Considering a Growth Stock? Here are 3 Reasons Why FirstService (FSV) is a Strong Option
Growth Investing Overview: Growth investors seek stocks with above-average financial growth, but identifying stocks that can sustain this growth is challenging due to inherent volatility and risk.
FirstService as a Growth Stock: FirstService (FSV) is highlighted as a strong growth stock, boasting a favorable Growth Score and a Zacks Rank of #2, with projected earnings growth of 17.4% this year, significantly outpacing the industry average.
Cash Flow and Earnings Trends: The company shows impressive cash flow growth at 17% year-over-year and a historical annualized cash flow growth rate of 31%, alongside positive trends in earnings estimate revisions, indicating strong future performance.
Investment Recommendations: Zacks experts recommend FirstService as a promising investment, suggesting it could outperform the market, and encourage investors to consider their top stock picks for significant returns in the near future.
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- Earnings Growth: FirstService Corp. reported fourth-quarter earnings of $50.349 million, translating to $0.85 per share, which marks a significant increase from last year's $50.179 million and $0.71 per share, indicating robust market performance.
- Adjusted Earnings: Excluding items, the company posted adjusted earnings of $62.566 million or $1.37 per share, showcasing strong profitability in its core operations and further boosting investor confidence.
- Revenue Increase: The revenue for the fourth quarter rose by 1.3% to $1.383 billion compared to $1.365 billion last year, demonstrating the company's ability to maintain stable revenue growth in a competitive market environment.
- Financial Health: The overall improvement in financial performance not only enhances the company's profitability but also provides a solid foundation for future investments and expansion, strengthening its competitive position in the industry.
- Earnings Beat: FirstService reported a Q4 Non-GAAP EPS of $1.37, exceeding expectations by $0.05, which reflects the company's ongoing profitability and strengthens investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $1.38 billion, a 0.7% year-over-year increase, surpassing expectations by $20 million, indicating its ability to maintain stable revenue growth in a competitive market.
- Stable Adjusted EBITDA: Adjusted EBITDA stood at $137.6 million, consistent with Q4 2024, demonstrating effective cost control and operational efficiency, which helps sustain profitability.
- Positive Market Reaction: Given the earnings report exceeded expectations, FirstService's stock price is likely to experience a positive impact, further attracting investor interest and enhancing market confidence in its future growth potential.
- Quarterly Revenue Growth: FirstService Corporation reported fourth-quarter revenues of $1.38 billion for 2025, reflecting a 1% year-over-year increase, indicating stable market performance that is likely to boost investor confidence.
- Annual Performance Improvement: The company achieved total revenues of $5.50 billion for the year ended December 31, 2025, a 5% increase from the previous year, primarily driven by recent tuck-under acquisitions, showcasing successful market share expansion strategies.
- Adjusted EBITDA Growth: For 2025, adjusted EBITDA reached $562.8 million, up 10% year-over-year, highlighting ongoing improvements in operational efficiency and cost control that enhance profitability.
- Significant EPS Increase: The adjusted earnings per share for 2025 was $5.75, a 15% increase compared to the prior year, which not only boosts shareholder returns but also lays a solid foundation for future investments.

- Dividend Increase: FirstService Corporation has declared a quarterly dividend of $0.305 per share, marking a 10.9% increase from the previous dividend of $0.275, which underscores the company's ongoing profitability and commitment to shareholder returns.
- Yield Information: The forward yield of this dividend stands at 0.59%, reflecting the company's stability and attractiveness in the current market environment, potentially drawing more investor interest.
- Payment Schedule: The dividend is payable on April 7, with a record date of March 31 and an ex-dividend date also set for March 31, providing shareholders with a clear timeline for investment decisions.
- Financial Transparency: FirstService Corporation offers detailed dividend scorecards and historical earnings data, enhancing investor confidence in the company's financial health and further stimulating market interest in its stock.
- Dividend Increase: FirstService Corporation has announced an increase in its quarterly cash dividend from $0.275 to $0.305 per share, representing an 11% growth that underscores the company's ongoing profitability and cash flow growth, thereby enhancing shareholder return confidence.
- Annual Dividend Growth: The annualized dividend rises from $1.10 to $1.22, reflecting a consistent annual growth of at least 10% over the past decade, indicating sustainable growth on a solid financial foundation.
- Financial Flexibility: By maintaining a conservative balance sheet, FirstService demonstrates strong financial flexibility, allowing for continued dividend increases and additional returns to shareholders, further solidifying its market position.
- Industry Leadership: As a leader in the North American property services sector, FirstService generates approximately $5.5 billion in annual revenue and employs over 30,000 people, consistently creating value for shareholders through its residential community management and branded service platforms.
- Community Expansion: FirstService Residential has added several premier active adult communities across Florida, Georgia, and Tennessee, including Cresswind DeLand and Del Webb River Reserve, marking significant growth in the 55+ market segment.
- Lifestyle-Driven Approach: The company emphasizes the importance of lifestyle programming in active adult communities, enhancing residents' quality of life and community culture while strengthening long-term value through opportunities for connection, learning, and wellness.
- Operational Expertise: FirstService Residential's property management teams leverage lifestyle and hospitality expertise to deliver unique branded experiences, ensuring competitiveness in diverse markets and meeting residents' demands for resort-style amenities.
- Health as a Priority: The company positions wellness as a core pillar, implementing structured programs and amenity coordination to maintain vibrancy and health in active adult communities, addressing residents' focus on mental, emotional health, and meaningful social connections.






