First Advantage Corporation
- Open
- 20.14
- Day high
- 20.48
- Day low
- 19.89
- Prev close
- 20.17
- Volume
- 1.1M
- Mkt cap
- $3.4B
- P/E (TTM)
- 136.2
- EPS (TTM)
- $0.15
- P/B
- 2.7
- P/S
- 2.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$275.3M over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
First Advantage Corporation (FA) is a Industrials company listed on NASDAQ. The stock is up 26% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 2 published research articles covering FA.
First Advantage Corporation (FA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.29 | $0.35 | +20.1% | $449M | +8.1% |
| May 7, 2026 | $0.21 | $0.26 | +23.8% | $385M | +3.4% |
| Nov 6, 2025 | $0.28 | $0.30 | +7.1% | $409M | +4.2% |
| Aug 7, 2025 | $0.24 | $0.27 | +12.5% | $391M | -3.3% |
| May 8, 2025 | $0.13 | $0.17 | +30.8% | $355M | -5.3% |
| Feb 27, 2025 | $0.24 | $0.18 | -25.0% | $307M | -13.9% |
| Aug 8, 2024 | $0.21 | $0.21 | +0.0% | $185M | +0.0% |
| May 9, 2024 | $0.17 | $0.17 | +0.0% | $169M | -0.3% |
| Feb 29, 2024 | $0.30 | $0.29 | -3.3% | $203M | -4.0% |
| Nov 9, 2023 | $0.27 | $0.28 | +3.7% | $200M | +0.3% |
| Feb 28, 2023 | $0.29 | $0.30 | +3.4% | $213M | +22.4% |
| Aug 4, 2022 | $0.25 | $0.25 | +0.0% | $202M | +1.1% |
FA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 14, 2026 | SLTA V (GP), L.L.C.director, 10 percent owner: | Sell | 12,500,000 | $22.02 |
| Jun 10, 2026 | Clark James Lindseydirector | Sell | 4,921 | $15.69 |
| Jun 8, 2026 | Price Bridgett Rdirector | Grant | 12,805 | — |
| Jun 8, 2026 | Bell Susan R.director | Grant | 12,805 | — |
| Jun 8, 2026 | Clark James Lindseydirector | Grant | 12,805 | — |
| Jun 8, 2026 | Sim Judithdirector | Grant | 12,805 | — |
| May 13, 2026 | Smith Joelle Mofficer: President | Tax | 6,974 | $16.04 |
| May 13, 2026 | Nairne Douglasofficer: Global Chief Operating Officer | Option | 715 | — |
| May 13, 2026 | Jardine Bret Tofficer: Chief Legal Officer | Tax | 294 | $16.04 |
| May 13, 2026 | Jardine Bret Tofficer: Chief Legal Officer | Option | 976 | — |
| May 13, 2026 | Smith Joelle Mofficer: President | Option | 24,905 | — |
| May 13, 2026 | Jardine Bret Tofficer: Chief Legal Officer | Sell | 682 | $16.12 |
| May 8, 2026 | Smith Joelle Mofficer: President | Sell | 23,334 | $15.00 |
| Mar 13, 2026 | Nairne Douglasofficer: Global Chief Operating Officer | Option | 742 | — |
| Mar 6, 2026 | Nairne Douglasofficer: Global Chief Operating Officer | Option | 743 | — |
Source: FA SEC Form 4 filings, latest Aug 14, 2026. For informational purposes only — not investment advice.
