First Advantage (NYSE:FA) Updates FY 2026 Earnings Guidance

First Advantage (NYSE:FA) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.23-1.290 for the period, compared to the consensus estimate of 1.210. The company issued revenue guidance of $1.7 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on FA. Barclays lifted their target price on shares of First Advantage from $20.00 to $30.00 and gave the company an “overweight” rating in a report on Friday. Royal Bank Of Canada set a $24.00 price objective on shares of First Advantage in a report on Friday. Citigroup raised their target price on shares of First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. JPMorgan Chase & Co. lifted their target price on First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Finally, Needham & Company LLC upgraded First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price on the stock in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $22.67.

First Advantage Stock Up 2.7%

FA traded up $0.65 during trading on Friday, reaching $24.77. 796,078 shares of the stock were exchanged, compared to its average volume of 1,393,437. The stock’s 50 day moving average price is $18.70 and its two-hundred day moving average price is $14.62. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The stock has a market cap of $4.25 billion, a P/E ratio of 827.00 and a beta of 1.16. First Advantage has a twelve month low of $8.82 and a twelve month high of $25.15.

First Advantage (NYSE:FA) last issued its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. First Advantage’s revenue for the quarter was up 14.9% on a year-over-year basis. During the same period last year, the company earned $0.27 EPS. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. Equities analysts expect that First Advantage will post 0.74 EPS for the current year.

Insider Buying and Selling

In other news, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the sale, the director owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. The trade was a 7.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by insiders.

Trending Headlines about First Advantage

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. First Advantage reported adjusted earnings of $0.35 per share, above the $0.29 consensus estimate and up from $0.27 a year earlier. Revenue increased 14.9% year over year to $448.8 million. First Advantage Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability and cash generation improved. Adjusted net income rose 30.8% to $61.4 million, while adjusted EBITDA increased 12.8% to $128.5 million. The company generated $73.6 million in operating cash flow during the quarter. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year 2026 guidance was raised. Management now expects revenue of $1.67 billion to $1.71 billion, adjusted EBITDA of $472 million to $486 million, and adjusted diluted EPS of $1.23 to $1.29—above the prior analyst EPS consensus of $1.21. First Advantage Raises Full-Year 2026 Guidance
• Positive Sentiment: Needham upgraded First Advantage from “Hold” to “Buy” and set a $28 price target, signaling additional potential upside based on the company’s earnings momentum and outlook.
• Positive Sentiment: Capital allocation provided further support. First Advantage repurchased $18.7 million of stock and prepaid an additional $45 million of debt after quarter-end, on top of a $25 million repayment in May.
• Neutral Sentiment: Adjusted EBITDA margin declined modestly to 28.6% from 29.2% a year earlier, indicating that revenue growth has not fully translated into margin expansion.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Brighton Jones LLC purchased a new position in shares of First Advantage in the fourth quarter valued at about $257,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in First Advantage by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company’s stock valued at $501,000 after acquiring an additional 1,471 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of First Advantage by 7.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,233 shares of the company’s stock worth $3,371,000 after acquiring an additional 16,664 shares during the last quarter. Prudential Financial Inc. purchased a new stake in shares of First Advantage during the second quarter valued at $167,000. Finally, Russell Investments Group Ltd. lifted its stake in First Advantage by 627.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 67,178 shares of the company’s stock valued at $1,116,000 after acquiring an additional 57,946 shares during the period. 94.91% of the stock is owned by hedge funds and other institutional investors.

About First Advantage

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company’s core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.