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First Advantage Corporation (FA) Presents at Barclays 11th Annual Global Credit Data & Analytics Forum Transcript

First Advantage (FA - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for First Advantage basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for First Advantage imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

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Earnings Estimate Revisions for First AdvantageFor the fiscal year ending December 2026, this provider of background screening services is expected to earn $1.29 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for First Advantage. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.2%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of First Advantage to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

ATLANTA, Sept. 02, 2026 (GLOBE NEWSWIRE) -- First Advantage Corporation (NASDAQ: FA), a global software and data company, today announced the Company’s management team will participate in the following upcoming investor conferences:

Citi’s 2026 Global TMT Conference
Date: Wednesday, September 9, 2026
Location: New York City
Format: Webcast at 1:55 PM ET and investor meetings Barclays 11th Annual Global Credit Data & Analytics Forum
Date: Thursday, September 10, 2026
Location: Virtual
Format: Webcast at 11:00 AM ET Barclays 24th Annual Global Financial Services Conference
Date: Tuesday, September 15, 2026
Location: New York City
Format: Webcast at 2:00 PM ET and investor meetings Live webcasts will be available on the First Advantage investor relations website at https://investors.fadv.com/news-events/events-presentations. Subsequent replays, to the extent available, will also be posted to the investor relations website for a limited time following the events.

About First Advantage

First Advantage (NASDAQ: FA) is a global software and data company. We provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Combining AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data, we help organizations hire with confidence and manage risk across the entire employee lifecycle. With over 80,000 customers worldwide – including approximately two-thirds of the Fortune 100 – we deliver fast, comprehensive, and reliable solutions for employers, their candidates, and their employees. We conduct more than 200 million screens annually across over 200 countries and territories, supported by our verticalized go-to-market strategy, decades of experience, and proprietary databases containing over 1 billion records. For more information, please visit our website at https://fadv.com/.

Investor Contact

Stephanie Gorman
Vice President, Investor Relations
[email protected]
(678) 868-4151

BlackRock Inc. acquired a new stake in First Advantage Co. (NYSE:FA – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 12,063,590 shares of the company’s stock, valued at approximately $217,748,000. BlackRock Inc. owned 7.03% of First Advantage at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of FA. Deutsche Bank AG purchased a new position in First Advantage during the 2nd quarter valued at about $1,632,000. Bank of New York Mellon Corp purchased a new stake in First Advantage during the second quarter worth about $7,501,000. State of Wyoming purchased a new stake in First Advantage during the second quarter worth about $81,000. Handelsbanken Fonder AB lifted its position in shares of First Advantage by 51.9% during the second quarter. Handelsbanken Fonder AB now owns 24,300 shares of the company’s stock worth $439,000 after purchasing an additional 8,300 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of First Advantage by 47.1% during the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company’s stock worth $44,000 after purchasing an additional 783 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company’s stock.

First Advantage Price Performance Shares of FA opened at $20.93 on Friday. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85. First Advantage Co. has a 1-year low of $8.82 and a 1-year high of $25.15. The stock has a market cap of $3.59 billion, a PE ratio of 697.67 and a beta of 1.16. The firm has a fifty day moving average price of $20.27 and a 200 day moving average price of $15.45.

First Advantage (NYSE:FA – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter last year, the business earned $0.27 EPS. The business’s quarterly revenue was up 14.9% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. As a group, sell-side analysts anticipate that First Advantage Co. will post 0.74 EPS for the current year. Analyst Ratings Changes Several analysts have recently issued reports on the company. Royal Bank Of Canada increased their price objective on First Advantage from $21.00 to $24.00 and gave the company a “sector perform” rating in a research note on Friday, August 7th. Needham & Company LLC upgraded First Advantage from a “hold” rating to a “buy” rating and set a $28.00 price objective for the company in a research note on Thursday, August 6th. Stifel Nicolaus set a $18.00 price objective on First Advantage in a research report on Friday, May 8th. JPMorgan Chase & Co. upped their target price on shares of First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, Citigroup raised their target price on shares of First Advantage from $18.00 to $22.00 and gave the company a “neutral” rating in a report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $23.33.

View Our Latest Report on First Advantage

Insider Transactions at First Advantage In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $15.69, for a total transaction of $77,210.49. Following the transaction, the director owned 56,844 shares of the company’s stock, valued at $891,882.36. The trade was a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

(Free Report)

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company’s core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.

Featured Stories Five stocks we like better than First Advantage Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape SEC Probe Puts Wall Street Leverage Risk Back in Focus A Bearish-Dollar Options Surge Raises the Stakes for Warsh at Jackson Hole Five Below’s Turnaround Is Working—But Has the Stock Run Too Far? Want to see what other hedge funds are holding FA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for First Advantage Co. (NYSE:FA – Free Report).

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First Advantage's (FA -10.26%) majority shareholder is going into the minority, and investors didn't seem too pleased by this development. The employment verification services provider announced a significant stock sale by that investor, and market players reacted by trading First Advantage's equity down more than 10% on Tuesday.

Coming to market soon That majority shareholder is tech-focused private equity firm Silver Lake Group, which is selling 12.5 million First Advantage shares in a public secondary stock offering priced at $22.20 per share. Additionally, Silver Lake will distribute up to 4.2 million shares to its limited partners on or about the offering date, expected tomorrow (Wednesday, Aug. 12).

Image source: Getty Images.

First Advantage stressed that it will not earn any proceeds from the sale, as it is not the offering party. The offering price is nearly 6% below the stock's level at market close on Monday.

At the end of July, Silver Lake held nearly 89.6 million shares of First Advantage through an affiliate. This shakes out to slightly over 52% stake in the company; assuming it unloads all of its shares in the public and limited-partner offerings, that holding would drop to 42%.

Today's Change

(

-10.26

%) $

-2.42

Current Price

$

21.17

Selling near a high Whenever a large investor divests a majority stake in a company, investors worry that the selling entity has lost confidence in the viability of its investment. In this case, that's compounded by the discount of the secondary issue's sale price.

Personally, I read this as an investor taking advantage of a relatively high share price to book some gains -- First Advantage is currently trading at levels it hasn't reached since 2021. Given that, I'd keep my eye on the ball to see if First Advantage can continue posting the solid financial results of the past few quarters.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

First Advantage Corporation (FA) Q2 2026 Earnings Call Transcript

Posts Record Quarter and Raises Full Year 2026 Guidance

Second Quarter 2026 Highlights1

Revenues of $448.8 million (14.9% growth year-over-year)Net income of $16.9 million (3.8% margin); Diluted net income per share of $0.10Adjusted EBITDA of $128.5 million (28.6% margin)Adjusted Net Income of $61.4 million; Adjusted Diluted Earnings Per Share of $0.35Cash Flows from Operations of $73.6 millionSubsequent to the end of the quarter, voluntary debt prepayment of $45 million made on August 4, in addition to $25 million prepayment made on May 6$18.7 million in shares repurchased under $100 million share repurchase program
Raising Full Year 2026 Guidance

Raising full year 2026 guidance ranges for Revenues of $1.67 billion to $1.71 billion, Adjusted EBITDA of $472 million to $486 million, Adjusted Net Income of $214 million to $225 million, and Adjusted Diluted Earnings Per Share of $1.23 to $1.292
ATLANTA, Aug. 06, 2026 (GLOBE NEWSWIRE) -- First Advantage Corporation (NASDAQ: FA), a global software and data company, today announced financial results for the second quarter ended June 30, 2026.

