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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