Overview

• First Advantage Q3 revenue of $409.2 mln beats analyst expectations

• Adjusted net income for Q3 beats estimates, reaching $52.3 mln

• Adjusted EBITDA of $118.5 mln in Q3 surpasses analyst forecasts

Outlook

• First Advantage narrows full-year 2025 revenue guidance to $1.535 bln-$1.570 bln

• Company expects full-year 2025 adjusted EBITDA between $430 mln and $440 mln

• First Advantage projects full-year 2025 adjusted EPS of $0.98-$1.02

Result Drivers

• MARKET STRATEGIES - Co attributes Q3 growth to successful go-to-market strategies, including new logo acquisition and upsell/cross-sell activities

• VERTICAL AND GEOGRAPHIC GROWTH - Strong momentum in retail, e-commerce, and transportation verticals, and international business achieved year-over-year revenue growth

• STERLING ACQUISITION - Integration of Sterling progressing ahead of schedule, delivering strategic and financial benefits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for First Advantage Corp is $18.00, about 28.2% above its November 5 closing price of $12.93

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX5whc7B

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)