Key Financials
(Amounts in millions, except per share data and percentages)

 Three Months Ended June 30,2026 2025 ChangeRevenues$448.8  $390.6   14.9%Net income$16.9  $0.3  NM Net income margin 3.8%  0.1% NA Diluted net income per share$0.10  $0.00  NM Adjusted EBITDA1$128.5  $113.9   12.8%Adjusted EBITDA Margin1 28.6%  29.2% NA Adjusted Net Income1$61.4  $47.0   30.8%Adjusted Diluted Earnings Per Share1$0.35  $0.27   29.6% 1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are non-GAAP measures. Please see the end of this earnings release for definitions and schedules with reconciliations of these measures to their most directly comparable respective GAAP measures.
Note: "NA" indicates not applicable information; "NM" indicates not meaningful information.

“Our outstanding second quarter performance, highlighted by 15% year-over-year revenue growth and exceptional per share earnings growth, demonstrated the strength of our AI-driven proprietary technology platform and our continued go-to-market momentum. In addition to our team’s excellent execution, our results benefited from sustained momentum driven by our recent large contract wins and continued improvement in base revenue performance. We further showcased the agility, flexibility, and scalability of our operations by seamlessly absorbing increased volumes and continuing to enable our customers to hire with speed and confidence,” said Scott Staples, Chief Executive Officer.

“We continue to see increased customer demand across a number of our verticals, including in transportation & logistics, retail & e-commerce, industrials & manufacturing, and general staffing. We outpaced our previously stated expectations for the quarter as well as our long-term revenue growth algorithm target, supported by exceptional base growth, upsell and cross-sell outperformance, consistent new logo wins, including 20 enterprise bookings in the quarter, and healthy customer retention. As we mark the fifth anniversary of our IPO, we continue to win with our differentiated suite of products, including Digital Identity, underpinned by our proprietary data sets, deep customer relationships, and focused FA 5.0 strategy,” Staples concluded.

Raising Full Year 2026 Guidance

“We are progressing toward our long-term financial targets, with revenue growth, Adjusted EBITDA Margins, and robust cash flow reflecting the consistency and durability of our business. We continue to deploy capital in a balanced and disciplined manner, with a focus on deleveraging, as reflected by our previously announced $25 million debt prepayment during the quarter and an additional, upsized $45 million prepayment subsequent to quarter-end. We also repurchased $18.7 million of common stock during the quarter under our $100 million share repurchase program, with total repurchases through July 31, 2026 of $38.2 million, or approximately 1.9% of total shares outstanding,” said Steven Marks, Chief Financial Officer. “In view of our strong year-to-date performance, current labor market trends, and our confidence in our outlook for the remainder of the year, we are raising our full year guidance.”

The following table summarizes our updated full year 2026 guidance.

 Updated Guidance
As of August 6, 2026Prior Guidance
As of May 7, 2026Revenues$1,670 million – $1,710 million$1,625 million – $1,700 millionAdjusted EBITDA2$472 million – $486 million$460 million – $485 millionAdjusted Net Income2$214 million – $225 million$200 million – $220 millionAdjusted Diluted Earnings Per Share2$1.23 – $1.29$1.15 – $1.25 2 A reconciliation of the foregoing guidance for the non-GAAP metrics of Adjusted EBITDA and Adjusted Net Income to GAAP net income and Adjusted Diluted Earnings Per Share to GAAP diluted net income per share cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.

Actual results may differ materially from First Advantage’s full year 2026 guidance as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Conference Call and Webcast Information

First Advantage will host a conference call to review its second quarter 2026 results today, August 6, 2026, at 8:30 a.m. ET.

To participate in the conference call, please dial 800-274-8461 (domestic) or 203-518-9814 (international) approximately ten minutes before the 8:30 a.m. ET start. Please mention to the operator that you are dialing in for the First Advantage second quarter 2026 earnings call or provide the conference code FA2Q26. The call will also be webcast live on the Company’s investor relations website at https://investors.fadv.com under the “News & Events” and then “Events & Presentations” section, where related presentation materials will be posted prior to the conference call.

Following the conference call, a replay of the webcast will be available on the Company’s investor relations website, https://investors.fadv.com. Alternatively, the live webcast and subsequent replay will be available at https://event.on24.com/wcc/r/5409234/68E3AC95DE943B08FC0B97F9AA813C80.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. In some cases, you can identify these forward-looking statements by the use of words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “target,” “guidance,” the negative version of these words, or similar terms and phrases.

These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Such risks and uncertainties include, but are not limited to, the following:

the failure to realize the expected benefits of the Sterling Acquisition;adverse changes in external events beyond our control, including our customers’ onboarding volumes, economic drivers which are sensitive to macroeconomic cycles, such as interest rate volatility and inflation, geopolitical unrest, global trade disputes, uncertainty in financial markets, and changes in tax laws;our operations in a highly regulated industry and the fact that we are subject to numerous and evolving laws and regulations, including with respect to personal data, data security, and artificial intelligence ("AI");our inability to identify and successfully implement our growth strategies on a timely basis or at all;potential harm to our business, brand, and reputation as a result of security breaches, cyber-attacks, social, ethical, and legal issues relating to the use of new and evolving technologies, employee or other internal misconduct, computer viruses, or the mishandling of personal data;operating in a penetrated and competitive market;our reliance on third-party data providers;our sales to government entities and higher-tier contractors to governmental customers which involve unique competitive, procurement, budget, administrative and contractual risks;due to the sensitive and privacy-driven nature of our products and solutions, we could face liability and legal or regulatory proceedings, which could be costly and time-consuming to defend and may not be fully covered by insurance;our international business exposes us to a number of risks;real or perceived errors, failures, or bugs in our products could adversely affect our business, results of operations, financial condition, and growth prospects;our ability to identify attractive targets or successfully complete such transactions;failure to comply with anti-corruption, economic and trade sanctions, and anti-money laundering laws and regulations;disruptions at our Operation Centers of Excellence and other operational sites;our contracts with our customers, which do not guarantee exclusivity or contracted volumes;the timing, manner and volume of repurchases of common stock pursuant to our share repurchase program;disruptions, outages, or other errors with our technology and network infrastructure, including our data centers, servers, and third-party cloud and internet providers and our migration to the cloud;the continued integration of our platforms and solutions with human resource providers such as applicant tracking systems and human capital management systems as well as our relationships with such human resource providers;risks relating to public opinion, which may be magnified by incidents or adverse publicity concerning our industry or operations;our reliance on third-party vendors to carry out certain portions of our operations;our dependence on the service of our key executives and other employees, and our ability to find and retain qualified employees;our ability to obtain, maintain, protect and enforce our intellectual property and other proprietary information;our ability to maintain, protect, and enforce the confidentiality of our trade secrets;the use of open-source software in our applications;seasonality in our operations from quarter to quarter;our indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and prevent us from meeting our obligations;Silver Lake’s control of us and the potential conflict of its interest with ours or those of our stockholders; andchanging interpretations of tax laws. For additional information on these and other factors that could cause First Advantage’s actual results to differ materially from expected results, please see our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in our filings with the SEC, which are or will be accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

Non-GAAP Financial Information

This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Net Income,” and “Adjusted Diluted Earnings Per Share.”

