First Advantage (NYSE:FA) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

First Advantage (NYSE:FA) posted its quarterly earnings results on Thursday. The company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $0.04, Briefing.com reports. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same period in the prior year, the firm earned $0.18 EPS. The business’s revenue for the quarter was up 36.8% compared to the same quarter last year. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Stock Down 1.5%

Shares of NYSE FA opened at $11.51 on Friday. The firm’s 50-day moving average is $13.16 and its two-hundred day moving average is $14.19. The company has a market capitalization of $2.00 billion, a PE ratio of 383.67 and a beta of 1.17. First Advantage has a 12-month low of $8.82 and a 12-month high of $19.01. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on FA shares. JPMorgan Chase & Co. cut their price target on shares of First Advantage from $21.00 to $17.00 and set an “overweight” rating for the company in a report on Friday, November 7th. Barclays dropped their target price on shares of First Advantage from $18.00 to $14.00 and set an “equal weight” rating for the company in a report on Friday. Finally, Zacks Research lowered First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $18.25.

Key Stories Impacting First Advantage

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

• Positive Sentiment: Q4 earnings beat — First Advantage reported $0.30 EPS vs. consensus $0.26 and revenue grew ~36.8% year-over-year, signaling strong topline momentum and margin improvement. Read More.
• Positive Sentiment: $100M buyback and raised revenue ambition — Management outlined a $1.625B–$1.7B 2026 revenue target and authorized a $100M share buyback, which can support EPS and investor sentiment amid the company’s digital-identity growth narrative. Read More.
• Neutral Sentiment: FY2026 EPS guidance roughly in line — First Advantage set FY26 EPS of $1.150–$1.250 versus a consensus near $1.170; revenue guidance roughly meets or slightly exceeds Street expectations, so guidance is not a major surprise. Read More.
• Neutral Sentiment: Full earnings materials available — Management commentary, the earnings presentation and transcript are posted (useful for investors wanting color on digital-identity growth, margin levers and buyback timing). Read More. Read More.
• Negative Sentiment: Barclays trims price target — Barclays cut its target from $18 to $14 and assigned an “equal weight” rating; while the new $14 target still implies upside vs. current levels, the cut signals more cautious near-term analyst sentiment. Read More.

Institutional Investors Weigh In On First Advantage

A number of large investors have recently bought and sold shares of the stock. Alliancebernstein L.P. increased its position in First Advantage by 724.5% during the second quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock worth $87,311,000 after buying an additional 4,618,946 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of First Advantage by 4.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company’s stock valued at $202,757,000 after acquiring an additional 572,580 shares during the last quarter. Jane Street Group LLC purchased a new stake in First Advantage during the 2nd quarter worth about $7,107,000. Sunriver Management LLC raised its stake in First Advantage by 13.2% in the 4th quarter. Sunriver Management LLC now owns 2,661,286 shares of the company’s stock valued at $38,668,000 after purchasing an additional 310,672 shares during the last quarter. Finally, Cat Rock Capital Management LP raised its stake in First Advantage by 8.9% in the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock valued at $48,571,000 after purchasing an additional 274,449 shares during the last quarter. Institutional investors and hedge funds own 94.91% of the company’s stock.

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.