First Advantage beats Q1 revenue and profit estimates

First Advantage

07/05/2026 11:15

Overview

U.S. background screening firm's Q1 revenue grew 8.6% yr/yr, beating analyst expectations

Adjusted net income and adjusted EBITDA beat analyst expectations

Company repurchased $19.5 mln in shares and reaffirmed full year 2026 guidance

Outlook

First Advantage reaffirms 2026 revenue guidance of $1.625 bln to $1.7 bln

Company maintains 2026 adjusted EBITDA outlook at $460 mln to $485 mln

First Advantage keeps 2026 adjusted diluted EPS forecast at $1.15 to $1.25

Result Drivers

VERTICAL STRATEGY - Co said verticalized go-to-market strategy and focus on enterprise customers helped drive revenue growth

KEY VERTICALS - Positive momentum in retail & e-commerce, transportation & logistics, and gig economy contributed to growth

AI-ENABLED SOLUTIONS - AI-enabled products and proprietary data assets supported growth and competitive positioning

Company press release: ID:nGNX2rBYPy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$385.20 mln
$372.60 mln (9 Analysts)
Q1 Adjusted Net Income
Beat
$45.10 mln
$36.67 mln (8 Analysts)
Q1 Net Income
$2.20 mln
Q1 Adjusted EBITDA
Beat
$105.30 mln
$97.27 mln (9 Analysts)
Q1 Cash Flow from Operations
$49.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy"

Wall Street's median 12-month price target for First Advantage Corp is $15.00, about 17.2% above its May 6 closing price of $12.80

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)