Overview

* First Advantage Corp Q2 2025 rev of $390.6 mln beats analyst expectations

* Adjusted EPS of $0.27 beats consensus, reflecting strong operational performance

* Adjusted EBITDA of $113.9 mln exceeds analyst estimates, per LSEG data

Outlook

* First Advantage ( FA ) reaffirms 2025 revenue guidance of $1.5 bln to $1.6 bln

* Company expects 2025 adjusted EBITDA of $410 mln to $450 mln

* First Advantage ( FA ) projects 2025 adjusted EPS of $0.86 to $1.03

* Company sees strong international market momentum supporting outlook

Result Drivers

* STERLING ACQUISITION - $7.3 mln in expenses and $41.3 mln in depreciation and amortization related to Sterling acquisition impacted net income

* INTERNATIONAL MOMENTUM - Co reports strong customer interest in Digital Identity solutions and momentum in international markets

* VERTICAL STRATEGY - Balanced vertical strategy and market reach supported revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $390.60 $381.10

Revenue mln mln (9

Analysts

)

Q2 Beat $0.27 $0.24

Adjusted (10

EPS Analysts

)

Q2 Beat $47 mln $41.90

Adjusted mln (8

Net Analysts

Income )

Q2 Net $300,000

Income

Q2 Beat $113.90 $104.80

Adjusted mln mln (9

EBITDA Analysts

)

Q2 Cash $37.30

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 $19.00, about 14.7% above its August 6 closing price of $16.21

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(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.)