FirstService Reports Third Quarter 2026 Results

Balanced Top-Line Growth Across Both Divisions

Operating highlights:

	Three months ended						Nine months ended
	September 30						September 30
	2026			2025			2026			2025
Revenues (millions)	$	1,531.7		$	1,447.6		$	4,298.0		$	4,114.1
Adjusted EBITDA (millions) (note 1)		169.7			164.8			437.1			425.2
Adjusted EPS (note 2)		1.89			1.76			4.57			4.39
GAAP Operating Earnings		107.4			115.6			253.7			252.2
GAAP Diluted EPS		0.99			1.24			2.41			2.32

TORONTO, Oct. 22, 2026 (ZM NEWSWIRE) — FirstService Corporation (TSX: FSV; NASDAQ: FSV) today reported results for its third quarter ended September 30, 2026. All amounts are in US dollars.

Consolidated revenues for the third quarter were $1.53 billion, a 6% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 3% to $169.7 million, and Adjusted EPS (note 2) was $1.89, reflecting 7% growth over the prior year quarter. During the third quarter, FirstService reported GAAP Operating Earnings of $107.4 million, versus $115.6 million in the prior year period. GAAP diluted earnings per share was $0.99 in the quarter, versus $1.24 for the same quarter a year ago.

For the nine months ended September 30, 2026, consolidated revenues were $4.30 billion, a 4% increase relative to the comparable prior year period, Adjusted EBITDA was $437.1 million, up 3%, and Adjusted EPS was $4.57, an increase of 4% over the prior year period. FirstService’s GAAP Operating Earnings were $253.7 million in the current year period, versus $252.2 million in the prior year. GAAP diluted earnings per share for the nine months year-to-date was $2.41, compared to $2.32 in the prior year period.

“We were pleased with our results for the quarter, highlighted by our sequential improvement in organic top-line growth,” said Scott Patterson, Chief Executive Officer of FirstService. “The continued strong execution of our operating teams in the face of macroeconomic challenges reinforces our confidence in achieving our previously communicated full-year performance targets,” 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 more than US$5.6 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 $633.3 million for the third quarter, up 5% compared to the prior year quarter, and all from organic growth (note 1). Top-line performance was driven by new contract wins and expanded sited labor services. Adjusted EBITDA for the quarter was $71.3 million, an increase of 7% compared to the prior year period. Operating Earnings were $58.0 million, versus $53.3 million for the third quarter of last year. Margins for the division were modestly up versus the prior year due to labor cost management and incremental efficiency gains.

FirstService Brands revenues during the third quarter were $898.4 million, up 7% relative to the prior year period. On an organic basis, division revenues grew 3% driven by our Restoration brands and Century Fire Protection, and partially offset by reduced activity levels at Roofing Corp. of America. Adjusted EBITDA for the third quarter was $101.8 million, compared to $102.1 million in the prior year period. Operating Earnings were $60.0 million, versus $73.7 million in the prior year quarter. The decline in the division margin primarily reflects reduced profitability in our roofing operations, resulting from lower year-over-year revenues and a more competitive market environment. Operating Earnings margin was also affected by contingent consideration fair value adjustments that benefitted the prior year period.

Corporate costs, as presented in Adjusted EBITDA (note 1), were $3.5 million in the third quarter, relative to $3.7 million in the prior year period. GAAP corporate costs for the quarter were $10.7 million, relative to $11.4 million in the prior year period.

Conference Call
FirstService will be holding a conference call on Thursday, October 22, 2026 at 11:00 a.m. Eastern Time to discuss results for the third 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/BI9d7175d9b02f4276bcb50335f8def6ce 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/txwrhwjy . 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								Nine months ended
(in thousands of US$)	September 30								September 30
	2026				2025				2026				2025
Net earnings	$	64,550			$	70,887			$	149,103			$	140,398
Income tax		23,834				27,700				55,191				57,377
Other expense (income), net		146				(1,138	)			(236	)			(2,220	)
Interest expense, net		18,839				18,179				49,647				56,609
Operating earnings		107,369				115,628				253,705				252,164
Depreciation and amortization		51,003				46,635				149,552				136,443
Acquisition-related items		4,209				(4,100	)			9,657				15,795
Share-based compensation expense		7,090				6,617				24,155				20,772
Adjusted EBITDA	$	169,671			$	164,780			$	437,069			$	425,174

A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below.

