FirstService Reports Third Quarter 2025 Results

Rhea-AI Summary

FirstService (NASDAQ: FSV) reported third quarter results for the period ended September 30, 2025. Q3 consolidated revenue was $1.45B, up 4% year-over-year; Adjusted EBITDA rose 3% to $164.8M; and Adjusted EPS increased 8% to $1.76. On a nine-month basis, revenues were $4.11B (+7%), Adjusted EBITDA was $425.2M (+13%), and Adjusted EPS was $4.39 (+20%).

By segment, FirstService Residential delivered $605.4M in Q3 revenue (+8%) with Adjusted EBITDA of $66.4M (+13%). FirstService Brands reported $842.1M in Q3 revenue (+1%) but organic revenue declined 4% and Adjusted EBITDA fell to $102.1M. GAAP Operating Earnings and GAAP diluted EPS were lower in Q3 versus prior year.

Positive

• Q3 revenue +4% to $1.45B
• Q3 Adjusted EBITDA +3% to $164.8M
• Q3 Adjusted EPS +8% to $1.76
• 9M revenue +7% to $4.11B
• Residential revenue +8% to $605.4M with Adjusted EBITDA +13%

Negative

• Q3 GAAP Operating Earnings down from $125.9M to $115.6M
• Q3 GAAP diluted EPS down from $1.34 to $1.24
• Brands organic revenue -4% in Q3 with Adjusted EBITDA down to $102.1M

Insights

Financial Results Analyst

Solid quarter: organic residential strength drove modest consolidated growth, with adjusted measures up while GAAP EPS slipped.

FirstService grew consolidated revenues to $1.45 billion in Q3 2025, up 4%, while Adjusted EBITDA rose to $164.8 million (+3%) and Adjusted EPS increased to $1.76 (+8%); the Residential division led with 8% revenue growth and a 13% rise in segment Adjusted EBITDA, offsetting Brands’ organic decline of 4%.

Risks and dependencies center on operating leverage and near-term demand: Brands showed lower margins from reduced restoration and roofing volumes and a prior-period acquisition-related fair-value benefit, which compressed GAAP Operating Earnings and GAAP diluted EPS (Q3 GAAP EPS $1.24 versus $1.34 prior). The company also cites weather impacts and continued commercial macro challenges that may dampen Q4 performance.

Key items to watch over the next quarter include organic revenue trends in the Brands restoration and roofing lines, the pace of new contract wins in Residential, and whether Adjusted EBITDA conversion sustains into the full year; monitor results and commentary at the Q4 release in the coming quarter and the conference call on October 23, 2025 for management’s Q4 outlook.

FirstService Residential Division Drives Growth

Operating highlights:

		Three months ended						Nine months ended
		September 30						September 30
		2025			2024			2025			2024
Revenues (millions)		$	1,447.6		$	1,396.0		$	4,114.1		$	3,851.5
Adjusted EBITDA (millions) (note 1)			164.8			160.0			425.2			375.8
Adjusted EPS (note 2)			1.76			1.63			4.39			3.66
GAAP Operating Earnings			115.6			125.9			252.2			247.9
GAAP Diluted EPS			1.24			1.34			2.32			2.26

TORONTO, Oct. 23, 2025 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today reported results for its third quarter ended September 30, 2025. All amounts are in US dollars.

Consolidated revenues for the third quarter were $1.45 billion, a 4% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 3% to $164.8 million, and Adjusted EPS (note 2) was $1.76, reflecting 8% growth over the prior year quarter. During the third quarter, FirstService reported GAAP Operating Earnings of $115.6 million, versus $125.9 million in the prior year period. GAAP diluted earnings per share was $1.24 in the quarter, versus $1.34 for the same quarter a year ago.

For the nine months ended September 30, 2025, consolidated revenues were $4.11 billion, a 7% increase relative to the comparable prior year period, Adjusted EBITDA was $425.2 million, up 13%, and Adjusted EPS was $4.39, an increase of 20% over the prior year period. FirstService’s GAAP Operating Earnings were $252.2 million in the current year period, versus $247.9 million in the prior year. GAAP diluted earnings per share for the nine months year-to-date was $2.32, compared to $2.26 in the prior year period.

“We are pleased with the resilient growth in our consolidated third quarter results, despite weather-related and broader commercial macroeconomic headwinds which tempered the organic top-line within our Brands division,” said Scott Patterson, Chief Executive Officer of FirstService. “While we see these market challenges continuing to impact our performance in the fourth quarter, our businesses will collectively deliver a solid year of growth and profitability,” 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 franchise systems.

