In 1986, The Parachute Club released their third album, "Small Victories". The album included the group's third and final top 40 hit, "Love is Fire", featuring Segato singing a duet with John Oates of Hall & Oates. Oates produced the single, as well as several other "Small Victories" tracks; The Parachute Club and Mike Jones were credited as producers on the remainder of the album. In 1987, the group's video of their single, "Love Is Fire" received the Juno Award for Video of the Year. Julie Masi left the band after their Canadian tour in support of the album, and was replaced on a session basis for live dates by percussionist/singer Rebecca Jenkins.