(in thousands of US$)
Three months ended, September 30, 2026		FirstService			FirstService
		Residential			Brands				Corporate(1)
Operating earnings (loss)	$	58,036			$	59,991			$	(10,658	)
Depreciation and amortization		13,213				37,767				23
Acquisition-related items		78				4,037				94
Share-based compensation expense		–				–				7,090
Adjusted EBITDA	$	71,327			$	101,795			$	(3,451	)
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
Share-based compensation expense		–				–				6,617
Adjusted EBITDA	$	66,363			$	102,087			$	(3,670	)
Nine months ended, September 30, 2026		FirstService			FirstService
		Residential			Brands				Corporate(1)
Operating earnings (loss)	$	143,099			$	146,566			$	(35,960	)
Depreciation and amortization		39,567				109,917				68
Acquisition-related items		3,932				5,268				457
Share-based compensation expense		–				–				24,155
Adjusted EBITDA	$	186,598			$	261,751			$	(11,280	)
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
Share-based compensation expense		–				–				20,772
Adjusted EBITDA	$	173,489			$	265,069			$	(13,384	)

(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								Nine months ended
(in thousands of US$)	September 30								September 30
	2026				2025				2026				2025
Net earnings	$	64,550			$	70,887			$	149,103			$	140,398
Non-controlling interest share of earnings		(6,587	)			(6,709	)			(15,941	)			(11,430	)
Acquisition-related items		4,209				(4,100	)			9,657				15,795
Amortization of intangible assets		21,268				18,828				62,888				57,051
Share-based compensation expense		7,090				6,617				24,155				20,772
Income tax on adjustments		(8,009	)			(4,514	)			(23,783	)			(20,656	)
Non-controlling interest on adjustments		(446	)			(197	)			(1,176	)			(1,186	)
Adjusted net earnings	$	82,075			$	80,812			$	204,903			$	200,744
	Three months ended								Nine months ended
(in US$)	September 30								September 30
	2026				2025				2026				2025
Diluted net earnings per share	$	0.99			$	1.24			$	2.41			$	2.32
Non-controlling interest redemption increment		0.35				0.15				0.56				0.50
Acquisition-related items		0.06				(0.05	)			0.14				0.29
Amortization of intangible assets, net of tax		0.35				0.29				1.00				0.86
Share-based compensation expense, net of tax		0.14				0.13				0.46				0.42
Adjusted earnings per share	$	1.89			$	1.76			$	4.57			$	4.39

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
(unaudited)		2026				2025				2026				2025
Revenues	$	1,531,698			$	1,447,565			$	4,298,027			$	4,114,124
Cost of revenues		1,034,439				960,420				2,889,457				2,737,222
Selling, general and administrative expenses		334,678				328,982				995,656				972,500
Depreciation		29,735				27,807				86,664				79,392
Amortization of intangible assets		21,268				18,828				62,888				57,051
Acquisition-related items (1)		4,209				(4,100	)			9,657				15,795
Operating earnings		107,369				115,628				253,705				252,164
Interest expense, net		18,839				18,179				49,647				56,609
Other expense (income), net		146				(1,138	)			(236	)			(2,220	)
Earnings before income tax		88,384				98,587				204,294				197,775
Income tax		23,834				27,700				55,191				57,377
Net earnings		64,550				70,887				149,103				140,398
Non-controlling interest share of earnings		6,587				6,709				15,941				11,430
Non-controlling interest redemption increment		15,051				7,010				24,972				22,899
Net earnings attributable to Company	$	42,912			$	57,168			$	108,190			$	106,069
Net earnings per common share
Basic	$	0.99			$	1.25			$	2.41			$	2.33
Diluted		0.99				1.24				2.41				2.32
Adjusted earnings per share (2)	$	1.89			$	1.76			$	4.57			$	4.39
Weighted average common shares (thousands)
Basic		43,329				45,568				44,836				45,462
Diluted		43,330				45,924				44,838				45,732

