First Advantage (NYSE:FA) Releases FY 2026 Earnings Guidance

Key Points

• FY 2026 guidance: First Advantage issued EPS guidance of 1.150–1.250 (vs. consensus 1.180) and revenue guidance of $1.6–$1.7 billion (consensus $1.7B).
• Recent results: The company beat Q1 estimates with $0.26 EPS vs. $0.21 expected and reported revenue growth of 8.6% year‑over‑year.
• Analyst and ownership snapshot: Analysts are mixed (average rating "Hold" and average price target $16.75) though Barclays upgraded to "Overweight," and institutional investors own about 94.9% of the stock.

First Advantage (NYSE:FA - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.150-1.250 for the period, compared to the consensus estimate of 1.180. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion.

First Advantage Trading Up 1.8%

Shares of First Advantage stock opened at $12.86 on Thursday. First Advantage has a fifty-two week low of $8.82 and a fifty-two week high of $19.01. The business's fifty day moving average is $11.62 and its two-hundred day moving average is $12.88. 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 cap of $2.22 billion, a PE ratio of 428.73 and a beta of 1.13.

First Advantage (NYSE:FA - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.05. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.The business's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.17 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Analysts anticipate that First Advantage will post 0.74 earnings per share for the current year.

Analyst Ratings Changes

A number of research firms have recently commented on FA. Barclays raised shares of First Advantage from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $14.00 to $15.00 in a research note on Friday, March 6th. Citigroup lowered their target price 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. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, First Advantage has an average rating of "Hold" and an average price target of $16.75.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Quantbot Technologies LP purchased a new stake in First Advantage during the second quarter worth approximately $81,000. BNP Paribas Financial Markets lifted its holdings in shares of First Advantage by 105.7% during the 2nd 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 in the last quarter. Tower Research Capital LLC TRC lifted its holdings in shares of First Advantage by 503.2% during the 2nd 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 in the last quarter. Occudo Quantitative Strategies LP purchased a new stake in First Advantage during the 3rd quarter worth $163,000. Finally, Prudential Financial Inc. acquired a new stake in First Advantage in the 2nd quarter valued at $167,000. 94.91% of the stock is owned by institutional investors and hedge funds.

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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