olivLaw · US equity research
First Advantage Corporation FA
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
First Advantage is a global software and data company offering identity verification, criminal screening, credential checks and continuous risk monitoring across the employee lifecycle. The company reported 83.0% revenue growth in 2025 after the Sterling acquisition, and in the second quarter of 2026 revenue rose 14.9% year over year, showing how much identity solutions matter in hiring processes.
At the close of 04 Nov 2026, First Advantage Corporation (FA) stock was 22.47 USD (+2.98% on the day), with market capitalisation 3.9 bn USD, P/E 160.5 on diluted EPS of 0.14 USD over the last 12 months, dividend yield 6.68%, beta 0.94, 52-week range 8.95–24.12 USD. Latest reported quarter (Q2 2026): revenue of 448.8 m USD (+14.9% YoY), net income of 16.9 m USD (+5,391.6% YoY), diluted EPS 0.10 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 68.8
- strong (55–70)
- Bollinger (20, 2)
- 17.98 – 22.74
- in the upper half of the band · %B 0.94 · band width 23.4%
- SMA 50 / 200
- 20.19 / 16.44
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.64 / 0.38
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +22.3% | −1.1% | +23.4 pp | — |
| 3 months | +9.3% | −0.5% | +9.7 pp | — |
| 6 months | +75.5% | +4.4% | +71.2 pp | — |
| Year to date | +54.6% | +12.3% | +42.3 pp | — |
| 1 year | +74.9% | +13.5% | +61.3 pp | −19.2% |
| 3 years | +68.7% | +76.4% | −7.7 pp | −18.1% |
| 5 years | +6.7% | +63.7% | −56.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 199.1 m | 307.1 m | 354.6 m | 390.6 m | 409.2 m | 420.0 m | 385.2 m | 448.8 m |
| Research & development | 12.9 m | 24.8 m | 27.2 m | 25.7 m | 25.1 m | 23.9 m | 24.6 m | 27.3 m |
| SG&A | 46.1 m | 138.6 m | 65.6 m | 57.5 m | 57.5 m | 55.7 m | 53.5 m | 57.8 m |
| Operating income | 9.1 m | -80.7 m | 7.6 m | 37.7 m | 42.2 m | 44.9 m | 33.5 m | 57.0 m |
| Depreciation & amortisation | 15.9 m | 30.1 m | 27.6 m | 27.7 m | 28.0 m | 28.5 m | 27.8 m | 27.5 m |
| Pre-tax income | -8.1 m | -104.8 m | -39.0 m | -7.3 m | 1.8 m | 7.2 m | 3.3 m | 25.1 m |
| Income tax | 782.0 k | -4.4 m | 2.2 m | -7.6 m | -798.0 k | 3.8 m | 1.1 m | 8.1 m |
| Net income | -8.9 m | -100.4 m | -41.2 m | 308.0 k | 2.6 m | 3.5 m | 2.2 m | 16.9 m |
| Diluted EPS | -0.06 | -0.62 ≈ | -0.24 | 0.00 | 0.01 | 0.02 ≈ | 0.01 | 0.10 |
| Operating cash flow | 43.5 m ≈ | -85.7 m | 19.5 m | 37.3 m ≈ | 72.4 m ≈ | 65.9 m | 49.4 m | 73.6 m ≈ |
| Capex | 416.0 k ≈ | 334.0 k | 485.0 k | 1.2 m ≈ | 1.1 m ≈ | 3.8 m | 2.8 m | 4.7 m ≈ |
| Share repurchases | — | — | — | — | — | — | 19.7 m | 18.9 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 79 percentile of its own 14-quarter history (min 30.6, median 63.4, max 627.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue | 481.8 m | 712.3 m | 810.0 m | 763.8 m | 860.2 m | 1.6 bn |
| Revenue YoY | unavailable | unavailable | +13.7% | −5.7% | +12.6% | +83.0% |
| Net income | 34.3 m | 16.1 m | 64.6 m | 37.3 m | -110.3 m | -34.8 m |
| Net income YoY | unavailable | unavailable | +302.5% | −42.3% | −395.7% | unavailable |
| Diluted EPS | 0.21 | 0.11 | 0.43 | 0.26 | -0.74 | -0.20 |
| Diluted EPS YoY | unavailable | unavailable | +290.9% | −39.5% | −384.6% | unavailable |
| net % | 7.1% | 2.3% | 8.0% | 4.9% | -12.8% | -2.2% |
| Free cash flow | 65.0 m | 141.4 m | 206.6 m | 160.7 m | 26.5 m | 188.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 240.0 m USD
- Financial debt
- 2.1 bn USD
- Net debt
- 1.8 bn USD
- Equity
- 1.3 bn USD
- Total assets
- 3.8 bn USD
- Debt / equity
- 1.58x
- Current ratio
- 2.44x
- ROE
- -2.7%
- ROA
- -0.9%
- FCF margin
- 12.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 481.8 m | 712.3 m | 810.0 m | 763.8 m | 860.2 m | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Research & development | 33.2 m | 45.5 m | 51.9 m | 49.3 m | 63.8 m | 101.9 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | 85.1 m | 108.0 m | 116.6 m | 116.7 m | 263.9 m | 236.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 92.2 m | 63.8 m | 94.3 m | 81.5 m | -62.4 m | 132.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 14.9 m | 69.4 m | 70.0 m | 67.4 m | 77.2 m | 111.8 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 107.1 m ≈ | 133.2 m ≈ | 164.3 m ≈ | 148.9 m ≈ | 14.8 m ≈ | 244.3 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 52.0 m | 25.1 m | — | — | — | — | SEC (XBRL)· 23 Mar 2022verified |
