First Advantage Corp (FA) shares are soaring 6.11% in pre-market trading on Thursday following the release of its impressive second-quarter 2025 financial results. The HR tech firm delivered strong performances across key metrics, surpassing analyst expectations and reaffirming its full-year guidance.
The company reported Q2 revenue of $390.6 million, beating the analyst consensus of $381.1 million. This represents a substantial 111.67% increase from the same period last year. First Advantage's adjusted earnings per share (EPS) came in at $0.27, surpassing the expected $0.24 and marking a 28.57% year-over-year growth. Additionally, the adjusted EBITDA of $113.9 million exceeded analyst estimates of $104.8 million.
First Advantage's strong performance was driven by its balanced vertical strategy and expanding market reach. The company highlighted robust customer interest in its Digital Identity solutions and noted significant momentum in international markets. Despite incurring $7.3 million in expenses related to the Sterling acquisition, First Advantage maintained its positive outlook, reaffirming its full-year 2025 guidance with projected revenue between $1.5 billion and $1.6 billion, and adjusted EPS ranging from $0.86 to $1.03. The company's ability to outperform expectations while maintaining its forward-looking projections has clearly resonated with investors, as reflected in the pre-market stock surge.