First Advantage (FA) Tops Q4 Earnings and Revenue Estimates

Core Insights - First Advantage (FA) reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.18 per share a year ago, resulting in an earnings surprise of +15.39% [1] - The company achieved revenues of $420.02 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.39%, and up from $307.12 million year-over-year [2] Financial Performance - Over the last four quarters, First Advantage has consistently surpassed consensus EPS estimates [2] - The company has also topped consensus revenue estimates four times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $371.42 million, and for the current fiscal year, it is $1.28 on revenues of $1.64 billion [7] Stock Performance - First Advantage shares have declined approximately 34.5% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Internet - Software industry, to which First Advantage belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]