| Pre-tax income | 41.1 m | 24.9 m | 85.1 m | 48.5 m | -114.6 m | -37.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -6.9 m | 8.9 m | 20.5 m | 11.2 m | -4.3 m | -2.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 34.3 m | 16.1 m | 64.6 m | 37.3 m | -110.3 m | -34.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 0.21 | 0.11 | 0.43 | 0.26 | -0.74 | -0.20 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 163.9 m | 141.7 m | 151.8 m | 146.2 m | 148.6 m | 173.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | — | — | — | 1.50 | 1.50 | — | SEC (XBRL)· 27 Feb 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 80.7 m | 292.6 m | 391.7 m | 213.8 m | 168.7 m | 240.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | — | 155.8 m | 143.8 m | 142.7 m | 266.8 m | 297.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | — | 466.2 m | 566.2 m | 373.7 m | 476.0 m | 561.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | — | 154.3 m | 113.5 m | 79.4 m | 307.5 m | 250.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | — | 793.9 m | 793.1 m | 820.7 m | 2.1 bn | 2.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 464.4 m | 397.2 m | 344.0 m | 987.9 m | 857.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | — | 1.9 bn | 1.9 bn | 1.6 bn | 3.9 bn | 3.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | — | 54.0 m | 54.9 m | 47.0 m | 120.9 m | 109.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | — | 0 | — | 0 | 21.9 m | 0 | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | — | 554.8 m | 556.6 m | 558.5 m | 2.1 bn | 2.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | — | 109.3 m | 100.8 m | 85.0 m | 250.7 m | 230.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | — | 754.3 m | 759.2 m | 723.9 m | 2.6 bn | 2.5 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | — | 1.1 bn | 1.1 bn | 906.7 m | 1.3 bn | 1.3 bn | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 71.6 m | 148.7 m | 212.8 m | 162.8 m | 28.2 m | 195.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 6.6 m | 7.3 m | 6.2 m | 2.1 m | 1.7 m | 6.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 65.0 m ≈ | 141.4 m ≈ | 206.6 m ≈ | 160.7 m ≈ | 26.5 m ≈ | 188.5 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -17.8 m | -72.4 m | -48.6 m | -66.8 m | -1.7 bn | -54.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -3.2 m | 63.8 m | -59.2 m | -273.6 m | 1.6 bn | -70.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | — | — | 60.5 m | 59.5 m | — | — | SEC (XBRL)· 29 Feb 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 71 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet50
- Growth97
- Valuation61
- Quality65
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.00 – 34.11 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Sales0.00 – 34.11 (Mid 4.17)13 companies used · median multiple 1.5x · quartiles 0.4x – 4.6xADP, CARS, CLVT, DXC, EVTC, GMHS, IBEX, PLTK, SOPH, SSTK, VRSK, WDAY, YEXT
- Peers: EV/EBITDA0.00 – 10.64 (Mid 2.19)7 companies used · median multiple 7.5x · quartiles 4.3x – 12.5xCARS, CLVT, DXC, EVTC, GMHS, IBEX, VRSK
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 71/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | unavailable | unavailable | — |
| EBIT margin · Quality | 10.7% | 71 (vs peers) | 10% |
| FCF margin · Quality | 15.0% | 60 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 24.8% | 99 (on a fixed band) | 20% |
| Revenue growth (YoY) · Growth | 83.0% | 92 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | 6.2x | 0 (vs peers) | 8% |
| Current ratio · Balance sheet | 2.5x | 100 (on a fixed band) | 8% |
| EV/Sales · Valuation | 3.4x | 31 (vs peers) | 20% |
| FCF yield · Valuation | 6.5% | 100 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet50/100 · 2/2 factors with a value
- Growth97/100 · 2/2 factors with a value
- Quality65/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation61/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
FIRST ADVANTAGE CORP (FA). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.6 bn USD in 2025; YoY growth 83.0%; net margin 1.5%; ROE 1.9%; net debt/EBITDA 6.2x.
