FirstService Reports First Quarter Results

Operating highlights:

  Three months  ended March 31  2026 2025       Revenues (millions)$1,317.1 $1,250.8Adjusted EBITDA (millions) (note 1) 105.7  103.3Adjusted EPS (note 2) 0.95  0.92       GAAP Operating Earnings (millions) 46.7  39.3GAAP EPS 0.44  0.06      

TORONTO, April 23, 2026 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today reported operating and financial results for its first quarter ended March 31, 2026. All amounts are in US dollars.

Consolidated revenues for the first quarter were $1.32 billion, up 5% relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 2% to $105.7 million, and Adjusted EPS (note 2) was $0.95, reflecting 3% growth over the prior year quarter. GAAP Operating Earnings were $46.7 million, relative to $39.3 million in the prior year period. GAAP diluted earnings per share was $0.44 per share in the quarter, versus $0.06 in the same quarter a year ago.

“We are pleased with our results to start the year, which were largely in-line with internal expectations across all of our brands,” said Scott Patterson, Chief Executive Officer of FirstService. “Our businesses remain focused on driving market share gains and building growth momentum for the balance of 2026,” he concluded.

About FirstService Corporation
FirstService Corporation is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential - North America’s largest manager of residential communities; and FirstService Brands - one of North America’s largest providers of essential property services delivered through individually branded company-owned operations and franchised systems.

FirstService generates more than US$5.5 billion in annual revenues and has approximately 30,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The Common Shares of FirstService trade on the NASDAQ and the Toronto Stock Exchange under the symbol “FSV”, and are included in the S&P/TSX 60 Index. More information is available at www.firstservice.com.

Segmented Quarterly Results
FirstService Residential revenues were $545.7 million for the first quarter, an increase of 4% versus the prior year, fully driven by organic growth (note 1). Top-line performance was comprised of new property management contract wins and expanded sited labour services. Adjusted EBITDA for the quarter was $45.9 million, an increase of 10% compared to the prior year period. Operating Earnings were $32.1 million, versus $29.3 million in the first quarter of last year. The Adjusted EBITDA margin improvement reflected continuous labour cost management and efficiency gains.

FirstService Brands revenues for the first quarter totalled $771.4 million, up 6% relative to the prior year period. Division revenues increased 2% on an organic basis, largely driven by Century Fire Protection. Adjusted EBITDA was $64.0 million, versus $67.8 million in the first quarter of 2025. The decline in Adjusted EBITDA margin was partially due to ongoing roofing industry competitive pressures. In addition, our home services brands experienced margin compression with increased promotional activities in the face of heightened macroeconomic uncertainty. Operating Earnings were $28.4 million, compared to $24.5 million in the prior year quarter. The increase in Operating Earnings margin resulted from fair value adjustments to contingent upside earn-outs in the prior year in connection with certain acquisitions.

Corporate costs, as presented in Adjusted EBITDA, (note 1) were $4.2 million in the first quarter, relative to $6.1 million in the prior year period. Corporate costs for the quarter were $13.8 million, relative to $14.5 million in the prior year period.

Conference Call
FirstService will be holding a conference call on Thursday, April 23, 2026 at 11:00 a.m. ET to discuss results for the first quarter of 2026. This call is being webcast live at the Company’s website at www.firstservice.com. Participants may register for the call here https://register-conf.media-server.com/register/BI0c70c23ec7574235aa627080f383be6c to receive the dial-in number and their unique PIN.

To join the webcast in listen only mode, use this link: https://edge.media-server.com/mmc/p/mbsvbch5 .

Forward-looking Statements
This press release includes or may include forward-looking statements. Much of this information can be identified by words such as “expect to,” “expected,” “will,” “estimated” or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: (i) general economic and business conditions, which will, among other things, impact demand for FirstService’s services and the cost of providing services; (ii) the ability of FirstService to implement its business strategy, including FirstService’s ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; (iii) changes in or the failure to comply with government regulations; and (iv) other factors which are described in FirstService’s annual information form for the year ended December 31, 2025 under the heading “Risk factors” (a copy of which may be obtained at www.sedarplus.ca) and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at www.sec.gov), and subsequent filings (which factors are adopted herein). Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.