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share have been presented in this press release as supplemental measures of financial performance that are not required by or presented in accordance with GAAP because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are not recognized terms under GAAP and should not be considered as an alternative to net income as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, and amortization, and as further adjusted for loss on extinguishment of debt, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues. We define Adjusted Net Income for a particular period as net income before taxes adjusted for debt-related costs, acquisition-related depreciation and amortization, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges, to which we then apply the related effective tax rate. We define Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by adjusted weighted average number of shares outstanding—diluted.

For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release.

The presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

Certain monetary amounts, percentages, and other figures have been subject to rounding adjustments. Percentage amounts have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts may vary from those obtained by performing the same calculations using the figures in our press release. Certain other amounts that appear in this press release may not sum due to rounding.

About First Advantage

First Advantage (NASDAQ: FA) is a global software and data company. We provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Combining AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data, we help organizations hire with confidence and manage risk across the entire employee lifecycle. With over 80,000 customers worldwide – including approximately two-thirds of the Fortune 100 – we deliver fast, comprehensive, and reliable solutions for employers, their candidates, and their employees. We conduct more than 200 million screens annually across over 200 countries and territories, supported by our verticalized go-to-market strategy, decades of experience, and proprietary databases containing over 1 billion records. For more information, please visit our website at https://fadv.com/.

Investor Contact

Stephanie Gorman
Vice President, Investor Relations
[email protected]
(678) 868-4151

Condensed Financial Statements

First Advantage Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
       (in thousands, except share and par value amounts) June 30, 2026 December 31, 2025ASSETS      CURRENT ASSETS      Cash and cash equivalents $237,900  $239,998 Restricted cash  110   86 Accounts receivable (net of allowance for doubtful accounts of $7,792 and $8,084 at June 30, 2026 and December 31, 2025, respectively)  309,282   297,281 Prepaid expenses and other current assets  26,472   15,323 Income tax receivable  7,282   9,010 Total current assets  581,046   561,698 Property and equipment, net  227,267   250,865 Goodwill  2,135,158   2,143,604 Intangible assets, net  785,062   857,111 Deferred tax asset, net  4,289   4,183 Other assets  14,424   16,341 TOTAL ASSETS $3,747,246  $3,833,802 LIABILITIES AND EQUITY      CURRENT LIABILITIES      Accounts payable $124,250  $109,888 Accrued compensation  55,432   60,537 Accrued liabilities  40,564   49,140 Current portion of operating lease liability  3,125   3,568 Income tax payable  1,319   2,298 Deferred revenues  5,251   5,028 Total current liabilities  229,941   230,459 Long-term debt (net of deferred financing costs of $30,756 and $34,498 at June 30, 2026 and December 31, 2025, respectively)  2,033,781   2,080,039 Deferred tax liability, net  172,266   190,255 Operating lease liability, less current portion  4,155   5,525 Other liabilities  13,149   13,972 Total liabilities  2,453,292   2,520,250 EQUITY      Common stock - $0.001 par value; 1,000,000,000 shares authorized, 171,571,364 and 174,190,461 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively  172   174 Additional paid-in-capital  1,541,000   1,528,315 Accumulated deficit  (214,107)  (194,632)Accumulated other comprehensive loss  (33,111)  (20,305)Total equity  1,293,954   1,313,552 TOTAL LIABILITIES AND EQUITY $3,747,246  $3,833,802  First Advantage Corporation
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
      Three Months Ended June 30,(in thousands, except share and per share amounts) 2026 2025REVENUES $448,763  $390,633        OPERATING EXPENSES:      Cost of services (exclusive of depreciation and amortization below)  244,771   207,841 Product and technology expense  27,265   25,676 Selling, general, and administrative expense  57,811   57,473 Depreciation and amortization  61,893   61,906 Total operating expenses  391,740   352,896 INCOME FROM OPERATIONS  57,023   37,737        OTHER EXPENSE, NET:      Interest expense, net  31,608   44,785 Loss on extinguishment of debt  359   254 Total other expense, net  31,967   45,039 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES  25,056   (7,302)Provision (benefit) for income taxes  8,142   (7,610)NET INCOME $16,914  $308        Foreign currency translation (loss) income  (5,886)  14,384 COMPREHENSIVE INCOME $11,028  $14,692        NET INCOME $16,914  $308 Basic net income per share $0.10  $0.00 Diluted net income per share $0.10  $0.00 Weighted average number of shares outstanding - basic  171,747,641   173,288,662 Weighted average number of shares outstanding - diluted  173,225,170   175,069,451  First Advantage Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)      Six Months Ended June 30,(in thousands) 2026 2025CASH FLOWS FROM OPERATING ACTIVITIES      Net income (loss) $19,082  $(40,886)Adjustments to reconcile net income (loss) to net cash provided by operating activities:      Depreciation and amortization  124,083   123,572 Loss on extinguishment of debt  733   254 Amortization of deferred financing costs  3,009   3,205 Bad debt expense (recovery)  792   (1,495)Deferred taxes  (18,124)  (26,965)Share-based compensation  9,670   13,709 Loss on disposal and impairment of long-lived assets  6,864   527 Change in fair value of interest rate swaps  (8,172)  6,419 Changes in operating assets and liabilities:      Accounts receivable  (13,486)  (13,033)Prepaid expenses and other assets  (9,854)  1,878 Accounts payable  16,470   (12,049)Accrued compensation and accrued liabilities  (7,452)  2,585 Deferred revenues  241   501 Operating lease liabilities  149   (155)Other liabilities  (1,835)  (308)Income taxes receivable and payable, net  857   (943)Net cash provided by operating activities  123,027   56,816 CASH FLOWS FROM INVESTING ACTIVITIES      Capitalized software development costs  (28,075)  (22,180)Purchases of property and equipment  (7,464)  (1,718)Other investing activities  2,028   82 Net cash used in investing activities  (33,511)  (23,816)CASH FLOWS FROM FINANCING ACTIVITIES      Repayments of First Lien Credit Facility  (50,000)  (20,462)Share repurchases  (38,179)  — Proceeds from issuance of common stock under share-based compensation plans  4,334   2,219 Net settlement of share-based compensation plan awards  (1,318)  (2,761)Cash dividends paid  (79)  (103)Net cash used in financing activities  (85,242)  (21,107)Effect of exchange rate on cash, cash equivalents, and restricted cash  (6,348)  2,969 (Decrease) increase in cash, cash equivalents, and restricted cash  (2,074)  14,862 Cash, cash equivalents, and restricted cash at beginning of period  240,084   169,483 Cash, cash equivalents, and restricted cash at end of period $238,010  $184,345        SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      Cash paid for income taxes, net of refunds received $26,457  $24,273 Cash paid for interest $69,327  $84,140 NON-CASH INVESTING AND FINANCING ACTIVITIES:      Property and equipment acquired on account $1,177  $426 Excise taxes on share repurchases incurred but not paid $381  $—           Reconciliation of Consolidated Non-GAAP Financial Measures

