First Advantage Corporation (FA) is a global technology firm that delivers solutions centered on human capital, specializing in verification, screening, safety protocols, ...
First Advantage Corporation, traded on NASDAQ under the symbol FA, is a leading global provider of technology-enabled background screening and human capital verification services. Established in Atlanta, Georgia in 2003, the company has grown into an industry titan, serving thousands of clients across various sectors including retail, healthcare, transportation, and ...First Advantage Corporation, traded on NASDAQ under the symbol FA, is a leading global provider of technology-enabled background screening and human capital verification services. Established in Atlanta, Georgia in 2003, the company has grown into an industry titan, serving thousands of clients across various sectors including retail, healthcare, transportation, and technology. Under the leadership of CEO Scott Staples, who has been at the helm since 2017, First Advantage has focused on innovation and expanding its global footprint.
The company's business model revolves around offering comprehensive pre-employment and post-hire screening solutions. Pre-employment services include criminal background checks, drug and health screenings, identity verification with biometric fraud mitigation, education and employment verification, driver record checks, healthcare credential verification, and executive screening. Post-hire offerings include continuous criminal monitoring, sanctions and license checks, social media activity monitoring, and fleet compliance management. Additionally, they provide assistance with hiring tax credits and investigative research.
First Advantage's competitive edge lies in its proprietary technology and data analytics. The company leverages advanced algorithms and a vast database to deliver fast, accurate results, improving the efficiency of the hiring process for clients. Their platform integrates with major HR systems, enabling seamless workflows. With operations in North America, EMEA, India, and Asia, the company serves both global corporations and small to mid-sized businesses.
Financially, First Advantage reported a market capitalization of approximately $4.1 billion and generated revenue per share of $9.68 as of the latest TTM data. The company maintains a debt-to-equity ratio of 1.574, reflecting its leveraged position, yet achieves a healthy operating cash flow. In terms of profitability, the net profit margin is 1.5%, which is relatively low due to high COVID-19 pandemic and integration costs. However, the company is investing heavily in product development, evidenced by its R&D expenditure.
Key personnel include CEO Scott Staples, who brings over 30 years of services sector experience, and the leadership team is dedicated to fostering a culture of innovation and customer-centricity. First Advantage also emphasizes corporate social responsibility, aiming to build a diverse and inclusive workforce. The company's mission is to deliver solutions that help clients manage risk and hire the best talent, building trust in the employment process.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.6B
+83.0%
+16.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-34.8M
+68.4%
+680.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+29.9%
-37.5%
+56.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+9.0%
+223.7%
+43.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-2.2%
+82.7%
+569.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$140.9M
+432.1%
+47.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+8.9%
+190.7%
+26.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
159.0%
-3.6%
-1.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.44x
+28.4%
-4.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, everyone. My name is Bo, and I will be your conference operator today. I would like to welcome you to the First Advantage Second Quarter 2026 Earnings Conference Call and Webcast. Hosting the call today from First Advantage is Ms. Stephanie Gorman, Vice President of Investor Relations. is being recorded. [Operator Instructions] It is now my pleasure to turn the call over to Ms. Stephanie Gorman. Please go ahead, ma'am.
Stephanie Gorman: Thank you, Bo. Good morning, everyone, and welcome to First Advantage's Second Quarter 2026 Earnings Conference Call. In the Investors section of our website, you will find the earnings press release and slide presentation to accompany today's discussion. This webcast is being recorded and will be available for replay on our Investor Relations website. Before we begin our prepared remarks, I would like to remind everyone that our discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are discussed in more detail in our filings with the SEC, including our 2025 Form 10-K and our Form 10-Q for the second quarter of 2026 to be filed with the SEC. Such factors may be updated from time to time in our periodic filings with the SEC, and we do not undertake any obligation to update forward-looking statements. Throughout this conference call, we will also present and discuss non-GAAP financial measures. Reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures to the extent available without unreasonable efforts appear in today's earnings press release and presentation, which are available on our Investor Relations website. I am joined on our call today by Scott Staples, our Chief Executive Officer; Joelle Smith, our President; and Steven Marks, our Chief Financial Officer. After our prepared remarks, we will take your questions. I will now turn the call over to Scott.
Scott Staples: Thank you, Stephanie, and good morning, everyone. Thank you for joining our call. Today, we have 4 key messages. First, we delivered outstanding results in the second quarter with revenue growth of 15% year-over-year, adjusted EBITDA margins of 28.6% and adjusted diluted EPS growth of 30% year-over-year, meaningfully outperforming our previously communicated expectations. These results reflect the strength of our go-to-market performance, our state-of-the-art AI-driven proprietary technology platform and the durability of our diverse enterprise customer base and vertical mix. Second, we are making strong progress on our FA 5.0 growth strategy. Our focus on product innovation, platform capabilities and go-to-market execution is translating into tangible results, including robust enterprise bookings, strong upsell and cross-sell activity and continued …