First Advantage Corp (NASDAQ:FA) Beats Q2 2025 Earnings Estimates and Reaffirms Full-Year Guidance
By Mill Chart
Last update: Aug 7, 2025
First Advantage Corporation (NASDAQ:FA) reported its second-quarter 2025 financial results, delivering revenue and adjusted earnings per share (EPS) that exceeded analyst expectations. The company also reaffirmed its full-year guidance, signaling confidence in its growth trajectory despite macroeconomic uncertainties.
Key Financial Highlights
- Revenue: $390.6 million, up 112% year-over-year, surpassing the consensus estimate of $392.5 million.
- Adjusted EPS: $0.27, beating the estimated $0.24.
- Adjusted EBITDA: $113.9 million, with a margin of 29.2%.
- Net Income: $0.3 million, impacted by $7.3 million in acquisition-related expenses and $41.3 million in depreciation and amortization from the Sterling Check Corp. acquisition.
- Cash Flow: Generated $37.3 million in operating cash flow, adjusted to $47.7 million after excluding Sterling-related costs.
Market Reaction
Following the earnings release, FA shares rose 4.8% in pre-market trading, reflecting investor optimism about the company’s performance and outlook. Over the past month, the stock had declined 7.4%, but the strong quarterly results appear to have reversed some of that downward trend.
Outlook vs. Analyst Estimates
First Advantage reaffirmed its full-year 2025 guidance, projecting:
- Revenue: $1.5 billion to $1.6 billion (vs. analyst estimate of $1.573 billion).
- Adjusted EBITDA: $410 million to $450 million.
- Adjusted EPS: $0.86 to $1.03 (vs. consensus of $0.96).
For Q3 2025, analysts expect revenue of $415.45 million and EPS of $0.28, which the company did not explicitly address in its release.
Strategic Developments
CEO Scott Staples highlighted progress in integrating Sterling Check Corp. and expanding digital identity solutions. The company also emphasized its long-term financial targets, including an expected 19% to 25% compound annual growth rate (CAGR) in adjusted diluted EPS.
Conclusion
First Advantage’s Q2 results demonstrate resilience amid economic uncertainty, with revenue and EPS outperforming expectations. The reaffirmed full-year guidance suggests management’s confidence in continued growth, supported by strategic acquisitions and operational efficiencies.
For more detailed earnings estimates and historical performance, visit First Advantage’s earnings page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
