First Advantage Raises Full-Year Outlook for a Second Time

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue reached $465.8 million as the company lifted 2026 sales guidance to as much as $1.745 billion.

First Advantage Corporation (FA) raised its full-year 2026 guidance for a second consecutive quarter after third-quarter revenue of $465.8 million, up 13.8% from a year earlier.

The global software and data company said the low end of its updated ranges now exceeds the high end of the prior ranges on every metric. It now expects full-year revenue of $1.720 billion to $1.745 billion, versus $1.670 billion to $1.710 billion as of August 6. Adjusted EBITDA guidance moved to $488 million to $498 million from $472 million to $486 million. Adjusted net income is now $227 million to $232 million, and adjusted diluted earnings per share $1.30 to $1.33.

Year-over-year revenue growth slowed from 14.9% in the second quarter, after accelerating from 8.6% in the first quarter. Chief Executive Officer Scott Staples said results reflected continued base growth, new-logo contribution, upsell and cross-sell, and high retention, with strong performance from nearly every vertical in the Americas business. He said AI-enabled products remain key differentiators for mitigating human-capital risk and preventing fraud, and that go-to-market momentum and pipeline remain strong as the company approaches 2027.

Adjusted EBITDA was $136.5 million, or a 29.3% margin, up 15.2% from a year earlier. The margin expanded from 28.6% in the second quarter and 27.3% in the first. GAAP net income was $20.5 million, or $0.12 a share, compared with $2.6 million, or $0.01 a share, a year earlier. Adjusted net income was $67.3 million, and adjusted diluted earnings were $0.38 a share.

Cash flows from operations were $63.8 million. Interest expense, net, was $30.4 million in the third quarter, down from $40.0 million a year earlier. Long-term debt stood at $1.99 billion at September 30. Cash and cash equivalents were $240.9 million.

Chief Financial Officer Steven Marks said the company made a $45 million debt prepayment during the quarter and that deleveraging remains a high priority. He said the company continued to progress on the Sterling synergy program and expects to finish 2026 near or at the top of its run-rate synergy target range. Marks said consistent cash flow provides flexibility for disciplined capital deployment, including the Data Diver Technologies acquisition.

First Advantage announced the acquisition of Data Diver Technologies, LLC, a data platform leveraging AI and automation that collects, aggregates, retains, and delivers high-volume criminal and court records. Staples said the deal supports fast, accurate, automated screening and is another step in the FA 5.0 growth strategy.

On October 31, the company marked the two-year anniversary of closing the Sterling acquisition. Staples said it is executing well and realizing benefits far exceeding original expectations, and that the company is now larger and more diversified with a broader portfolio of technologies.

The company said it conducts more than 200 million screens annually across over 200 countries and territories, with over 80,000 customers worldwide, including approximately two-thirds of the Fortune 100.

First Advantage will host a conference call to review the results. Actual results may differ from the updated full-year guidance, the company said, citing the forward-looking-statement factors it listed.