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)	September 30, 2026			December 31, 2025
Assets
Cash and cash equivalents	$	160,759		$	154,425
Restricted cash		25,054			25,665
Accounts receivable		947,276			922,106
Prepaid and other current assets		460,318			401,584
Current assets		1,593,407			1,503,780
Other non-current assets		29,843			29,474
Deferred income tax		5,185			4,979
Fixed assets		292,601			289,718
Operating lease right-of-use assets		275,421			269,573
Goodwill and intangible assets		2,253,592			2,186,189
Total assets	$	4,450,049		$	4,283,713
Liabilities and shareholders’ equity
Accounts payable and accrued liabilities	$	623,537		$	547,065
Unearned revenues		227,149			209,226
Other current liabilities		16,026			53,097
Operating lease liabilities – current		60,842			59,113
Long-term debt – current		13,339			13,649
Current liabilities		940,893			882,150
Long-term debt – non-current		1,541,075			1,069,027
Operating lease liabilities – non-current		246,679			242,593
Other liabilities		122,938			124,762
Deferred income tax		119,301			102,991
Redeemable non-controlling interests		542,329			486,191
Shareholders’ equity		936,834			1,375,999
Total liabilities and equity	$	4,450,049		$	4,283,713
Supplemental balance sheet information
Total debt	$	1,554,414		$	1,082,676
Total debt, net of cash		1,393,655			928,251

Consolidated Statements of Cash Flows
(in thousands of US dollars)
		Three months ended								Nine months ended
		September 30								September 30
(unaudited)		2026				2025				2026				2025
Cash provided by (used in)
Operating activities
Net earnings	$	64,550			$	70,887			$	149,103			$	140,398
Items not affecting cash:
Depreciation and amortization		51,003				46,635				149,552				136,443
Deferred income tax		(10	)			(830	)			(149	)			(2,420	)
Other		8,812				518				16,865				29,870
		124,355				117,210				315,371				304,291
Changes in non-cash working capital
Accounts receivable		(39,670	)			34,649				(15,354	)			19,828
Payables and accruals		51,439				(13,312	)			57,756				(26,475	)
Other		(51,963	)			(12,185	)			(55,625	)			32,802
Net cash provided by operating activities		84,161				126,362				302,148				330,446
Investing activities
Acquisition of businesses, net of cash acquired		(24,768	)			(44,469	)			(73,191	)			(96,385	)
Purchases of fixed assets		(28,452	)			(33,663	)			(88,096	)			(96,601	)
Other investing activities		(879	)			(1,372	)			2,600				(10,042	)
Net cash used in investing activities		(54,099	)			(79,504	)			(158,687	)			(203,028	)
Financing activities
Increase (decrease) in long-term debt, net		303,866				(36,941	)			472,070				(91,768	)
Purchases of non-controlling interests, net		(1,002	)			(4,597	)			(11,218	)			(33,943	)
Dividends paid to common shareholders		(13,467	)			(12,501	)			(40,065	)			(36,315	)
Distributions paid to non-controlling interests		(3,933	)			(1,828	)			(17,504	)			(13,430	)
Repurchases of common shares		(311,589	)			–				(560,006	)			–
Other financing activities		(19,810	)			28,869				17,732				49,775
Net cash used in financing activities		(45,935	)			(26,998	)			(138,991	)			(125,681	)
Effect of exchange rate changes on cash		548				781				1,253				88
Increase (decrease) in cash, cash equivalents and restricted cash		(15,325	)			20,641				5,723				1,825
Cash, cash equivalents and restricted cash, beginning of period		201,138				224,870				180,090				243,686
Cash, cash equivalents and restricted cash, end of period	$	185,813			$	245,511			$	185,813			$	245,511

Segmented Results
(in thousands of US dollars)
	FirstService			FirstService
(unaudited)	Residential			Brands			Corporate(1)				Consolidated
Three months ended September 30
2026
Revenues	$	633,279		$	898,419		$	–			$	1,531,698
Adjusted EBITDA		71,327			101,795			(3,451	)			169,671
Operating earnings		58,036			59,991			(10,658	)			107,369
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
	FirstService			FirstService
	Residential			Brands			Corporate(1)				Consolidated
Nine months ended September 30
2026
Revenues	$	1,795,810		$	2,502,217		$	–			$	4,298,027
Adjusted EBITDA		186,598			261,751			(11,280	)			437,069
Operating earnings		143,099			146,566			(35,960	)			253,705
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

(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.

COMPANY CONTACTS:

D. Scott Patterson
Chief Executive Officer

Jeremy Rakusin
Chief Financial Officer

(416) 960-9566

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