Is First Advantage profitable in 2026?

Yes. In Q1 2026 First Advantage reported revenue of $385.2M (up 8.6% YoY), adjusted EBITDA of $105.3M (27.3% margin), and adjusted diluted EPS of $0.26, as reported May 7, 2026. Full-year 2026 guidance is $1.625-1.70B revenue.

Who owns First Advantage?

First Advantage is a public company trading on Nasdaq as FA. It IPO'd June 23, 2021 at $15/share, raising ~$315.8M net, after Silver Lake acquired it from Symphony Technology Group in a deal closed January 31, 2020.

Could AI replace First Advantage?

Unlikely to fully replace it. First Advantage automates ~90% of US criminal searches with intelligent automation (as of Dec 31, 2025), but its moat is regulated liability cover, negotiated court/DMV data access, and FCRA/GDPR compliance infrastructure that AI models alone cannot replicate.

Who is First Advantage's biggest competitor?

Checkr, an AI-native, API-first background screening company reporting about $800M in revenue as of January 14, 2026, is First Advantage's most visible rival, though as of mid-2026 Checkr has not been shown to be taking First Advantage's enterprise logos.

Did First Advantage acquire Sterling Check?

Yes. First Advantage completed its acquisition of Sterling Check Corp on October 31, 2024, for approximately $2.2 billion including assumed debt (about 72% cash, 28% stock), consolidating two of the industry's largest background screening providers.

Is First Advantage laying off workers?

Employee counts declined from about 10,000 as of December 31, 2024 to about 9,500 as of December 31, 2025, a 5% year-over-year decrease per Stockanalysis.com, consistent with post-Sterling-merger integration rather than broad layoffs.

Job boards and HR platforms · United States

First Advantage

fadv.com ↗

Runs background checks and identity verification for large employers worldwide.

Hard to displace

Assessed 22 July 2026 · Evidence as of 22 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 22 July 2026 · Checkable from August 2026 · Every call on the record Checkpoint: Q2 2026 earnings, testing if retention and growth hold against Checkr's pitch

The call

First Advantage just bought its biggest rival and locks in customers with legal paperwork AI cannot write, leaving Checkr's AI pitch still unproven against real enterprise contracts.

First Advantage runs the background check business for hiring, screening millions of people against criminal records and court databases. It is hard to replace because it has access to court records and DMV data across over 200 countries through decades of deals, handles strict legal rules around hiring (so companies trust it won't get them sued), and connects directly into the software tools that companies already use to hire people. A newer rival called Checkr uses artificial intelligence and modern technology to do similar work, but it has not yet stolen customers away from First Advantage on a large scale. The big question is whether Checkr's AI approach will eventually force First Advantage to update its business, or whether the specialized legal know-how and existing customer relationships will prove too hard for Checkr to beat.

Why

AI pressure: Checkr. Checkr sells itself as the AI-native alternative but has not pulled a single named enterprise logo away from First Advantage yet. Could AI do the core job? Unlikely.

Bigger players: Workday or ADP building native screening. HR platforms could bake screening into payroll software someday, but right now they just plug into First Advantage instead of replacing it. Could a giant copy it? No, they are blocked.

What protects it. FCRA and EEOC liability rules plus 1 billion records and direct court/DMV access that a new entrant cannot buy or code around.

What would change this call

First Advantage's Q2 2026 earnings report (expected early August 2026). Shows whether 97% retention and growth streak hold or Checkr is winning enterprise logos.
Checkr publishes funding, revenue, or customer-win announcements naming enterprise clients switched from First Advantage. Would show Checkr converting AI-native positioning into real share loss for First Advantage.
Workday, ADP, or SAP SuccessFactors launches native background-screening functionality instead of a partnership integration. Would show HR platforms bypassing First Advantage's integration moat.

Key numbers

97% customer retention (Q1 2026)
$385.2M quarterly revenue, up 8.6% (Q1 2026)
$120.5M in Sterling debt prepaid (May 2026)

Named risks

Checkr's AI-native positioning could erode enterprise mindshare even without confirmed logo losses. Severity: medium
AI-enabled synthetic identity fraud could undermine screening reliability and reputation. Severity: medium
Elevated debt load from Sterling acquisition requires sustained prepayment execution. Severity: medium
Post-merger headcount reduction (down 5% YoY as of Dec 2025) could strain integration and service quality. Severity: low
Discrepancies in publicly reported customer counts (30K vs 80K) suggest inconsistent public disclosure. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Checkr	contesting	AI-native rival with ~$800M revenue (2026-01-14) targeting FA's enterprise position, no visible logo losses yet
HireRight	contesting	Acquired ClearChecks April 2025 to expand competitive footprint
Accurate Background	contesting	Acquired Orange Tree June 2024, competing on mid-market price-performance
Sterling Check Corp	gaining on	Former rival absorbed via FA's $2.2B acquisition completed 2024-10-31

Questions people ask

Is First Advantage profitable in 2026?: Yes. In Q1 2026 First Advantage reported revenue of $385.2M (up 8.6% YoY), adjusted EBITDA of $105.3M (27.3% margin), and adjusted diluted EPS of $0.26, as reported May 7, 2026. Full-year 2026 guidance is $1.625-1.70B revenue.
Who owns First Advantage?: First Advantage is a public company trading on Nasdaq as FA. It IPO'd June 23, 2021 at $15/share, raising ~$315.8M net, after Silver Lake acquired it from Symphony Technology Group in a deal closed January 31, 2020.
Could AI replace First Advantage?: Unlikely to fully replace it. First Advantage automates ~90% of US criminal searches with intelligent automation (as of Dec 31, 2025), but its moat is regulated liability cover, negotiated court/DMV data access, and FCRA/GDPR compliance infrastructure that AI models alone cannot replicate.
Who is First Advantage's biggest competitor?: Checkr, an AI-native, API-first background screening company reporting about $800M in revenue as of January 14, 2026, is First Advantage's most visible rival, though as of mid-2026 Checkr has not been shown to be taking First Advantage's enterprise logos.
Did First Advantage acquire Sterling Check?: Yes. First Advantage completed its acquisition of Sterling Check Corp on October 31, 2024, for approximately $2.2 billion including assumed debt (about 72% cash, 28% stock), consolidating two of the industry's largest background screening providers.
Is First Advantage laying off workers?: Employee counts declined from about 10,000 as of December 31, 2024 to about 9,500 as of December 31, 2025, a 5% year-over-year decrease per Stockanalysis.com, consistent with post-Sterling-merger integration rather than broad layoffs.

Timeline

2026-06Added to the S&P SmallCap 600 index
2026-05-08Reports cumulative $120.5M in voluntary Sterling debt prepayments
2026-05-07Q1 2026 results: revenue $385.2M, up 8.6% YoY, EBITDA margin 27.3%
2025-11-06Q3 2025 results: revenue $409.2M, net income $2.6M
2025-08-07Q2 2025 results: revenue $390.6M
2025-05-08Q1 2025 results: revenue $354.6M, net loss $41.2M
2024-10-31Completes ~$2.2B acquisition of Sterling Check Corp
2024-02-29Announces agreement to acquire Sterling Check Corp
2021-11-10Silver Lake affiliates sell shares in secondary offering
2021-06-23IPOs on Nasdaq at $15/share, raising ~$315.8M net

Revision history

22 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

In the same band

Automatic Data Processing Recruit Holdings Workday