First Advantage Q4 revenue beats estimates on strong customer retention; sets $100 mln buyback

First Advantage

26/02/2026 11:19

Overview

Global software and data firm's Q4 revenue beat analyst expectations

Adjusted net income for Q4 beat analyst expectations

Company announced new $100 mln share repurchase program

Outlook

First Advantage forecasts 2026 revenue between $1,625 mln and $1,700 mln

Company expects 2026 adjusted EBITDA of $460 mln to $485 mln

First Advantage anticipates 2026 adjusted EPS between $1.15 and $1.25

Result Drivers

STERLING INTEGRATION - Completion of Sterling integration activities contributed to Q4 performance

CUSTOMER RETENTION - High customer retention rate of 97% in Q4 supported results

VERTICAL AND GEOGRAPHY STRENGTH - Strong performance in targeted verticals and geographies drove revenue growth

Company press release: ID:nGNX21fDmj

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$420 mln
$391.88 mln (9 Analysts)
Q4 Adjusted Net Income
Beat
$51.90 mln
$46.07 mln (8 Analysts)
Q4 Net Income
$3.50 mln
Q4 Adjusted EBITDA
Beat
$116.80 mln
$110.003 mln (9 Analysts)
Q4 Cash Flow from Operations
$65.90 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 $17.00, about 78.6% above its February 25 closing price of $9.52

The stock recently traded at 8 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.)