Operating highlights:

	Three months ended				Six months ended
	June 30				June 30
	2025		2024		2025		2024

Revenues (millions)	$	1,415.7	$	1,297.5	$	2,666.6	$	2,455.5
Adjusted EBITDA (millions) (note 1)		157.1		132.5		260.4		215.9
Adjusted EPS (note 2)		1.71		1.36		2.63		2.03

GAAP Operating Earnings		97.3		83.9		136.5		122.0
GAAP Diluted EPS		1.01		0.78		1.07		0.92

TORONTO, July 24, 2025 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX:FSV, NASDAQ:FSV) today reported results for its second quarter ended June 30, 2025. All amounts are in US dollars.

Consolidated revenues for the second quarter were $1.42 billion, a 9% increase relative to the same quarter in the prior year. Adjusted EBITDA (note 1) increased 19% to $157.1 million, and Adjusted EPS (note 2) was $1.71, reflecting 26% growth over the prior year quarter. During the second quarter, FirstService reported GAAP Operating Earnings of $97.3 million, up from $83.9 million in the prior year period. GAAP diluted earnings per share was $1.01 in the quarter, up from $0.78 for the same quarter a year ago.

For the six months ended June 30, 2025, consolidated revenues were $2.67 billion, a 9% increase relative to the comparable prior year period, Adjusted EBITDA was $260.4 million, up 21%, and Adjusted EPS was $2.63, an increase of 30% over the prior year period. FirstService's GAAP Operating Earnings were $136.5 million in the current year period, versus $122.0 million in the prior year. GAAP diluted earnings per share for the six months year-to-date was $1.07, compared to $0.92 in the prior year period.

"We are pleased to report strong financial results which largely mirrored the year-over-year growth profile we saw in the first quarter," said Scott Patterson, Chief Executive Officer of FirstService. "Despite continued macroeconomic uncertainty, the resilient top-line performance and strong profitability across our operations during the first half of the year put us well on track to deliver on our goals for 2025," 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$5.4 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 $593.0 million for the second quarter, up 6% compared to the prior year quarter, including organic growth of 3%. Adjusted EBITDA for the quarter was $65.5 million, an increase of 11% compared to the prior year period. Operating Earnings were $51.6 million, versus $49.1 million for the second quarter of last year. The Adjusted EBITDA margin improvement reflected ongoing efficiencies in our property management client service delivery model. The Operating Earnings margin was in-line with the prior year.

FirstService Brands revenues during the second quarter grew to $822.7 million, up 11% relative to the prior year period. On an organic basis, division revenues were up 1%, with double-digit growth at Century Fire Protection, offsetting lower quarter-over-quarter results in our Roofing Corp of America operations. Recent tuck-under acquisitions across the division also contributed to the top-line increase. Adjusted EBITDA for the second quarter was $95.2 million, up 23% versus the prior year period. Operating Earnings were $56.5 million, versus $46.3 million in the prior year quarter. The increase in operating margins was attributable to continued operating process improvements at our restoration and home services brands.

Corporate costs, as presented in Adjusted EBITDA (note 1), were $3.6 million in the second quarter, relative to $4.2 million in the prior year period. Corporate costs for the quarter were $10.9 million, relative to $11.5 million in the prior year period.

Conference Call

FirstService will be holding a conference call on Thursday, July 24, 2025 at 11:00 a.m. Eastern Time to discuss the quarter's results. This call is being webcast live at the Company's website at www.firstservice.com. Participants may register for the call here https://register.vevent.com/register/BI4a1fa34337944f40a129a667fecbe126 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/b34k52bt . 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, 2024 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. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to 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) stock-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
	2025			2024			2025			2024

Net earnings	$	55,431		$	44,937		$	69,511		$	59,834
Income tax		23,677			18,584			29,677			24,599
Other income, net		(996	)		(115	)		(1,082	)		(1,995	)
Interest expense, net		19,166			20,531			38,430			39,557
Operating earnings		97,278			83,937			136,536			121,995
Depreciation and amortization		45,632			39,225			89,808			76,032
Acquisition-related items		7,662			2,306			19,895			3,906
Stock-based compensation expense		6,556			7,019			14,155			13,927
Adjusted EBITDA	$	157,128		$	132,487		$	260,394		$	215,860

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

(in thousands of US$)

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
Stock-based compensation expense		-		-		6,556
Adjusted EBITDA	$	65,495	$	95,215	$	(3,582	)


