Overview
Global software and data firm's Q4 revenue beat analyst expectations
Adjusted net income for Q4 beat analyst expectations
Company announced new $100 mln share repurchase program
Outlook
First Advantage forecasts 2026 revenue between $1,625 mln and $1,700 mln
Company expects 2026 adjusted EBITDA of $460 mln to $485 mln
First Advantage anticipates 2026 adjusted EPS between $1.15 and $1.25
Result Drivers
STERLING INTEGRATION - Completion of Sterling integration activities contributed to Q4 performance
CUSTOMER RETENTION - High customer retention rate of 97% in Q4 supported results
VERTICAL AND GEOGRAPHY STRENGTH - Strong performance in targeted verticals and geographies drove revenue growth
Company press release: ID:nGNX21fDmj
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $420 mln | $391.88 mln (9 Analysts) |
Q4 Adjusted Net Income | Beat | $51.90 mln | $46.07 mln (8 Analysts) |
Q4 Net Income | $3.50 mln | ||
Q4 Adjusted EBITDA | Beat | $116.80 mln | $110.003 mln (9 Analysts) |
Q4 Cash Flow from Operations | $65.90 mln |
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 $17.00, about 78.6% above its February 25 closing price of $9.52
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago
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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.)