FirstService generates approximately US$5.5 billion in annual revenues and has more than 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 under the symbol “FSV” and on 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 $605.4 million for the third quarter, up 8% compared to the prior year quarter, including organic growth of 5% driven by new contract wins. Adjusted EBITDA for the quarter was $66.4 million, an increase of 13% compared to the prior year period. Operating Earnings were $53.3 million, versus $49.1 million for the third quarter of last year. The increase in Adjusted EBITDA margin compared to the prior year reflects sustained progress with labor-driven operational efficiencies, consistent with improvements realized in recent quarters.

FirstService Brands revenues during the third quarter were $842.1 million, up 1% relative to the prior year period. On an organic basis, division revenues declined 4%, with reduced activity levels in our restoration and roofing operations offsetting strong growth at Century Fire Protection. Adjusted EBITDA for the third quarter was $102.1 million, compared to $105.8 million in the prior year period. Operating Earnings were $73.7 million, versus $87.1 million in the prior year quarter. Margins for the division were lower than prior year due to the negative operating leverage associated with the decline in organic revenue growth at our restoration and roofing service lines. The decrease in the Operating Earnings margin was further impacted by the comparison to an acquisition-related positive fair value adjustment on a contingent upside earn-out structure which we previously noted in the prior year quarter.

Corporate costs, as presented in Adjusted EBITDA (note 1), were $3.7 million in the third quarter, relative to $4.4 million in the prior year period. GAAP corporate costs for the quarter were $11.4 million, relative to $10.2 million in the prior year period.

Conference Call
FirstService will be holding a conference call on Thursday, October 23, 2025 at 11:00 a.m. Eastern Time to discuss the quarter’s results. 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/BIb70c05d5a9c6431394c6be75540419f1 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/5apa7p6e . It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

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, 2024 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. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to 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) stock-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								Nine months ended
(in thousands of US$)		September 30								September 30
		2025				2024				2025				2024
Net earnings		$	70,887			$	77,761			$	140,398			$	137,595
Income tax			27,700				26,372				57,377				50,971
Other income, net			(1,138	)			(381	)			(2,220	)			(2,376	)
Interest expense, net			18,179				22,150				56,609				61,707
Operating earnings			115,628				125,902				252,164				247,897
Depreciation and amortization			46,635				41,409				136,443				117,441
Acquisition-related items			(4,100	)			(13,036	)			15,795				(9,130	)
Stock-based compensation expense			6,617				5,699				20,772				19,626
Adjusted EBITDA		$	164,780			$	159,974			$	425,174			$	375,834

A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below.
(in thousands of US$)
Three months ended, September 30, 2025					FirstService			FirstService
					Residential			Brands				Corporate(1)
Operating earnings (loss)				$	53,279		$	73,720			$	(11,371	)
Depreciation and amortization					12,164			34,449				22
Acquisition-related items					920			(6,082	)			1,062
Stock-based compensation expense					-			-				6,617
Adjusted EBITDA				$	66,363		$	102,087			$	(3,670	)
Three months ended, September 30, 2024					FirstService			FirstService
					Residential			Brands				Corporate(1)
Operating earnings (loss)				$	49,059		$	87,064			$	(10,221	)
Depreciation and amortization					8,871			32,516				22
Acquisition-related items					660			(13,814	)			118
Stock-based compensation expense					-			-				5,699
Adjusted EBITDA				$	58,590		$	105,766			$	(4,382	)
Nine months ended, September 30, 2025					FirstService			FirstService
					Residential			Brands				Corporate(1)
Operating earnings (loss)				$	134,152		$	154,728			$	(36,716	)
Depreciation and amortization					34,589			101,786				68
Acquisition-related items					4,748			8,555				2,492
Stock-based compensation expense					-			-				20,772
Adjusted EBITDA				$	173,489		$	265,069			$	(13,384	)
Nine months ended, September 30, 2024					FirstService			FirstService
					Residential			Brands				Corporate(1)
Operating earnings (loss)				$	124,824		$	160,171			$	(37,098	)
Depreciation and amortization					27,067			90,306				68
Acquisition-related items					1,385			(11,685	)			1,170
Stock-based compensation expense					-			-				19,626
Adjusted EBITDA				$	153,276		$	238,792			$	(16,234	)
Segment Adjusted EBITDA margin is defined as segment Adjusted EBITDA divided by segment revenues.
(1) Corporate is not an operating segment, but rather represent corporate overhead expenses not directly attributable to reportable segments and are therefore unallocated within segment operating earnings (loss) and Segment Adjusted EBITDA.