The estimated value range is 0.00–22.37 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 3.18 USD, the price of 22.47 USD leaves a potential of -85.8% (value / price − 1) and a margin of safety of -606.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 71/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 10.7%
- Revenue CAGR 3Y: 24.8%
- Revenue growth (YoY): 83.0%
- Current ratio: 2.5x
- FCF yield: 6.5%
What contradicts it
- Net debt / EBITDA: 6.2x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Gross margin, Shareholder yield (distributions).
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| ATHMAutohome Inc. | 10.4 bn | 53.5 | 6.3% | 443.2% | +11.1% | −5% / −18% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +75% / +69% |
| DXCDxc Technology Company | 2.3 bn | 21.9 | 3.7% | 0.9% | −1.8% | +13% / −36% |
| EVTCEVERTEC, Inc. | 2.1 bn | 22.9 | 14.4% | 9.0% | +10.2% | +20% / −6% |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| CLVTClarivate PLC | 1.4 bn | — | -8.2% | -15.1% | −4.0% | −44% / −73% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −26% / −40% |
| PLTKPlaytika Holding Corp. | 808.6 m | — | — | -9.9% | +8.1% | −48% / −76% |
| YEXTYext, Inc. | 775.0 m | 40.6 | 27.8% | 5.9% | +6.1% | −7% / +18% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| SOPHSOPHiA GENETICS SA | 477.3 m | — | -110.0% | -102.2% | +18.6% | +42% / +73% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| SOHUSohu.com Limited | 355.1 m | 1.0 | 35.8% | 67.4% | −2.4% | −12% / +70% |
| MOVECorvex, Inc. | 176.9 m | — | -9.6% | -623.5% | −57.3% | −17% / −93% |
| SSTKShutterstock, Inc. | 161.1 m | — | -43.4% | -22.9% | +5.8% | −79% / −90% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| GMHSGamehaus Holdings Inc. | 51.4 m | 8.5 | 11.8% | 4.1% | −11.3% | −35% / −93% |
| DDIDoubleDown Interactive Co., Ltd. | 34.1 m | 0.3 | 11.4% | 28.5% | +5.5% | +48% / +72% |
| SJScienjoy Holding Corporation | 23.5 m | — | -66.6% | -47.3% | −4.9% | +28% / −68% |
1- and 3-year price returns: for FA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 15.36 Total return -32% · Per year -32% | 27.02 Total return 20% · Per year 20% | 40.54 Total return 80% · Per year 80% |
| 3 years | 18.21 Total return -19% · Per year -7% | 35.74 Total return 59% · Per year 17% | 58.37 Total return 160% · Per year 37% |
| 5 years | 21.61 Total return -4% · Per year -1% | 47.26 Total return 110% · Per year 16% | 84.05 Total return 274% · Per year 30% |
- Exit P/E± 8.93
- Net margin± 6.25
- Annual revenue growth± 4.66
- Annual dilution± 0.53
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
First Advantage is a global software and data company offering identity verification, criminal screening, credential checks and continuous risk monitoring across the employee lifecycle. The company reported 83.0% revenue growth in 2025 after the Sterling acquisition, and in the second quarter of 2026 revenue rose 14.9% year over year, showing how much identity solutions matter in hiring processes 123.
SWOT
Strengths
- Global scale, proprietary databases and integrations with HR platforms let the company serve large clients across many industries 1.
- Long client relationships and high retention support revenue predictability, and multi-year enterprise contracts add stability 1.
- Automation and AI have supported margin improvement, and recent quarterly results show a high adjusted EBITDA margin 13.
Weaknesses
- Revenue depends largely on pre-onboarding screening and is therefore sensitive to hiring cycles and macroeconomic conditions 1.
- The company carries significant debt, and the report notes that indebtedness could limit its ability to raise capital and react to change 2.
- Reliance on third-party data providers and cloud infrastructure exposes the company to outages and rising costs 2.
Opportunities
- International markets, where screening penetration is low, offer room for growth, particularly by consolidating multinational screening programs 1.
- Expanding digital identity and continuous monitoring products could increase revenue from existing clients through upselling 13.
- Growth in contingent work and in hiring in transportation, e-commerce and logistics could add demand 13.
Threats
- Changes in privacy and personal data laws could restrict certain products or raise compliance costs 1.
- Risks linked to artificial intelligence, including algorithm errors, could lead to client losses and legal liability 1.
- Competition from local providers and from HR platforms with in-house features could pressure prices and market share 1.
Risks
- Dependence on hiring volumeshigh
If hiring falls because of macroeconomic conditions, demand for screening could drop quickly, affecting revenue and margins 1.
- Personal data regulationhigh
Privacy laws, including GDPR and U.S. state statutes, could require costly changes to products and data practices 1.
