First Advantage (NYSE:FA) Releases Earnings Results, Beats Expectations By $0.06 EPS

First Advantage (NYSE:FA) released its quarterly earnings results on Thursday. The company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.06, Briefing.com reports. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.The firm’s revenue was up 14.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.27 earnings per share. First Advantage updated its FY 2026 guidance to 1.23-1.290 EPS.

First Advantage Price Performance

Shares of First Advantage stock traded up $3.56 on Thursday, hitting $24.12. 4,725,725 shares of the company were exchanged, compared to its average volume of 1,398,402. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The company has a 50-day moving average price of $18.70 and a 200 day moving average price of $14.62. The stock has a market capitalization of $4.14 billion, a price-to-earnings ratio of 804.00 and a beta of 1.16. First Advantage has a 1-year low of $8.82 and a 1-year high of $24.58.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Barclays upped their price objective on shares of First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Stifel Nicolaus set a $18.00 target price on First Advantage in a report on Friday, May 8th. Citigroup raised their target price on First Advantage from $15.00 to $18.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Needham & Company LLC raised First Advantage from a “hold” rating to a “buy” rating and set a $28.00 price target on the stock in a research note on Thursday. Finally, JPMorgan Chase & Co. boosted their price target on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $20.50.

Key First Advantage News

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Second-quarter results exceeded expectations: First Advantage reported adjusted diluted EPS of $0.35, above the $0.29 consensus and up from $0.27 a year earlier. Revenue rose 14.9% year over year to $448.8 million, while adjusted EBITDA increased 12.8% to $128.5 million. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 revenue of $1.67 billion to $1.71 billion, adjusted EBITDA of $472 million to $486 million, and adjusted EPS of $1.23 to $1.29. The EPS range is above the approximately $1.21 analyst consensus, reinforcing expectations for continued earnings growth. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Capital allocation supported the investment case: First Advantage generated $73.6 million in operating cash flow, repurchased $18.7 million of stock, and prepaid an additional $45 million of debt. These actions could reduce leverage and support per-share results. The earnings call also highlighted the quarter’s record performance and the outlook for the remainder of 2026. First Advantage Q2 2026 Earnings Call Transcript
• Positive Sentiment: Needham upgraded FA from “Hold” to “Buy” and set a $28 price target, indicating further upside from the recent trading level and adding analyst support to the earnings-driven rally.
• Neutral Sentiment: Revenue guidance was broadly in line with analyst expectations, and the adjusted EBITDA margin declined modestly year over year to 28.6%. Investors may also weigh the stock’s elevated valuation following its sharp advance.

Insider Activity at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction 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 approximately $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 accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 4.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of FA. Quantbot Technologies LP purchased a new stake in shares of First Advantage in the 2nd quarter valued at approximately $81,000. BNP Paribas Financial Markets lifted its holdings in First Advantage by 105.7% in the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after acquiring an additional 3,682 shares during the last quarter. Tower Research Capital LLC TRC grew its position in First Advantage by 503.2% in the second quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock worth $132,000 after acquiring an additional 6,617 shares during the period. Prudential Financial Inc. purchased a new position in First Advantage in the second quarter worth approximately $167,000. Finally, Occudo Quantitative Strategies LP purchased a new position in First Advantage in the third quarter worth approximately $163,000. Institutional investors and hedge funds own 94.91% of the company’s stock.

First Advantage Company Profile

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.