  Three Months Ended June 30,(in thousands, except percentages) 2026 2025Net income $16,914  $308 Interest expense, net  31,608   44,785 Provision (benefit) for income taxes  8,142   (7,610)Depreciation and amortization  61,893   61,906 Loss on extinguishment of debt  359   254 Share-based compensation(a)  5,240   5,742 Transaction and acquisition-related charges(b)  497   2,390 Integration, restructuring, and other charges(c)  3,868   6,171 Adjusted EBITDA $128,521  $113,946 Revenues  448,763   390,633 Net income margin  3.8%  0.1%Adjusted EBITDA Margin  28.6%  29.2% (a)Share-based compensation for the three months ended June 30, 2026 and 2025, includes approximately $0.1 million and $1.8 million, respectively, of incrementally recognized expense associated with the May 2023 modification of the vesting terms of outstanding unvested and unearned performance-based options, restricted stock units, and restricted stock awards.(b)Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Transaction and acquisition related charges for the three months ended June 30, 2026 and 2025, include approximately $0.3 million and $2.3 million, respectively, of expense associated with the Sterling Acquisition.(c)Represents charges from organizational restructuring and integration activities, non-cash, and other charges primarily related to nonrecurring legal exposures, foreign currency (gains) losses, (gains) losses on the sale of assets, and other non-recurring items. Integration, restructuring, and other charges for the three months ended June 30, 2026 and 2025, include approximately $2.2 million and $3.7 million, respectively, of expense associated with the integration of Sterling.   Reconciliation of Consolidated Non-GAAP Financial Measures (continued) 

  Three Months Ended June 30,(in thousands) 2026 2025Net income $16,914  $308 Provision (benefit) for income taxes  8,142   (7,610)Income (loss) before provision for income taxes  25,056   (7,302)Debt-related charges(a)  (1,632)  5,239 Acquisition-related depreciation and amortization(b)  49,877   50,885 Share-based compensation(c)  5,240   5,742 Transaction and acquisition-related charges(d)  497   2,390 Integration, restructuring, and other charges(e)  3,868   6,171 Adjusted Net Income before income tax effect  82,906   63,125 Less: Adjusted income taxes(f)  21,480   16,160 Adjusted Net Income $61,426  $46,965    Three Months Ended June 30,  2026 2025Diluted net income per share $0.10  $0.00 Adjusted Net Income adjustments per share      Provision (benefit) for income taxes  0.05   (0.04)Debt-related charges(a)  (0.01)  0.03 Acquisition-related depreciation and amortization(b)  0.29   0.29 Share-based compensation(c)  0.03   0.03 Transaction and acquisition related charges(d)  0.00   0.01 Integration, restructuring, and other charges(e)  0.01   0.04 Adjusted income taxes(f)  (0.12)  (0.09)Adjusted Diluted Earnings Per Share (Non-GAAP) $0.35  $0.27        Weighted average number of shares outstanding used in computation of Adjusted Diluted Earnings Per Share:      Weighted average number of shares outstanding—diluted (GAAP and Non-GAAP)  173,225,170   175,069,451  (a)Represents the loss on extinguishment and non-cash interest expense associated with the amortization of debt issuance costs related to the refinancing of the Company’s First Lien Credit Facility. This adjustment also includes the impact of changes in fair value of interest rate swaps, which represents the difference between unrealized fair value gains or losses and actual cash payments and receipts on the interest rate swaps.(b)Represents the depreciation and amortization expense related to incremental intangible and developed technology assets recorded due to the application of ASC 805, Business Combinations. As a result, the purchase accounting related depreciation and amortization expense will recur in future periods until the related assets are fully depreciated or amortized, and the related purchase accounting assets may contribute to revenue generation.(c)Share-based compensation for the three months ended June 30, 2026 and 2025, includes approximately $0.1 million and $1.8 million, respectively, of incrementally recognized expense associated with the May 2023 modification of the vesting terms of outstanding unvested and unearned performance-based options, restricted stock units, and restricted stock awards. (d)Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Transaction and acquisition related charges for the three months ended June 30, 2026 and 2025, include approximately $0.3 million and $2.3 million, respectively, of expense associated with the Sterling Acquisition.(e)Represents charges from organizational restructuring and integration activities, non-cash, and other charges primarily related to nonrecurring legal exposures, foreign currency (gains) losses, (gains) losses on the sale of assets, and other non-recurring items. Integration, restructuring, and other charges for the three months ended June 30, 2026 and 2025, include approximately $2.2 million and $3.7 million, respectively, of expense associated with the integration of Sterling.(f)Effective tax rates of approximately 25.9% and 25.6% have been used to compute Adjusted Net Income and Adjusted Diluted Earnings Per Share for the three months ended June 30, 2026 and 2025, respectively.  

On July 22, 2026, First Advantage Corp (FA) shares fell 5.5% today, currently priced at $19.96. The shares have fluctuated within a 52-week range of $8.82 to $2

ATLANTA, July 16, 2026 (GLOBE NEWSWIRE) -- First Advantage Corporation (NASDAQ: FA), a global software and data company, will issue its second quarter 2026 financial results on Thursday, August 6, 2026 prior to the Company’s earnings conference call, which will be held at 8:30 a.m. ET on the same day.

Conference Call Details

To participate in the conference call, please dial 800-274-8461 (domestic) or 203-518-9814 (international) approximately ten minutes before the 8:30 a.m. ET start. Please mention to the operator that you are dialing in for the First Advantage second quarter 2026 earnings call or provide the conference code FA2Q26. The call will also be webcast live on the Company’s investor relations website at https://investors.fadv.com under the “News & Events” and then “Events & Presentations” section, where related presentation materials will be posted prior to the conference call. The webcast may be accessed directly at https://event.on24.com/wcc/r/5409234/68E3AC95DE943B08FC0B97F9AA813C80.

Following the conference call, a replay of the webcast will be available on the Company’s investor relations website, https://investors.fadv.com.

About First Advantage

First Advantage (NASDAQ: FA) is a global software and data company. We provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Combining AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data, we help organizations hire with confidence and manage risk across the entire employee lifecycle. With over 80,000 customers worldwide – including approximately two-thirds of the Fortune 100 – we deliver fast, comprehensive, and reliable solutions for employers, their candidates, and their employees. We conduct more than 200 million screens annually across over 200 countries and territories, supported by our verticalized go-to-market strategy, decades of experience, and proprietary databases containing over 1 billion records. For more information, please visit our website at https://fadv.com/.

Investor Contact

Stephanie Gorman
Vice President, Investor Relations
[email protected]
(678) 868-4151

Shares of First Advantage (FA - Free Report) have been strong performers lately, with the stock up 18% over the past month. The stock hit a new 52-week high of $19.02 in the previous session. First Advantage has gained 30% since the start of the year compared to the 16.8% gain for the Zacks Computer and Technology sector and the -8.1% return for the Zacks Internet - Software industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2026, First Advantage reported EPS of $0.26 versus consensus estimate of $0.21 while it beat the consensus revenue estimate by 3.03%.

For the current fiscal year, First Advantage is expected to post earnings of $1.23 per share on $1.68 in revenues. This represents a 18.27% change in EPS on a 6.41% change in revenues. For the next fiscal year, the company is expected to earn $1.44 per share on $1.79 in revenues. This represents a year-over-year change of 17.07% and 6.83%, respectively.

Valuation MetricsFirst Advantage may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

First Advantage has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 15.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.5X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 18.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, First Advantage currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if First Advantage fits the bill. Thus, it seems as though First Advantage shares could have potential in the weeks and months to come.

How Does FA Stack Up to the Competition?Shares of FA have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PagerDuty (PD - Free Report) . PD has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.

Earnings were strong last quarter. PagerDuty beat our consensus estimate by 33.33%, and for the current fiscal year, PD is expected to post earnings of $1.30 per share on revenue of $493.04 million.

