First Advantage Corporation (FA) AI Stock Analysis

First Advantage Corporation specializes in technology solutions for screening, verifications, safety, and compliance across human capital sectors. Its pre-onboarding portfolio includes criminal background checks, drug and health screenings, identity verification tools, FBI channeling, biometric fraud mitigation, and education and work history verification. For ongoing workforce management, the company delivers post-onboarding solutions such as continuous criminal records monitoring, healthcare sanctions, global sanctions and licenses checks, motor vehicle records, social media screening, and fleet compliance services. First Advantage serves global enterprises, mid-sized firms, and small businesses across recruiting, human resources, risk management, compliance, and security divisions.

Revenue rose from $712.3M in FY2021 to $1.57B in FY2025, representing a 5-year CAGR of 25.3%. Annual revenue grew 83.0% in FY2025 after expanding 12.6% in FY2024 and declining 5.7% in FY2023. Gross margin was 50.6% in FY2021, 49.5% in FY2022, 49.4% in FY2023, 47.8% in FY2024, and dropped to 29.9% in FY2025. Operating margin shifted from 9.0% in FY2021 to -7.3% in FY2024 and recovered to 9.0% in FY2025. Net income was -$110.3M in FY2024 and -$34.8M in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue growth was 14.9% year-over-year, while quarterly earnings growth was 5498.7%.

As of June 30, 2026, First Advantage held $237.9M in cash and short-term investments against $2.04B in total debt, resulting in net debt of $1.80B. Shareholders' equity was $1.29B, giving a debt-to-equity ratio of 1.58, while the current ratio stood at 2.53. In FY2025, operating cash flow reached $195.1M and free cash flow was $140.9M. Capital expenditures totaled $54.3M, and dividends paid were $133,000.

FA trades at a trailing P/E of 137.0x and a forward P/E of 12.9x, compared to medians of 24.8x and 17.2x, respectively, for US-listed Industrials. Its enterprise value of $5.24B reflects an EV/EBITDA of 12.3x, below the peer median of 13.9x, and an EV/revenue of 3.1x. Over the past year, the stock returned 36.4%, outperforming the S&P 500's 16.8% return. Over five years, FA gained 3.3%, trailing the S&P 500's 83.0% advance.

Wall Street coverage includes 3 Strong Buy, 3 Buy, and 4 Hold recommendations. The mean price target is $26.00, representing 35.6% upside from the last close of $19.18 on October 16, 2026. For FY2026, analysts estimate EPS of $1.28 on revenue of $1.71B. For the following fiscal year, 10 analysts project average EPS of $1.51 and revenue of $1.82B. First Advantage has beaten EPS estimates in each of the last 4 quarters, and the next earnings date is November 5, 2026.

This page is an AI-written research summary of First Advantage Corporation (FA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: FA income statement, FA balance sheet, FA key metrics, FA analyst forecast, FA chart. See the FA stock overview for the latest quote and news.