First Advantage beats Q1 revenue and profit estimates

First Advantage Corp.

First Advantage Corp.

FA

0.00


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


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