FirstService Corp. (FSV) Endures Tough Q2 as Roofing and Closet Segments Stay Soft

FirstService Corp. (FSV) Endures Tough Q2 as Roofing and Closet Segments Stay Soft

Wed, September 23, 2026 at 5:35 PM GMT+3 3 min read

Osterweis Capital Management, an investment management firm, released its Q2 2026 investor update for its "Osterweis Opportunity Fund". You can download a copy of the letter here. The fund returned 35.34% in the quarter, significantly outperforming the Russell 2000 Growth Index's 25.71% gain. Robust corporate profits, AI investment, easing oil-shock concerns, strong labor markets, and consumer spending drove the rally. Security selection played a key role in outperformance, especially in Technology, Industrials, Health Care, and Consumer Discretionary. Conversely, smaller sectors like Consumer Staples, Financials, and Real Estate lagged but had minimal impact overall. Looking ahead, while AI is expected to continue influencing economic growth and market performance, a potential consolidation phase for AI-related stocks is anticipated. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is a Canadian real estate services company that offers residential property management and other essential property services. On September 22, 2026, FirstService Corporation (NASDAQ:FSV) closed at $133.34 per share. Over the past month, FirstService Corporation (NASDAQ:FSV) declined 7.08%, but its shares are down 30.21% over the past year. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $5.82 billion, and its stock has traded within a 52-week range of $119.41 to $194.75.

Osterweis Opportunity Fund stated the following regarding FirstService Corporation (NASDAQ:FSV) in its Q2 2026 investor letter:

"On the downside, FirstService Corporation (NASDAQ:FSV), a provider of residential and commercial property services, had a tough Q2 as both its roofing and residential closet businesses remained soft. This has weighed on organic growth for several quarters, but we expect it to pick up in the second half of the year, driven by not only easier comps but a normalization in its storm restoration business (2025 had limited weather activity). Despite the company's soft Q2 results, we are maintaining our position, as revenues should accelerate and its valuation is at the low end of its ten-year history. We also believe it will be a favorable area to allocate capital if the AI trade begins to cool a little."

FirstService Corporation (NASDAQ:FSV) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 25 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the second quarter, down from 27 in the previous quarter. While we acknowledge the potential of FirstService Corporation (NASDAQ:FSV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed FirstService Corporation (NASDAQ:FSV) and shared Conestoga Capital Advisors' optimistic outlook on the company's long-term runway. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.