FirstService Reports Second Quarter 2026 Results

FirstService Corporation

Driven by FirstService Residential Division Organic Growth

Operating highlights:

Three months ended Six months ended June 30 June 30 2026 2025 2026 2025 Revenues (millions) $ 1,449.2 $ 1,415.7 $ 2,766.3 $ 2,666.6 Adjusted EBITDA (millions) (note 1) 161.7 157.1 267.4 260.4 Adjusted EPS (note 2) 1.75 1.71 2.69 2.63 GAAP Operating Earnings 99.7 97.3 146.3 136.5 GAAP Diluted EPS 1.00 1.01 1.43 1.07

TORONTO, July 23, 2026 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today reported results for its second quarter ended June 30, 2026. All amounts are in US dollars.

Consolidated revenues for the second quarter were $1.45 billion, a 2% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 3% to $161.7 million, and Adjusted EPS (note 2) was $1.75, reflecting 2% growth over the prior year quarter. During the second quarter, FirstService reported GAAP Operating Earnings of $99.7 million, versus $97.3 million in the prior year period. GAAP diluted earnings per share was $1.00 in the quarter, versus $1.01 for the same quarter a year ago.

For the six months ended June 30, 2026, consolidated revenues were $2.77 billion, a 4% increase relative to the comparable prior year period, Adjusted EBITDA was $267.4 million, up 3%, and Adjusted EPS was $2.69, an increase of 2% over the prior year period. FirstService's GAAP Operating Earnings were $146.3 million in the current year period, versus $136.5 million in the prior year. GAAP diluted earnings per share for the six months year-to-date was $1.43, compared to $1.07 in the prior year period.

"Our second quarter results delivered profitability in line with our expectations, reflecting disciplined execution by our teams as we navigated continued macroeconomic headwinds that tempered organic growth," said Scott Patterson, Chief Executive Officer of FirstService. "Given the persistence of these market conditions, we expect our top-line growth in the back half of the year to be similar or modestly better than our year-to-date performance," 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.

Story Continues

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 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 $616.8 million for the second quarter, up 4% compared to the prior year quarter. Organic growth (note 1) was 5% driven by new contract wins and increases in other labor-related services. Organic performance exceeded our reported growth due to a divestiture at the start of the second quarter of non-core residential aquatic operations which served single-family homes. Adjusted EBITDA for the quarter was $69.4 million, an increase of 6% compared to the prior year period. Operating Earnings were $53.0 million, versus $51.6 million for the second quarter of last year. Margins for the division were largely in-line with the prior year period.

FirstService Brands revenues during the second quarter were $832.4 million, up 1% relative to the prior year period. On an organic basis, division revenues declined 3%, with reduced activity levels at Roofing Corp. of America offsetting solid growth at Century Fire Protection. Adjusted EBITDA for the second quarter was $95.9 million, compared to $95.2 million in the prior year period. Operating Earnings were $58.2 million, versus $56.5 million in the prior year quarter. Division margins were comparable to the prior year period.

Corporate costs, as presented in Adjusted EBITDA (note 1), were $3.6 million in the second quarter, matching the amount in the prior year period. GAAP corporate costs for the quarter were $11.5 million, relative to $10.9 million in the prior year period.

Conference Call
FirstService will be holding a conference call on Thursday, July 23, 2026 at 11:00 a.m. Eastern Time to discuss results for the second 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/BI379ce10ddd9c4dafa717b55a1ed5b033 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/oxxtnaae . 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, 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 Six months ended (in thousands of US$) June 30 June 30 2026 2025 2026 2025 Net earnings $ 60,930 $ 55,431 $ 84,553 $ 69,511 Income tax 22,612 23,677 31,357 29,677 Other expense (income), net 599 (996 ) (382 ) (1,082 ) Interest expense, net 15,533 19,166 30,808 38,430 Operating earnings 99,674 97,278 146,336 136,536 Depreciation and amortization 50,483 45,632 98,549 89,808 Acquisition-related items 3,950 7,662 5,448 19,895 Share-based compensation expense 7,588 6,556 17,065 14,155 Adjusted EBITDA $ 161,695 $ 157,128 $ 267,398 $ 260,394

