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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.
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| Condensed Consolidated Balance Sheets | |||||
| (in thousands of US dollars) | |||||
| (unaudited) | June 30, 2026 | December 31, 2025 | |||
| Assets | |||||
| Cash and cash equivalents | $ | 173,351 | $ | 154,425 | |
| Restricted cash | 27,787 | 25,665 | |||
| Accounts receivable | 903,299 | 922,106 | |||
| Prepaid and other current assets | 423,273 | 401,584 | |||
| Current assets | 1,527,710 | 1,503,780 | |||
| Other non-current assets | 28,966 | 29,474 | |||
| Deferred income tax | 5,116 | 4,979 | |||
| Fixed assets | 293,947 | 289,718 | |||
| Operating lease right-of-use assets | 276,968 | 269,573 | |||
| Goodwill and intangible assets | 2,229,675 | 2,186,189 | |||
| Total assets | $ | 4,362,382 | $ | 4,283,713 | |
| Liabilities and shareholders’ equity | |||||
| Accounts payable and accrued liabilities | $ | 570,600 | $ | 547,065 | |
| Unearned revenues | 239,423 | 209,226 | |||
| Other current liabilities | 30,471 | 53,097 | |||
| Operating lease liabilities – current | 59,978 | 59,113 | |||
| Long-term debt – current | 13,636 | 13,649 | |||
| Current liabilities | 914,108 | 882,150 | |||
| Long-term debt – non-current | 1,236,731 | 1,069,027 | |||
| Operating lease liabilities – non-current | 248,953 | 242,593 | |||
| Other liabilities | 123,851 | 124,762 | |||
| Deferred income tax | 113,214 | 102,991 | |||
| Redeemable non-controlling interests | 507,438 | 486,191 | |||
| Shareholders’ equity | 1,218,087 | 1,375,999 | |||
| Total liabilities and equity | $ | 4,362,382 | $ | 4,283,713 | |
| Supplemental balance sheet information | |||||
| Total debt | $ | 1,250,367 | $ | 1,082,676 | |
| Total debt, net of cash | 1,077,016 | 928,251 | |||
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| Consolidated Statements of Cash Flows | |||||||||||||||
| (in thousands of US dollars) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| June 30 | June 30 | ||||||||||||||
| (unaudited) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Cash provided by (used in) | |||||||||||||||
| Operating activities | |||||||||||||||
| Net earnings | $ | 60,930 | $ | 55,431 | $ | 84,553 | $ | 69,511 | |||||||
| Items not affecting cash: | |||||||||||||||
| Depreciation and amortization | 50,484 | 45,632 | 98,550 | 89,808 | |||||||||||
| Deferred income tax | (152 | ) | (771 | ) | (139 | ) | (1,590 | ) | |||||||
| Other | 794 | 11,153 | 8,052 | 29,352 | |||||||||||
| 112,056 | 111,445 | 191,016 | 187,081 | ||||||||||||
| Changes in non-cash working capital | |||||||||||||||
| Accounts receivable | (17,641 | ) | (24,815 | ) | 24,316 | (14,821 | ) | ||||||||
| Payables and accruals | 20,056 | 56,573 | 6,317 | (13,163 | ) | ||||||||||
| Other | 15,296 | 19,631 | (3,662 | ) | 44,987 | ||||||||||
| Net cash provided by operating activities | 129,767 | 162,834 | 217,987 | 204,084 | |||||||||||
| Investing activities | |||||||||||||||
| Acquisition of businesses, net of cash acquired | (42,044 | ) | (43,280 | ) | (48,423 | ) | (51,916 | ) | |||||||
| Purchases of fixed assets | (31,209 | ) | (33,375 | ) | (59,644 | ) | (62,938 | ) | |||||||
| Other investing activities | 2,722 | (1,624 | ) | 3,479 | (8,670 | ) | |||||||||
| Net cash used in investing activities | (70,531 | ) | (78,279 | ) | (104,588 | ) | (123,524 | ) | |||||||
| Financing activities | |||||||||||||||
| Increase (decrease) in long-term debt, net | 195,086 | (67,833 | ) | 168,204 | (54,827 | ) | |||||||||
| Purchases of non-controlling interests, net | (582 | ) | (14,850 | ) | (10,216 | ) | (29,346 | ) | |||||||
| Dividends paid to common shareholders | (14,024 | ) | (12,497 | ) | (26,598 | ) | (23,814 | ) | |||||||
| Distributions paid to non-controlling interests | (3,133 | ) | (5,825 | ) | (13,571 | ) | (11,602 | ) | |||||||
| Repurchases of common shares | (248,417 | ) | – | (248,417 | ) | – | |||||||||
| Other financing activities | (834 | ) | 1,720 | 37,542 | 20,906 | ||||||||||
| Net cash used in financing activities | (71,904 | ) | (99,285 | ) | (93,056 | ) | (98,683 | ) | |||||||
| Effect of exchange rate changes on cash | 526 | (678 | ) | 705 | (693 | ) | |||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (12,142 | ) | (15,408 | ) | 21,048 | (18,816 | ) | ||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 213,280 | 240,278 | 180,090 | 243,686 | |||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 201,138 | $ | 224,870 | $ | 201,138 | $ | 224,870 | |||||||
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| Segmented Results | ||||||||||||
| (in thousands of US dollars) | ||||||||||||
| FirstService | FirstService | |||||||||||
| (unaudited) | Residential | Brands | Corporate | Consolidated | ||||||||
| Three months ended June 30 | ||||||||||||
| 2026 | ||||||||||||
| Revenues | $ | 616,811 | $ | 832,431 | $ | – | $ | 1,449,242 | ||||
| Adjusted EBITDA | 69,350 | 95,940 | (3,595 | ) | 161,695 | |||||||
| Operating earnings | 52,964 | 58,181 | (11,471 | ) | 99,674 | |||||||
| 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 | |||||||
| FirstService | FirstService | |||||||||||
| Residential | Brands | Corporate | Consolidated | |||||||||
| Six months ended June 30 | ||||||||||||
| 2026 | ||||||||||||
| Revenues | $ | 1,162,531 | $ | 1,603,798 | $ | – | $ | 2,766,329 | ||||
| Adjusted EBITDA | 115,271 | 159,956 | (7,829 | ) | 267,398 | |||||||
| Operating earnings | 85,063 | 86,575 | (25,302 | ) | 146,336 | |||||||
| 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 | |||||||
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COMPANY CONTACTS:
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D. Scott Patterson
Chief Executive Officer
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Jeremy Rakusin
Chief Financial Officer
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(416) 960-9566
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English (US)