New York, February 27, 2026, 08:25 EST — Premarket
- Shares slipped 1.9% in premarket trading, pulling back after Thursday’s 22.8% surge.
- Adjusted EPS for Q4 landed at 30 cents. The company sees 2026 revenue between $1.625 billion and $1.7 billion.
- The board has cleared a $100 million buyback, setting no time limit on the program.
First Advantage dropped 1.9% to $11.46 ahead of the bell Friday, giving back some ground after a 22.8% jump to $11.69 at Thursday’s close. 1
The development cast a spotlight on a part of the market that’s closely tied to hiring. Since background checks and identity verification usually track with employer hiring activity, traders often look to the company’s outlook for a near-term signal on demand—something that won’t be reflected in payroll numbers right away.
This matters right now, with investors flipping between “soft landing” hopes and “stall speed” concerns. Service providers linked to hiring and onboarding tend to feel it first when budgets start to tighten. In markets like this, buybacks punch above their weight.
First Advantage reported fourth-quarter revenue of $420.0 million, with adjusted diluted earnings at $0.30 per share and net income of $3.5 million. Looking ahead, the company set its full-year 2026 revenue outlook in a range from $1.625 billion to $1.700 billion, projecting adjusted diluted EPS between $1.15 and $1.25. The board signed off on a share buyback plan for as much as $100 million, no expiration set. CFO Steven Marks noted a voluntary $25 million debt prepayment coming up in late February. 2
Adjusted results, which aren’t measured by GAAP, exclude what the company calls distorting items—things like transaction, acquisition, and integration expenses. These figures are closely watched in industries with lots of deals. Still, the path from adjusted numbers to reported earnings isn’t always stable.
CEO Scott Staples, on the earnings call, described peak-season demand as back to “normal” levels, singling out retail, e-commerce, and transportation as standouts. “The game has completely started over,” Staples said. He sees digital identity fueling fresh upsell and cross-sell opportunities. Executives also noted customer retention rates holding in the mid-to-high 90s, and confirmed $55 million in synergies realized from the Sterling deal. 3
But there’s a hitch. The forecast still depends on a labor market that could shift on a dime—if hiring slows again, screening volumes drop, no matter how pricing or the product mix shakes out. There’s also execution risk: buybacks could get scaled down if cash needs shift, and integration benefits don’t always land on schedule.
An initial drop points to profit-taking after Thursday’s surge, with some opting to step aside until there’s more clarity on volumes and margins heading into 2026.
The company will report its first-quarter numbers on May 13. That Q1 2026 release from First Advantage should show whether the last earnings bump was just a blip, or if momentum keeps up as the spring hiring season gets underway. 4
