First Advantage Corp (FA) · Nov 5, 2026 · Earnings
Guidance raised — FY26 adjusted EPS raised to $1.30–$1.33 from $1.23–$1.29
First Advantage’s earnings show accelerating growth, expanding margins and a full-year guidance raise, while a new AI-data acquisition adds strategic upside.
First Advantage is in the execution phase of its Sterling integration, using scale, AI-enabled screening and cross-selling to build a broader workforce-risk data platform while still paying down acquisition debt. Its previous August update had already raised 2026 targets, so the key question was whether momentum could continue rather than whether a recovery had started.
The quarter strengthened the operating story. Revenue grew 13.8% year over year to $465.8 million, while adjusted EBITDA rose 15.2% to $136.5 million and adjusted diluted EPS increased 26.7% to $0.38. The modest margin expansion to 29.3% matters because FA is showing growth without giving back operating leverage. 〔0〕
| Metric | Q3 2026 | Q3 2025 | FY26 updated | FY26 prior |
|---|---|---|---|---|
| Revenue (Key Financials) | $465.8M (+13.8%) | $409.2M | ||
| Adjusted EBITDA (Key Financials) | $136.5M (+15.2%) | $118.5M | ||
| Adjusted diluted EPS (Key Financials) | $0.38 (+26.7%) | $0.30 | ||
| Revenue (Guidance) | $1.720B–$1.745B | $1.670B–$1.710B | ||
| Adjusted EBITDA (Guidance) | $488M–$498M | $472M–$486M | ||
| Adjusted diluted EPS (Guidance) | $1.30–$1.33 | $1.23–$1.29 |
The clearest surprise is the guidance reset. The low end of the new full-year range now exceeds the high end of the prior range for revenue, EBITDA, adjusted net income and adjusted EPS. With no reliable quarter-specific consensus in the available record, the strongest benchmark is FA’s own August outlook; against that bar, this is materially better than expected, not merely a routine reaffirmation. The filing explicitly says the updated low end exceeds the prior high end across every metric. 〔1〕
The Data Diver acquisition supports the strategy but is not yet financially readable. FA says the target adds an AI- and automation-enabled platform for high-volume criminal and court records, which fits its push toward faster, more proprietary screening data. But the filing gives no purchase price, revenue contribution, closing mechanics or expected synergies, so the acquisition is strategic validation rather than a quantified earnings catalyst. 〔2〕
Capital allocation is improving, though leverage remains part of the story. FA prepaid $45 million of debt during the quarter while continuing to invest in data and technology. That combination suggests cash generation is giving management room to pursue targeted bolt-on acquisitions without abandoning deleveraging, but the balance sheet still carries roughly $2.0 billion of long-term debt.
Bottom line: This filing advances FA’s story from successful integration to accelerating, self-funded execution. The guidance raise is the material signal; Data Diver adds strategic upside, but its financial impact remains unquantified.
Q4 2026 results, early 2027
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