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 +…
Earnings analysis · 10-Q
FA earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.26
- Segment
- First Advantage Americas: $172.7M; First Advantage International: $23.6M; Sterling: $190.4M; Eliminations: -$1.5M
What stood out
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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.
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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.
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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.
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Strong Cash Flow Production
Operating cash flow was $49.4M in Q1 2026, up from $19.5M in Q1 2025, reflecting efficiency improvements.
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Market Expansion
New customer revenue contributed an additional $15.2M, or 4.3% of revenue growth.
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Cost Management Success
Selling, general, and administrative expenses decreased by 18.5% to $53.5M from $65.6M a year ago.
What to watch
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Macroeconomic Sensitivity
Continued volatility in economic conditions may adversely affect hiring and demand for services, impacting revenue.
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Integration Risks from Acquisitions
Challenges associated with integrating the Sterling segment, which could affect operational efficiency.
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Regulatory Compliance Risks
Operating in a highly regulated industry exposes the company to risks from evolving laws and compliance requirements.
Management's outlook
Management reaffirmed full year 2026 guidance based on strong first quarter performance.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.