First Advantage Corporation provides employment background screening, digital identity, and verification solutions internationally. Its pre-onboarding offerings include criminal background checks, drug and health screening, extended workforce screening, FBI channeling, identity checks, biometric fraud mitigation, education and work history verification, driver records, healthcare credentials, and executive screening. Post-onboarding solutions include criminal records monitoring, I-9 verification, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses, along with adjacent products such as fleet and vehicle compliance, hiring tax credits and incentives, and investigative research. These products serve executive management, human resources, talent acquisition, risk, compliance, vendor management, safety, and companies of various sizes. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. Founded in 2002, it is based in Atlanta, Georgia.
Korn Ferry Leads Staffing Peers With Highest Guidance Raise in Strong Q2
Korn Ferry reported fiscal second-quarter revenues of $764.6 million, up 6.9% year on year and 2.3% above analysts' expectations, scoring the highest guidance raise among its professional staffing and HR solutions peers. Across the 8 professional staffing and HR solutions stocks tracked, group revenues beat consensus estimates by 2.3% and next-quarter revenue guidance came in 3.9% above expectations, though share prices in the group are down 6.3% on average since the latest earnings results. ManpowerGroup posted the strongest quarter, with revenues of $4.86 billion, up 7.5% year on year and 2.9% above expectations, and its stock is up 46% since reporting, trading at $56.96. Barrett Business Services delivered the weakest performance against analyst estimates, with revenues of $319.3 million, up 3.8% year on year and in line with expectations, alongside a significant miss on EPS, sending its stock down 21.2% to $31.61. Alight reported revenues of $511 million, down 3.2% year on year but 2.8% above expectations, and logged the group's weakest guidance update, with its stock down 33.3% at $11.46, while First Advantage reported revenues of $448.8 million, up 14.9% year on year and 8.2% above expectations, delivering the biggest estimate beat, fastest revenue growth, and highest full-year guidance raise of the group. Korn Ferry's stock is down 12.3% since reporting and currently trades at $71.97.
KFY · Capital · Positive Korn Ferry reported Q2 revenues up 6.9% YoY, 2.3% above expectations, and scored the highest guidance raise among peers.
ALIT · Capital · Negative Alight logged the group's weakest guidance update and its stock is down 33.3% at $11.46.
BBSI · Capital · Negative Barrett Business Services missed on EPS significantly, sending its stock down 21.2% to $31.61.
FA · Capital · Positive First Advantage delivered the biggest estimate beat, fastest revenue growth, and highest full-year guidance raise of the group.
MAN · Capital · Positive ManpowerGroup posted the strongest quarter with revenues up 7.5% YoY and 2.9% above expectations, its stock up 46% since reporting.
ManpowerGroup topped Q2 earnings among seven professional staffing and HR solutions companies tracked, with revenues of $4.86 billion, up 7.5% year on year and exceeding analyst expectations by 2.9%. The group's revenues beat consensus estimates by 2.3% on average, while next-quarter guidance came in 2% below. First Advantage also outperformed with revenues of $448.8 million, up 14.9% and beating estimates by 8.2%, while Barrett Business Services was the weakest, with revenues of $319.3 million, up 3.8% but missing EPS estimates significantly. Robert Half reported revenues of $1.34 billion, down 2.4% but beating estimates by 1%, and Insperity posted revenues of $1.69 billion, up 1.7% and topping expectations by 0.7%. Since reporting, ManpowerGroup shares have risen 59.2% to $62.13, while Barrett shares have fallen 14.9% to $34.15.
Professional Staffing and HR Solutions Stocks Post Strong Q2 Results
Professional staffing and HR solutions stocks reported a strong second quarter, with the seven companies tracked beating revenue consensus estimates by 2.3% on average, though next quarter's revenue guidance came in 2% below expectations. Alight reported revenues of $511 million, down 3.2% year over year, beating estimates by 2.8% but issuing weak guidance that sent its stock down 22.1% to $13.38. ManpowerGroup posted revenues of $4.86 billion, up 7.5% year over year and 2.9% above estimates, with its stock up 44.2% to $56.26. Barrett Business Services reported revenues of $319.3 million, up 3.8% year over year and in line with estimates, but missed EPS significantly and its stock fell 21.8% to $31.39. First Advantage reported revenues of $448.8 million, up 14.9% year over year and 8.2% above estimates, with its stock up 3.1% to $21.20. Robert Half reported revenues of $1.34 billion, down 2.4% year over year but beating estimates by 1%, with its stock up 11.3% to $42.15.
First Advantage Jumps on Strong Q2 Results and Raised Guidance
First Advantage shares rose after the background screening provider reported second-quarter 2026 results that beat expectations and raised its full-year financial guidance. Revenue grew 14.9% year over year to $448.8 million, while adjusted EPS increased 30% to $0.35. Management attributed the strong performance to improving hiring trends across several verticals, particularly in high-volume hiring, as well as the realization of synergies. The company raised its full-year 2026 outlook, now expecting revenue of $1.67 billion to $1.71 billion and adjusted EPS of $1.23 to $1.29. First Advantage also highlighted its focus on deleveraging, having made $70 million in voluntary debt prepayments between May and early August.
