FA · First Advantage Corporation

First Advantage Corporation delivered a record Q1 2026 with revenues of $385.2 million, reflecting 8.6% year-over-year growth driven by a strong sales engine, verticalized go-to-market strategy, and diversified enterprise customer base. Key verticals including retail & e-commerce, transportation & logistics, and gig economy showed positive momentum, supported by upsell, cross-sell, new logo wins, and a 97% customer retention rate. Comprehensive solutions spanning the employee lifecycle, including Digital Identity, continue to resonate. CEO Scott Staples highlighted the FA 5.0 growth strategy, leveraging AI-enabled products, proprietary data assets, physical fulfillment networks, compliance expertise, and deep system integrations to navigate complex human capital risks and deliver long-term shareholder value. Financially, Adjusted EBITDA expanded 14.3% to $105.3 million at a 27.3% margin, while GAAP net income turned positive at $2.2 million versus a prior-year loss. Adjusted metrics showed even stronger growth, with Adjusted Net Income up 48% and Adjusted Diluted EPS up 52.9%. Cash generation remained robust at $49.4 million from operations, enabling balanced capital allocation: $19.5 million in share repurchases under the $100 million program (plus $13.8 million post-quarter through May 1) and voluntary debt prepayments totaling $50 million across February and May. CFO Steven Marks reaffirmed full-year 2026 guidance amid strong Q1 performance and macroeconomic views, signaling confidence in sustained growth while reducing net leverage toward long-term targets. This combination of top-line expansion, margin improvement, cash flow strength, and proactive capital returns positions First Advantage favorably for investors.