Summary financial information is provided in this press release. Our interim consolidated financial statements and related management’s discussion and analysis will be made available on SEDAR+ at www.sedarplus.ca.

Notes
1. Reconciliation of net earnings to Adjusted EBITDA:

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other (income) expense; (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; and (vi) share-based compensation expense. The Company uses Consolidated adjusted EBITDA and segment adjusted EBITDA to evaluate its own operating performance, its ability to service debt, and as an integral part of its planning and reporting systems. Additionally, this measure is used in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. Consolidated adjusted EBITDA and segment adjusted EBITDA are presented as a supplemental measure because the Company believes such a measure is useful to investors as a reasonable indicator of operating performance, due to the low capital intensity of the Company’s service operations. The Company believes this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. The Company’s method of calculating adjusted EBITDA and segment adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted EBITDA appears below.

    Three months ended(in thousands of US dollars)  March 31      2026  2025              Net earnings      $23,623  $14,080 Income tax       8,745   6,000 Other income, net       (981)  (86)Interest expense, net       15,275   19,264 Operating earnings       46,662   39,258 Depreciation and amortization       48,066   44,176 Acquisition-related items       1,498   12,233 Share-based compensation expense       9,477   7,599 Adjusted EBITDA      $105,703  $103,266 

A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below.                 (in thousands of US$)                    Three months ended, March 31, 2026   FirstService  FirstService          Residential  Brands  Corporate (1)              Operating earnings (loss)  $32,099 $28,394 $(13,831) Depreciation and amortization   12,477  35,566  23  Acquisition-related items   1,345  56  97  Share-based compensation expense   -  -  9,477  Adjusted EBITDA  $45,921 $64,016 $(4,234)              Three months ended, March 31, 2025   FirstService  FirstService         Residential  Brands  Corporate (1)              Operating earnings (loss)  $29,267 $24,486 $(14,495) Depreciation and amortization   10,636  33,517  23  Acquisition-related items   1,728  9,764  741  Share-based compensation expense   -  -  7,599  Adjusted EBITDA  $41,631 $67,767 $(6,132)              (1) Corporate costs represent corporate selling, general and administrative costs, depreciation and amortization and acquisition-related items not directly attributable to reportable segments, and are therefore unallocated within segment operating earnings (loss) and Adjusted EBITDA.

   Segment Adjusted EBITDA margin is defined as segment Adjusted EBITDA divided by segment revenues.

 Organic growth is defined as revenue growth adjusted to exclude the revenue attributable to acquired businesses for a period of twelve months following their acquisition.   

2. Reconciliation of net earnings and net earnings per share to adjusted net earnings and adjusted EPS:

Adjusted EPS is defined as diluted net earnings per share, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) acquisition-related items; (iii) amortization expense related to intangible assets recognized in connection with acquisitions; and (iv) share-based compensation expense. The Company believes this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share, as determined in accordance with GAAP. The Company’s method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below.

    Three months ended(in thousands of US dollars)  March 31      2026  2025              Net earnings      $23,623  $14,080 Non-controlling interest share of earnings       (3,290)  (1,243)Acquisition-related items       1,498   12,233 Amortization of intangible assets       20,061   18,517 Share-based compensation expense       9,477   7,599 Income tax on adjustments       (7,493)  (8,575)Non-controlling interest on adjustments       (353)  (542)Adjusted net earnings      $43,523  $42,069                  Three months ended(in US dollars)  March 31      2026  2025              Diluted net earnings per share      $0.44  $0.06 Non-controlling interest redemption increment       0.01   0.22 Acquisition-related items       0.02   0.21 Amortization of intangible assets, net of tax       0.31   0.28 Share-based compensation expense, net of tax       0.17   0.15 Adjusted EPS      $0.95  $0.92 

