First Advantage (0MS) Q3 2026 Earnings Report
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DE:0MS Q3 2026 EPS Results
- Actual EPS
- EUR 0.34
- Consensus EPS
- EUR 0.30
- Beat/Miss
- Beat by +EUR 0.04
- One Year Ago EPS
- EUR 0.27
DE:0MS Q3 2026 Revenue Results
- Actual Revenue
- EUR 415.50M
- Expected Revenue
- EUR 390.37M
- Beat/Miss
- Beat by +EUR 25.12M
- YoY Revenue Growth
- +13.84%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
DE:0MS Upcoming Earnings
First Advantage's next earnings date is estimated for March 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:0MS Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. First Advantage reported record third-quarter performance, broad-based revenue growth, improved margins, 45% year-to-date operating cash flow growth, successful Sterling integration, strong customer retention, continued AI and data-product development, and another increase to full-year guidance. The main challenges were a 4% international revenue decline, macroeconomic and geopolitical uncertainty, tougher fourth-quarter comparisons, expected margin moderation, and limited share repurchases, but these issues were outweighed by the company's financial performance and positive outlook.
Company Guidance
For full-year 2026, First Advantage expects total revenues in the range of $1.72 billion-$1.745 billion, adjusted EBITDA of $488 million-$498 million, adjusted net income of $227 million-$232 million, and adjusted diluted EPS of $1.30-$1.33 per share; at the midpoints on a year-over-year basis, this represents approximately 10% revenue growth, 12% adjusted EBITDA growth, and 26% adjusted diluted EPS growth. For Q4, the company expects a more modest level of growth, base to be neutral to slightly positive, adjusted EBITDA margins to remain in line with its mid-28% year-to-date performance, and adjusted diluted EPS to show year-over-year expansion, reaching the low $0.30 range; the continuation of current trends would support performance above the midpoint of the range, and the updated guidance includes the very modest impact of the Data Diver acquisition in the last two months of the year.
- Outstanding Third-Quarter Financial ResultsThird-quarter revenue increased 14% year-over-year to $466 million, adjusted EBITDA increased 15% to $136.5 million, adjusted EBITDA margin was 29.3%, and adjusted diluted EPS increased 27% year-over-year to $0.38. Management described the quarter as the best quarter in company history.
- Raised Full-Year 2026 GuidanceThe company raised full-year 2026 guidance to revenue of $1.72 billion-$1.745 billion, adjusted EBITDA of $488 million-$498 million, adjusted net income of $227 million-$232 million, and adjusted diluted EPS of $1.30-$1.33. At the midpoints, this represents approximately 10% revenue growth, 12% adjusted EBITDA growth, and 26% adjusted diluted EPS growth year-over-year. The low end of the revised ranges now exceeds the high end of the previous guidance ranges across every metric.
- Broad-Based Americas MomentumThird-quarter performance benefited from broad-based volume acceleration in the Americas, continued contributions from large contract wins, peak holiday hiring beginning earlier than expected, and modest carryover from second-quarter customer initiatives. Order volumes remained healthy in October, and the company said the broader hiring environment continued to be stable.
- Strong Go-to-Market ExecutionCombined upsell, cross-sell, and new-logo revenue grew 12.5% in the quarter, while base growth was 5%. Customer initiatives launched during the second quarter contributed a little more than 1% to base growth. Retention remained solid at 96%, in line with the company's long-term model.
- Enterprise Bookings and Pipeline StrengthThe sales team delivered 14 enterprise bookings in the third quarter, with each deal having an expected annual contract value of at least $500,000. Management said the late-stage pipeline continued to strengthen and expand, with larger and more complex deals, strong win rates, and positive expectations for the fourth quarter.
- Broad-Based Vertical GrowthRevenue growth was broad-based across almost every Americas vertical. Transportation and logistics, retail and e-commerce benefited from healthy consumer activity and earlier holiday hiring. Industrials and manufacturing delivered standout performance, driven by strong demand for products and services and increased economic activity in aerospace and defense. General staffing, healthcare, TMT, hospitality, and the gig economy also showed positive momentum.
- Customer Demand for Fraud Detection and Risk MitigationManagement reported increasing customer demand for identity fraud detection, deeper searches, rescreening, and ongoing monitoring. The company cited its 2026 Global Workforce Trends Report, which found that 45% of hiring professionals had experienced candidate identity misrepresentation. Identity fraud detection products were described as supporting pipeline expansion, win rates, and retention.
- FCRA-Compliant Digital Identity ProductFirst Advantage announced an exclusive strategic partnership with ID.me to launch a purpose-built, FCRA-compliant digital identity verification product for employment decisions. The product combines digital identity verification results with traditional background screening reports, allowing customers to make employment decisions using a more comprehensive and compliant screening program.
