First Advantage Corp. (FA) shares soared 21.64% at the market open on Thursday, following the release of its fourth-quarter and full-year 2025 financial results.
The dramatic price movement was driven by the company reporting better-than-expected quarterly earnings and revenue, alongside the announcement of a new $100 million share repurchase program and positive forward guidance. First Advantage posted Q4 adjusted earnings per share of $0.30, surpassing the analyst consensus estimate of $0.26. Quarterly sales reached $420.0 million, beating estimates of $391.9 million and representing a significant year-over-year increase.
Management highlighted strong customer retention of 97% in the fourth quarter, completion of core integration activities for the Sterling acquisition, and strength in targeted verticals like retail, staffing, and healthcare as key drivers of performance. The company also issued full-year 2026 revenue guidance in the range of $1.625 billion to $1.70 billion, with adjusted EPS expected between $1.15 and $1.25, which bolstered investor confidence in its growth trajectory.
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