FIRSTSERVICE CORPORATIONOperating Results(in thousands of US dollars, except per share amounts)        Three months        ended March 31(unaudited)       2026   2025               Revenues      $1,317,087  $1,250,826               Cost of revenues       886,433   841,468 Selling, general and administrative expenses       334,428   313,691 Depreciation       28,005   25,659 Amortization of intangible assets       20,061   18,517 Acquisition-related items (1)       1,498   12,233 Operating earnings       46,662   39,258 Interest expense, net       15,275   19,264 Other income, net       (981)  (86)Earnings before income tax       32,368   20,080 Income tax       8,745   6,000 Net earnings       23,623   14,080 Non-controlling interest share of earnings       3,290   1,243 Non-controlling interest redemption increment       344   10,034 Net earnings attributable to Company        19,989   2,803               Net earnings per share             Basic      $0.44  $0.06  Diluted       0.44   0.06                             Adjusted EPS (2)      $0.95  $0.92               Weighted average common shares (thousands)             Basic       45,866   45,368   Diluted       45,903   45,610                 

(1) Acquisition-related items include contingent acquisition consideration fair value adjustments, and transaction costs.
(2) See definition and reconciliation above.

Condensed Consolidated Balance Sheets     (in thousands of US dollars)             (unaudited)March 31,
2026 December 31,
2025       Assets     Cash and cash equivalents$191,419 $154,425Restricted cash 21,861  25,665Accounts receivable 879,639  922,106Prepaid and other current assets 416,787  401,584 Current assets 1,509,706  1,503,780Other non-current assets 28,322  29,474Deferred income tax 5,047  4,979Fixed assets 289,751  289,718Operating lease right-of-use assets 278,682  269,573Goodwill and intangible assets 2,181,003  2,186,189 Total assets$4,292,511 $4,283,713              Liabilities and shareholders' equity     Accounts payable and accrued liabilities$542,679 $547,065Unearned revenues 212,129  209,226Other current liabilities 38,990  53,097Operating lease liabilities - current 59,348  59,113Long-term debt - current 13,490  13,649 Current liabilities 866,636  882,150Long-term debt - non-current 1,042,187  1,069,027Operating lease liabilities - non-current 251,284  242,593Other liabilities 121,216  124,762Deferred income tax 104,620  102,991Non-controlling interests 477,606  486,191Shareholders' equity 1,428,962  1,375,999 Total liabilities and equity$4,292,511 $4,283,713              Supplemental balance sheet information     Total debt$1,055,677 $1,082,676Total debt, net of cash 864,258  928,251

Condensed Consolidated Statements of Cash Flows      (in thousands of US dollars)       Three months ended       March 31(unaudited)       2026   2025              Cash provided by (used in)                        Operating activities           Net earnings      $23,623  $14,080 Items not affecting cash:            Depreciation and amortization       48,066   44,176  Deferred income tax       13   (819) Other       7,258   18,199          78,960   75,636              Changes in non cash working capital            Accounts receivable       41,957   9,994  Payables and accruals       (13,739)  (69,736) Other       (18,958)  25,356              Net cash provided by operating activities       88,220   41,250              Investing activities           Acquisition of businesses, net of cash acquired       (6,379)  (8,636)Purchases of fixed assets       (28,435)  (29,563)Other investing activities       757   (7,046)Net cash used in investing activities       (34,057)  (45,245)             Financing activities           Increase (decrease) in long-term debt, net       (26,882)  13,006 Purchases of non-controlling interests, net       (9,634)  (14,496)Dividends paid to common shareholders       (12,574)  (11,317)Other financing activities       27,938   13,409 Net cash provided by (used in) financing activities       (21,152)  602              Effect of exchange rate changes on cash       179   (15)             Increase (decrease) in cash, cash equivalents and restricted cash      33,190   (3,408)             Cash, cash equivalents and restricted cash, beginning of period     180,090   243,686              Cash, cash equivalents and restricted cash, end of period      $213,280  $240,278 

Segmented Results(in thousands of US dollars)                          FirstService FirstService    (unaudited)Residential Brands Corporate Consolidated             Three months ended March 31                        2026            Revenues$545,720 $771,367 $-  $1,317,087 Adjusted EBITDA 45,921  64,016  (4,234)  105,703              Operating earnings 32,099  28,394  (13,831)  46,662             2025            Revenues$525,087 $725,739 $-  $1,250,826 Adjusted EBITDA 41,631  67,767  (6,132)  103,266              Operating earnings 29,267  24,486  (14,495)  39,258                          

COMPANY CONTACTS:

D. Scott Patterson
Chief Executive Officer

Jeremy Rakusin
Chief Financial Officer

(416) 960-9566