- Launch of Criminal SmartHubThe company officially launched Criminal SmartHub, an internally developed AI system that evaluates thousands of potential data sources and scans proprietary criminal records, public data, and third-party sources to identify the fastest, highest-quality, and most efficient way to fulfill customer orders. Management said the technology is intended to improve turnaround times and efficiency.
- Data Diver Acquisition Strengthens Proprietary Data and AutomationFirst Advantage acquired Data Diver Technologies for $125 million. Data Diver adds a proprietary data platform, an automated fulfillment engine, incremental criminal and court-record data, technology, and an experienced data team. The acquisition adds approximately $20 million of annual revenue, with adjusted EBITDA margins in line with First Advantage's existing profile and upside synergy opportunities.
- Expanded Data Coverage and Product CapabilitiesManagement said Data Diver will expand First Advantage's existing databases, increase automated fulfillment coverage across U.S. jurisdictions, enhance current solutions, and accelerate development of new capabilities. The company already has more than 1 billion records in its proprietary databases, and the acquisition is expected to support faster turnaround times, higher-quality results, more complete records, and new product opportunities.
- Successful Sterling Integration and SynergiesTwo years after closing the Sterling acquisition, management said the integration is effectively complete and that the company has meaningfully exceeded its initial synergy thesis. First Advantage expects to finish near, if not at the top, of its synergy target range by year-end. The company reported essentially no impact on customer retention and said the acquisition has helped its growth engine.
- Operating Leverage and Cost DisciplineAdjusted EBITDA margin improved sequentially by 70 basis points to 29.3%. Sales and marketing and G&A expenses remained flat year-over-year while revenue grew. Margin performance also benefited from data cost savings, algorithm updates to SmartHub for Verifications, Sterling synergies, and cost discipline.
- Strong Cash Flow GenerationThird-quarter operating cash flow was $63.8 million, bringing year-to-date operating cash flow to $186.8 million, an increase of $57.6 million, or 45%, year-over-year. Management attributed the year-to-date increase to the larger scale of the business, its focus on cash flow, and the working-capital impact of revenue growth outperformance.
- Progress on Deleveraging and Capital FlexibilityCash balance was $241 million as of September 30, 2026. The Synergized Adjusted EBITDA Net Leverage Ratio was 3.5x at quarter-end, down 0.9x from the close of the Sterling acquisition two years earlier. Management said the Data Diver acquisition does not change its overall deleveraging strategy, that acquisition borrowings are expected to be repaid with free cash flow in the near term, and that the company remains committed to its 2028 leverage targets.
- Positive Near-Term Demand OutlookManagement said enterprise customers' hiring outlooks remained neutral to positive, October trends were good, and current trends would support performance above the midpoint of the revised fourth-quarter guidance range. The company expects fourth-quarter base growth to be neutral to slightly positive and adjusted diluted EPS to reach the low $0.30 range with year-over-year expansion.
- AI Embedded Across the BusinessManagement said AI is embedded across many products, including candidate experience, verification routing, criminal-record sourcing, and customer-care chatbots. The company reported higher customer satisfaction, strong retention, potential benefits to win rates, and reduced call-center staffing needs from AI chatbots, while stating that the overall margin benefit of AI is difficult to separate from other business factors.
- Growth Opportunities in the Gig EconomyGig-economy demand is being supported by job stacking, where workers use multiple gig platforms and may trigger screenings when entering or exiting each platform, as well as increased fraud-detection and trust-and-safety requirements. Management said the gig economy is maturing, demand is growing across the product portfolio, and customers are seeking more comprehensive risk coverage.
DE:0MS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 04, 2027 | 2026 (Q4) | 0.29- | 0.27 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 0.300.34 | 0.27 | 26.67% (+0.07) | |
| Aug 06, 2026 | 2026 (Q2) | 0.260.31 | 0.24 | 29.63% (+0.07) | |
| May 07, 2026 | 2026 (Q1) | 0.190.23 | 0.15 | 52.94% (+0.08) | |
| Feb 26, 2026 | 2025 (Q4) | 0.230.27 | 0.16 | 66.67% (+0.11) | |
| Nov 06, 2025 | 2025 (Q3) | 0.250.27 | 0.23 | 15.38% (+0.04) | |
| Aug 07, 2025 | 2025 (Q2) | 0.210.24 | 0.19 | 28.57% (+0.05) | |
| May 08, 2025 | 2025 (Q1) | 0.120.15 | 0.15 | 0.00% (+0.00) | |
| Feb 27, 2025 | 2024 (Q4) | 0.200.16 | 0.26 | -37.93% (-0.10) | |
| Nov 12, 2024 | 2024 (Q3) | 0.230.23 | 0.25 | -7.14% (-0.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
