First Advantage Q4 revenue beats estimates on strong customer retention; sets $100 mln buyback

Reuters02-26
<a href="https://laohu8.com/S/FA">First Advantage</a> Q4 revenue beats estimates on strong customer retention; sets $100 mln buyback

Overview

  • Global software and data firm's Q4 revenue beat analyst expectations

  • Adjusted net income for Q4 beat analyst expectations

  • Company announced new $100 mln share repurchase program

Outlook

  • First Advantage forecasts 2026 revenue between $1,625 mln and $1,700 mln

  • Company expects 2026 adjusted EBITDA of $460 mln to $485 mln

  • First Advantage anticipates 2026 adjusted EPS between $1.15 and $1.25

Result Drivers

  • STERLING INTEGRATION - Completion of Sterling integration activities contributed to Q4 performance

  • CUSTOMER RETENTION - High customer retention rate of 97% in Q4 supported results

  • VERTICAL AND GEOGRAPHY STRENGTH - Strong performance in targeted verticals and geographies drove revenue growth

Company press release: ID:nGNX21fDmj

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$420 mln

$391.88 mln (9 Analysts)

Q4 Adjusted Net Income

Beat

$51.90 mln

$46.07 mln (8 Analysts)

Q4 Net Income

$3.50 mln

Q4 Adjusted EBITDA

Beat

$116.80 mln

$110.003 mln (9 Analysts)

Q4 Cash Flow from Operations

$65.90 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 $17.00, about 78.6% above its February 25 closing price of $9.52

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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