First Advantage Corp. (FA) saw its stock soar 6.05% in pre-market trading on Thursday following the release of its impressive first-quarter 2025 financial results. The company, a leading provider of global software and data in the HR technology industry, reported better-than-expected earnings and revenue, while also reaffirming its full-year 2025 guidance.

For the first quarter ended March 31, 2025, First Advantage reported adjusted earnings of $0.17 per diluted share, unchanged from the same period last year but surpassing the FactSet analyst consensus estimate of $0.13. The company's revenue for the quarter reached $354.6 million, marking a substantial 109.30% increase from $169.4 million in the year-ago period and beating the FactSet analyst expectations of $344.3 million.

Further bolstering investor confidence, First Advantage reported strong performance in other key financial metrics. The company's adjusted EBITDA came in at $92.1 million, significantly exceeding the IBES estimate of $79 million. Additionally, adjusted net income was reported at $30.5 million, outperforming the IBES estimate of $22.8 million. The company also maintained a healthy cash flow from operations of $19.5 million for the quarter.

Despite reporting a net loss of $41.2 million for the quarter, which includes expenses related to the acquisition of Sterling Check Corp. and related integration costs, investors appeared to focus on the company's strong underlying performance and future prospects. First Advantage reaffirmed its full-year 2025 guidance, projecting adjusted earnings of $0.86 to $1.03 per diluted share and revenue between $1.5 billion and $1.6 billion, in line with analyst expectations.

The positive financial results and reaffirmed guidance demonstrate First Advantage's resilience and growth potential in the competitive HR technology sector, likely contributing to the significant pre-market stock price increase.