Overview

* First Advantage ( FA ) 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 ( FA ) 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 ( FA ) 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/Mis Actual Consensu

s s

Estimate

Q3 Beat $409.20 $404.50

Revenue mln mln (9

Analysts

)

Q3 Beat $52.30 $49.30

Adjusted mln mln (8

Net Analysts

Income )

Q3 Net $2.60

Income mln

Q3 Beat $118.50 $113.60

Adjusted mln mln (9

EBITDA Analysts

)

Q3 Cash $72.40

Flow mln

from

Operatio

ns

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 ( FA ) 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:

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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.)