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

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) stock-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								Nine months ended
(in thousands of US$)		September 30								September 30
		2025				2024				2025				2024
Net earnings		$	70,887			$	77,761			$	140,398			$	137,595
Non-controlling interest share of earnings			(6,709	)			(7,756	)			(11,430	)			(11,985	)
Acquisition-related items			(4,100	)			(13,036	)			15,795				(9,130	)
Amortization of intangible assets			18,828				17,825				57,051				50,065
Stock-based compensation expense			6,617				5,699				20,772				19,626
Income tax on adjustments			(4,514	)			(6,821	)			(20,656	)			(20,210	)
Non-controlling interest on adjustments			(197	)			97				(1,186	)			(487	)
Adjusted net earnings		$	80,812			$	73,769			$	200,744			$	165,474
		Three months ended								Nine months ended
(in US$)		September 30								September 30
		2025				2024				2025				2024
Diluted net earnings per share		$	1.24			$	1.34			$	2.32			$	2.26
Non-controlling interest redemption increment			0.15				0.21				0.50				0.52
Acquisition-related items			(0.05	)			(0.28	)			0.29				(0.20	)
Amortization of intangible assets, net of tax			0.29				0.27				0.86				0.77
Stock-based compensation expense, net of tax			0.13				0.09				0.42				0.31
Adjusted earnings per share		$	1.76			$	1.63			$	4.39			$	3.66
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.

FIRSTSERVICE CORPORATION
Condensed Consolidated Statements of Earnings
(in thousands of US dollars, except per share amounts)
					Three months								Nine months
					ended September 30								ended September 30
					2025				2024				2025				2024
Revenues				$	1,447,565			$	1,396,041			$	4,114,124			$	3,851,545
Cost of revenues					960,420				936,573				2,737,222				2,587,613
Selling, general and administrative expenses					328,982				305,193				972,500				907,724
Depreciation					27,807				23,584				79,392				67,376
Amortization of intangible assets					18,828				17,825				57,051				50,065
Acquisition-related items (1)					(4,100	)			(13,036	)			15,795				(9,130	)
Operating earnings					115,628				125,902				252,164				247,897
Interest expense, net					18,179				22,150				56,609				61,707
Other income, net					(1,138	)			(381	)			(2,220	)			(2,376	)
Earnings before income tax					98,587				104,133				197,775				188,566
Income tax					27,700				26,372				57,377				50,971
Net earnings					70,887				77,761				140,398				137,595
Non-controlling interest share of earnings					6,709				7,756				11,430				11,985
Non-controlling interest redemption increment					7,010				9,472				22,899				23,711
Net earnings attributable to Company				$	57,168			$	60,533			$	106,069			$	101,899
Net earnings per common share
	Basic			$	1.25			$	1.34			$	2.33			$	2.27
	Diluted				1.24				1.34				2.32				2.26
Adjusted earnings per share (2)				$	1.76			$	1.63			$	4.39			$	3.66
Weighted average common shares (thousands)
		Basic			45,568				45,047				45,462				44,961
		Diluted			45,924				45,336				45,732				45,163

Notes to Condensed Consolidated Statements of Earnings
(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)
		September 30, 2025			December 31, 2024
Assets
Cash and cash equivalents		$	219,916		$	227,598
Restricted cash			25,595			16,088
Accounts receivable			958,606			947,517
Prepaid and other current assets			397,243			368,150
	Current assets		1,601,360			1,559,353
Other non-current assets			28,937			28,007
Deferred income tax			2,134			2,114
Fixed assets			286,263			253,994
Operating lease right-of-use assets			275,537			240,518
Goodwill and intangible assets			2,191,125			2,110,866
	Total assets	$	4,385,356		$	4,194,852
Liabilities and shareholders' equity
Accounts payable and accrued liabilities		$	554,054		$	541,509
Unearned revenues			217,243			190,885
Other current liabilities			64,818			23,690
Operating lease liabilities - current			58,038			53,115
Long-term debt - current			13,784			41,567
	Current liabilities		907,937			850,766
Long-term debt - non-current			1,191,438			1,257,143
Operating lease liabilities - non-current			248,749			214,423
Other liabilities			124,776			150,542
Deferred income tax			100,801			84,895
Redeemable non-controlling interests			472,172			449,337
Shareholders' equity			1,339,483			1,187,746
	Total liabilities and equity	$	4,385,356		$	4,194,852
Supplemental balance sheet information
Total debt		$	1,205,222		$	1,298,710
Total debt, net of cash			985,306			1,071,112

