First Advantage Corp Q3 revenue beats estimates

First Advantage

06/11/2025 11:12

Overview

First Advantage Q3 revenue of $409.2 mln beats analyst expectations

Adjusted net income for Q3 beats estimates, reaching $52.3 mln

Adjusted EBITDA of $118.5 mln in Q3 surpasses analyst forecasts

Outlook

First Advantage narrows full-year 2025 revenue guidance to $1.535 bln-$1.570 bln

Company expects full-year 2025 adjusted EBITDA between $430 mln and $440 mln

First Advantage projects full-year 2025 adjusted EPS of $0.98-$1.02

Result Drivers

MARKET STRATEGIES - Co attributes Q3 growth to successful go-to-market strategies, including new logo acquisition and upsell/cross-sell activities

VERTICAL AND GEOGRAPHIC GROWTH - Strong momentum in retail, e-commerce, and transportation verticals, and international business achieved year-over-year revenue growth

STERLING ACQUISITION - Integration of Sterling progressing ahead of schedule, delivering strategic and financial benefits

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$409.20 mln
$404.50 mln (9 Analysts)
Q3 Adjusted Net Income
Beat
$52.30 mln
$49.30 mln (8 Analysts)
Q3 Net Income
$2.60 mln
Q3 Adjusted EBITDA
Beat
$118.50 mln
$113.60 mln (9 Analysts)
Q3 Cash Flow from Operations
$72.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "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 $18.00, about 28.2% above its November 5 closing price of $12.93

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX5whc7B

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