Second Quarter 2026
Filed Aug 6, 2026First Advantage Reports Second Quarter 2026 Results Posts Record Quarter and Raises Full Year 2026 Guidance
Revenue grew 14.9% year-over-year, adjusted EBITDA increased 12.8%, adjusted diluted earnings per share rose 29.6%, and the company raised all reported full-year 2026 guidance ranges.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Revenues | $1,625 million – $1,700 million | $448.8 million | n/a |
| Adjusted EBITDA | $460 million – $485 million | $128.5 million | n/a |
| Adjusted Net Income | $200 million – $220 million | $61.4 million | n/a |
| Adjusted Diluted Earnings Per Share | $1.15 – $1.25 | $0.35 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $448.8 million | – | 14.9% |
| Net incomeGAAP | $16.9 million | – | NM |
| Net income marginGAAP | 3.8% | – | NA |
| Diluted net income per shareGAAP | $0.10 | – | NM |
| Adjusted EBITDAnon-GAAP | $128.5 million | – | 12.8% |
| Adjusted EBITDA Marginnon-GAAP | 28.6% | – | NA |
| Adjusted Net Incomenon-GAAP | $61.4 million | – | 30.8% |
| Adjusted Diluted Earnings Per Sharenon-GAAP | $0.35 | – | 29.6% |
| Cash Flows from OperationsGAAP | $73.6 million | – | – |
Full Year 2026 outlook
- Revenue$1,670 million – $1,710 million
- NoteAdjusted EBITDA: $472 million – $486 million
- NoteAdjusted Net Income: $214 million – $225 million
- NoteAdjusted Diluted Earnings Per Share: $1.23 – $1.29
Capital returns
- $18.7 million in shares repurchased under $100 million share repurchase program
- Total repurchases through July 31, 2026 of $38.2 million, or approximately 1.9% of total shares outstanding
What drove it
- Sustained momentum driven by recent large contract wins and continued improvement in base revenue performance.
- Exceptional base growth, upsell and cross-sell outperformance, consistent new logo wins, including 20 enterprise bookings in the quarter, and healthy customer retention.
- Increased customer demand across transportation & logistics, retail & e-commerce, industrials & manufacturing, and general staffing.
- The company cited its AI-driven proprietary technology platform, Digital Identity, proprietary data sets, deep customer relationships, and FA 5.0 strategy.
Concerns
- Adjusted EBITDA Margin was 28.6%, compared with 29.2% in the prior-year period.
- Customer onboarding volumes are sensitive to macroeconomic cycles and external events.
- The company cited risks from the continued integration of platforms and solutions, data security and artificial intelligence regulation, reliance on third-party data providers, and indebtedness.
What to watch
- Delivery against raised full-year 2026 revenue guidance of $1,670 million – $1,710 million.
- Delivery against raised full-year 2026 Adjusted EBITDA guidance of $472 million – $486 million and Adjusted EBITDA Margin performance.
- Progress in deleveraging following the $25 million and $45 million debt prepayments.
- The pace of enterprise bookings, base revenue performance, upsell and cross-sell activity, customer retention, and demand in the identified verticals.
Balance sheet and cash flow
- Cash Flows from Operations of $73.6 million
- $25 million debt prepayment made on May 6
- Voluntary debt prepayment of $45 million made on August 4, subsequent to the end of the quarter
Analysis
First Advantage reported a record second quarter, with revenues of $448.8 million, up 14.9% year-over-year. Management attributed the performance to sustained momentum from recent large contract wins, improving base revenue performance, upsell and cross-sell outperformance, new-logo activity, healthy customer retention, and increased demand in several verticals. The company reported 20 enterprise bookings in the quarter.
Profitability improved materially on a per-share and adjusted-net-income basis. GAAP net income was $16.9 million, compared with $0.3 million, while diluted net income per share was $0.10, compared with $0.00. Adjusted Net Income increased 30.8% to $61.4 million and Adjusted Diluted Earnings Per Share increased 29.6% to $0.35. Adjusted EBITDA increased 12.8% to $128.5 million, although Adjusted EBITDA Margin was 28.6%, compared with 29.2% in the prior-year period.
Cash Flows from Operations were $73.6 million. Capital allocation emphasized both deleveraging and repurchases. The company made a $25 million debt prepayment during the quarter and a voluntary $45 million prepayment on August 4. It also repurchased $18.7 million of common stock during the quarter; total repurchases through July 31, 2026 were $38.2 million, or approximately 1.9% of total shares outstanding.
Management raised its full-year 2026 guidance ranges for Revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings Per Share. The updated revenue range is $1,670 million – $1,710 million, versus prior guidance of $1,625 million – $1,700 million. The revised guide reflects strong year-to-date performance, current labor market trends, and management confidence in the remainder of the year.
The central items for investors are whether demand and booking momentum continue across transportation & logistics, retail & e-commerce, industrials & manufacturing, and general staffing; whether the company can maintain adjusted EBITDA performance while growing revenue; and whether cash flow supports its stated balanced approach to deleveraging and share repurchases. The filing also identifies risks related to customer onboarding volumes, macroeconomic cycles, regulation, data security, third-party data providers, platform integration, and indebtedness.
Management, verbatim
Our outstanding second quarter performance, highlighted by 15% year-over-year revenue growth and exceptional per share earnings growth, demonstrated the strength of our AI-driven proprietary technology platform and our continued go-to-market momentum.
Scott Staples, Chief Executive Officer
We continue to see increased customer demand across a number of our verticals, including in transportation & logistics, retail & e-commerce, industrials & manufacturing, and general staffing.
Scott Staples, Chief Executive Officer
In view of our strong year-to-date performance, current labor market trends, and our confidence in our outlook for the remainder of the year, we are raising our full year guidance.
Steven Marks, Chief Financial Officer
Not in the filing
stated, not guessed- Segment revenue, segment year-over-year growth, segment quarter-over-quarter growth, and segment drivers by reported segment.
- GAAP gross profit and gross margin.
- GAAP operating expenses, operating income, and operating margin.
- Free cash flow.
- Cash balance, total debt balance, and net debt.
- Dividends.
- Prior-quarter figures for reported quarterly metrics.
- Year-over-year comparison for Cash Flows from Operations.
- Full-year 2026 guidance for gross margin, operating expenses, tax rate, GAAP net income, and GAAP diluted net income per share.
- A comparable actual full-year 2026 result for assessing prior full-year guidance. The filing reports second-quarter actuals and full-year guidance, which are not directly comparable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.