First Advantage reported first-quarter 2026 results that exceeded the company’s expectations, with management pointing to continued demand for digital identity and workforce screening services. The company said revenue reached $384.2 million for the quarter, while adjusted EBITDA came in at $94.1 million.
The employment screening and identity verification provider said it is continuing to integrate Sterling, which it acquired in 2024, while pursuing cross-sell opportunities across its expanded customer base. First Advantage also reaffirmed its full-year 2026 outlook, projecting revenue of $1.53 billion to $1.57 billion and adjusted EBITDA of $390 million to $410 million.
Digital identity is a smaller part of the company’s story than background screening, but it is becoming more strategically important as employers look for stronger ways to confirm that workers, contractors, and job candidates are who they claim to be. The company has positioned identity verification as part of a broader hiring and workforce risk platform, including pre-employment screening, continuous monitoring, and fraud mitigation.
The trend is visible across the workforce identity market. Daon recently launched a workforce identity fraud prevention solution aimed at helping employers detect impersonation and synthetic identity risks during hiring and onboarding. In the access management market, One Identity has also emphasized identity governance and privileged access management as enterprises reassess workforce identity strategy.
First Advantage’s results suggest that those pressures are reaching mainstream employment screening budgets. The company said customer retention remained strong and that it is seeing demand from employers seeking more automated, compliant workflows. That includes tools intended to reduce manual review, shorten hiring timelines, and improve confidence in candidate identity.
The company’s adjusted net income for the quarter was $46.7 million, or $0.21 per diluted share. Management said the integration of Sterling remains on track, with synergy targets and platform consolidation continuing through 2026.
Sources: First Advantage
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By the ID Tech Editorial Team