Shares of PagerDuty have gained 7.9% over the past month, and currently trade at a forward P/E of 7.72X and a P/CF of 13.34X.

The Internet - Software industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FA and PD, even beyond their own solid fundamental situation.

It was rather advantageous to own First Advantage (FA +5.98%) stock as the trading week came to a close. Shares of the next-generation employment verification specialist, which enhances its solutions with artificial intelligence (AI), rose by almost 6% on Friday after being added to an important stock index.

That rise easily topped the 0.5% gain of another well-known market gauge, the S&P 500 index.

Graduation day After market close on Thursday S&P Global, the company behind its near-namesake S&P series of indexes, announced First Advantage would be joining one. Specifically, the company's equity will be included in the S&P SmallCap 600.

Image source: Getty Images.

As is typical with such moves, First Advantage was tapped because a current index component no longer qualifies for inclusion. The stock is replacing real estate company Kennedy-Wilson Holdings, which is being acquired.

The switch will take effect prior to market open next Tuesday, June 16.

Today's Change

(

5.98

%) $

0.93

Current Price

$

16.49

New attention Investors usually get excited about fresh inclusion in a stock index, particularly one managed by index king S&P Global, over a sudden jump in a company's visibility. More than anything, it makes the affected stock an instant target for the many index funds that remain durably popular with investors.

While this doesn't change the fundamental performance of any company, Arista's been doing well lately, as evidenced by its recently released first quarter results that featured double-digit growth in key fundamentals. For me, index inclusion is just the cherry on top of an already appealing cake with this stock.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy.

ATLANTA, March 13, 2026 (GLOBE NEWSWIRE) -- First Advantage Corporation (NASDAQ: FA), a global software and data company, today released its 2026 Global Background Screening Trends Report in partnership with ClearlyRated. Drawing on insights from more than 5,000 CHROs, HR leaders, and job seekers, across nine industries and five global regions, this study captures the latest hiring and onboarding realities and priorities.

As one of the largest background screening and identity verification providers, First Advantage knows the importance of identifying and understanding trends within the fast-changing workplace environment for the benefit of its 80,000+ customers globally. Research results include the most up to date industry data on employee lifecycle screening, hiring speed, accuracy and efficiency, and the use of AI in the recruiting and hiring process.

Key findings from the 2026 Global Trends Report include:

Rising Identity-Fraud Driving Employee Lifecycle Screening and Identity Verification.
Escalating identity-fraud, including job-related scams and widespread misrepresentation, is pushing employers to expand screening across the entire employee lifecycle. 89% of HR hiring managers plan to add additional background screening and identity verification solutions within the next two years to keep pace with rising risk.
Risk and Speed are now dual mandates, not tradeoffs.
Risk is a top screening priority, but slow hiring processes continue to cause candidate drop-off. Employers are accelerating automation and integrations to deliver faster, more efficient screening. Global & Flexible workforces are reshaping screening strategies, including the need for operational simplicity.
More than 60% of global employers report growth in candidates with multi-country or multi-location work histories. Global applicants and the shift toward gig-friendly models are adding complexity to verification requirements. Employers are simplifying through vendor consolidation and streamlined screening processes. AI is Transforming Hiring and Creating New Risks.
AI is now widely used by employers and candidates, introducing both efficiencies and new avenues for fraud. Organizations are adopting advanced identity verification and AI-driven tools to stay ahead of emerging threats.
Joelle Smith, President, commented, “The hiring landscape is undergoing significant change, driving employers to prioritize risk mitigation as AI becomes a major catalyst for both innovation and emerging vulnerabilities. Our 2026 Global Trends Report makes it clear that organizations need smarter, simpler, and more secure screening and identity verification processes across the entire employee lifecycle. At First Advantage, we’re committed to delivering the technology, automation, and insights employers need to stay ahead of risk and build trust at every step.”

Explore the full 2026 Global Trends Report here.

About First Advantage

First Advantage (NASDAQ: FA) is a global software and data company. We provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Combining AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data, we help organizations hire with confidence and manage risk across the entire employee lifecycle. With over 80,000 customers worldwide – including approximately two-thirds of the Fortune 100 – we deliver fast, comprehensive, and reliable solutions for employers, their candidates, and their employees. We conduct more than 200 million screens annually across over 200 countries and territories, supported by our verticalized go-to-market strategy, decades of experience, and proprietary databases containing over 1 billion records. For more information, please visit our website at https://fadv.com/.

Media Contact

Katelyn Brower
Director, PR, Social, Events
[email protected]

Posted by Defense World Staff on Apr 3rd, 2026

Shares of First Advantage Co. (NYSE:FA – Get Free Report) have received an average recommendation of “Hold” from the six research firms that are presently covering the firm, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $16.75.

Several research analysts have commented on the stock. Citigroup decreased their price objective on shares of First Advantage from $16.00 to $15.00 and set a “neutral” rating for the company in a report on Friday, March 6th. Zacks Research lowered shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Finally, Barclays upgraded shares of First Advantage from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $14.00 to $15.00 in a research report on Friday, March 6th.

Read Our Latest Report on First Advantage

Institutional Inflows and Outflows A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Alliancebernstein L.P. lifted its stake in shares of First Advantage by 724.5% in the 2nd quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock valued at $87,311,000 after purchasing an additional 4,618,946 shares during the period. Capital World Investors grew its stake in First Advantage by 9.4% in the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock worth $132,204,000 after purchasing an additional 780,200 shares during the period. SG Americas Securities LLC grew its stake in First Advantage by 8,338.6% in the fourth quarter. SG Americas Securities LLC now owns 777,275 shares of the company’s stock worth $11,294,000 after purchasing an additional 768,064 shares during the period. Sunriver Management LLC raised its holdings in First Advantage by 46.1% in the third quarter. Sunriver Management LLC now owns 2,350,614 shares of the company’s stock worth $36,176,000 after purchasing an additional 741,913 shares in the last quarter. Finally, Cat Rock Capital Management LP raised its holdings in First Advantage by 29.7% in the third quarter. Cat Rock Capital Management LP now owns 3,068,369 shares of the company’s stock worth $47,222,000 after purchasing an additional 702,452 shares in the last quarter. Hedge funds and other institutional investors own 94.91% of the company’s stock.

First Advantage Trading Up 0.4% NYSE FA opened at $11.23 on Tuesday. The stock has a market cap of $1.96 billion, a P/E ratio of 374.33 and a beta of 1.14. First Advantage has a fifty-two week low of $8.82 and a fifty-two week high of $19.01. The stock has a 50 day simple moving average of $11.37 and a two-hundred day simple moving average of $13.35. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85.

First Advantage (NYSE:FA – Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.04. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter in the previous year, the firm earned $0.18 EPS. The firm’s revenue was up 36.8% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. On average, analysts forecast that First Advantage will post 0.74 earnings per share for the current year.

About First Advantage (Get Free Report)

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company’s core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.

Read More Five stocks we like better than First Advantage

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Delivers Another Record Quarter and Reaffirms Full Year 2026 Guidance

First Quarter 2026 Highlights1

Revenues of $385.2 million (8.6% growth year-over-year)Net income of $2.2 million (0.6% margin); Diluted net income per share of $0.01Adjusted EBITDA of $105.3 million (27.3% margin)Adjusted Net Income of $45.1 million; Adjusted Diluted Earnings Per Share of $0.26Cash Flows from Operations of $49.4 millionSubsequent to the end of the quarter, voluntary debt prepayment of $25 million made on May 6, in addition to $25 million prepayment made on February 27$19.5 million in shares repurchased under $100 million share repurchase programReaffirming full year 2026 guidance ranges3 ATLANTA, May 07, 2026 (GLOBE NEWSWIRE) -- First Advantage Corporation (NASDAQ: FA), a global software and data company, today announced financial results for the first quarter ended March 31, 2026.

