FirstService Reports 2% Second-Quarter Revenue Growth as Macro Headwinds Limit Expansion

FirstService delivered modest revenue and adjusted earnings growth in the second quarter, while management warned that persistent economic pressure is likely to keep second-half top-line growth near current levels.

Key Investor Takeaways

• FirstService (NASDAQ:FSV) reported second-quarter revenue of $1.45 billion, up 2% year over year.
• Adjusted EBITDA increased 3% to $161.7 million, while adjusted EPS rose 2% to $1.75.
• FirstService Residential remained the stronger operating segment, generating 5% organic growth and a 6% increase in adjusted EBITDA.
• FirstService Brands recorded a 3% organic revenue decline as weaker Roofing Corp. of America activity offset growth at Century Fire Protection.
• Management expects second-half revenue growth to be similar to, or modestly better than, the company’s year-to-date performance.

Why FSV Stock Is in Focus

FirstService Corporation (NASDAQ:FSV) reported second-quarter revenue of $1.45 billion, representing a 2% increase from the prior-year period.

Adjusted EBITDA rose 3% to $161.7 million, while adjusted EPS increased 2% to $1.75. GAAP operating earnings reached $99.7 million, compared with $97.3 million a year earlier, although GAAP diluted EPS slipped to $1.00 from $1.01.

For the first six months of 2026, revenue increased 4% to $2.77 billion. Adjusted EBITDA rose 3% to $267.4 million, and adjusted EPS advanced 2% to $2.69.

The company’s residential operations produced the stronger quarterly performance. FirstService Residential revenue climbed 4% to $616.8 million, with organic growth of 5% supported by new contract wins and increased labour-related services.

Residential adjusted EBITDA rose 6% to $69.4 million, while divisional margins remained broadly consistent with the prior year.

FirstService Brands revenue increased 1% to $832.4 million, but organic revenue declined 3%. The company attributed the contraction to reduced activity at Roofing Corp. of America, partly offset by solid growth at Century Fire Protection.

Adjusted EBITDA at FirstService Brands edged up to $95.9 million from $95.2 million, with margins remaining comparable year over year.

Why This Matters for Investors

The results show that FirstService continues to generate earnings growth despite subdued organic expansion and ongoing macroeconomic headwinds.

The stronger performance at FirstService Residential may support the company’s defensive positioning, as contract wins and labour-related services helped the segment grow faster than the wider group.

However, the organic decline at FirstService Brands highlights uneven demand across the company’s property services portfolio. Continued weakness at Roofing Corp. of America could limit the division’s ability to contribute meaningfully to consolidated growth unless operating activity improves.

Management’s second-half outlook also suggests that a sharp acceleration is not currently expected. Chief Executive Scott Patterson said profitability was in line with expectations, but persistent market conditions had tempered organic growth.

For investors, the near-term valuation narrative may therefore depend less on rapid revenue expansion and more on FirstService’s ability to protect margins, convert modest sales growth into higher earnings and maintain operational discipline.

What to Watch Next

Investors will be watching whether second-half revenue growth improves modestly from the company’s year-to-date pace, as management expects.

Segment performance will also remain important, particularly whether Roofing Corp. of America stabilises and whether FirstService Residential can sustain its contract-driven organic growth.

Future margin trends may provide further evidence of whether disciplined execution can continue to offset restrained demand across parts of the business.

FirstService stock price