Revenue growth has decelerated significantly to 5.3% in 2026Q1, while operating margins remain constrained, fluctuating as low as 3.1% in 2025Q1 due to persistent SG&A pressure.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Revenue | 5.59B | 5.52B | 5.22B | 4.33B | 3.75B | 3.25B | 2.77B | 2.41B | 1.93B | 1.71B | 1.48B | 1.26B | 1.13B | 2.34B | 2.31B | 2.22B | 1.99B | 1.7B |
| Revenue Growth % | 5.19% | 5.79% | 20.36% | 15.72% | 15.29% | 17.19% | 15.16% | 24.64% | 13.25% | 15.01% | 17.31% | 11.67% | -51.7% | 1.65% | 3.66% | 11.98% | 16.62% | - |
| Property Operating Expenses | 3.81B | 3.76B | 3.5B | 2.95B | 2.57B | 2.2B | 1.87B | 1.63B | 1.32B | 1.19B | 1.05B | 883.96M | 800.05M | 1.51B | 1.52B | 1.44B | 1.22B | 1.06B |
| Net Operating Income (NOI) | 1.78B | 1.75B | 1.72B | 1.39B | 1.18B | 1.05B | 900.62M | 773.31M | 611.22M | 516.08M | 432.8M | 380.11M | 331.96M | 833.75M | 787.5M | 787.96M | 764.95M | 640.82M |
| NOI Margin % | 31.79% | 31.79% | 32.93% | 32.01% | 31.5% | 32.2% | 32.48% | 32.12% | 31.65% | 30.26% | 29.19% | 30.07% | 29.32% | 35.58% | 34.16% | 35.43% | 38.51% | 37.62% |
| Operating Expenses | 1.43B | 1.42B | 1.38B | 1.14B | 961.09M | 844.59M | 731.21M | 947.73M | 479.15M | 400.29M | 342.19M | 308.22M | 285.15M | 733.02M | 692.78M | 685.25M | 668.29M | 573.05M |
| G&A Expenses | 663.41M | 642.67M | 1.23B | 993.2M | 846.43M | 733.6M | 628.52M | 546.26M | 426.38M | 358.24M | 305.22M | 279.24M | 258.68M | 661.02M | 639.28M | 634.32M | 620.4M | 526.67M |
| EBITDA | 534.42M | 521.49M | 502.78M | 372.83M | 329.17M | 300.61M | 267.79M | -94.86M | 1.84B | 1.78B | 1.47B | 99.73M | 72.09M | 165.59M | 131.9M | 153.64M | 144.55M | 114.15M |
| EBITDA Margin % | 9.57% | 9.45% | 9.64% | 8.6% | 8.79% | 9.25% | 9.66% | -3.94% | 95.02% | 104.47% | 98.87% | 7.89% | 6.37% | 7.07% | 5.72% | 6.91% | 7.28% | 6.7% |
| Depreciation & Amortization | 189.85M | 185.83M | 165.27M | 127.93M | 110.14M | 98.97M | 98.38M | 79.56M | 1.71B | 1.67B | 1.38B | 28.98M | 26.47M | 75.35M | 53.5M | 50.93M | 47.89M | 46.38M |
| D&A / Revenue % | 3.4% | 3.37% | 3.17% | 2.95% | 2.94% | 3.05% | 3.55% | 3.3% | 88.41% | 98.16% | 92.76% | 2.29% | 2.34% | 3.22% | 2.32% | 2.29% | 2.41% | 2.72% |
| Operating Income | 344.57M | 335.67M | 337.51M | 244.89M | 219.03M | 201.64M | 169.41M | -174.42M | 127.57M | 107.63M | 90.55M | 70.75M | 45.62M | 90.23M | 78.4M | 102.71M | 96.66M | 67.76M |
| Operating Margin % | 6.17% | 6.08% | 6.47% | 5.65% | 5.85% | 6.21% | 6.11% | -7.25% | 6.6% | 6.31% | 6.11% | 5.6% | 4.03% | 3.85% | 3.4% | 4.62% | 4.87% | 3.98% |
| Interest Expense | 4M | 73.96M | 82.85M | 47.36M | 25.19M | 16.04M | 24.32M | 32.08M | 12.62M | 9.87M | 9.15M | 9.08M | 6.93M | 22.55M | 20.62M | 17.98M | 18.35M | 13.92M |
| Interest Coverage | - | 4.62x | 4.11x | 5.29x | 8.70x | 14.03x | 6.98x | -5.25x | 10.13x | 10.79x | 9.92x | 7.79x | 6.54x | 1.64x | 4.07x | 2.84x | 5.20x | 3.28x |
| Non-Operating Income | -11.93M | -5.87M | -3.24M | -5.81M | -146K | -23.4M | -361K | -6.01M | -254K | -1.52M | -232K | 60K | 255K | 20K | 12.12M | 5.15M | 1.19M | 22.05M |
| Pretax Income | 279.86M | 267.57M | 257.9M | 203.34M | 193.98M | 209M | 145.46M | -200.48M | 115.2M | 99.28M | 81.63M | 61.61M | 38.43M | 70.26M | 61.24M | 74.94M | 77.13M | 31.79M |
