First Advantage (FA) investor relations material

Executive summary

• Achieved Q2 2026 revenue of $449 million, up 15% year-over-year, with Adjusted EBITDA margin of 28.6% and Adjusted Diluted EPS up 30%, surpassing expectations and reflecting strong go-to-market execution, technology leadership, and robust enterprise bookings.

• Net income for Q2 2026 was $16.9 million (3.8% margin), with adjusted net income of $61.4 million and adjusted diluted EPS of $0.35.

• Celebrated fifth IPO anniversary, added to S&P SmallCap 600, and recognized by TIME as a top background screening provider.

• Raised full-year 2026 guidance across all metrics, reflecting strong first-half performance and positive labor market trends.

• Continued momentum from large contract wins, improved base revenue, and global customer base.

Financial highlights

• Q2 2026 revenue: $448.8 million, up 14.9% year-over-year; Adjusted EBITDA: $128.5 million (28.6% margin), up 12.8% year-over-year.

• Adjusted Diluted EPS: $0.35, up 30% year-over-year; Adjusted net income: $61.4 million, up 30.8%.

• Operating cash flow: $73.6 million for Q2; cash balance at $238 million as of June 30, 2026.

• Net income margin: 3.8% for Q2 2026.

• Interest expense dropped 29.4% in Q2 2026, reflecting lower debt and refinancing.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.67–$1.71 billion; Adjusted EBITDA to $472–$486 million; Adjusted Diluted EPS to $1.23–$1.29.

• Midpoint implies 7% revenue growth, 9% Adjusted EBITDA growth, and 21% Adjusted Diluted EPS growth year-over-year.

• 2028 targets reaffirmed: $1.8B–$2.0B revenues, $560M–$630M Adjusted EBITDA, 31–32% margin, $1.65–$2.00 EPS, and net leverage ratio of 2.0x–3.0x.

• Q3 revenue growth expected in mid to high single digits; Q4 growth in low to mid single digits due to tough comps.

• Management remains confident in long-term business health and product strength, despite macroeconomic volatility.