FirstService (NASDAQ:FSV) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• FirstService beat Q1 expectations with $0.95 EPS versus ~$0.89 consensus and reported $1.30B in revenue, up about 5.3% year‑over‑year.
• Segment results diverged: FirstService Residential grew ~4% with EBITDA up ~10% and 50bp margin expansion from labor efficiencies and AI/offshoring, while FirstService Brands saw revenue +6% but EBITDA down ~5.5% and ~100bp margin compression due to roofing competition and higher promotional spend, which should weigh on Q2.
• The company generated strong cash flow (≈$88M operating, $28M CapEx), cut net leverage to 1.5x with >$1B liquidity, raised the quarterly dividend to $0.305, and retains flexibility for tuck‑in M&A or buybacks amid mixed analyst target moves (consensus ~$205.88).

FirstService (NASDAQ:FSV - Get Free Report) TSE: FSV posted its quarterly earnings results on Thursday. The financial services provider reported $0.95 EPS for the quarter, topping analysts' consensus estimates of $0.89 by $0.06, Briefing.com reports. FirstService had a return on equity of 18.27% and a net margin of 2.92%.The company had revenue of $1.30 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same period in the previous year, the firm earned $0.92 EPS. The firm's revenue was up 5.3% compared to the same quarter last year.

Here are the key takeaways from FirstService's conference call:

• Company reported Q1 results in line with guidance with $1.32B in revenues (+5%), adjusted EBITDA of $106M (+2%), and adjusted EPS of $0.95 (+3%).
• FirstService Residential grew 4% with EBITDA up 10% and a 50bp margin expansion driven by labor efficiencies, AI/offshoring in client accounting, and exiting low‑margin work; management expects similar or slightly better organic growth and sequential improvement later in the year.
• FirstService Brands revenue rose 6% but EBITDA fell 5.5% and margin compressed 100bps due to roofing margin pressure from competition and increased promotional/marketing spend in home services, which management expects to weigh on Q2 results.
• Restoration and roofing delivered flat organic performance with modestly lower backlogs (restoration backlog similar to year‑end); Q2 revenues are expected to be flat to slightly down with a potential rebound in Q3–Q4 as weather and new‑build activity normalize.
• The company generated strong cash flow ($88M operating cash, $28M CapEx), reduced net leverage to 1.5x, and holds >$1B liquidity, supporting selective tuck‑in M&A and optional share buyback activity.

FirstService Trading Down 1.9%

Shares of FirstService stock traded down $2.78 on Friday, reaching $146.38. The company had a trading volume of 207,516 shares, compared to its average volume of 159,543. The firm has a market cap of $6.73 billion, a price-to-earnings ratio of 41.35, a P/E/G ratio of 4.00 and a beta of 1.09. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.73 and a quick ratio of 1.73. The firm's 50-day moving average price is $146.56 and its two-hundred day moving average price is $155.29. FirstService has a 1 year low of $133.42 and a 1 year high of $209.66.

FirstService Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, April 7th. Stockholders of record on Tuesday, March 31st were paid a $0.305 dividend. This represents a $1.22 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, March 31st. This is a positive change from FirstService's previous quarterly dividend of $0.28. FirstService's dividend payout ratio is 38.61%.

Analysts Set New Price Targets

A number of brokerages have issued reports on FSV. Wall Street Zen cut shares of FirstService from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Weiss Ratings restated a "hold (c)" rating on shares of FirstService in a research report on Friday, March 27th. TD Cowen cut their target price on shares of FirstService from $217.00 to $201.00 and set a "buy" rating for the company in a research note on Tuesday, April 14th. TD lifted their price target on shares of FirstService from $201.00 to $204.00 and gave the company a "buy" rating in a report on Friday. Finally, TD Securities set a $204.00 price objective on shares of FirstService in a report on Friday. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $205.88.

More FirstService News

Here are the key news stories impacting FirstService this week:

• Positive Sentiment: Q1 results beat expectations — FirstService reported $0.95 EPS (vs. consensus ~ $0.89–$0.90) and $1.30B in revenue, up ~5.3% year‑over‑year. The underlying beat supports the firm’s growth profile and helps justify upside to current levels. FirstService Q1 Results (MarketBeat)
• Positive Sentiment: TD raised its price target to $204 and kept a “buy” rating, implying roughly a 39% upside from the cited current price — a vote of confidence from a major bank that can support the stock on optimism about longer‑term earnings. TD Raises Price Target to $204 (BayStreet.CA)
• Neutral Sentiment: Earnings‑call color: management balanced growth commentary with mention of headwinds, which gives investors more nuance but no clear directional change to guidance — investors will watch for how persistent those headwinds are. Earnings Call Highlights (TipRanks)
• Neutral Sentiment: Full earnings transcript is available for detail — useful for investors who want management’s exact comments on margins, cost dynamics and backlog. Q1 2026 Earnings Transcript (The Motley Fool)
• Negative Sentiment: Scotiabank cut its price target from $205 to $190 (still a “sector outperform”), trimming some analyst enthusiasm and reducing the implied upside — a target cut can pressure sentiment even when the rating remains positive. Scotiabank Lowers Target to $190 (BayStreet.CA)

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Invesco Ltd. increased its position in FirstService by 0.5% during the fourth quarter. Invesco Ltd. now owns 43,051 shares of the financial services provider's stock valued at $6,696,000 after acquiring an additional 219 shares during the last quarter. Alberta Investment Management Corp lifted its holdings in shares of FirstService by 31.0% in the 4th quarter. Alberta Investment Management Corp now owns 27,500 shares of the financial services provider's stock worth $4,277,000 after acquiring an additional 6,500 shares during the last quarter. Mackenzie Financial Corp boosted its stake in shares of FirstService by 15.5% during the 4th quarter. Mackenzie Financial Corp now owns 1,791,116 shares of the financial services provider's stock worth $278,247,000 after purchasing an additional 239,941 shares during the period. NewEdge Advisors LLC boosted its stake in shares of FirstService by 10,209.5% during the 4th quarter. NewEdge Advisors LLC now owns 2,165 shares of the financial services provider's stock worth $337,000 after purchasing an additional 2,144 shares during the period. Finally, Empowered Funds LLC grew its holdings in FirstService by 5.3% during the 4th quarter. Empowered Funds LLC now owns 18,069 shares of the financial services provider's stock valued at $2,810,000 after purchasing an additional 914 shares during the last quarter. 69.35% of the stock is owned by hedge funds and other institutional investors.

About FirstService

FirstService Corporation, founded in 1989 and headquartered in Toronto, Ontario, is a leading provider of property services in North America. The company operates through two principal segments—FirstService Residential and FirstService Brands—offering a broad range of services to residential, commercial and homeowner association clients.

FirstService Residential delivers community management, financial oversight and consulting services to thousands of residential communities across the United States and Canada.

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