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 guidance of 1.150-1.250 for the period, compared to the consensus earnings per share estimate of 1.170. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.6 billion.

First Advantage Stock Up 5.0%

Shares of NYSE FA opened at $9.52 on Thursday. The company’s 50 day moving average price is $13.30 and its 200-day moving average price is $14.23. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. First Advantage has a 52-week low of $8.82 and a 52-week high of $19.01. The company has a market capitalization of $1.66 billion, a P/E ratio of 317.33 and a beta of 1.17.

First Advantage (NYSE:FA) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.04. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The business’s quarterly revenue was up 36.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.18 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Equities analysts forecast that First Advantage will post 0.74 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on FA shares. JPMorgan Chase & Co. cut their target price on First Advantage from $21.00 to $17.00 and set an “overweight” rating on the stock in a research report on Friday, November 7th. Zacks Research cut First Advantage from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, First Advantage has an average rating of “Hold” and an average target price of $19.25.

Institutional Investors Weigh In On First Advantage

A number of hedge funds have recently added to or reduced their stakes in FA. Invesco Ltd. increased its holdings in shares of First Advantage by 10.8% during the fourth quarter. Invesco Ltd. now owns 139,192 shares of the company’s stock valued at $2,022,000 after acquiring an additional 13,554 shares in the last quarter. Cat Rock Capital Management LP grew its position 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 period. Susquehanna Fundamental Investments LLC acquired a new stake in First Advantage in the 4th quarter valued at $452,000. Palisade Capital Management LP increased its stake in First Advantage by 4.7% during the 4th quarter. Palisade Capital Management LP now owns 1,765,111 shares of the company’s stock valued at $25,647,000 after purchasing an additional 79,664 shares in the last quarter. Finally, Balyasny Asset Management L.P. acquired a new position in First Advantage during the fourth quarter worth $773,000. Institutional investors and hedge funds 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.