchased (in shares)	1,564,019				3,523,838
Value of common stock repurchased	$ 20,701	$ 17,630	$ 7,712		$ 46,000
Common Shares Held in Treasury
Related Party Transaction [Line Items]
Common stock repurchased (in shares)	1,564,019	1,465,893	493,926
Value of common stock repurchased	$ 20,701	$ 17,630	$ 7,712
Interest rate swaps
Related Party Transaction [Line Items]
Notional value interest rate swap with related party	300,000				300,000
BSPI \| Common Shares Held in Treasury
Related Party Transaction [Line Items]
Common stock repurchased (in shares)		1,000,000
Value of common stock repurchased		$ 11,700
Goldman Sachs
Related Party Transaction [Line Items]
Sales to related parties	800			1,200	2,500	4,800
Accounts receivable from related parties	400				400		200
Goldman Sachs \| J. Aron & Company LLC \| Interest rate swaps
Related Party Transaction [Line Items]
Notional value interest rate swap with related party	75,000				75,000
Stockholders
Related Party Transaction [Line Items]
Sales to related parties	100			$ 100	200	$ 200
Stockholders \| Maximum
Related Party Transaction [Line Items]
Accounts receivable from related parties	$ 100				$ 100		$ 100

Revenue - Summary of Total Reve

Revenue - Summary of Total Revenue by Type of Service (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 180,566	$ 199,299	$ 550,224	$ 596,862
Screening services
Disaggregation of Revenue [Line Items]
Total revenue	178,809	197,870	544,330	591,900
Other services
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,757	$ 1,429	$ 5,894	$ 4,962

Revenue - Summary of Total Re_2

Revenue - Summary of Total Revenue by Geographic Area Based on the Billing Address of its Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 180,566	$ 199,299	$ 550,224	$ 596,862
United States
Disaggregation of Revenue [Line Items]
Total revenue	153,577	168,615	465,517	502,047
All other countries
Disaggregation of Revenue [Line Items]
Total revenue	$ 26,989	$ 30,684	$ 84,707	$ 94,815

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred commissions, amortization period	3 years
Deferred commissions, current	$ 3.3	$ 3.3
Deferred commissions, non-current	$ 2.8	$ 2.7

Uncategorized Items - ster-2023

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]