Three months ended, June 30, 2024		FirstService		FirstService
		Residential		Brands		Corporate⁽¹⁾

Operating earnings (loss)	$	49,107	$	46,308	$	(11,478	)
Depreciation and amortization		9,773		29,429		23
Acquisition-related items		207		1,827		272
Stock-based compensation expense		-		-		7,019
Adjusted EBITDA	$	59,087	$	77,564	$	(4,164	)


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
Stock-based compensation expense		-		-		14,155
Adjusted EBITDA	$	107,126	$	162,982	$	(9,714	)


Six months ended, June 30, 2024		FirstService		FirstService
		Residential		Brands		Corporate⁽¹⁾

Operating earnings (loss)	$	75,765	$	73,107	$	(26,877	)
Depreciation and amortization		18,196		57,790		46
Acquisition-related items		725		2,129		1,052
Stock-based compensation expense		-		-		13,927
Adjusted EBITDA	$	94,686	$	133,026	$	(11,852	)

Segment Adjusted EBITDA margin is defined as segment Adjusted EBITDA divided by segment revenues.

(1) Corporate is not an operating segment, but rather represent corporate overhead expenses not directly attributable to reportable segments and are therefore unallocated within segment operating earnings (loss) and Segment Adjusted EBITDA.

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) stock-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
	2025			2024			2025			2024

Net earnings	$	55,431		$	44,937		$	69,511		$	59,834
Non-controlling interest share of earnings		(3,478	)		(2,696	)		(4,721	)		(4,229	)
Acquisition-related items		7,662			2,306			19,895			3,906
Amortization of intangible assets		19,706			17,009			38,223			32,240
Stock-based compensation expense		6,556			7,019			14,155			13,927
Income tax on adjustments		(7,567	)		(6,968	)		(16,142	)		(13,389	)
Non-controlling interest on adjustments		(447	)		(320	)		(989	)		(584	)
Adjusted net earnings	$	77,863		$	61,287		$	119,932		$	91,705

	Three months ended						Six months ended
(in US$)	June 30						June 30
	2025			2024			2025			2024

Diluted net earnings per share	$	1.01		$	0.78		$	1.07		$	0.92
Non-controlling interest redemption increment		0.13			0.16			0.35			0.32
Acquisition-related items		0.14			0.05			0.35			0.08
Amortization of intangible assets, net of tax		0.30			0.26			0.57			0.49
Stock-based compensation expense, net of tax		0.13			0.11			0.29			0.22
Adjusted earnings per share	$	1.71		$	1.36		$	2.63		$	2.03

Organic growth is defined as revenue growth adjusted to exclude the revenue attributable to acquired businesses for a period of twelve months following their acquisition.

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
		2025			2024			2025			2024

Revenues		$	1,415,733		$	1,297,459		$	2,666,559		$	2,455,504

Cost of revenues			935,334			862,463			1,776,802			1,651,040
Selling, general and administrative expenses			329,827			309,528			643,518			602,531
Depreciation			25,926			22,216			51,585			43,792
Amortization of intangible assets			19,706			17,009			38,223			32,240
Acquisition-related items (1)			7,662			2,306			19,895			3,906
Operating earnings			97,278			83,937			136,536			121,995
Interest expense, net			19,166			20,531			38,430			39,557
Other income, net			(996	)		(115	)		(1,082	)		(1,995	)
Earnings before income tax			79,108			63,521			99,188			84,433
Income tax			23,677			18,584			29,677			24,599
Net earnings			55,431			44,937			69,511			59,834
Non-controlling interest share of earnings			3,478			2,696			4,721			4,229
Non-controlling interest redemption increment			5,855			7,183			15,889			14,239
Net earnings attributable to Company		$	46,098		$	35,058		$	48,901		$	41,366

Net earnings per common share
Basic		$	1.01		$	0.78		$	1.08		$	0.92
Diluted			1.01			0.78			1.07			0.92


Adjusted earnings per share (2)		$	1.71		$	1.36		$	2.63		$	2.03

Weighted average common shares (thousands)
	Basic		45,449			44,984			45,409			44,917
	Diluted		45,656			45,100			45,632			45,087

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)