| Pretax Margin % | 5.01% | 4.85% | 4.94% | 4.69% | 5.18% | 6.43% | 5.25% | -8.33% | 5.96% | 5.82% | 5.5% | 4.87% | 3.4% | 3% | 2.66% | 3.37% | 3.88% | 1.87% |
| Income Tax | 78.79M | 76.05M | 70.12M | 56.32M | 48.97M | 52.88M | 35.87M | 27.15M | 24.92M | 22.61M | 27.39M | 23.41M | 12.24M | 22.62M | 20.3M | -26.81M | 29.23M | 39.07M |
| Effective Tax Rate % | 28.15% | 28.42% | 27.19% | 27.7% | 25.25% | 25.3% | 24.66% | -13.54% | 21.63% | 22.77% | 33.55% | 38% | 31.85% | 32.2% | 33.16% | -35.77% | 37.9% | 122.9% |
| Net Income | 162.83M | 145.65M | 134.38M | 100.39M | 121.07M | 135.21M | 87.26M | -251.61M | 65.86M | 53.08M | 33.6M | 21.39M | 12.97M | -18.04M | 5.85M | 74.11M | 13.56M | -44.85M |
| Net Margin % | 2.92% | 2.64% | 2.58% | 2.32% | 3.23% | 4.16% | 3.15% | -10.45% | 3.41% | 3.11% | 2.27% | 1.69% | 1.15% | -0.77% | 0.25% | 3.33% | 0.68% | -2.63% |
| Net Income Growth % | 24.42% | 8.39% | 33.85% | -17.08% | -10.46% | 54.95% | 134.68% | -482.01% | 24.09% | 57.98% | 57.03% | 64.96% | 171.9% | -408.36% | -92.11% | 446.37% | 130.24% | - |
| Funds From Operations (FFO) | 352.68M | 331.47M | 299.64M | 228.32M | 231.21M | 234.18M | 185.64M | -172.05M | 1.77B | 1.73B | 1.41B | 50.38M | 39.44M | 57.31M | 59.35M | 125.04M | 61.45M | 1.53M |
| FFO Margin % | 6.31% | 6.01% | 5.74% | 5.27% | 6.17% | 7.21% | 6.7% | -7.15% | 91.82% | 101.27% | 95.03% | 3.99% | 3.48% | 2.45% | 2.57% | 5.62% | 3.09% | 0.09% |
| FFO Growth % | 81.53% | 10.62% | 31.24% | -1.25% | -1.27% | 26.15% | 207.9% | -109.7% | 2.69% | 22.56% | 2697.06% | 27.72% | -31.18% | -3.44% | -52.53% | 103.48% | 3918.97% | - |
| FFO per Share | 7.68 | 7.23 | 6.62 | 5.10 | 5.20 | 5.27 | 4.30 | -4.50 | 48.49 | 47.24 | 38.75 | 1.38 | 1.08 | 1.58 | 1.95 | 4.09 | 2.02 | 0.05 |
| FFO Payout Ratio % | 14.22% | 14.75% | 14.63% | 17.11% | 15.09% | 13.33% | 14.79% | -12.81% | 1.06% | 0.99% | 1.1% | 14.28% | 53.93% | 14.82% | 16.18% | 7.97% | 16.44% | 660.63% |
| EPS (Diluted) | 3.55 | 3.16 | 2.97 | 2.24 | 2.72 | 3.05 | 2.02 | -5.95 | 1.80 | 1.41 | 0.92 | 0.59 | 0.36 | -0.50 | -0.12 | 2.10 | 0.11 | -1.52 |
| EPS Growth % | 22.49% | 6.4% | 32.59% | -17.65% | -10.82% | 50.99% | 133.95% | -430.56% | 27.66% | 53.26% | 55.93% | 63.89% | 172% | -316.67% | -105.71% | 1809.09% | 107.24% | - |
| EPS (Basic) | - | 3.17 | 2.98 | 2.29 | 2.74 | 3.08 | 2.04 | -5.95 | 1.83 | 1.43 | 0.93 | 0.59 | 0.36 | -0.50 | -0.12 | 2.13 | 0.12 | -1.52 |
| Diluted Shares Outstanding | 45.9M | 45.83M | 45.28M | 44.79M | 44.49M | 44.4M | 43.18M | 38.23M | 36.57M | 36.56M | 36.37M | 36.43M | 36.36M | 36.31M | 30.38M | 30.55M | 30.37M | 29.52M |
Labor cost margin compression
According to the provided financial data, FirstService Corporation's year-over-year revenue growth has decelerated from a peak of 26.5% in 2024Q4 to 5.3% in 2026Q1, suggesting that the company's aggressive acquisition-led expansion strategy is encountering diminishing returns as the base of operations continues to grow larger.
The transition from double-digit growth to mid-single digits indicates that organic growth drivers may be struggling to offset the integration challenges of recent acquisitions. Investors should monitor whether this deceleration reflects a broader cooling in the residential management market or if the company is becoming more selective in its capital deployment.
