FirstService (FSV) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered 9% year-over-year revenue growth to $1.42 billion, with strong margin expansion and profitability amid ongoing uncertainty and weak consumer sentiment.

• Adjusted EBITDA increased 19% to $157.1 million, with consolidated margin up 90 basis points to 11.1%.

• Adjusted EPS grew 26% to $1.71; GAAP diluted EPS was $1.01, up from $0.78.

• Six-month revenues grew 9% to $2.67 billion, with Adjusted EBITDA up 21% and Adjusted EPS up 30% year-over-year.

• Management highlighted resilience and strong performance despite macroeconomic uncertainty.

Financial highlights

• Q2 revenues reached $1,415.7 million, up 9% year-over-year.

• Adjusted EBITDA was $157.1 million, up 19% year-over-year.

• Adjusted EPS for Q2 was $1.71, a 26% increase over Q2 2024; GAAP diluted EPS was $1.01.

• Net earnings for Q2 2025: $55.4 million, up from $44.9 million in Q2 2024.

• Operating cash flow for Q2 2025: $162.8 million, up from $130.7 million in Q2 2024.

Outlook and guidance

• On track to meet annual targets: high single-digit revenue growth and double-digit EBITDA growth for 2025.

• Q3 and Q4 expected to show similar year-over-year growth profiles.

• FirstService Residential to return to mid single-digit organic growth; Brands division revenues to be slightly up, with restoration facing tough comps.

• Consolidated revenue growth expected at mid single digits, with EBITDA growth slightly outpacing revenue.

• Forward-looking statements caution about macroeconomic and regulatory risks, and integration of acquisitions.