Revenue growth has decelerated sharply to 4.0% in 2026Q3 from 26.5% in 2024Q4, while NOI margins compressed over 800 basis points to 25.8%, indicating acquisition-led expansion is slowing just as labor costs erode property-level profitability.
FirstService Corporation (FSV) annual income statement — 17-year revenue, gross profit & net income history
| 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 | 5.67B | 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 % | 3.4% | 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 | 3.99B | 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) | 1.68B | 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 % | 29.57% | 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 | 1.34B | 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 | 669.11M | 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 | 537.81M | 520.88M | 502.78M | 372.83M | 329.17M | 300.61M | 267.79M | -94.86M | 180.34M | 149.68M | 127.52M | 99.73M | 72.09M | 165.59M | 131.9M | 153.64M | 144.55M | 114.15M |
| EBITDA Margin % | 9.49% | 9.44% | 9.64% | 8.6% | 8.79% | 9.25% | 9.66% | -3.94% | 9.34% | 8.78% | 8.6% | 7.89% | 6.37% | 7.07% | 5.72% | 6.91% | 7.28% | 6.7% |
| Depreciation & Amortization | 197.79M | 185.21M | 165.27M | 127.93M | 110.14M | 98.97M | 98.38M | 79.56M | 52.77M | 42.05M | 36.97M | 28.98M | 26.47M | 75.35M | 53.5M | 50.93M | 47.89M | 46.38M |
| D&A / Revenue % | 3.49% | 3.36% | 3.17% | 2.95% | 2.94% | 3.05% | 3.55% | 3.3% | 2.73% | 2.47% | 2.49% | 2.29% | 2.34% | 3.22% | 2.32% | 2.29% | 2.41% | 2.72% |
| Operating Income | 340.03M | 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% | 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 | 1.45M | -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 | 271.97M | 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 % | 4.8% | 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 | 73.29M | 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 % | 26.95% | 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 | 146.62M | 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 % | 2.59% | 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 % | 5.83% | 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) | 344.4M | 330.86M | 299.64M | 228.32M | 231.21M | 234.18M | 185.64M | -172.05M | 118.64M | 95.13M | 70.57M | 50.38M | 39.44M | 57.31M | 59.35M | 125.04M | 61.45M | 1.53M |
| FFO Margin % | 6.08% | 6% | 5.74% | 5.27% | 6.17% | 7.21% | 6.7% | -7.15% | 6.14% | 5.58% | 4.76% | 3.99% | 3.48% | 2.45% | 2.57% | 5.62% | 3.09% | 0.09% |
| FFO Growth % | 48.04% | 10.42% | 31.24% | -1.25% | -1.27% | 26.15% | 207.9% | -245.02% | 24.71% | 34.81% | 40.07% | 27.72% | -31.18% | -3.44% | -52.53% | 103.48% | 3918.97% | - |
| FFO per Share | 7.95 | 7.22 | 6.62 | 5.10 | 5.20 | 5.27 | 4.30 | -4.50 | 3.24 | 2.60 | 1.94 | 1.38 | 1.08 | 1.58 | 1.95 | 4.09 | 2.02 | 0.05 |
| FFO Payout Ratio % | 11.21% | 14.78% | 14.63% | 17.11% | 15.09% | 13.33% | 14.79% | -12.81% | 15.83% | 18.02% | 21.92% | 14.28% | 53.93% | 14.82% | 16.18% | 7.97% | 16.44% | 660.63% |
| EPS (Diluted) | 3.38 | 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 % | 7.28% | 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 | 43.33M | 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 |
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.
Key Metrics
Top Statement Risk
NOI margin compression from labor costs
Acquisition-Led Growth Decelerates Sharply
Revenue growth has decelerated from 26.5% in 2024Q4 to 4.0% in 2026Q3, suggesting the bolt-on acquisition engine that drove earlier expansion may be slowing, with organic growth alone unlikely to sustain prior top-line momentum according to reported financial statements.
Quarterly revenue grew from approximately $1.3B in 2024Q2 to $1.5B in 2026Q3, but the growth trajectory shows unmistakable deceleration. The 25–27% growth rates in late 2024 likely reflect full-period contribution from prior-year bolt-on acquisitions rather than underlying organic momentum. With growth compressing to 4.0% in the most recent quarter, the market may be overestimating the durability of FirstService's expansion narrative unless organic same-platform growth accelerates meaningfully.
NOI Margins Under Structural Cost Pressure
NOI margins compressed from 33.9% in 2025Q2 to 25.8% in 2026Q3 — a decline of over 800 basis points — that suggests persistent wage inflation and skilled labor shortages are eroding property-level profitability faster than pricing power can offset.
The margin compression is particularly pronounced given the company's labor-intensive operating model across both Residential and Brands segments. While some of the decline may reflect mix shift toward lower-margin restoration and home improvement revenue, the magnitude of the drop appears to indicate structural cost pressures that cannot be fully passed through in the near term. Investors should monitor whether management's expansion into higher-margin ancillary services — insurance brokerage, financial services — can reverse this trajectory or whether labor costs will continue to absorb incremental revenue.
AFFO Conversion Rate Shows Inconsistency
AFFO has trailed FFO by $26–34M across all reported quarters, with the conversion ratio fluctuating between 48% and 80%, suggesting inconsistent recurring capital expenditure and adjustment charges that complicate the assessment of sustainable distributable cash flow.
The most extreme divergence occurred in 2025Q1 when AFFO of $17.3M represented just 37% of FFO of $46.8M, a pattern that repeated in 2026Q1 with a 42% conversion rate. These episodic dips suggest lumpy capital commitments — likely related to franchise reacquisitions or technology investments — rather than a stable ongoing drag. The FFO per share trajectory is equally uneven, swinging from $1.03 in 2025Q1 to $2.26 in 2025Q3, making per-share valuation multiples on any single quarter unreliable.
GAAP Earnings Understate Operating Reality
GAAP net income of $42.2M in 2026Q3 represents less than half of the $92.3M FFO figure, reflecting depreciation charges that, while mechanically required under REIT accounting, may substantially overstate real economic asset consumption in this service-oriented business model.
The persistent $48–50M quarterly wedge between GAAP net income and FFO is noteworthy because FirstService's asset-light property management model involves relatively modest real estate holdings compared to traditional property REITs. This suggests a meaningful portion of the depreciation charge is an accounting artifact rather than a reflection of actual physical deterioration. The practical implication is that EPS-based valuation multiples — the company trades at roughly $63 on trailing GAAP EPS — significantly overstate the true earnings yield, and investors should anchor valuation work to FFO or AFFO instead.
Acquisition Noise Obscures Organic Health
The aggressive bolt-on acquisition strategy makes organic growth trajectory difficult to assess, and persistent non-controlling interests may mean that consolidated net income of $42.2M materially overstates returns available to common shareholders based on recent SEC filings.
With headline revenue growth collapsing from 26.5% to 4.0%, the critical question is whether the existing portfolio can generate sufficient organic growth to justify the current valuation premium over commercial real estate services peers. The NCI drag is a particular concern in the Brands segment, where management's practice of retaining local operator equity stakes permanently reduces attributable earnings. Without explicit disclosure on same-platform organic revenue and margins, investors are underwriting an acquisition-dependent growth model whose returns may diminish as the fragmented opportunities that supported earlier compounding become scarcer.