A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below. (in thousands of US$) Three months ended, June 30, 2026 FirstService FirstService Residential Brands Corporate (1) Operating earnings (loss) $ 52,964 $ 58,181 $ (11,471 ) Depreciation and amortization 13,877 36,584 22 Acquisition-related items 2,509 1,175 266 Share-based compensation expense - - 7,588 Adjusted EBITDA $ 69,350 $ 95,940 $ (3,595 ) Three months ended, June 30, 2025 FirstService FirstService Residential Brands Corporate (1) Operating earnings (loss) $ 51,606 $ 56,522 $ (10,850 ) Depreciation and amortization 11,789 33,820 23 Acquisition-related items 2,100 4,873 689 Share-based compensation expense - - 6,556 Adjusted EBITDA $ 65,495 $ 95,215 $ (3,582 ) Six months ended, June 30, 2026 FirstService FirstService Residential Brands Corporate (1) Operating earnings (loss) $ 85,063 $ 86,575 $ (25,302 ) Depreciation and amortization 26,354 72,150 45 Acquisition-related items 3,854 1,231 363 Share-based compensation expense - - 17,065 Adjusted EBITDA $ 115,271 $ 159,956 $ (7,829 ) Six months ended, June 30, 2025 FirstService FirstService Residential Brands Corporate (1) Operating earnings (loss) $ 80,873 $ 81,008 $ (25,345 ) Depreciation and amortization 22,425 67,337 46 Acquisition-related items 3,828 14,637 1,430 Share-based compensation expense - - 14,155 Adjusted EBITDA $ 107,126 $ 162,982 $ (9,714 ) (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 or disposed businesses for a period of twelve months following their acquisition or preceding their disposal.

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) 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 Six months ended (in thousands of US$) June 30 June 30 2026 2025 2026 2025 Net earnings $ 60,930 $ 55,431 $ 84,553 $ 69,511 Non-controlling interest share of earnings (6,064 ) (3,478 ) (9,354 ) (4,721 ) Acquisition-related items 3,950 7,662 5,448 19,895 Amortization of intangible assets 21,559 19,706 41,620 38,223 Share-based compensation expense 7,588 6,556 17,065 14,155 Income tax on adjustments (8,281 ) (7,567 ) (15,774 ) (16,142 ) Non-controlling interest on adjustments (377 ) (447 ) (730 ) (989 ) Adjusted net earnings $ 79,305 $ 77,863 $ 122,828 $ 119,932 Three months ended Six months ended (in US$) June 30 June 30 2026 2025 2026 2025 Diluted net earnings per share $ 1.00 $ 1.01 $ 1.43 $ 1.07 Non-controlling interest redemption increment 0.21 0.13 0.22 0.35 Acquisition-related items 0.06 0.14 0.07 0.35 Amortization of intangible assets, net of tax 0.34 0.30 0.65 0.57 Share-based compensation expense, net of tax 0.14 0.13 0.32 0.29 Adjusted earnings per share $ 1.75 $ 1.71 $ 2.69 $ 2.63

FIRSTSERVICE CORPORATION Condensed Consolidated Statements of Earnings (in thousands of US dollars, except per share amounts) Three months Six months ended June 30 ended June 30 (unaudited) 2026 2025 2026 2025 Revenues $ 1,449,242 $ 1,415,733 $ 2,766,329 $ 2,666,559 Cost of revenues 968,585 935,334 1,855,018 1,776,802 Selling, general and administrative expenses 326,550 329,827 660,978 643,518 Depreciation 28,924 25,926 56,929 51,585 Amortization of intangible assets 21,559 19,706 41,620 38,223 Acquisition-related items (1) 3,950 7,662 5,448 19,895 Operating earnings 99,674 97,278 146,336 136,536 Interest expense, net 15,533 19,166 30,808 38,430 Other expense (income), net 599 (996 ) (382 ) (1,082 ) Earnings before income tax 83,542 79,108 115,910 99,188 Income tax 22,612 23,677 31,357 29,677 Net earnings 60,930 55,431 84,553 69,511 Non-controlling interest share of earnings 6,064 3,478 9,354 4,721 Non-controlling interest redemption increment 9,577 5,855 9,921 15,889 Net earnings attributable to Company $ 45,289 $ 46,098 $ 65,278 $ 48,901 Net earnings per common share Basic $ 1.00 $ 1.01 $ 1.43 $ 1.08 Diluted 1.00 1.01 1.43 1.07 Adjusted earnings per share (2) $ 1.75 $ 1.71 $ 2.69 $ 2.63 Weighted average common shares (thousands) Basic 45,341 45,449 45,602 45,409 Diluted 45,342 45,656 45,605 45,632

