FirstService(FSV) - 2025 Q3 - Quarterly Report

Financial Performance - Consolidated revenues for Q3 2025 were $1.45 billion, a 4% increase compared to Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $164.8 million, reflecting a 3% increase year-over-year[3] - Adjusted EPS for Q3 2025 was $1.76, representing an 8% growth over the same quarter last year[3] - For the nine months ended September 30, 2025, consolidated revenues reached $4.11 billion, a 7% increase from the prior year[4] - Adjusted EBITDA for the nine months was $425.2 million, up 13% year-over-year[4] - Revenues for the three months ended September 30, 2025, reached $1,447,565,000, representing a growth of 3.7% compared to $1,396,041,000 in 2024[24] - Total revenues for 2025 reached $1,447,565, an increase from $1,396,041 in 2024, representing a growth of approximately 3.7%[29] - Adjusted EBITDA for 2025 was $164,780, compared to $159,974 in 2024, indicating a year-over-year increase of about 3.4%[29] - For the nine months ended September 30, 2025, consolidated revenues were $4,114,124, compared to $3,851,545 in the same period of 2024, marking a growth of around 6.8%[29] - Adjusted EBITDA for the nine months ended September 30, 2025, was $425,174, an increase from $375,834 in 2024, representing a growth of approximately 13.1%[29] Segment Performance - FirstService Residential revenues for Q3 2025 were $605.4 million, an 8% increase year-over-year, with organic growth of 5%[8] - FirstService Brands revenues for Q3 2025 were $842.1 million, a 1% increase, but organic revenues declined by 4%[10] - The company reported a decrease in operating earnings for the Residential segment in 2025, with a loss of $36,716 compared to a loss of $37,098 in 2024[29] - The Corporate segment showed an increase in adjusted EBITDA from $(16,234) in 2024 to $(13,384) in 2025, indicating improvement[29] Earnings and Profitability - GAAP diluted EPS for Q3 2025 was $1.24, down from $1.34 in the prior year[3] - Net earnings for the three months ended September 30, 2025, were $70,887,000, a decrease of 8.4% compared to $77,761,000 for the same period in 2024[22] - Adjusted net earnings for the three months ended September 30, 2025, increased to $80,812,000, up 9.4% from $73,769,000 in 2024[22] - Diluted earnings per share for the three months ended September 30, 2025, were $1.24, down from $1.34 in 2024[23] - Adjusted earnings per share for the nine months ended September 30, 2025, were $4.39, compared to $3.66 in 2024, reflecting a growth of 19.9%[23] - Operating earnings for 2025 amounted to $115,628, up from $125,902 in 2024, reflecting a decrease of approximately 8.2%[29] - Operating earnings for the nine months ended September 30, 2025, totaled $252,164, compared to $247,897 in 2024, showing an increase of about 1.3%[29] Cash Flow and Debt - Cash provided by operating activities for the three months ended September 30, 2025, was $126,362,000, an increase from $77,011,000 in 2024[27] - The company reported a total debt of $1,205,222,000 as of September 30, 2025, compared to $1,298,710,000 at the end of 2024[26] - The net cash used in investing activities for the three months ended September 30, 2025, was $79,504,000, compared to $26,861,000 in 2024[27] Assets and Goodwill - The company’s goodwill and intangible assets totaled $2,191,125,000 as of September 30, 2025, up from $2,110,866,000 at the end of 2024[26] - The company’s total assets increased to $4,385,356,000 as of September 30, 2025, from $4,194,852,000 at the end of 2024[26] Future Outlook - CEO Scott Patterson noted ongoing market challenges but expects solid growth and profitability for the year[5] - The company is focusing on market expansion and new product development as part of its growth strategy moving forward[29] - Future guidance indicates continued revenue growth, with expectations to exceed $1.5 billion in total revenues for 2026[29]