		June 30, 2025		December 31, 2024

Assets
Cash and cash equivalents		$	201,806	$	227,598
Restricted cash			23,064		16,088
Accounts receivable			983,049		947,517
Prepaid and other current assets			414,837		368,150
	Current assets		1,622,756		1,559,353
Other non-current assets			28,118		28,007
Deferred income tax			2,128		2,114
Fixed assets			271,867		253,994
Operating lease right-of-use assets			276,378		240,518
Goodwill and intangible assets			2,167,862		2,110,866
	Total assets	$	4,369,109	$	4,194,852


Liabilities and shareholders' equity
Accounts payable and accrued liabilities		$	577,159	$	541,509
Unearned revenues			243,678		190,885
Other current liabilities			40,977		23,690
Operating lease liabilities - current			56,938		53,115
Long-term debt - current			13,230		41,567
	Current liabilities		931,982		850,766
Long-term debt - non-current			1,229,053		1,257,143
Operating lease liabilities - non-current			249,529		214,423
Other liabilities			151,694		150,542
Deferred income tax			94,029		84,895
Redeemable non-controlling interests			460,997		449,337
Shareholders' equity			1,251,825		1,187,746
	Total liabilities and equity	$	4,369,109	$	4,194,852


Supplemental balance sheet information
Total debt		$	1,242,283	$	1,298,710
Total debt, net of cash			1,040,477		1,071,112

Consolidated Statements of Cash Flows
(in thousands of US dollars)
			Three months ended						Six months ended
			June 30						June 30
		2025			2024			2025			2024

Cash provided by (used in)

Operating activities
Net earnings		$	55,431		$	44,937		$	69,511		$	59,834
Items not affecting cash:
	Depreciation and amortization		45,632			39,225			89,808			76,032
	Deferred income tax		(771	)		(2,275	)		(1,590	)		(4,549	)
	Other		11,153			8,052			29,352			14,384
			111,445			89,939			187,081			145,701

Changes in non-cash working capital
	Accounts receivable		(24,815	)		(22,637	)		(14,821	)		(2,640	)
	Payables and accruals		56,573			33,002			(13,163	)		(23,282	)
	Other		19,631			30,440			44,987			2,165
Net cash provided by operating activities			162,834			130,744			204,084			121,944

Investing activities
Acquisition of businesses, net of cash acquired			(43,280	)		(123,031	)		(51,916	)		(154,649	)
Purchases of fixed assets			(33,375	)		(29,301	)		(62,938	)		(54,322	)
Other investing activities			(1,624	)		(299	)		(8,670	)		(1,000	)
Net cash used in investing activities			(78,279	)		(152,631	)		(123,524	)		(209,971	)

Financing activities
Increase (decrease) in long-term debt, net			(67,833	)		90,473			(54,827	)		136,728
Purchases of non-controlling interests, net			(14,850	)		(10,221	)		(29,346	)		(21,442	)
Dividends paid to common shareholders			(12,497	)		(11,244	)		(23,814	)		(21,298	)
Distributions paid to non-controlling interests			(5,825	)		(3,817	)		(11,602	)		(4,470	)
Other financing activities			1,720			3,987			20,906			22,790
Net cash provided by (used in) financing activities			(99,285	)		69,178			(98,683	)		112,308

Effect of exchange rate changes on cash			(678	)		123			(693	)		351

Increase (decrease) in cash, cash equivalents and restricted cash			(15,408	)		47,414			(18,816	)		24,632

Cash, cash equivalents and restricted cash, beginning of period			240,278			184,095			243,686			206,877

Cash, cash equivalents and restricted cash, end of period		$	224,870		$	231,509		$	224,870		$	231,509

Segmented Results
(in thousands of US dollars)

		FirstService		FirstService
		Residential		Brands		Corporate			Consolidated

Three months ended June 30

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

2024
	Revenues	$	557,504	$	739,955	$	-		$	1,297,459
	Adjusted EBITDA		59,087		77,564		(4,164	)		132,487

	Operating earnings		49,107		46,308		(11,478	)		83,937



		FirstService		FirstService
		Residential		Brands		Corporate			Consolidated

Six months ended June 30

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

2024
	Revenues	$	1,053,628	$	1,401,876	$	-		$	2,455,504
	Adjusted EBITDA		94,686		133,026		(11,852	)		215,860

	Operating earnings		75,765		73,107		(26,877	)		121,995

COMPANY CONTACTS:

D. Scott Patterson

Chief Executive Officer

Jeremy Rakusin

Chief Financial Officer

(416) 960-9566

FirstService Reports Second Quarter 2025 Results