First Advantage raised its full-year 2026 outlook after reporting record second-quarter results, with revenue increasing approximately 15% and management citing strong enterprise bookings, customer demand and momentum from its AI-driven technology platform.
The company now expects full-year revenue of $1.67 billion to $1.71 billion, up from its previous guidance of $1.625 billion to $1.70 billion. Adjusted EBITDA guidance increased to $472 million to $486 million, while adjusted net income is expected between $214 million and $225 million.
Adjusted diluted EPS is now expected between $1.23 and $1.29, compared with the previous $1.15 to $1.25 range.
Q2 revenue increased 14.9% to $448.8 million from $390.6 million. Adjusted EBITDA increased 12.8% to $128.5 million, while adjusted net income jumped 30.8% to $61.4 million and adjusted diluted EPS increased 29.6% to $0.35.
GAAP net income improved to $16.9 million from just $308,000 a year earlier. Operating income increased to $57 million from $37.7 million, while net interest expense declined to $31.6 million from $44.8 million.
Management highlighted increasing demand across transportation and logistics, retail and e-commerce, industrials and manufacturing, and general staffing. First Advantage secured 20 enterprise bookings during Q2 while benefiting from upselling, cross-selling and new customer wins.
The company is simultaneously using stronger cash generation to reduce debt and return capital. First Advantage prepaid $25 million of debt during the quarter and another $45 million after quarter-end. It repurchased $18.7 million of stock during Q2, with cumulative repurchases through July 31 reaching $38.2 million, or approximately 1.9% of shares outstanding.
KEY QUOTES:
“Our outstanding second quarter performance, highlighted by 15% year-over-year revenue growth and exceptional per share earnings growth, demonstrated the strength of our AI-driven proprietary technology platform and our continued go-to-market momentum.”
“We outpaced our previously stated expectations for the quarter as well as our long-term revenue growth algorithm target, supported by exceptional base growth, upsell and cross-sell outperformance, consistent new logo wins, including 20 enterprise bookings in the quarter, and healthy customer retention.”
Scott Staples, Chief Executive Officer of First Advantage
“In view of our strong year-to-date performance, current labor market trends, and our confidence in our outlook for the remainder of the year, we are raising our full year guidance.”
Steven Marks, Chief Financial Officer of First Advantage
