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

First Advantage (NYSE:FA) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.150-1.250 for the period, compared to the consensus estimate of 1.180. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FA. Barclays lifted their target price on shares of First Advantage from $15.00 to $20.00 and gave the company an “overweight” rating in a report on Friday. Citigroup dropped their price objective on First Advantage from $16.00 to $15.00 and set a “neutral” rating for the company in a research note on Friday, March 6th. Stifel Nicolaus set a $18.00 price objective on First Advantage in a report on Friday. Finally, JPMorgan Chase & Co. increased their target price on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research note on Friday. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, First Advantage has an average rating of “Hold” and a consensus price target of $18.20.

First Advantage Stock Up 1.3%

First Advantage stock traded up $0.20 during mid-day trading on Friday, reaching $15.96. 1,987,760 shares of the company’s stock were exchanged, compared to its average volume of 1,153,215. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. First Advantage has a twelve month low of $8.82 and a twelve month high of $19.01. The company has a market cap of $2.75 billion, a P/E ratio of 532.00 and a beta of 1.13. The company has a fifty day moving average of $11.75 and a 200-day moving average of $12.89.

First Advantage (NYSE:FA) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.21 by $0.05. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The company’s revenue was up 8.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.17 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Sell-side analysts expect that First Advantage will post 0.74 EPS for the current year.

Insiders Place Their Bets

In other First Advantage news, President Joelle M. Smith sold 23,334 shares of the stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total value of $350,010.00. Following the sale, the president owned 19,393 shares of the company’s stock, valued at $290,895. This trade represents a 54.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is currently owned by company insiders.

Key First Advantage News

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

• Positive Sentiment: First Advantage delivered Q1 adjusted EPS of $0.26, topping estimates of $0.21, while revenue rose 8.6% year over year to $385.2 million and adjusted EBITDA increased 14.3%. First Advantage Reports First Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its 2026 outlook and expects margin expansion in the second half, which suggests improving profitability and execution. First Advantage reaffirms 2026 outlook while expecting adjusted EBITDA margins around 29% in 2H
• Positive Sentiment: JPMorgan raised its price target on First Advantage to $18 from $15 and reiterated an overweight rating, implying further upside from current levels. Benzinga report on JPMorgan price target increase
• Neutral Sentiment: First Advantage said its management team will participate in upcoming investor conferences, which could help keep the stock in focus but does not change fundamentals on its own. First Advantage to Participate in Upcoming Investor Conferences
• Neutral Sentiment: The company’s FY 2026 guidance was reaffirmed rather than raised, and revenue guidance remains roughly in line with expectations, which tempers the near-term excitement. First Advantage keeps 2026 guidance, sees margin lift to 29%

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Quantbot Technologies LP acquired a new position in First Advantage during the 2nd quarter worth approximately $81,000. BNP Paribas Financial Markets raised its holdings in shares of First Advantage by 105.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after purchasing an additional 3,682 shares in the last quarter. Tower Research Capital LLC TRC raised its holdings in shares of First Advantage by 503.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock valued at $132,000 after purchasing an additional 6,617 shares in the last quarter. Prudential Financial Inc. purchased a new stake in shares of First Advantage during the 2nd quarter worth $167,000. Finally, Occudo Quantitative Strategies LP acquired a new position in shares of First Advantage during the third quarter worth $163,000. Hedge funds and other institutional investors own 94.91% of the company’s stock.

First Advantage Company Profile

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.