Consolidated Statements of Cash Flows
(in thousands of US dollars)
				Three months ended								Nine months ended
				September 30								September 30
				2025				2024				2025				2024
Cash provided by (used in)
Operating activities
Net earnings			$	70,887			$	77,761			$	140,398			$	137,595
Items not affecting cash:
	Depreciation and amortization			46,635				41,409				136,443				117,441
	Deferred income tax			(830	)			(2,265	)			(2,420	)			(6,814	)
	Other			518				(7,155	)			29,870				7,229
				117,210				109,750				304,291				255,451
Changes in non-cash working capital
	Accounts receivable			34,649				(17,343	)			19,828				(19,983	)
	Payables and accruals			(13,312	)			30,635				(26,475	)			7,353
	Other			(12,185	)			(46,031	)			32,802				(43,866	)
Net cash provided by operating activities				126,362				77,011				330,446				198,955
Investing activities
Acquisition of businesses, net of cash acquired				(44,469	)			(4,016	)			(96,385	)			(158,665	)
Purchases of fixed assets				(33,663	)			(26,560	)			(96,601	)			(80,882	)
Other investing activities				(1,372	)			3,715				(10,042	)			2,715
Net cash used in investing activities				(79,504	)			(26,861	)			(203,028	)			(236,832	)
Financing activities
Increase (decrease) in long-term debt, net				(36,941	)			(36,764	)			(91,768	)			99,964
Purchases of non-controlling interests, net				(4,597	)			(3,963	)			(33,943	)			(25,405	)
Dividends paid to common shareholders				(12,501	)			(11,253	)			(36,315	)			(32,551	)
Distributions paid to non-controlling interests				(1,828	)			(3,267	)			(13,430	)			(7,737	)
Other financing activities				28,869				9,787				49,775				32,577
Net cash used in financing activities				(26,998	)			(45,460	)			(125,681	)			66,848
Effect of exchange rate changes on cash				781				(151	)			88				200
Increase in cash, cash equivalents and restricted cash				20,641				4,539				1,825				29,171
Cash, cash equivalents and restricted cash, beginning of period				224,870				231,509				243,686				206,877
Cash, cash equivalents and restricted cash, end of period			$	245,511			$	236,048			$	245,511			$	236,048

Segmented Results
(in thousands of US dollars)
		FirstService			FirstService
		Residential			Brands			Corporate				Consolidated
Three months ended September 30
2025
	Revenues	$	605,426		$	842,139		$	-			$	1,447,565
	Adjusted EBITDA		66,363			102,087			(3,670	)			164,780
	Operating earnings		53,279			73,720			(11,371	)			115,628
2024
	Revenues	$	559,585		$	836,456		$	-			$	1,396,041
	Adjusted EBITDA		58,590			105,766			(4,382	)			159,974
	Operating earnings		49,059			87,064			(10,221	)			125,902
		FirstService			FirstService
		Residential			Brands			Corporate				Consolidated
Nine months ended September 30
2025
	Revenues	$	1,723,536		$	2,390,588		$	-			$	4,114,124
	Adjusted EBITDA		173,489			265,069			(13,384	)			425,174
	Operating earnings		134,152			154,728			(36,716	)			252,164
2024
	Revenues	$	1,613,213		$	2,238,332		$	-			$	3,851,545
	Adjusted EBITDA		153,276			238,792			(16,234	)			375,834
	Operating earnings		124,824			160,171			(37,098	)			247,897

COMPANY CONTACTS:

D. Scott Patterson
Chief Executive Officer

Jeremy Rakusin
Chief Financial Officer

(416) 960-9566

FAQ

What were FirstService (FSV) third quarter 2025 revenues and EPS?

Q3 2025 consolidated revenue was $1.45B and Adjusted EPS was $1.76.

How did FirstService (FSV) perform year-to-date through September 30, 2025?

Nine months revenue was $4.11B (+7%), Adjusted EBITDA was $425.2M (+13%), and Adjusted EPS was $4.39 (+20%).

What drove growth in FirstService Residential in Q3 2025 (FSV)?

Residential revenue was $605.4M (+8%), with 5% organic growth driven by new contract wins and Adjusted EBITDA up 13%.

Why did FirstService Brands' results weaken in Q3 2025 (FSV)?

Brands reported $842.1M revenue (+1%) but organic revenue declined 4%, led by lower restoration and roofing activity, reducing Adjusted EBITDA.

Did FirstService (FSV) report any weakness for Q4 2025?

Management cautioned that weather-related and commercial macroeconomic headwinds may continue to temper performance in Q4 2025.

Where can investors listen to FirstService (FSV) Q3 2025 earnings call?

The Q3 2025 conference call was webcast on October 23, 2025 and is available via the company investor relations website.