First Advantage Reports 8.6% Revenue Growth to $385.2M, Reaffirms FY26 Guidance
First Advantage posted Q1 revenues of $385.2 million, up 8.6% year-over-year, with adjusted EBITDA of $105.3 million (27.3% margin) and adjusted EPS of $0.26. The company repurchased $19.5 million in stock, prepaid $25 million of debt and reaffirmed FY26 guidance for $1.625–1.700 billion revenues and $1.15–1.25 adjusted EPS.
1. First Quarter Financial Results
First Advantage delivered record Q1 revenue of $385.2 million, an 8.6% rise year-over-year, and net income of $2.2 million (0.6% margin). Adjusted EBITDA reached $105.3 million (27.3% margin), while adjusted net income rose 48% to $45.1 million, driving adjusted EPS of $0.26.
2. Capital Allocation and Debt Reduction
Operating cash flow totaled $49.4 million, supporting a $19.5 million share repurchase under its $100 million authorization and a voluntary $25 million debt prepayment during the quarter. Subsequent to quarter-end, the company repurchased an additional $13.8 million of stock and prepaid another $25 million of debt, reducing net leverage.
3. Reaffirming 2026 Outlook
Management reaffirmed full-year 2026 guidance with revenue projected at $1.625–1.700 billion, adjusted EBITDA of $460–485 million, and adjusted EPS of $1.15–1.25. The company’s AI-enabled products, verticalized go-to-market strategy and 97% customer retention rate are expected to sustain growth across key sectors.