Based on reported income statements, FirstService maintains a gross margin profile hovering around 32%, which appears highly sensitive to operational costs, as evidenced by the 2025Q4 dip to 26.9% that highlights the company's vulnerability to fluctuations in skilled trade labor availability and rising service-related expenses.
The inability to consistently expand gross margins suggests that the company lacks significant pricing power to pass through wage inflation to its HOA clients. This structural constraint implies that profitability is tethered to labor efficiency rather than the high-margin software-like scaling often seen in other service sectors.
As reported in recent filings, FirstService's operating margins have fluctuated significantly, reaching a low of 3.1% in 2025Q1 and failing to demonstrate a clear trend of scaling operating income faster than gross profit, which suggests that SG&A expenses remain stubbornly high relative to top-line growth.
The lack of consistent operating leverage indicates that the company's decentralized model, while culturally beneficial, may be preventing the realization of meaningful economies of scale. The persistent overhead burden warrants further investigation into whether the company can effectively streamline its administrative functions without compromising service quality.
Based on the quarterly income statements, FirstService exhibits significant EPS volatility, with figures swinging from $0.06 in 2025Q1 to $1.34 in 2024Q3, a trend that appears heavily influenced by non-operating items and the impact of non-controlling interests on the consolidated net income available to shareholders.
The wide variance in net income suggests that reported EPS may not be a reliable indicator of core operational health. Investors should be cautious of the impact of minority interest allocations, which may be masking the true earnings power of the parent company's core residential and brand segments.
Analysis of the income statement suggests that FirstService's reliance on inorganic growth may be masking underlying organic stagnation, as the company's recent performance shows a clear trend of decelerating revenue growth despite continued capital deployment into new acquisitions across the residential and restoration service segments.
Short-sellers might focus on the potential for margin compression if the company continues to shift toward company-owned locations, which carry higher fixed costs than the traditional franchise model. This transition may indicate a long-term risk to return on invested capital if the company cannot maintain its historical acquisition discipline.
Quick answers to the most common questions about buying FSV stock.
For fiscal year 2025, FirstService Corporation (FSV) reported total revenue of $5.52B. This represents a 224.0% increase compared to $1.70B in 2009.
FirstService Corporation (FSV) is profitable, generating $145.6M in net income for the fiscal year ending 2025 with a net profit margin of 2.6%.
FirstService Corporation (FSV) reported an operating income of $335.7M, resulting in an operating profit margin of 6.1%. This margin reflects the operational efficiency of the business before interest and taxes.
FirstService Corporation (FSV) generated $1.75B in gross profit for the year, representing a gross profit margin of 31.8%. This demonstrates the company's core pricing power and production efficiency.