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) (unaudited) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 173,351 $ 154,425 Restricted cash 27,787 25,665 Accounts receivable 903,299 922,106 Prepaid and other current assets 423,273 401,584 Current assets 1,527,710 1,503,780 Other non-current assets 28,966 29,474 Deferred income tax 5,116 4,979 Fixed assets 293,947 289,718 Operating lease right-of-use assets 276,968 269,573 Goodwill and intangible assets 2,229,675 2,186,189 Total assets $ 4,362,382 $ 4,283,713 Liabilities and shareholders' equity Accounts payable and accrued liabilities $ 570,600 $ 547,065 Unearned revenues 239,423 209,226 Other current liabilities 30,471 53,097 Operating lease liabilities - current 59,978 59,113 Long-term debt - current 13,636 13,649 Current liabilities 914,108 882,150 Long-term debt - non-current 1,236,731 1,069,027 Operating lease liabilities - non-current 248,953 242,593 Other liabilities 123,851 124,762 Deferred income tax 113,214 102,991 Redeemable non-controlling interests 507,438 486,191 Shareholders' equity 1,218,087 1,375,999 Total liabilities and equity $ 4,362,382 $ 4,283,713 Supplemental balance sheet information Total debt $ 1,250,367 $ 1,082,676 Total debt, net of cash 1,077,016 928,251

Consolidated Statements of Cash Flows (in thousands of US dollars) Three months ended Six months ended June 30 June 30 (unaudited) 2026 2025 2026 2025 Cash provided by (used in) Operating activities Net earnings $ 60,930 $ 55,431 $ 84,553 $ 69,511 Items not affecting cash: Depreciation and amortization 50,484 45,632 98,550 89,808 Deferred income tax (152 ) (771 ) (139 ) (1,590 ) Other 794 11,153 8,052 29,352 112,056 111,445 191,016 187,081 Changes in non-cash working capital Accounts receivable (17,641 ) (24,815 ) 24,316 (14,821 ) Payables and accruals 20,056 56,573 6,317 (13,163 ) Other 15,296 19,631 (3,662 ) 44,987 Net cash provided by operating activities 129,767 162,834 217,987 204,084 Investing activities Acquisition of businesses, net of cash acquired (42,044 ) (43,280 ) (48,423 ) (51,916 ) Purchases of fixed assets (31,209 ) (33,375 ) (59,644 ) (62,938 ) Other investing activities 2,722 (1,624 ) 3,479 (8,670 ) Net cash used in investing activities (70,531 ) (78,279 ) (104,588 ) (123,524 ) Financing activities Increase (decrease) in long-term debt, net 195,086 (67,833 ) 168,204 (54,827 ) Purchases of non-controlling interests, net (582 ) (14,850 ) (10,216 ) (29,346 ) Dividends paid to common shareholders (14,024 ) (12,497 ) (26,598 ) (23,814 ) Distributions paid to non-controlling interests (3,133 ) (5,825 ) (13,571 ) (11,602 ) Repurchases of common shares (248,417 ) - (248,417 ) - Other financing activities (834 ) 1,720 37,542 20,906 Net cash used in financing activities (71,904 ) (99,285 ) (93,056 ) (98,683 ) Effect of exchange rate changes on cash 526 (678 ) 705 (693 ) Increase (decrease) in cash, cash equivalents and restricted cash (12,142 ) (15,408 ) 21,048 (18,816 ) Cash, cash equivalents and restricted cash, beginning of period 213,280 240,278 180,090 243,686 Cash, cash equivalents and restricted cash, end of period $ 201,138 $ 224,870 $ 201,138 $ 224,870

Segmented Results (in thousands of US dollars) FirstService FirstService (unaudited) Residential Brands Corporate Consolidated Three months ended June 30 2026 Revenues $ 616,811 $ 832,431 $ - $ 1,449,242 Adjusted EBITDA 69,350 95,940 (3,595 ) 161,695 Operating earnings 52,964 58,181 (11,471 ) 99,674 2025 Revenues $ 593,023 $ 822,710 $ - $ 1,415,733 Adjusted EBITDA 65,495 95,215 (3,582 ) 157,128 Operating earnings 51,606 56,522 (10,850 ) 97,278 FirstService FirstService Residential Brands Corporate Consolidated Six months ended June 30 2026 Revenues $ 1,162,531 $ 1,603,798 $ - $ 2,766,329 Adjusted EBITDA 115,271 159,956 (7,829 ) 267,398 Operating earnings 85,063 86,575 (25,302 ) 146,336 2025 Revenues $ 1,118,110 $ 1,548,449 $ - $ 2,666,559 Adjusted EBITDA 107,126 162,982 (9,714 ) 260,394 Operating earnings 80,873 81,008 (25,345 ) 136,536

COMPANY CONTACTS:

D. Scott Patterson
Chief Executive Officer

Jeremy Rakusin
Chief Financial Officer

(416) 960-9566

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