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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $409.20 mln | $404.50 mln (9 Analysts) |
Q3 Adjusted Net Income | Beat | $52.30 mln | $49.30 mln (8 Analysts) |
Q3 Net Income | $2.60 mln | ||
Q3 Adjusted EBITDA | Beat | $118.50 mln | $113.60 mln (9 Analysts) |
Q3 Cash Flow from Operations | $72.40 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 $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.)