First Advantage Corp. (FA)

Several events have impacted First Advantage Corp. stock price over the past six months (July 2025 - January 2026). In the third quarter of 2025, First Advantage reported earnings per share of $0.30, beating analysts' estimates, with quarterly revenue up 105.5% year-over-year. JPMorgan Chase & Co. reduced its price objective on First Advantage from $21.00 to $17.00 but maintained an "overweight" rating, while Zacks Research cut shares from a "strong-buy" rating to a "hold" rating. The share price as of December 31, 2025, was $14.53, a decline of 21.16% from January 2, 2025, and as of January 12, 2026, the share price was $15.50, an increase of 3.89% from the prior week. First Advantage hosted its inaugural Investor Day, leading to a moderate positive market reaction. The acquisition of Sterling Check Corp. on October 31, 2024, is a significant event that would have continued to impact the company's financial performance and investor sentiment in the subsequent months.

First Advantage's operating results may fluctuate from quarter to quarter due to seasonality. The company's annual reports acknowledge seasonality as a factor that can cause quarterly fluctuations. The demand for screening, verification, and compliance solutions is also anticipated to rise with increased investment in enterprise software solutions, including next-generation software-as-a-service for Human Capital Management (HCM).

First Advantage Corporation is a global HR technology solutions provider specializing in employment background screening, identity, and verification services. The company operates in the Human Resources technology industry, specifically the Business/Productivity Software sector, and holds a notable market share in Background Check Services in the US. First Advantage leverages proprietary technology and AI across its platforms, data, and APIs to deliver comprehensive solutions, categorized into pre-onboarding, post-onboarding, and adjacent products. Major products and services include pre-onboarding services such as criminal background checks and identity checks, post-onboarding services like criminal records monitoring, and adjacent products such as fleet compliance. The company's solutions help customers manage risk and hire talent across various sectors.

First Advantage has a significant global presence, serving customers in over 200 countries and territories. Headquartered in Atlanta, Georgia, USA, the company has a presence in 19 countries and 29 offices worldwide. In September 2022, First Advantage expanded its global footprint by opening a new office in Kraków, Poland, to support its growing international presence and tap into the region's technology talent. Other office locations include Australia, Bangladesh, Canada, China, England, India, Japan, Korea, Malaysia, Mexico, New Zealand, Netherlands, Panama, Philippines, and United Arab Emirates.

First Advantage has received positive recognition for its brand reputation in the past year. First Advantage Corporation was named one of Newsweek's World's Most Trustworthy Companies for 2025. The promotion of Joelle Smith to President and participation in fintech forums reflect a forward-looking leadership and strategic direction. Collaborations with organizations like Snowsport England and OnShift indicate a proactive approach to integrating innovative background screening solutions. The company is subject to lawsuits, including potential class action lawsuits, related to claims primarily brought by consumers or individuals who were the subject of its screening services, but believes it has meritorious defenses and intends to defend vigorously.

First Advantage Corporation has significant institutional ownership. As of September 30, 2025, institutional investors owned 94.91% of the company's stock, with 396 institutional owners and shareholders holding a total of 226,168,131 shares. Major institutional owners include Silver Lake Group, L.L.C., Price T Rowe Associates Inc /md/, and SMCWX - SMALLCAP WORLD FUND INC Class A. Individual insiders own 2.16% of the shares, while VC/PE Firms hold 45.6%.