First Advantage Raises Full Year 2026 Guidance After Record Second Quarter
First Advantage reported record second quarter 2026 results and raised its full year guidance. Revenues grew 14.9% year-over-year to $448.8 million, net income reached $16.9 million, and adjusted EBITDA rose 12.8% to $128.5 million. The company also reported adjusted net income of $61.4 million and adjusted diluted earnings per share of $0.35. Full year 2026 guidance was raised to revenues of $1.67 billion to $1.71 billion, adjusted EBITDA of $472 million to $486 million, adjusted net income of $214 million to $225 million, and adjusted diluted earnings per share of $1.23 to $1.29. Additionally, First Advantage made a voluntary debt prepayment of $45 million after the quarter and repurchased $18.7 million in shares under its $100 million share repurchase program.
StockStory Highlights Aramark as a Services Stock with Competitive Advantages, Advises Caution on GEO Group and First Advantage
StockStory identifies Aramark as a business services stock poised for sustainable market-beating returns, while recommending caution on GEO Group and First Advantage. Aramark, with a market cap of $14.84 billion, posted annual revenue growth of 13.3% over the last five years and earnings per share growth of 26.5% annually, supported by a massive $19.41 billion revenue base. In contrast, GEO Group saw annual revenue growth of just 3.3% and a decline in adjusted operating margin by 4 percentage points, while First Advantage's earnings per share grew only 1.6% annually and its return on invested capital stands at 1.1%. The business services industry has returned 6.4% over the past six months, trailing the S&P 500 by 2.1 percentage points amid corporate spending cutbacks and AI disruption concerns.
StockStory names Vertiv and Progressive as profitable stocks to own, flags First Advantage as underwhelming
StockStory highlights Vertiv and Progressive as profitable stocks worth owning for decades, while identifying First Advantage as one to avoid. Vertiv, with a trailing 12-month GAAP operating margin of 18.3%, has achieved average organic revenue growth of 23.7% over the past two years and expanded its free cash flow margin by 22.4 percentage points over five years. Progressive, at a 16.3% operating margin, saw net premiums earned surge 16.5% annually over two years and earnings per share grow 41.6% annually, with a return on equity of 23.6%. In contrast, First Advantage, with a 9.9% operating margin, posted only 1.6% annual earnings per share growth over four years and a shrinking free cash flow margin, suggesting declining competitive strength.
First Advantage to join S&P SmallCap 600 after earnings beat
First Advantage is set to join the S&P SmallCap 600 index, a move that may raise its profile with index-tracking and institutional investors. The company recently reported earnings that significantly surpassed analyst expectations, highlighting a material shift in its reported operating performance. The combination of index inclusion and stronger reported results forms a new storyline for the stock that has not yet been widely discussed. First Advantage operates in the background screening and verification industry, providing employers with tools to assess candidates and manage hiring risk.
Zacks Recommends Three HCM Software Stocks for Short-Term Gains
Zacks Investment Research recommends three human capital management software stocks with strong short-term upside potential: Paycom Software, Paylocity Holding, and First Advantage. Paycom Software, carrying a Zacks Rank #1 (Strong Buy), is expected to grow earnings 15.4% this year, with a consensus price target implying a 22.1% upside from its last close of $124.48. Paylocity Holding, also a Zacks Rank #1, has a price target suggesting a 54.5% increase from $100.48, with no downside risk. First Advantage, a Zacks Rank #2 (Buy), is projected to grow earnings 18.3% this year, and its price target indicates an 8.2% rise from $16.76, also with no downside.
StockStory Highlights Three Value Stocks Facing Structural Challenges
StockStory identifies Tractor Supply, General Motors, and First Advantage as value stocks warranting caution due to structural headwinds. Tractor Supply, trading at a 13.9x forward P/E, has posted annual revenue growth of just 2.6% over three years and a gross margin of 36.4%. General Motors, at 6.2x forward P/E, saw revenue rise only 2.8% annually over two years, with a gross margin of 12.1% and a five-percentage-point drop in operating margin over five years. First Advantage, at 13.3x forward P/E, recorded 1.6% annual EPS growth over four years and a 7.9-percentage-point decline in free cash flow margin over five years.
FA · Capital · Negative StockStory highlights First Advantage's low EPS growth and declining free cash flow margin, warning it is a value stock facing structural challenges.
GM · Capital · Negative StockStory highlights General Motors' low revenue growth and declining operating margin, warning it is a value stock facing structural challenges.
TSCO · Capital · Negative StockStory highlights Tractor Supply's low revenue growth and gross margin, warning it is a value stock facing structural challenges.
Professional Staffing and HR Solutions Stocks Post Strong Q1, Led by Alight
Professional staffing and HR solutions stocks delivered a strong first quarter, with the seven companies tracked by StockStory collectively beating revenue estimates by 1.8% and issuing in-line guidance for the next quarter. Kforce reported flat revenue of $330.4 million, matching expectations and beating EPS estimates, sending its shares up 49.4% since the report. Alight posted the biggest beat among peers with revenue of $534 million, down 2.6% year-on-year but 6.2% above estimates, though its stock fell 27.3%. Insperity, the weakest performer, reported $1.90 billion in revenue, up 1.7% and in line with estimates, but missed full-year EPS guidance, leading to a 1.7% stock decline. Barrett Business Services and First Advantage also exceeded expectations, with shares rising 12% and 30.6% respectively.
ALIT · Capital · Negative Revenue down 2.6% YoY and stock fell 27.3% despite beating estimates, indicating market disappointment with guidance or valuation.
KFRC · Capital · Positive Beat EPS estimates, shares up 49.4%.
NSP · Capital · Negative Missed full-year EPS guidance, shares down 1.7%.
BBSI · Capital · Positive Exceeded expectations, shares up 12%.
FA · Capital · Positive Exceeded expectations, shares up 30.6%.