First Advantage Shares Rally 19% After Q4 Revenue Surges 36.8% to $420M
First Advantage posted Q4 revenue of $420 million, up 36.8% year-over-year, and delivered adjusted EPS of $0.30, both topping consensus forecasts. The company raised full-year revenue guidance to $1.66 billion midpoint and raised adjusted EPS outlook to $1.20, sending shares up nearly 19%.
1. Q4 Earnings Beat Expectations
First Advantage reported fourth-quarter revenue of $420 million, marking a 36.8% increase over last year, while adjusted EPS of $0.30 beat analyst forecasts, driven by robust demand for its background screening services.
2. Raised Full-Year Forecast
Management lifted its full-year revenue guidance to $1.66 billion at the midpoint and raised adjusted earnings per share to $1.20, both figures surpassing prior consensus estimates and signaling confidence in continued growth.
3. Stock Reaction and Volatility Context
Shares jumped 18.8% in the afternoon session as investors reacted to the strong results and bullish outlook; FA has experienced significant volatility over the past year, making this move one of the largest daily gains.