First Advantage Corporation (FA) Earnings
First Advantage Corporation is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $0.29. FA has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +18.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| 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% |
| Mar 23, 2022 | $0.22 | $0.31 | +40.9% | $213M | +14.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
• Delivered exceptional Q1 with 8.6% revenue growth and over 27% adjusted EBITDA margins, outpacing broader hiring market trends. • Executing and accelerating FA 5.0 growth strategy, with innovative product and platform approach strengthening customer value proposition. • Balanced capital allocation strategy: $100 million share repurchase program with $33.3 million repurchased through May 1st; made $25 million voluntary debt payment during the quarter and $25 million additional prepayment just this week, total cumulative debt prepayment $120.5 million. • Reaffirming full-year 2026 guidance based on strong Q1 customer demand and positive top-line momentum. • AI is an enabler of FA 5.0 strategy, integrated into platform like NextGen Profile Advantage, driving user experience improvements. • Released 2026 Global Workforce Trends Report highlighting risk mitigation as top hiring priority due to AI. • Held 10th Annual Collaborate User Conference, largest ever, driving pipeline contributions and customer engagement.
Guidance
• Reaffirming full-year 2026 guidance. • Expect revenue growth rates in mid to high single digits in Q2 and Q3, slightly lower in Q4 due to go-to-market timing. • Base growth expected to be modestly negative for the year, between 0% and negative 2%, below range in Q4. • Adjusted EBITDA margins expected to improve meaningfully in Q2 towards 28% and around 29% in second half. • Adjusted diluted EPS expected to increase to high $0.20 per share range in Q2, mid $0.30 range in Q3 and Q4.
Segment performance
In Q1, revenue grew 8.6% year-over-year to $385 million. Adjusted EBITDA was $105 million, up 14% year-over-year, with an adjusted EBITDA margin of 27.3%. Combined upsell, cross-sell, and new logo growth contribution was 12%. Retention remained high at 97%. Vertical performance: Retail and e-commerce saw continued growth acceleration; transportation and logistics had growth driven by sustained base volume and compliance focus; gig economy benefited from job stacking; healthcare had modest growth with upsell and cross-sell offsetting base softness; business professional and financial services had pressure but didn't inhibit overall performance; international business sustained strong year-over-year revenue growth with particular strengths in EMEA.
Risks & headwinds
• Macroeconomic uncertainty including layoffs, economic and policy uncertainty. • Geopolitical developments in the Middle East, though no significant direct exposure. • Highly regulated environment with evolving regulations. • Competition from other companies in the space, including smaller competitors potentially being pushed out by AI but also existing competition.
Analyst Q&A
Q: Could you talk a little bit about which areas picked up in March and detail on mix impacting margins and sustainability?
A: March was a blowout month with broad-based growth across majority of verticals and geographies. Broad-based growth led to more normalized margins as base is now near zero.
Q: How important was digital identity and AI in driving 17 enterprise bookings?
A: Digital identity is standard in nearly every deal, leading to package density upsell. AI is an enabler of FA 5.0 strategy, integrated into platform driving user experience improvements.
Q: Why continue to expect base growth to be zero to negative 2%?
A: Conservative approach due to macroeconomic and geopolitical uncertainties.
Q: Can you quantify how often winning background check contracts is due to inclusion of identity services?
A: Hard to quantify as can't know competitive deal intricacies, but pipeline is growing, win rates are up, and retention is improving.
Q: Is job-stacking trend picking up or accelerating?
A: Job-stacking is a secular trend due to generational shift in workforce approach, with millennials and Gen Z approaching work differently leading to more job stacking.
Q: Thoughts on pricing and competitive landscape due to AI?
A: Pricing is stable, companies are looking for cost savings leading to consolidation of vendors, with First Advantage benefiting from higher share of wallet and risk mitigation focus.
Q: Are you being overly conservative with guidance?
A: Not overly conservative, but mindful of world volatility.
Q: Opinion on AI meaning for competitive landscape?
A: AI is accelerating new build work, First Advantage is well positioned with investments in tech stack and vertical focus but competition still exists.
Q: Details on FA 5.0 strategy acceleration?
A: Accelerating on digital identity as top customer issue, AI integration in platform for better user experience and back-end efficiency, and deeper vertical focus.
Q: Color on enterprise bookings pipeline split?
A: Pipeline is at historic high, late stage pipeline is largest ever, sales engine is humming with marketing, vertical-led sales, and product investments driving growth but specific split not detailed.