First Advantage Q2 revenue and profit beat, lifts 2026 outlook

First Advantage

06/08/2026 11:21

Overview
US identity solutions provider's Q2 revenue grew 15%, beating analyst expectations
Adjusted EPS and adjusted net income for Q2 beat analyst expectations
Company raised full-year 2026 guidance and repurchased $18.7 mln in shares

Outlook
First Advantage raises 2026 revenue guidance to $1.67 bln-$1.71 bln from $1.625 bln-$1.7 bln
Company lifts 2026 adjusted EBITDA outlook to $472 mln-$486 mln from $460 mln-$485 mln
First Advantage cites strong year-to-date performance and labor market trends for improved outlook

Result Drivers
AI TECHNOLOGY PLATFORM - Co said its AI-driven proprietary technology platform contributed to revenue and earnings growth, per CEO Scott Staples
INCREASED CUSTOMER DEMAND - Co reported increased customer demand across transportation & logistics, retail & e-commerce, industrials & manufacturing, and general staffing verticals
UPSELL AND NEW BOOKINGS - Upsell and cross-sell outperformance, new enterprise bookings, and healthy customer retention supported results

Company press release: ID:nGNX1xdb8M

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$448.80 mln
$415.03 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$0.35
$0.29 (10 Analysts)
Q2 Adjusted Net Income
Beat
$61.40 mln
$50.42 mln (8 Analysts)
Q2 Net Income
 
$16.90 mln
 
Q2 Adjusted EBITDA
Beat
$128.50 mln
$116.39 mln (9 Analysts)
Q2 Cash Flow from Operations
 
$73.60 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 Corporation is $18.50, about 10% below its August 5 closing price of $20.56
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 5 - DHI Group Q2 revenue slightly beats estimates helped by defense contractors demand
Aug 5 - Clear Secure's Q2 revenue beats estimates on membership growth
Aug 5 - BGSF Q2 revenue falls on lower billable hours

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.)