First Advantage Reports Q4 Earnings Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy FA?
Source: seekingalpha
- Earnings Highlights: First Advantage reported a Q4 non-GAAP EPS of $0.30, demonstrating stable profitability amidst market challenges, reflecting the company's resilience in the industry.
- Revenue Performance: The company achieved revenue of $420 million in Q4, indicating growth compared to the previous year, which underscores the effectiveness of its business model and sustained market demand in the current economic climate.
- Market Evaluation: Seeking Alpha's quantitative rating on First Advantage highlights market interest in its future growth potential, as investors remain cautiously optimistic about its performance despite overall economic uncertainties.
- Historical Data Reference: Analyzing First Advantage's historical financial data reveals stability in earnings and revenue, providing investors with critical insights for decision-making.
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Analyst Views on FA
Wall Street analysts forecast FA stock price to rise
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 9.520
Low
17.00
Averages
17.33
High
18.00
Current: 9.520
Low
17.00
Averages
17.33
High
18.00
About FA
First Advantage Corporation is a global provider of software and data in the human resource technology industry. Enabled by its technology and artificial intelligence (AI), the Company’s platforms, data, and application programming interfaces (APIs) power employment background screening, digital identity solutions, and verification services. The Company’s product suite enables its customers across all industry sectors to perform pre-onboarding screening and post-onboarding monitoring of employees, contractors, contingent workers, tenants, and drivers. Its pre-onboarding products include criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, healthcare credentials, executive screening and others. Its post-onboarding solutions include criminal records monitoring, healthcare sanctions, motor vehicle records, social media and global sanctions and licenses.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Highlights: First Advantage reported a Q4 non-GAAP EPS of $0.30, demonstrating stable profitability amidst market challenges, reflecting the company's resilience in the industry.
- Revenue Performance: The company achieved revenue of $420 million in Q4, indicating growth compared to the previous year, which underscores the effectiveness of its business model and sustained market demand in the current economic climate.
- Market Evaluation: Seeking Alpha's quantitative rating on First Advantage highlights market interest in its future growth potential, as investors remain cautiously optimistic about its performance despite overall economic uncertainties.
- Historical Data Reference: Analyzing First Advantage's historical financial data reveals stability in earnings and revenue, providing investors with critical insights for decision-making.
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- Strong Revenue Performance: First Advantage reported revenues of $409.2 million last quarter, reflecting a 105% year-over-year increase that surpassed analyst expectations, indicating robust growth potential in the background screening market.
- Slowing Future Expectations: This quarter, the market anticipates a 27.4% year-over-year revenue growth for First Advantage, a significant slowdown from the 51.6% increase recorded in the same quarter last year, highlighting challenges in overall industry growth.
- Stable Analyst Confidence: Over the past 30 days, analysts covering First Advantage have generally reaffirmed their earnings estimates, suggesting confidence in the company's ability to maintain stability heading into the earnings report.
- Poor Market Performance: Despite mixed results from peers like Robert Half and Kforce, First Advantage's stock has declined by 35.7% over the past month, reflecting market concerns regarding its future growth prospects.
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- Share Reduction: On January 28, 2026, Cortland Associates sold 399,384 shares of First Advantage for an estimated $5.63 million, indicating concerns about the company's future performance.
- Holding Changes: Following the sale, Cortland's stake in First Advantage decreased to 935,704 shares, with an overall position value declining by $6.95 million, reflecting weakened market confidence in the stock.
- Performance Decline: First Advantage's stock price has dropped 29.1% over the past year, significantly underperforming the S&P 500 by 45.1 percentage points, indicating a lack of competitiveness in the employment services market.
- Market Challenges: The rise of artificial intelligence is creating dual pressures of declining demand and poor execution for First Advantage, leading to diminished investor confidence in its growth prospects, suggesting retail investors should exercise caution.
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- Brand Ambassador Partnership: First Advantage has announced a sponsorship with LPGA professional golfer Lauren Coughlin, who will serve as the first Brand Ambassador, reinforcing the company's alignment with top-tier talent.
- Event Promotion: Coughlin will represent First Advantage throughout the 2026 LPGA season, with the brand logo featured on her apparel during tournament appearances, starting with the Hilton Grand Vacations Tournament of Champions from January 29 to February 1.
- Digital Promotion: Both parties will collaboratively promote the sponsorship through digital outlets such as social media and exclusive appearances throughout the year, enhancing brand visibility and market impact.
- User Conference Participation: Coughlin will be a guest speaker at First Advantage's annual user conference, showcasing her close connection with the brand and alignment with the company's core values.
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- Increased Holdings: Onex Canada Asset Management raised its position in First Advantage by 240,978 shares in Q3 2025, bringing the total value to $11.88 million, an increase of $3,060,597 from the previous quarter, indicating a bullish outlook on the company.
- Market Performance: As of November 13, 2025, First Advantage shares were priced at $13.13, down 27.14% year-over-year, underperforming the S&P 500 by 41.92 percentage points, reflecting market caution regarding its future growth.
- Financial Metrics: First Advantage reported Q3 revenue of $409.2 million, a significant increase from $199.1 million year-over-year, with a net income of $2.6 million compared to a net loss of $8.9 million last year, highlighting the positive impact of its acquisition of Sterling Check Corp.
- Outlook: Although the company lowered its full-year 2025 revenue guidance to $1.57 billion, its strong market position in background screening and compliance solutions suggests potential for sustained growth in the future.
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- Increased Holdings: Onex Canada Asset Management raised its position in First Advantage by 240,978 shares in Q3 2025, bringing total holdings to 772,147 shares valued at $11.88 million, indicating a bullish outlook on the company.
- Asset Management Shift: This transaction elevates First Advantage to 1.5% of Onex's reportable 13F assets, reflecting its growing significance in the investment portfolio, despite not being among the top five holdings.
- Performance Recovery: First Advantage reported Q3 revenue of $409.2 million, up from $199.1 million year-over-year, with a net income of $2.6 million compared to a net loss of $8.9 million last year, showcasing the company's recovery potential.
- Market Performance: Although First Advantage's stock price has declined by 27.14% over the past year and hit a 52-week low of $11.95 in November, Onex's increased stake suggests confidence in a future rebound in share price.
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