Key Financials
(Amounts in millions, except per share data and percentages)

 Three Months Ended March 31,  2026  2025  Change Revenues$385.2  $354.6  8.6%Net income (loss)$2.2  $(41.2) NM Net income (loss) margin 0.6%  (11.6)% NA Diluted net income (loss) per share$0.01  $(0.24) NM Adjusted EBITDA1$105.3  $92.1  14.3%Adjusted EBITDA Margin1 27.3%  26.0% NA Adjusted Net Income1$45.1  $30.5  48.0%Adjusted Diluted Earnings Per Share1$0.26  $0.17  52.9% 1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are non-GAAP measures. Please see the end of this earnings release for definitions and schedules with reconciliations of these measures to their most directly comparable respective GAAP measures.
Note: "NA" indicates not applicable information; "NM" indicates not meaningful information.

“Continuing our positive momentum from 2025, we generated exceptional financial results in the first quarter, with year-over-year revenue growth of 8.6%. Our sales engine is clearly humming. Our verticalized go-to-market strategy and diversified customer base, with our focus on enterprise customers, have enabled us to consistently outpace broader hiring market trends. We are seeing positive momentum across key verticals including retail & e-commerce, transportation & logistics, and gig economy, and are continuing to deliver upsell, cross-sell, and new logo wins through our innovative solutions, while also maintaining our high customer retention rate of 97%. Spanning across the employee lifecycle, our comprehensive solutions, including Digital Identity, continue to resonate with customers and open up meaningful growth opportunities,” said Scott Staples, Chief Executive Officer.

“We are building on our position of strength through the disciplined execution of our FA 5.0 growth strategy. First Advantage operates at scale, leveraging our AI-enabled products and technologies to help customers navigate increasingly complex human capital risks. Our proprietary data assets, large scale physical fulfillment networks, compliance expertise, consultative approach, and deep system integrations uniquely position us to deliver durable, long-term shareholder value in an evolving technology landscape,” Staples concluded.

Reaffirming Full Year 2026 Guidance

“We are reaffirming our full year 2026 guidance in light of our strong performance in the first quarter and our latest view of the macroeconomic environment,” commented Steven Marks, Chief Financial Officer. “We continue to generate strong cash flow, and consistent with our balanced capital allocation strategy, we are both repurchasing shares and continuing to reduce net leverage. During the quarter, we repurchased $19.5 million in shares under our recently announced $100 million authorization and voluntarily paid down $25 million of debt, as previously announced. Subsequent to the end of the quarter, we repurchased an additional $13.8 million in shares through May 1 and made another voluntary principal prepayment of $25 million in early May. We remain focused on accelerating growth while steadily reducing net leverage and advancing toward our long-term financial objectives.”

The following table summarizes our full year 2026 guidance.

  As of May 7, 2026Revenues $1,625 million – $1,700 millionAdjusted EBITDA3 $460 million – $485 millionAdjusted Net Income3 $200 million – $220 millionAdjusted Diluted Earnings Per Share3 $1.15 – $1.25 3 A reconciliation of the foregoing guidance for the non-GAAP metrics of Adjusted EBITDA and Adjusted Net Income to GAAP net income (loss) and Adjusted Diluted Earnings Per Share to GAAP diluted net income (loss) per share cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.

Actual results may differ materially from First Advantage’s full year 2026 guidance as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Conference Call and Webcast Information

First Advantage will host a conference call to review its first quarter 2026 results today, May 7, 2026, at 8:30 a.m. ET.

To participate in the conference call, please dial 800-274-8461 (domestic) or 203-518-9814 (international) approximately ten minutes before the 8:30 a.m. ET start. Please mention to the operator that you are dialing in for the First Advantage first quarter 2026 earnings call or provide the conference code FA1Q26. The call will also be webcast live on the Company’s investor relations website at https://investors.fadv.com under the “News & Events” and then “Events & Presentations” section, where related presentation materials will be posted prior to the conference call.

Following the conference call, a replay of the webcast will be available on the Company’s investor relations website, https://investors.fadv.com. Alternatively, the live webcast and subsequent replay will be available at https://event.on24.com/wcc/r/5299677/C9C3CC4A5F89F22F622AC6FC6E51BB7B.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. In some cases, you can identify these forward-looking statements by the use of words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “target,” “guidance,” the negative version of these words, or similar terms and phrases.

These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Such risks and uncertainties include, but are not limited to, the following:

the failure to realize the expected benefits of the Sterling Acquisition;adverse changes in external events beyond our control, including our customers’ onboarding volumes, economic drivers which are sensitive to macroeconomic cycles, such as interest rate volatility and inflation, geopolitical unrest, global trade disputes, uncertainty in financial markets, and changes in tax laws;our operations in a highly regulated industry and the fact that we are subject to numerous and evolving laws and regulations, including with respect to personal data, data security, and artificial intelligence ("AI");our inability to identify and successfully implement our growth strategies on a timely basis or at all;potential harm to our business, brand, and reputation as a result of security breaches, cyber-attacks, social, ethical, and legal issues relating to the use of new and evolving technologies, employee or other internal misconduct, computer viruses, or the mishandling of personal data;operating in a penetrated and competitive market;our reliance on third-party data providers;our sales to government entities and higher-tier contractors to governmental customers which involve unique competitive, procurement, budget, administrative and contractual risks;due to the sensitive and privacy-driven nature of our products and solutions, we could face liability and legal or regulatory proceedings, which could be costly and time-consuming to defend and may not be fully covered by insurance;our international business exposes us to a number of risks;real or perceived errors, failures, or bugs in our products could adversely affect our business, results of operations, financial condition, and growth prospects;our ability to identify attractive targets or successfully complete such transactions;failure to comply with anti-corruption, economic and trade sanctions, and anti-money laundering laws and regulations;disruptions at our Operation Centers of Excellence and other operational sites;our contracts with our customers, which do not guarantee exclusivity or contracted volumes;the timing, manner and volume of repurchases of common stock pursuant to our share repurchase program;disruptions, outages, or other errors with our technology and network infrastructure, including our data centers, servers, and third-party cloud and internet providers and our migration to the cloud;the continued integration of our platforms and solutions with human resource providers such as applicant tracking systems and human capital management systems as well as our relationships with such human resource providers;risks relating to public opinion, which may be magnified by incidents or adverse publicity concerning our industry or operations;our reliance on third-party vendors to carry out certain portions of our operations;our dependence on the service of our key executives and other employees, and our ability to find and retain qualified employees;our ability to obtain, maintain, protect and enforce our intellectual property and other proprietary information;our ability to maintain, protect, and enforce the confidentiality of our trade secrets;the use of open-source software in our applications;seasonality in our operations from quarter to quarter;our indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and prevent us from meeting our obligations;Silver Lake’s control of us and the potential conflict of its interest with ours or those of our stockholders; andchanging interpretations of tax laws. For additional information on these and other factors that could cause First Advantage’s actual results to differ materially from expected results, please see our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in our filings with the SEC, which are or will be accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

Non-GAAP Financial Information

This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Net Income,” and “Adjusted Diluted Earnings Per Share.”

