HR tech firm First Advantage Q2 revenue beats expectations

First Advantage

07/08/2025 11:18

Overview

First Advantage Corp Q2 2025 rev of $390.6 mln beats analyst expectations

Adjusted EPS of $0.27 beats consensus, reflecting strong operational performance

Adjusted EBITDA of $113.9 mln exceeds analyst estimates, per LSEG data

Outlook

First Advantage reaffirms 2025 revenue guidance of $1.5 bln to $1.6 bln

Company expects 2025 adjusted EBITDA of $410 mln to $450 mln

First Advantage projects 2025 adjusted EPS of $0.86 to $1.03

Company sees strong international market momentum supporting outlook

Result Drivers

STERLING ACQUISITION - $7.3 mln in expenses and $41.3 mln in depreciation and amortization related to Sterling acquisition impacted net income

INTERNATIONAL MOMENTUM - Co reports strong customer interest in Digital Identity solutions and momentum in international markets

VERTICAL STRATEGY - Balanced vertical strategy and market reach supported revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$390.60 mln
$381.10 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$0.27
$0.24 (10 Analysts)
Q2 Adjusted Net Income
Beat
$47 mln
$41.90 mln (8 Analysts)
Q2 Net Income
$300,000
Q2 Adjusted EBITDA
Beat
$113.90 mln
$104.80 mln (9 Analysts)
Q2 Cash Flow from Operations
$37.30 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 $19.00, about 14.7% above its August 6 closing price of $16.21

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX6WtrJf

(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.)