First Advantage (NYSE:FA) Posts Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• First Advantage beat quarterly expectations, reporting EPS of $0.26 versus the $0.21 consensus estimate. Revenue also rose 8.6% year over year, and adjusted EBITDA increased 14.3%.
• The company reaffirmed its 2026 guidance and said it expects margin expansion in the second half, signaling improving profitability ahead. FY 2026 EPS guidance was updated to a range of 1.150 to 1.250.
• Shares gained after the report, and analysts turned more bullish, with JPMorgan and others raising price targets to as high as $18 to $20. However, the broader consensus rating remains “Hold.”

First Advantage (NYSE:FA - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, topping 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 period in the prior year, the firm earned $0.17 EPS. The firm's revenue for the quarter was up 8.6% on a year-over-year basis. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Price Performance

FA traded up $0.20 during trading on Friday, reaching $15.96. The stock had a trading volume of 1,987,760 shares, compared to its average volume of 1,153,215. The stock has a market cap of $2.75 billion, a PE ratio of 532.00 and a beta of 1.13. 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 has a one year low of $8.82 and a one year high of $19.01. The business has a 50-day moving average of $11.75 and a 200-day moving average of $12.89.

Trending Headlines about First Advantage

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%

Wall Street Analyst Weigh In

FA has been the topic of a number of recent analyst reports. Stifel Nicolaus set a $18.00 price objective on First Advantage in a research report on Friday. JPMorgan Chase & Co. increased their price objective on First Advantage from $15.00 to $18.00 and gave the stock an "overweight" rating in a research report on Friday. Citigroup lowered their price objective on First Advantage from $16.00 to $15.00 and set a "neutral" rating on the stock in a research report on Friday, March 6th. Finally, Barclays increased their price objective on First Advantage from $15.00 to $20.00 and gave the stock an "overweight" rating in a research report on Friday. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $17.75.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Quantbot Technologies LP bought a new position in First Advantage in the second quarter valued at $81,000. BNP Paribas Financial Markets increased its stake 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 increased its stake 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 valued at $132,000 after acquiring an additional 6,617 shares during the last quarter. Occudo Quantitative Strategies LP bought a new position in shares of First Advantage during the third quarter valued at about $163,000. Finally, Prudential Financial Inc. bought a new position in shares of First Advantage during the second quarter valued at about $167,000. Institutional investors own 94.91% of the company's stock.

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.

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