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

First Advantage (NYSE:FA) issued an update on its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 1.23-1.290 for the period, compared to the consensus earnings per share estimate of 1.210. The company issued revenue guidance of $1.7 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion.

First Advantage Price Performance

First Advantage stock traded up $3.56 during trading hours on Thursday, hitting $24.12. The stock had a trading volume of 4,725,725 shares, compared to its average volume of 1,398,402. First Advantage has a 1-year low of $8.82 and a 1-year high of $24.58. The stock has a market capitalization of $4.14 billion, a price-to-earnings ratio of 804.00 and a beta of 1.16. The stock’s fifty day moving average is $18.70 and its two-hundred day moving average is $14.62. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85.

First Advantage (NYSE:FA) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The business’s quarterly revenue was up 14.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.27 earnings per share. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. As a group, analysts predict that First Advantage will post 0.74 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have issued reports on FA shares. Royal Bank Of Canada boosted their price target on First Advantage from $17.00 to $21.00 and gave the stock a “sector perform” rating in a research report on Monday. Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a report on Friday, May 8th. Needham & Company LLC raised 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. Barclays boosted their price objective on First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. lifted their target price on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $20.50.

Insider Transactions at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the 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 transaction, the director directly owned 56,844 shares of the company’s stock, valued at $891,882.36. This represents a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 4.40% of the company’s stock.

Key First Advantage News

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

• Positive Sentiment: Second-quarter results exceeded expectations: 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 EBITDA increased 12.8% to $128.5 million. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year guidance 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 range is above the approximately $1.21 analyst consensus, reinforcing expectations for continued earnings growth. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Capital allocation supported the investment case: First Advantage generated $73.6 million in operating cash flow, repurchased $18.7 million of stock, and prepaid an additional $45 million of debt. These actions could reduce leverage and support per-share results. The earnings call also highlighted the quarter’s record performance and the outlook for the remainder of 2026. First Advantage Q2 2026 Earnings Call Transcript
• Positive Sentiment: Needham upgraded FA from “Hold” to “Buy” and set a $28 price target, indicating further upside from the recent trading level and adding analyst support to the earnings-driven rally.
• Neutral Sentiment: Revenue guidance was broadly in line with analyst expectations, and the adjusted EBITDA margin declined modestly year over year to 28.6%. Investors may also weigh the stock’s elevated valuation following its sharp advance.

Hedge Funds Weigh In On First Advantage

A number of institutional investors have recently modified their holdings of the company. Alliancebernstein L.P. boosted its position in shares of First Advantage by 724.5% in the second quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock valued at $87,311,000 after acquiring an additional 4,618,946 shares during the period. Price T Rowe Associates Inc. MD grew its stake in shares of First Advantage by 4.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company’s stock worth $202,757,000 after acquiring an additional 572,580 shares during the last quarter. Jane Street Group LLC bought a new position in First Advantage during the second quarter worth $7,107,000. Sunriver Management LLC increased its position in First Advantage by 13.2% during the fourth quarter. Sunriver Management LLC now owns 2,661,286 shares of the company’s stock worth $38,668,000 after acquiring an additional 310,672 shares during the period. Finally, Cat Rock Capital Management LP raised its stake in First Advantage by 8.9% during the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock valued at $48,571,000 after purchasing an additional 274,449 shares during the last quarter. 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.