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EarningsQ2 2026 Earnings Report
FA Q2 2026 EPS Results
Actual EPS$0.35
Consensus EPS$0.29
Beat/MissBeat by +$0.06
One Year Ago EPS$0.27
FA Q2 2026 Revenue Results
Actual Revenue$448.76M
Expected Revenue$415.04M
Beat/MissBeat by +$33.72M
YoY Revenue Growth+14.88%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
FA Upcoming Earnings
First Advantage's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
FA Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive operating and financial performance: strong Q2 results across revenue (+15% YoY), adjusted EBITDA (+13% YoY) and adjusted EPS (+30% YoY), robust operating cash flow (+97% YoY), raised full-year guidance, continued deleveraging and active capital return via buybacks. Product innovation (AI and Digital Identity) and go-to-market execution drove bookings, upsell/cross-sell and improved package density. Offsetting factors include moderating growth expectations in the back half as the company laps an especially strong 2025, implementation scheduling pushing some revenue into 2027, modest international weakness (notably India), and net leverage that remains above the <3x target. Overall, positives materially outweigh the negatives.Company Guidance
Revenue Growth
Second quarter revenue of $449 million, representing 15% year-over-year growth and marking the fifth consecutive quarter of positive YoY revenue growth.
Profitability Expansion
Adjusted EBITDA of $128.5 million, up 13% year-over-year, with an adjusted EBITDA margin of 28.6%, a sequential improvement of 130 basis points.
Earnings Per Share Acceleration
Adjusted diluted EPS of $0.35 in Q2, a 30% year-over-year increase, supported by outperformance, share buybacks and synergy realization.
Strong Cash Flow and Balance Sheet Actions
Operating cash flow of $73.6 million, up 97% year-over-year, cash balance of $238 million, and cumulative debt repayments of more than $165 million since the Sterling acquisition (including $25M voluntary repayment and an additional $45M prepayment this week).
Capital Return and Share Repurchases
Repurchased $18.7 million of shares in the quarter and $38 million through July 31 (approximately 3.2 million shares or ~1.9% of shares outstanding) at an average price of $11.78; $61.8 million remains authorized for repurchase.
Raised Full-Year 2026 Guidance
Updated 2026 guidance to revenue $1.67B–$1.71B, adjusted EBITDA $472M–$486M, adjusted net income $214M–$225M and adjusted diluted EPS $1.23–$1.29; midpoint implies ~7% YoY revenue growth, ~9% adjusted EBITDA growth and ~21% adjusted diluted EPS growth.
Sales and Customer Metrics
20 enterprise bookings in Q2 (up from 17 in Q1), each with expected ACV ≥ $500K; combined upsell, cross-sell and new logo revenues grew 12.5% in the quarter; customer retention remained strong at 96%.
Product & AI Momentum
Progress on FA 5.0 strategy and AI-driven platform: adoption and implementation momentum for Digital Identity and SmartHub AI; migration to proprietary native AI chat improves cost and experience; Digital Identity increasingly included in deals and driving larger ACVs.
Synergy & Integration Progress
Actioned $63 million in run-rate acquisition synergies toward a $65M–$80M target, with integration on-track to be fully actioned by year-end; realized synergies of $51M so far.
Industry Recognition & Milestones
Added to the S&P SmallCap 600, ranked #1 Background Screening and Identity Verification company by TIME's America's Best Companies 2026, and celebrated five-year IPO anniversary — signaling scale and market recognition.
FA Earnings History
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