First Advantage (NYSE:FA) Releases Earnings Results, Beats Estimates By $0.05 EPS

First Advantage (NYSE:FA) announced its quarterly earnings data on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.05, Briefing.com reports. 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 company earned $0.17 EPS. The firm’s revenue was up 8.6% compared to the same quarter last year. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Trading Up 1.3%

Shares of NYSE FA traded up $0.20 during trading hours on Friday, hitting $15.96. The company’s stock had a trading volume of 1,987,760 shares, compared to its average volume of 1,153,215. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The stock has a market cap of $2.75 billion, a price-to-earnings ratio of 532.00 and a beta of 1.13. First Advantage has a 12 month low of $8.82 and a 12 month high of $19.01. The business has a 50-day simple moving average of $11.75 and a 200-day simple moving average of $12.89.

Insider Activity

In related news, President Joelle M. Smith sold 23,334 shares of the firm’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total value of $350,010.00. Following the sale, the president directly owned 19,393 shares of the company’s stock, valued at $290,895. This trade represents a 54.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by insiders.

Institutional Trading of First Advantage

Several large investors have recently modified their holdings of the business. Invesco Ltd. grew its stake in shares of First Advantage by 10.8% in the fourth quarter. Invesco Ltd. now owns 139,192 shares of the company’s stock worth $2,022,000 after purchasing an additional 13,554 shares during the last quarter. Cat Rock Capital Management LP lifted its holdings in First Advantage by 8.9% in the fourth quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock worth $48,571,000 after buying an additional 274,449 shares during the period. Susquehanna Fundamental Investments LLC purchased a new stake in First Advantage in the fourth quarter worth about $452,000. Palisade Capital Management LP lifted its holdings in First Advantage by 4.7% in the fourth quarter. Palisade Capital Management LP now owns 1,765,111 shares of the company’s stock worth $25,647,000 after buying an additional 79,664 shares during the period. Finally, Balyasny Asset Management L.P. purchased a new stake in First Advantage in the fourth quarter worth about $773,000. 94.91% of the stock is owned by institutional investors.

Analyst Ratings Changes

FA has been the topic of a number of recent research reports. Barclays raised their price objective on First Advantage from $15.00 to $20.00 and gave the company an “overweight” rating in a research note on Friday. Citigroup reduced their price objective on First Advantage from $16.00 to $15.00 and set a “neutral” rating on the stock in a research note on Friday, March 6th. Stifel Nicolaus set a $18.00 price objective on First Advantage in a research note on Friday. Finally, JPMorgan Chase & Co. raised their price objective on First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $17.75.

First Advantage News Roundup

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

• Positive Sentiment: First Advantage delivered Q1 adjusted EPS of $0.26, topping estimates of $0.21, while revenue rose 8.6% year over year to $385.2 million and adjusted EBITDA increased 14.3%. First Advantage Reports First Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its 2026 outlook and expects margin expansion in the second half, which suggests improving profitability and execution. First Advantage reaffirms 2026 outlook while expecting adjusted EBITDA margins around 29% in 2H
• Positive Sentiment: JPMorgan raised its price target on First Advantage to $18 from $15 and reiterated an overweight rating, implying further upside from current levels. Benzinga report on JPMorgan price target increase
• Neutral Sentiment: First Advantage said its management team will participate in upcoming investor conferences, which could help keep the stock in focus but does not change fundamentals on its own. First Advantage to Participate in Upcoming Investor Conferences
• Neutral Sentiment: The company’s FY 2026 guidance was reaffirmed rather than raised, and revenue guidance remains roughly in line with expectations, which tempers the near-term excitement. First Advantage keeps 2026 guidance, sees margin lift to 29%

About First Advantage

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.