FA earnings analysis
What we found in FA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
First Advantage Corporation reported Q1 2026 revenues of $385.2 million, surpassing estimates by 3.2%, and EPS of $0.26, exceeding the consensus by 30%. The company reaffirmed its full-year revenue guidance of $1.625 billion to $1.7 billion, indicating positive momentum despite a challenging macroeconomic backdrop.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 8.6% YoY
- Revenue increased to $385.2M in Q1 2026 from $354.6M in Q1 2025, an 8.6% year-over-year increase.
- Improved EPS Performance
- EPS rose to $0.26 in Q1 2026, compared to a loss of $0.24 in Q1 2025, marking a significant turnaround.
- Significant Reduction in Net Interest Expense
- Net interest expense decreased by 35.9% to $29.8M in Q1 2026 from $46.6M in Q1 2025.
- Strong Cash Flow Production
- Operating cash flow was $49.4M in Q1 2026, up from $19.5M in Q1 2025, reflecting efficiency improvements.
- Market Expansion
- New customer revenue contributed an additional $15.2M, or 4.3% of revenue growth.
- Cost Management Success
- Selling, general, and administrative expenses decreased by 18.5% to $53.5M from $65.6M a year ago.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Macroeconomic Sensitivity
- Continued volatility in economic conditions may adversely affect hiring and demand for services, impacting revenue.
- Integration Risks from Acquisitions
- Challenges associated with integrating the Sterling segment, which could affect operational efficiency.
- Regulatory Compliance Risks
- Operating in a highly regulated industry exposes the company to risks from evolving laws and compliance requirements.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.26
- Segment
- First Advantage Americas: $172.7M; First Advantage International: $23.6M; Sterling: $190.4M; Eliminations: -$1.5M
What they said about what is next.
Management reaffirmed full year 2026 guidance based on strong first quarter performance.
The filing reads better than the one before it.
What came before.
- 10-K · February 26, 2026
- First Advantage presents sharp top-line acceleration driven by scale and the Sterling acquisition: consolidated revenue totaled approximately $1.575 billion in 2025 (sum of quarterly revenue $355M + $391M + $409M +…
- 10-Q · November 6, 2025
- First Advantage reported Q3 2025 revenue of $409.151M (up from $199.119M in Q3 2024) with operating income of $42.243M and diluted EPS of $0.01. Operating cash generation remains strong (nine months operating cash flow…
- 10-Q · August 7, 2025
- First Advantage reported Q2 revenue of $390.6M, up sharply year-over-year and quarter-over-quarter, with operating income of $37.7M (9.7% margin). Strong top-line and operating leverage were offset by much higher…
- 10-K · February 27, 2025
- First Advantage closed the Sterling acquisition on October 31, 2024, expanding scale (nearly 190 million screens and 80,000 customers in 2024) and proprietary data (over 900 million records as of December 31, 2024). The…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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