See the full FA insider & 13F page →FA research & analysis
[FA] First Advantage Thesis 2026: Post-Sterling-Merger Background-Screening Compounder
First Advantage Corporation (NASDAQ: FA), headquartered in Atlanta, Georgia, is a Background-Verification-and-Drug-Screening-and-Employment-Screening + emerging-multi-cycle-Sterling-Talent-Solutions-acquired-2024 leader providing distinctive multi-cycle Pre-Employment-Background-Verification + emerging-Drug-Screening + emerging-Employment-Verification + emerging-Tenant-Screening + emerging-Investigative-Services services to substantial multi-cycle US-and-emerging-multi-cycle-international Enterprise-Employer + multi-cycle-emerging-Staffing-Agency + multi-cycle-emerging-Gig-Economy-Uber-and-Lyft-and-Instacart-and-DoorDash + multi-cycle-emerging-Healthcare-Employer + multi-cycle-emerging-Financial-Services-Employer + multi-cycle-emerging-Education-Employer + multi-cycle-emerging-Government-Employer + multi-cycle-emerging-Transportation-Employer-FMCSA-DOT-Trucking + multi-cycle-emerging-Tenant-Screening-Multifamily-Real-Estate-Landlord customer base. The company has distinctive multi-cycle First-Advantage-and-Atlanta-GA-and-Background-Verification heritage: founded 2003 as First-American-Title-Insurance-First-Advantage-Background-Verification-spin-off; 2013 First-Advantage-private-equity-Symphony-Technology-Group-STG-acquired ($1.0B); 2021 NYSE First-Advantage-IPO ($340M proceeds providing distinctive Public-Re-Listing-and-Private-Equity-Exit-STG); 2024 substantial Sterling-Talent-Solutions-merger ($2.2B providing emerging-Background-Verification-Sterling-Synergy-Realization); multi-cycle-disciplined-bolt-on-Background-Verification-acquisitions; Scott-Staples-CEO-since-2017. FY2025 closes with selected various aggregate revenue ~$1.50-1.70B (~85-95% YoY-growth + emerging-multi-cycle-Sterling-Talent-Solutions-Merger-2024 ~$2.2B), adjusted EBITDA ~$385-440M (~25-27% margins reflecting Background-Verification-SaaS economics + Sterling-Synergy-Realization), adjusted EPS ~$0.85-1.20, net debt ~$1.85-2.15B (~4.5-5.5x leverage post-Sterling-Merger-2024), and ~172-176M shares post-Sterling-Merger under President & CEO Scott Staples. The Background-Verification-and-Drug-Screening-and-Employment-Verification-and-Tenant-Screening franchise deep-dive covers distinctive multi-cycle ~9,000+ employees + ~Globally-Positioned-Background-Verification-and-Drug-Screening-and-Employment-Screening-Office, Background-Verification-and-Drug-Screening ~95-98% revenue + Emerging-Other ~2-5% revenue, substantial multi-cycle US-and-emerging-multi-cycle-international Enterprise-Employer customer base, 2013-STG-private-equity + 2021-NYSE-IPO + 2024-Sterling-Talent-Solutions-Merger transformational-platform, emerging-multi-cycle Hiring-Cycle-Recovery + emerging-Gig-Economy-Background-Verification + emerging-FCRA-Fair-Credit-Reporting-Act-Compliance + emerging-Tenant-Screening structural-tailwinds, competing in Background-Verification space with HireRight/Trinity-Hunt-General-Atlantic, Sterling Check/First-Advantage-merged, Equifax Workforce Solutions, Cisive/Aurora, Checkr, Accurate Background/STG, Pinkerton/Securitas, Asurint/Equifax, GoodHire/Checkr, HireSafe, Backgrounds Online, American DataBank, KENNECT, Quest Diagnostics, LabCorp; Tenant-Screening AppFolio, TransUnion-SmartMove, RentSpree, Rent.com/CoStar; and private-equity-Apollo-Carlyle-Bain-KKR-Blackstone-CDR-Veritas-Genstar-American-Securities-CCMP-Stone-Point-Lovell-Minnick-Hellman-Friedman-Silver-Lake-TPG-Reverence-Warburg-Pincus-Ares-Centerbridge-GTCR-Permira-Trinity-Hunt-General-Atlantic-Aurora-STG. The Scott-Staples + multi-decade compounder thesis + 2024-Sterling-Merger deep-dive covers Scott-Staples-CEO (since 2017-CEO-and-Founder-of-Mindtree + ~25+ year longtime-Mindtree-Co-Founder-and-CEO-veteran-and-Mphasis-Wipro-Indian-IT-Services-veteran) expertise, 2003-First-Advantage-Background-Verification-spin-off + 2013-STG-private-equity-acquired + 2021-NYSE-First-Advantage-IPO + 2024-Sterling-Talent-Solutions-merger transformational-platform, no-dividend (multi-cycle-emerging-de-leveraging-priority + share-buyback-only) + multi-cycle-emerging-substantial-share-buyback (~$25-100M/yr) + multi-cycle-emerging-de-leveraging-priority. Capital position is High-Yield (B2/B to B1/B+ ~4.5-5.5x leverage post-Sterling-Merger-2024). At ~$14-22 per share, equity value ~$2.4-3.85B, EV ~$4.25-6.0B, providing ~14-22x EPS and ~11-15x EV/EBITDA.