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share have been presented in this press release as supplemental measures of financial performance that are not required by or presented in accordance with GAAP because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are not recognized terms under GAAP and should not be considered as an alternative to net income as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, and amortization, and as further adjusted for loss on extinguishment of debt, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues. We define Adjusted Net Income for a particular period as net income before taxes adjusted for debt-related costs, acquisition-related depreciation and amortization, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges, to which we then apply the related effective tax rate. We define Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by adjusted weighted average number of shares outstanding—diluted.

For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release.

The presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

Certain monetary amounts, percentages, and other figures have been subject to rounding adjustments. Percentage amounts have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts may vary from those obtained by performing the same calculations using the figures in our press release. Certain other amounts that appear in this press release may not sum due to rounding.

About First Advantage

First Advantage (NASDAQ: FA) is a global software and data company. We provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Combining AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data, we help organizations hire with confidence and manage risk across the entire employee lifecycle. With over 80,000 customers worldwide – including approximately two-thirds of the Fortune 100 – we deliver fast, comprehensive, and reliable solutions for employers, their candidates, and their employees. We conduct more than 200 million screens annually across over 200 countries and territories, supported by our verticalized go-to-market strategy, decades of experience, and proprietary databases containing over 1 billion records. For more information, please visit our website at https://fadv.com/.

Investor Contact

Stephanie Gorman
Vice President, Investor Relations
[email protected] 
(678) 868-4151

Condensed Financial Statements

First Advantage Corporation
Condensed Consolidated Balance Sheets
(Unaudited)   (in thousands, except share and par value amounts) March 31, 2026  December 31, 2025 ASSETS      CURRENT ASSETS      Cash and cash equivalents $225,908  $239,998 Restricted cash  111   86 Accounts receivable (net of allowance for doubtful accounts of $8,327 and $8,084 at March 31, 2026 and December 31, 2025, respectively)  287,676   297,281 Prepaid expenses and other current assets  21,317   15,323 Income tax receivable  4,306   9,010 Total current assets  539,318   561,698 Property and equipment, net  237,039   250,865 Goodwill  2,138,399   2,143,604 Intangible assets, net  820,653   857,111 Deferred tax asset, net  4,151   4,183 Other assets  14,604   16,341 TOTAL ASSETS $3,754,164  $3,833,802 LIABILITIES AND EQUITY      CURRENT LIABILITIES      Accounts payable $107,193  $109,888 Accrued compensation  42,246   60,537 Accrued liabilities  42,347   49,140 Current portion of operating lease liability  3,372   3,568 Income tax payable  3,128   2,298 Deferred revenues  5,211   5,028 Total current liabilities  203,497   230,459 Long-term debt (net of deferred financing costs of $32,603 and $34,498 at March 31, 2026 and December 31, 2025, respectively)  2,056,934   2,080,039 Deferred tax liability, net  181,024   190,255 Operating lease liability, less current portion  4,862   5,525 Other liabilities  14,063   13,972 Total liabilities  2,460,380   2,520,250 EQUITY      Common stock - $0.001 par value; 1,000,000,000 shares authorized, 172,705,863 and 174,190,461 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively  173   174 Additional paid-in-capital  1,532,985   1,528,315 Accumulated deficit  (212,149)  (194,632)Accumulated other comprehensive loss  (27,225)  (20,305)Total equity  1,293,784   1,313,552 TOTAL LIABILITIES AND EQUITY $3,754,164  $3,833,802  First Advantage Corporation
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
     Three Months Ended March 31, (in thousands, except share and per share amounts) 2026  2025 REVENUES $385,201  $354,588        OPERATING EXPENSES:      Cost of services (exclusive of depreciation and amortization below)  211,411   192,565 Product and technology expense  24,605   27,155 Selling, general, and administrative expense  53,475   65,585 Depreciation and amortization  62,190   61,666 Total operating expenses  351,681   346,971 INCOME FROM OPERATIONS  33,520   7,617        OTHER EXPENSE, NET:      Interest expense, net  29,841   46,580 Loss on extinguishment of debt  374   — Total other expense, net  30,215   46,580 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES  3,305   (38,963)Provision for income taxes  1,137   2,231 NET INCOME (LOSS) $2,168  $(41,194)       Foreign currency translation (loss) income  (6,920)  5,453 COMPREHENSIVE LOSS $(4,752) $(35,741)       NET INCOME (LOSS) $2,168  $(41,194)Basic net income (loss) per share $0.01  $(0.24)Diluted net income (loss) per share $0.01  $(0.24)Weighted average number of shares outstanding - basic  173,903,625   172,756,497 Weighted average number of shares outstanding - diluted  174,922,780   172,756,497  First Advantage Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
     Three Months Ended March 31, (in thousands) 2026  2025 CASH FLOWS FROM OPERATING ACTIVITIES      Net income (loss) $2,168  $(41,194)Adjustments to reconcile net income (loss) to net cash provided by operating activities:      Depreciation and amortization  62,190   61,666 Loss on extinguishment of debt  374   — Amortization of deferred financing costs  1,520   1,608 Bad debt expense (recovery)  572   (712)Deferred taxes  (9,227)  (7,553)Share-based compensation  4,430   7,967 Loss on disposal and impairment of long-lived assets  6,631   132 Change in fair value of interest rate swaps  (4,945)  3,936 Changes in operating assets and liabilities:      Accounts receivable  8,339   1,927 Prepaid expenses and other assets  (5,502)  (993)Accounts payable  (1,857)  (6,038)Accrued compensation and accrued liabilities  (19,892)  (8,615)Deferred revenues  201   482 Operating lease liabilities  87   (91)Other liabilities  (1,183)  (366)Income taxes receivable and payable, net  5,525   7,315 Net cash provided by operating activities  49,431   19,471 CASH FLOWS FROM INVESTING ACTIVITIES      Capitalized software development costs  (13,204)  (10,628)Purchases of property and equipment  (2,812)  (485)Other investing activities  2,000   37 Net cash used in investing activities  (14,016)  (11,076)CASH FLOWS FROM FINANCING ACTIVITIES      Repayments of First Lien Credit Facility  (25,000)  (5,463)Share repurchases  (19,492)  — Proceeds from issuance of common stock under share-based compensation plans  1,152   1,688 Net settlement of share-based compensation plan awards  (911)  (2,204)Cash dividends paid  (10)  (11)Payments on finance lease obligations  —   (3)Net cash used in financing activities  (44,261)  (5,993)Effect of exchange rate on cash, cash equivalents, and restricted cash  (5,219)  906 (Decrease) increase in cash, cash equivalents, and restricted cash  (14,065)  3,308 Cash, cash equivalents, and restricted cash at beginning of period  240,084   169,483 Cash, cash equivalents, and restricted cash at end of period $226,019  $172,791        SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      Cash paid for income taxes, net of refunds received $5,768  $3,003 Cash paid for interest $34,714  $41,881 NON-CASH INVESTING AND FINANCING ACTIVITIES:      Property and equipment acquired on account $2,386  $973 Excise taxes on share repurchases incurred but not paid $195  $—  Reconciliation of Consolidated Non-GAAP Financial Measures

