First Advantage (NYSE:FA) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

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

First Advantage Price Performance

FA traded up $0.41 during trading on Friday, reaching $24.53. 1,267,430 shares of the company traded hands, compared to its average volume of 1,397,163. The company has a market cap of $4.21 billion, a P/E ratio of 818.10 and a beta of 1.16. 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 12-month low of $8.82 and a 12-month high of $25.15. The firm has a fifty day simple moving average of $18.70 and a 200 day simple moving average of $14.62.

Insider Activity at First Advantage

In related news, Director James Lindsey Clark sold 4,921 shares of the company’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the completion of the transaction, the director owned 56,844 shares in the company, valued at approximately $891,882.36. This represents a 7.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through 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

Several hedge funds have recently bought and sold shares of FA. Brighton Jones LLC purchased a new position in shares of First Advantage during the fourth quarter valued at about $257,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in First Advantage by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company’s stock valued at $501,000 after buying an additional 1,471 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in First Advantage by 7.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,233 shares of the company’s stock valued at $3,371,000 after buying an additional 16,664 shares in the last quarter. Prudential Financial Inc. purchased a new position in First Advantage during the 2nd quarter valued at approximately $167,000. Finally, Russell Investments Group Ltd. increased its stake in First Advantage by 627.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 67,178 shares of the company’s stock worth $1,116,000 after acquiring an additional 57,946 shares during the last quarter. Hedge funds and other institutional investors own 94.91% of the company’s stock.

Analysts Set New Price Targets

FA has been the topic of a number of recent analyst reports. Needham & Company LLC upgraded shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price on the stock in a research note on Thursday. JPMorgan Chase & Co. raised their price objective on shares of First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Barclays lifted their target price on shares of First Advantage from $20.00 to $30.00 and gave the company an “overweight” rating in a research note on Friday. Stifel Nicolaus set a $18.00 target price on shares of First Advantage in a report on Friday, May 8th. Finally, Citigroup increased their price target on First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $22.67.

Trending Headlines about First Advantage

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

• Positive Sentiment: Q2 results exceeded expectations. Revenue rose 14.9% year over year to $448.8 million, while adjusted EPS increased 29.6% to $0.35, beating the $0.29 consensus estimate. Adjusted EBITDA reached $128.5 million, and operating cash flow was $73.6 million. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 targets. First Advantage now expects 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 continued confidence in demand and execution. First Advantage Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Capital allocation supports the investment case. The company repurchased $18.7 million of stock under its $100 million program and prepaid an additional $45 million of debt, following a $25 million prepayment in May. These actions could reduce interest costs and support per-share results. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Needham upgraded FA from “Hold” to “Buy” and assigned a $28 price target, implying additional upside from recent trading levels. The upgrade adds analyst support to the post-earnings rally.
• Negative Sentiment: Valuation remains a risk. With a market capitalization of approximately $4.2 billion and a reported trailing P/E above 800, the stock appears to be pricing in substantial future growth. Any slowdown in revenue, margins, or guidance could lead to heightened volatility.

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.