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First Advantage Corporation company profile
Overview
First Advantage Corporation (NYSE:FA) is a leading provider of technology-enabled background screening and workforce solutions founded in 2003 and headquartered in Atlanta, Georgia. The company went public in June 2021 and has grown through strategic acquisitions, most notably completing a $2.2 billion acquisition of Sterling Check Corp in October 2024, which significantly expanded its scale and market presence. Today, First Advantage serves over 80,000 active customers across 200+ countries, conducting nearly 190 million background screens annually through its comprehensive technology platform.
Business
First Advantage operates in the human capital risk management industry, providing technology-driven screening and verification services that help employers make informed hiring decisions. The company's core business revolves around background screening - the process of investigating and verifying information about job candidates before they are hired. The background screening industry exists because employers need to verify the accuracy of information provided by job applicants and assess potential risks associated with hiring decisions. This includes checking for criminal history, verifying educational credentials and work experience, confirming professional licenses, and screening for drug use. These services have become essential for companies across all industries due to legal compliance requirements, workplace safety concerns, and the need to protect against fraud and negligent hiring lawsuits. First Advantage's primary offering is its comprehensive screening platform that automates and streamlines these verification processes. The platform leverages artificial intelligence and machine learning to process screening requests efficiently, accessing over 900 million records in proprietary databases to deliver results quickly and accurately. The company's services are organized into two main categories: 1. Pre-onboarding solutions (approximately 85-90% of revenue): These include criminal background checks, drug and health screening, identity verification with biometric fraud detection, education and employment history verification, driver record checks, healthcare credential verification, and executive-level screening. These services are performed before a candidate is officially hired. 2. Post-onboarding solutions (approximately 10-15% of revenue): These include ongoing criminal records monitoring, healthcare sanctions monitoring, motor vehicle record updates, social media screening, and global sanctions monitoring for existing employees. These services provide continuous monitoring after hiring. The company also offers specialized services such as fleet and vehicle compliance for transportation companies, hiring tax credit assistance, tenant screening for property management, and investigative research services.
Revenue model
First Advantage operates on a transaction-based revenue model, charging customers fees for each background screening or verification service performed. The company does not typically use subscription models but instead generates revenue each time a customer requests a background check or related service. The paying customers are primarily human resources departments, recruiting teams, and compliance officers at companies of all sizes - from small businesses to large global enterprises. Key customer segments include healthcare organizations, transportation and logistics companies, retail chains, financial services firms, technology companies, and government agencies. The company serves customers across diverse industries, with healthcare, transportation, retail, and e-commerce representing major verticals. Revenue generation follows a variable model where income scales directly with hiring activity levels. When the job market is strong and companies are actively hiring, First Advantage sees increased demand for its services. Conversely, during economic downturns or hiring slowdowns, revenue can decline as fewer background checks are requested. Several factors influence the company's margins and profitability. Positive margin drivers include the company's highly automated technology platform that reduces manual processing costs, economies of scale from processing large volumes of screens, proprietary databases that provide cost advantages over purchasing third-party data, and the ability to cross-sell multiple services to existing customers. The company's variable cost structure also allows it to adjust expenses during slower periods. Negative margin pressures come from competitive pricing in the commoditized portions of the screening market, increased costs for accessing certain databases and public records, regulatory changes that require additional compliance investments, and the need for continuous technology upgrades to maintain competitive advantages. Economic downturns that reduce overall hiring activity represent the most significant headwind to revenue and margins. The company has demonstrated pricing power in specialized services and comprehensive screening packages, but faces pressure in basic commodity screening services where competition is intense.
