HR tech firm First Advantage Q2 revenue beats expectations
Overview
First Advantage Corp Q2 2025 rev of $390.6 mln beats analyst expectations
Adjusted EPS of $0.27 beats consensus, reflecting strong operational performance
Adjusted EBITDA of $113.9 mln exceeds analyst estimates, per LSEG data
Outlook
First Advantage reaffirms 2025 revenue guidance of $1.5 bln to $1.6 bln
Company expects 2025 adjusted EBITDA of $410 mln to $450 mln
First Advantage projects 2025 adjusted EPS of $0.86 to $1.03
Company sees strong international market momentum supporting outlook
Result Drivers
STERLING ACQUISITION - $7.3 mln in expenses and $41.3 mln in depreciation and amortization related to Sterling acquisition impacted net income
INTERNATIONAL MOMENTUM - Co reports strong customer interest in Digital Identity solutions and momentum in international markets
VERTICAL STRATEGY - Balanced vertical strategy and market reach supported revenue growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $390.60 mln | $381.10 mln (9 Analysts) |
Q2 Adjusted EPS | Beat | $0.27 | $0.24 (10 Analysts) |
Q2 Adjusted Net Income | Beat | $47 mln | $41.90 mln (8 Analysts) |
Q2 Net Income |
| $300,000 |
|
Q2 Adjusted EBITDA | Beat | $113.90 mln | $104.80 mln (9 Analysts) |
Q2 Cash Flow from Operations |
| $37.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy"
Wall Street's median 12-month price target for First Advantage Corp is $19.00, about 14.7% above its August 6 closing price of $16.21
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago
Press Release: ID:nGNX6WtrJf
