First Advantage (NYSE:FA) Issues Quarterly Earnings Results

First Advantage (NYSE:FA) issued its earnings results on Thursday. The company reported $0.35 earnings per share (EPS) 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%.During the same period in the prior year, the firm posted $0.27 earnings per share. The firm’s quarterly revenue was up 14.9% compared to the same quarter last year. First Advantage updated its FY 2026 guidance to 1.23-1.290 EPS.

First Advantage Trading Down 0.5%

FA stock traded down $0.11 during mid-day trading on Friday, hitting $24.01. 2,577,762 shares of the company were exchanged, compared to its average volume of 1,406,264. 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 firm has a market capitalization of $4.12 billion, a P/E ratio of 800.33 and a beta of 1.16. The business has a fifty day simple moving average of $18.86 and a 200-day simple moving average of $14.69. First Advantage has a 12-month low of $8.82 and a 12-month high of $25.15.

More First Advantage News

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

• Positive Sentiment: Q2 earnings and revenue beat estimates: 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 net income increased 30.8% to $61.4 million. First Advantage Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year outlook 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 outlook is above the roughly $1.21 analyst consensus, signaling confidence in continued operating momentum. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Capital returns and deleveraging support the shares: First Advantage repurchased $18.7 million of stock and made a further $45 million voluntary debt prepayment, following a $25 million payment in May. These actions can improve balance-sheet flexibility and enhance per-share value. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment improved: Needham upgraded First Advantage from “Hold” to “Buy” and set a $28 price target, implying additional upside from the referenced market price.
• Neutral Sentiment: Valuation and margins remain considerations: The stock is trading near its 52-week high, and its reported P/E ratio is elevated. Adjusted EBITDA margin declined modestly year over year to 28.6%, which could limit upside if growth or profitability slows.

Insider Activity

In other news, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $15.69, for a total value of $77,210.49. Following the sale, the director directly owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. The trade was a 7.97% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 4.40% of the company’s stock.

Institutional Trading of First Advantage

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in First Advantage by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company’s stock valued at $501,000 after purchasing an additional 1,471 shares in the last quarter. Swiss National Bank lifted its position in shares of First Advantage by 1.6% during the 3rd quarter. Swiss National Bank now owns 151,544 shares of the company’s stock worth $2,332,000 after buying an additional 2,400 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in shares of First Advantage by 5.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 44,279 shares of the company’s stock valued at $735,000 after buying an additional 2,463 shares in the last quarter. AQR Capital Management LLC grew its position in shares of First Advantage by 26.4% in the 4th quarter. AQR Capital Management LLC now owns 13,751 shares of the company’s stock valued at $200,000 after buying an additional 2,875 shares during the last quarter. Finally, BNP Paribas Financial Markets raised its stake in First Advantage by 105.7% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock worth $119,000 after acquiring an additional 3,682 shares in the last quarter. Hedge funds and other institutional investors own 94.91% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on FA. Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a report on Friday, May 8th. Royal Bank Of Canada boosted their target price on shares of First Advantage from $21.00 to $24.00 and gave the company a “sector perform” rating in a report on Friday. Needham & Company LLC raised shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 price target for the company in a research note on Thursday. Citigroup lifted their price target on shares of First Advantage from $15.00 to $18.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. upped their price objective on First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, First Advantage presently has an average rating of “Moderate Buy” and a consensus target price of $22.67.

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.