Competitive moat
First Advantage possesses a moderate competitive moat built primarily around operational scale, proprietary data assets, and customer switching costs, though the moat faces ongoing challenges from technological disruption and competitive pressures. The company's strongest moat element is its proprietary database of over 900 million records, accumulated over two decades of operations. This database provides faster, more comprehensive screening results than competitors who must rely on third-party data sources, creating both cost advantages and superior service quality. The scale of processing nearly 190 million screens annually also generates operational efficiencies and data network effects that smaller competitors cannot easily replicate. Customer switching costs provide additional moat strength. Once integrated into a company's hiring workflow, background screening systems become embedded in HR processes, applicant tracking systems, and compliance procedures. The 96% customer retention rate demonstrates the stickiness of these relationships. Enterprise customers particularly face high switching costs due to complex integrations, compliance requirements, and the risk of disrupting critical hiring processes. The company's regulatory expertise and compliance capabilities create barriers for new entrants, as background screening involves navigating complex federal, state, and international regulations. First Advantage's experience managing compliance across 200+ countries represents valuable institutional knowledge that is difficult to replicate quickly. However, the moat faces significant challenges. The background screening industry includes numerous competitors ranging from large players like HireRight to smaller regional providers, creating ongoing competitive pressure. Technology disruption poses a particular threat, as artificial intelligence and automation could allow new entrants to challenge established players with more efficient platforms. The commodity nature of basic screening services also limits pricing power in portions of the market. The recent Sterling acquisition strengthens the moat by increasing scale and market share, but the combined entity still operates in a fragmented, competitive market where maintaining differentiation requires continuous innovation and investment.
Risks & safety
First Advantage presents a moderate margin of safety with solid liquidity but elevated debt levels following the Sterling acquisition. Liquidity and Cash Position: - Cash and short-term investments: $172 million as of Q1 2025 - Current ratio: 1.96, indicating adequate short-term liquidity - Free cash flow: $19 million in Q1 2025, though highly variable quarterly Debt and Solvency: - Debt-to-equity ratio: 1.65, significantly elevated post-Sterling acquisition - Net leverage target: Reduce to 3x within 24 months from acquisition close - Interest coverage appears adequate given EBITDA of $69 million in Q1 2025 - No immediate solvency concerns but debt reduction is priority Valuation Metrics: - EV/EBITDA: 8.3x based on Q1 2025 run-rate, reasonable for growth company - Price-to-book: 1.9x, not excessive given asset base - Trading at modest premium to historical averages Other Considerations: - Variable cost structure provides downside protection during economic weakness - High customer retention (96%) provides revenue stability - Integration execution risk from Sterling acquisition could impact near-term performance
Recent development
First Advantage has undergone significant strategic transformation over the past few years, culminating in the transformational $2.2 billion acquisition of Sterling Check Corp completed in October 2024. This acquisition doubled the company's size, creating a combined entity with approximately $1.5 billion in annual revenue and the ability to conduct over 200 million background screens annually. The company has launched "FA 5.0" strategic framework focused on leveraging the combined scale and capabilities of the merged organization. Key initiatives include targeting $60-70 million in run-rate cost synergies within two years, with over $37 million already actioned. The integration strategy emphasizes preserving the best features of both platforms without forcing customer migrations. Technology and AI advancement represents another major strategic pillar. The company has implemented AI-enabled customer service through its Click.Chat.Call platform and deployed AI agents for criminal records processing. These innovations aim to improve efficiency and customer experience while reducing operational costs. Organizational restructuring has accompanied the strategic pivot, with key leadership changes including Joelle Smith's promotion to President, Doug Nairne's appointment as Chief Operating Officer, and Steven Marks taking over as CFO. These changes reflect the company's evolution into a larger, more complex organization. The company has also expanded its Digital Identity products to address emerging fraud risks and launched new branding to reflect its enhanced market position. Despite integration challenges, the company has maintained strong operational metrics including 96% customer retention and continued growth in new logo acquisition and cross-selling activities.
FA company profile · for informational purposes only — not investment advice.
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