First Advantage (FA) Earnings Date & Reports

Key Takeaways

• First Advantage reported third quarter 2026 revenue of $465.8 million, up 13.8% year over year and above analyst consensus estimates of roughly $437.7 million.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 15.2% to $136.5 million, with an adjusted EBITDA margin of 29.3%.
• Adjusted diluted earnings per share (EPS) climbed 26.7% to $0.38, exceeding consensus estimates of about $0.34.
• On a GAAP (Generally Accepted Accounting Principles) basis, net income reached $20.5 million, or $0.12 per diluted share, up from $2.6 million a year earlier.
• Management raised full-year 2026 guidance across every metric and announced a roughly $125 million acquisition of Data Diver Technologies.
• For more information on First Advantage's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages for additional data and analysis.
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Earnings Context and Why It Matters

First Advantage, a global provider of background screening, identity verification, and risk-management services, has become a closely watched barometer of hiring activity. Its results reflect real-world labor demand across industries such as retail, transportation, healthcare, and the gig economy. The third quarter marked the two-year anniversary of the company's Sterling acquisition, and this report offered investors a direct measure of whether that combination continues to deliver synergies, revenue momentum, and margin expansion. With management's results consistently outpacing broader labor market headlines, this quarter's performance and guidance update signal whether that outperformance can be sustained into 2027.

Reported Results

First Advantage posted revenue of $465.8 million for the third quarter of 2026, a 13.8% increase from $409.2 million in the prior-year period and ahead of the consensus estimate of approximately $437.7 million. Net income rose to $20.5 million, or $0.12 per diluted share, compared with $2.6 million, or $0.01 per share, a year earlier.

Adjusted EBITDA reached $136.5 million, up 15.2% year over year, representing a margin of 29.3%. Adjusted net income grew 28.6% to $67.3 million, while adjusted diluted EPS increased 26.7% to $0.38, topping the consensus estimate of about $0.34. Cash flows from operations totaled $63.8 million.

The quarter was driven by broad-based volume acceleration in the Americas business, an earlier-than-expected start to peak holiday-season hiring, and continued contribution from customer initiatives begun in the second quarter. Base growth came in at 5%, retention remained solid at 96%, and combined upsell, cross-sell, and new logo revenue grew 12.5%. International revenue, about 11% of total sales, declined 4% year over year amid disruptions in Asia-Pacific (APAC) markets.

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Market Reaction and Investor Sentiment

Investor reaction to the report was measured but positive, with shares edging higher in the session following the announcement. The beat-and-raise profile reinforced confidence in the company's execution, particularly given that the low end of the updated full-year guidance now exceeds the high end of prior ranges across every metric. Still, some sentiment remained cautious: enterprise bookings declined to 14 from 20 in the prior quarter, retention slipped modestly, and international revenue contracted for the first time after nine consecutive quarters of growth. These softer leading indicators tempered enthusiasm even as headline results impressed.

Forward Outlook and Key Factors to Monitor

First Advantage raised its full-year 2026 guidance to revenue of $1.720 billion to $1.745 billion, adjusted EBITDA of $488 million to $498 million, adjusted net income of $227 million to $232 million, and adjusted diluted EPS of $1.30 to $1.33. At the midpoint, this implies roughly 10% revenue growth for the year.

Investors will want to watch whether the fourth quarter's momentum continues, given a tougher year-over-year comparison and a margin outlook that may settle in the mid-28% range. The integration of the newly acquired Data Diver Technologies platform is another focal point; the deal adds proprietary criminal and court records, an estimated $20 million in annual revenue, and potential synergy upside, though it will be partially funded with borrowing.

Broader labor-market conditions remain the key external variable, given First Advantage's sensitivity to customer hiring volumes. Any softening in onboarding activity across transportation, retail, or the gig economy could pressure future growth. Conversely, continued strength in enterprise demand and AI-enabled fraud-detection products could support the company's goal of durable, profitable expansion heading into 2027.

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