  Three Months Ended March 31, (in thousands, except percentages) 2026  2025 Net income (loss) $2,168  $(41,194)Interest expense, net  29,841   46,580 Provision for income taxes  1,137   2,231 Depreciation and amortization  62,190   61,666 Loss on extinguishment of debt  374   — Share-based compensation(a)  4,430   7,967 Transaction and acquisition-related charges(b)  565   3,996 Integration, restructuring, and other charges(c)  4,582   10,866 Adjusted EBITDA $105,287  $92,112 Revenues  385,201   354,588 Net income (loss) margin  0.6%  (11.6)%Adjusted EBITDA Margin  27.3%  26.0% (a)Share-based compensation for the three months ended March 31, 2026 and 2025 includes approximately $0.6 million and $1.9 million, respectively, of incrementally recognized expense associated with the May 2023 modification of the vesting terms of outstanding unvested and unearned performance-based options, restricted stock units, and restricted stock awards.(b)Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Transaction and acquisition related charges for the three months ended March 31, 2026 and 2025 include approximately $0.2 million and $3.8 million, respectively, of expense associated with the Sterling Acquisition.(c)Represents charges from organizational restructuring and integration activities, non-cash, and other charges primarily related to nonrecurring legal exposures, foreign currency (gains) losses, (gains) losses on the sale of assets, and other non-recurring items. Integration, restructuring, and other charges for the three months ended March 31, 2026 and 2025 include approximately $1.4 million and $7.8 million, respectively, of expense associated with the integration of Sterling. Reconciliation of Consolidated Non-GAAP Financial Measures (continued)

  Three Months Ended March 31, (in thousands) 2026  2025 Net income (loss) $2,168  $(41,194)Provision for income taxes  1,137   2,231 Income (loss) before provision for income taxes  3,305   (38,963)Debt-related charges(a)  (3,169)  6,803 Acquisition-related depreciation and amortization(b)  50,914   50,039 Share-based compensation(c)  4,430   7,967 Transaction and acquisition-related charges(d)  565   3,996 Integration, restructuring, and other charges(e)  4,582   10,866 Adjusted Net Income before income tax effect  60,627   40,708 Less: Adjusted income taxes(f)  15,508   10,222 Adjusted Net Income $45,119  $30,486    Three Months Ended March 31,   2026  2025 Diluted net income (loss) per share (GAAP) $0.01  $(0.24)Adjusted Net Income adjustments per share      Provision for income taxes  0.01   0.01 Debt-related charges(a)  (0.02)  0.04 Acquisition-related depreciation and amortization(b)  0.29   0.29 Share-based compensation(c)  0.03   0.05 Transaction and acquisition related charges(d)  0.00   0.02 Integration, restructuring, and other charges(e)  0.03   0.06 Adjusted income taxes(f)  (0.09)  (0.06)Adjusted Diluted Earnings Per Share (Non-GAAP) $0.26  $0.17        Weighted average number of shares outstanding used in computation of Adjusted Diluted Earnings Per Share:      Weighted average number of shares outstanding—diluted (GAAP and Non-GAAP)  174,922,780   172,756,497 Options and restricted stock not included in weighted average number of shares outstanding—diluted (GAAP) (using treasury stock method)  —   2,217,580 Adjusted weighted average number of shares outstanding—diluted (Non-GAAP)  174,922,780   174,974,077  (a)Represents the loss on extinguishment and non-cash interest expense related to the amortization of debt issuance costs related to the refinancing of the Company’s First Lien Credit Facility. This adjustment also includes the impact of the change in fair value of interest rate swaps, which represents the difference between the fair value gains or losses and actual cash payments and receipts on the interest rate swaps.(b)Represents the depreciation and amortization expense related to incremental intangible and developed technology assets recorded due to the application of ASC 805,Business Combinations. As a result, the purchase accounting related depreciation and amortization expense will recur in future periods until the related assets are fully depreciated or amortized, and the related purchase accounting assets may contribute to revenue generation.(c)Share-based compensation for the three months ended March 31, 2026 and 2025 includes approximately $0.6 million and $1.9 million, respectively, of incrementally recognized expense associated with the May 2023 modification of the vesting terms of outstanding unvested and unearned performance-based options, restricted stock units, and restricted stock awards.(d)Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Transaction and acquisition related charges for the three months ended March 31, 2026 and 2025 include approximately $0.2 million and $3.8 million, respectively, of expense associated with the Sterling Acquisition.(e)Represents charges from organizational restructuring and integration activities, non-cash, and other charges primarily related to nonrecurring legal exposures, foreign currency (gains) losses, (gains) losses on the sale of assets, and other non-recurring items. Integration, restructuring, and other charges for the three months ended March 31, 2026 and 2025 include approximately $1.4 million and $7.8 million, respectively, of expense associated with the integration of Sterling.(f)Effective tax rates of approximately 25.6% and 25.1% have been used to compute Adjusted Net Income and Adjusted Diluted Earnings Per Share for the three months ended March 31, 2026 and 2025, respectively.

Climbing to a price it hasn't reached since January, First Advantage (FA +5.30%) stock is ripping notably higher today. Shares of the artificial intelligence (AI) data and software specialist are shining brightly on investors' radars after the company reported better-than-expected first-quarter 2026 financial results.

As of 10:34 a.m. ET, shares of First Advantage are up 18.8%.

Image source: Getty Images.

A record quarter is just one of the factors motivating investors Attaining a new high-water mark for first-quarter sales, First Advantage reported Q1 2026 revenue of $385 million, an 8.6% year-over-year increase. The company's performance exceeded analysts' expectations, which had forecast $373 million in top-line revenue.

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Speaking to the strong sales growth, Scott Staples, First Advantage's CEO, stated in the Q1 2026 financial results press release: "Our sales engine is clearly humming. Our verticalized go-to-market strategy and diversified customer base, with our focus on enterprise customers, have enabled us to consistently outpace broader hiring market trends."

First Advantage also provided investors with something to celebrate regarding profits. The company reported Q1 2026 adjusted diluted earnings per share (EPS) of $0.26. Representing a 52.9% year-over-year gain, First Advantages Q1 2026 adjusted diluted EPS surpassed analysts' estimates that it would report $0.21.

With its FA 5.0 growth strategy -- including the implementation of agentic AI solutions -- management foresees a bright 2026, forecasting year-over-year revenue growth of 3% to 8% and adjusted diluted EPS growth of 11% to 20% over 2025.

Don't dismiss First Advantage stock While First Advantage stock is moving higher today, it's far from too late for those looking to start a position in the AI stock. Shares of First Advantage are trading at 9.9 times operating cash flow, a discount to their five-year average cash flow multiple of 14.6.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

First Advantage Corporation (FA) Q1 2026 Earnings Call Transcript

, /PRNewswire/ -- First Advantage Corporation (NASD: FA) will replace Kennedy-Wilson Holdings Inc. (NYSE: KW) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, June 16. A consortium led by KW's CEO with Fairfax Financial Holdings Limited (TSE: FFH) is acquiring Kennedy-Wilson Holdings in a deal expected to close soon, pending final closing conditions.

Following is a summary of the changes that will take place prior to the open of trading on the effective date:

Effective Date     

Index Name      

Action

Company Name

Ticker     

GICS Sector     

June 16, 2026

S&P SmallCap 600     

Addition     

First Advantage

FA

Industrials

June 16, 2026

S&P SmallCap 600

Deletion

Kennedy-Wilson Holdings     

KW

Real Estate

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