Highlights

  • Second quarter 2026 revenues were $448.8 million, compared with $390.6 million, and net income was $16.9 million, compared with $0.3 million.
  • Adjusted EBITDA, a non-GAAP measure, was $128.5 million, with an Adjusted EBITDA Margin of 28.6%, compared with 29.2% a year earlier.
  • Total debt outstanding was $2,064.5 million at June 30, 2026, and cash and cash equivalents were $237.9 million.
  • Management guided 2026 revenue of $1.67 billion to $1.71 billion and adjusted diluted EPS of $1.23 to $1.29.

First Advantage Corporation (NASDAQ: FA) shares were trading at USD 20.94 on October 27, 2026, down 1.46%, with a relative volume at time of 2.10. The background screening and identity company filed its quarterly report for the quarter ended June 30, 2026 on August 6, 2026 and held its second quarter earnings call on August 13, 2026.

First Advantage is incorporated in Delaware and lists its principal executive offices in Atlanta, Georgia. It describes itself as a global software and data company providing identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. It reports three segments: First Advantage Americas, First Advantage International and Sterling, which it acquired on October 31, 2024. It has over 80,000 customers, performs screens across over 200 countries and territories, and its fiscal year ends December 31.

Second Quarter Results

Revenues for the three months ended June 30, 2026 were $448.8 million, compared with $390.6 million, an increase of $58.1 million, or 14.9%. Approximately 88% of revenues was generated in the United States and 12% abroad.

Net income was $16.9 million, compared with $0.3 million, and diluted net income per share was $0.10, compared with $0.00. The company attributed the improvement to increased revenues, operational efficiencies and lower interest expense. Adjusted EBITDA was $128.5 million, an increase of 12.8%, with an Adjusted EBITDA Margin of 28.6%, compared with 29.2%.

For the six months, revenues were $834.0 million, compared with $745.2 million, and net income was $19.1 million, compared with a net loss of $(40.9) million. Adjusted EBITDA for the six months was $233.8 million, with a margin of 28.0%.

Debt, Cash Flow and Capital

At June 30, 2026, First Advantage had $237.9 million in cash and cash equivalents, $249.3 million available under its revolving credit facility and $2,064.5 million of total debt outstanding. Borrowings under its 2025 Amended First Lien Credit Agreement bear interest at an applicable margin plus SOFR, with a term loan margin range of 2.50% to 2.75%, and the term loan is due October 31, 2031.

Net cash provided by operating activities was $123.0 million for the six months, compared with $56.8 million. Net cash used in financing activities was $85.2 million, including principal repayments of $50.0 million on the term loan and share repurchases. On the call, management said it made a $25 million voluntary debt repayment in the second quarter and a $45 million voluntary prepayment after quarter end.

On February 25, 2026, the board authorized the repurchase of up to $100.0 million of common stock with no expiration date. During the six months, the company repurchased 3,241,846 shares at a total cost of $38.2 million.

Business Conditions

The filing states that customer demand is sensitive to hiring velocity, employee turnover and economic conditions, and that employers may reduce or delay hiring during periods of uncertainty. It cites inflation, conflicts in the Middle East, tariff policy uncertainty and uneven hiring across industries. It states that sustained economic uncertainty could affect new business, renewals, demand and revenue growth rates.

Management said on the call that the company recorded 20 enterprise bookings in the second quarter, each with an expected annual contract value of at least $500,000, compared with 17 in the first quarter.

2026 Outlook

On the earnings call, management raised its 2026 guidance. It now expects total revenues of $1.67 billion to $1.71 billion, adjusted EBITDA of $472 million to $486 million, adjusted net income of $214 million to $225 million and adjusted diluted EPS of $1.23 to $1.29 per share. For the third quarter, management expects total revenue growth in the mid- to high single digits. For the fourth quarter, it expects growth in the low to mid single digits, compared with 17% growth in the fourth quarter of 2025. Management said its guidance reflects geopolitical and macro uncertainty.