- Indebtednessmedium
Debt could limit financial flexibility, and the quarterly report shows part of the cash being used to prepay debt 23.
- Artificial intelligence risksmedium
Errors in machine-learning models could produce incorrect check results, delays or service interruptions 1.
- Sterling integrationlow
If the expected benefits of the Sterling acquisition do not materialise, growth and margins could fall short of expectations 2.
Investment thesis
What would need to be true (bull case)
- The 2026 guidance was raised and second-quarter revenue growth beat management's expectations, suggesting demand in key verticals remains solid 3.
- A large client base, high retention and upselling into existing clients could support long-term growth if these trends continue 13.
- Digital identity products address a real need to fight fraud, which could open new revenue streams 1.
What would break the thesis
What to watch
- Delivery of the updated 2026 revenue and adjusted EBITDA guidancenext 10-K
- Trend in organic revenue growth and client retentionQ3 2026
- Progress on debt reduction and the share repurchase programQ3 2026
- Impact of privacy and AI regulation on products2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The company helps organizations hire with confidence by combining AI-powered technology platforms with proprietary data, primary source data and third-party data. According to its annual report, it serves over 80,000 customers worldwide, including about two-thirds of the Fortune 100, and conducts more than 200 million screens a year 1.
Products fall into three groups: pre-onboarding (identity verification, criminal screening, education and work history verification, drug testing), post-onboarding (continuous monitoring and re-screening) and adjacent products such as hiring tax credit and fleet solutions 1. Clients connect to their HR systems through integrations with more than 100 HCM and ATS platforms 1.
Most revenue comes from pre-onboarding screening, so it is sensitive to hiring volumes. The company reports three segments: First Advantage Americas, First Advantage International and Sterling, acquired on October 31, 2024 1. About 86% of 2025 revenue was generated in the U.S. 1.
Segments
First Advantage Americas
The Americas segment covers the legacy business in the United States, Canada and Latin America and offers checks across all phases of the workforce lifecycle, from pre-onboarding to ongoing monitoring 1.
First Advantage International
The International segment provides similar services outside the Americas, mainly in Europe, India and Asia Pacific, where the report notes that screening penetration remains low 1.
Sterling
The Sterling segment comprises Sterling Check Corp., acquired on October 31, 2024, which provides technology-enabled background and identity verification globally, partly under enterprise contracts that are exclusive or make Sterling the primary provider 1.
Market context
According to the annual report, demand for screening, identity verification and compliance services is driven by rising identity fraud, more complex regulation and greater workforce mobility. The company believes screening penetration remains low in many countries, which opens opportunities in international markets 1.
Hiring activity remains sensitive to macroeconomic conditions, interest rates and geopolitical uncertainty. The updated 2026 guidance rests on current labor market trends, and if economic uncertainty increases, demand and revenue growth could be affected 13.
Trends
- Rising identity fraudtailwind
Employers face synthetic identities, altered documents and remote hiring, which increases demand for biometric verification and fraud detection, areas where the company has dedicated solutions 1.
- Stricter regulationmixed
Laws such as the FCRA, GDPR and U.S. state privacy rules require more thorough screening but also raise compliance costs and the risk of fines, particularly for firms without comparable scale 1.
- Flexible and contingent workforcestailwind
Growth in temporary staff, contractors and gig work increases the need to verify and monitor personnel, which could support demand for continuous monitoring solutions 1.
- Cyclical hiringheadwind
In slowdowns employers cut hiring and delay onboarding, which can directly reduce screening volumes and revenue 1.
Competitive position
The company operates in a penetrated and competitive market, and the report bases its position on global scale, proprietary data and HR system integrations. Competitors include local screening providers in many countries as well as other global background-check vendors 12.
Its advantages are global coverage, a database of over one billion records and long client relationships, including gross retention of about 96%. The risk is that local providers and competitors adopting AI faster could weaken its competitive position 1.
- Local screening providers in various countries
The report notes that many international checks are run by local providers, which keeps the market fragmented 1.
- Global background-check vendors
The company competes in a market where multinational clients may consolidate screening programs with one provider 1.
- HCM and ATS platforms with built-in verification modules
HR system providers could extend their own verification features, which could affect demand for the company's integrations 1.
- Biometric and digital identity technology providers
In identity verification the company competes with specialised providers; the report mentions its partnership with ID.me 2.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report12 Aug 2026Other events · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Departure or appointment of officers · Financial statements and exhibits
- Current report08 Jun 2026Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement24 Apr 2026
- Annual report26 Feb 2026
- Current report26 Feb 2026Results of operations · Financial statements and exhibits
- Current report30 Jan 2026Departure or appointment of officers
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / First Advantage Corporation · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / First Advantage Corporation · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / First Advantage Corporation · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.