FirstService Reports First Quarter Results

Operating highlights:     Three months     ended March 31     2026   2025               Revenues (millions) $ 1,317.1   $ 1,250.8 Adjusted EBITDA (millions) (note 1)   105.7     103.3 Adjusted EPS (note 2)   0.95     0.92               GAAP Operating Earnings (millions)   46.7     39.3 GAAP 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 CORPORATION Operating 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   $ 154,425 Restricted cash   21,861     25,665 Accounts receivable   879,639     922,106 Prepaid and other current assets   416,787     401,584   Current assets   1,509,706     1,503,780 Other non-current assets   28,322     29,474 Deferred income tax   5,047     4,979 Fixed assets   289,751     289,718 Operating lease right-of-use assets   278,682     269,573 Goodwill 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   $ 547,065 Unearned revenues   212,129     209,226 Other current liabilities   38,990     53,097 Operating lease liabilities - current   59,348     59,113 Long-term debt - current   13,490     13,649   Current liabilities   866,636     882,150 Long-term debt - non-current   1,042,187     1,069,027 Operating lease liabilities - non-current   251,284     242,593 Other liabilities   121,216     124,762 Deferred income tax   104,620     102,991 Non-controlling interests   477,606     486,191 Shareholders' 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   $ 1,082,676 Total 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