Bridgemarq Real Estate Services Q1 2026 Earnings Report

Bridgemarq Real Estate Services EPS Results

• Actual EPS: C$0.12
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Bridgemarq Real Estate Services Revenue Results

• Actual Revenue: $69.87 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Bridgemarq Real Estate Services Announcement Details

• Quarter: Q1 2026
• Date: 5/13/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 13, 2026
• Conference Call Time: 3:00PM ET

Bridgemarq Real Estate Services (TSE:BRE) Inc is a Canada-based real estate services company. Its segment includes providing information and services to real estate agents and brokers in Canada through a portfolio of real estate services brands. It supplies realtors with information, tools, and services to assist them in providing and delivery of real estate sales services. The company's brands include Royal LePage and Via Capitale and Johnston and Daniel.

Bridgemarq Real Estate Services Q1 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Q1 revenue fell to CAD 69.9 million from CAD 78.0 million a year ago, reflecting a weaker Canadian housing market and a lower agent count after a large Royal LePage franchise did not renew.
• Negative Sentiment: The company reported a net loss of CAD 3.2 million versus net earnings of CAD 6.0 million in Q1 2025, primarily due to a CAD 2.6 million loss on exchangeable unit valuation compared with a gain last year.
• Neutral Sentiment: Adjusted net earnings declined to CAD 1.8 million from CAD 3.1 million, as lower revenue outweighed some benefit from reduced commission expenses. Free cash flow was CAD 1.9 million, down from CAD 4.1 million, partly because of higher capital expenditures.
• Positive Sentiment: Management highlighted progress on AI and digital initiatives, including more than 12 virtual training sessions for about 1,500 professionals and broader use of AI in CRM, lead generation, and website engagement across its brands.
• Neutral Sentiment: The company said the recruiting pipeline remains active and that industry consolidation is creating unsolicited inbound interest, while it continues to focus on agent recruiting, brokerage optimization, and debt reduction alongside a steady annualized dividend of CAD 1.35 per share.

Presentation

[Operator]

Good afternoon. My name is Sylvie, and I would like to welcome everyone to the Bridgemarq Real Estate Services Inc 2026 first quarter results conference call. Note that this call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. For those of you who dialed into the conference call, if you would like to ask a question, simply press star, then one on your telephone keypad. If you would like to withdraw your question, press star, then two. For those of you joining us via webcast, if you would like to ask a question, simply type it into the Q&A box on your screen. We will answer these questions following the dial-in questions after the presentation, time permitting.

[Operator]

I would like to introduce Ms. Anne-Elise Cugliari Allegritti, Director of Investor Relations at Bridgemarq Real Estate Services Inc. Ms. Allegritti, you may begin the conference.

[Anne-Elise Cugliari Allegritti, Director of Investor Relations at Bridgemarq Real Estate Services]

Thank you, Sylvie. Good afternoon, everyone, and thank you for being with us today on the call. I am joined in the room by our Chief Executive Officer, Spencer Enright, and our Chief Financial Officer, Wallace Wang. They will begin with a brief overview of our company's first quarter results. Wallace will then discuss our financial results in more detail, and Spencer will conclude by providing some remarks on the operational highlights, company updates and market developments. Following their remarks, Spencer and Wallace will be happy to take your questions. Please note only analyst questions will be permitted on the dial-in line. All others who wish to submit a question are welcome to do so via the Q&A feature on the webcast. You can find a link to the webcast on the events page of our website.

[Anne-Elise Cugliari Allegritti, Director of Investor Relations at Bridgemarq Real Estate Services]

I want to remind everyone that some of the remarks expressed during this call may contain forward-looking statements. You should not place reliance on these forward-looking statements because they involve known and unknown risks and uncertainties that may cause the actual results and performance of the company to differ materially from the anticipated future results expressed or implied by such statements. I encourage everyone to review the cautionary language found in our news release and on all of our regulatory filings. These can be found on our website at bridgemarq.com and on SEDAR+. I will now pass the call over to Spencer Enright to give a brief overview of our first quarter results.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Thanks very much, Anne-Elise Allegritti, and good afternoon. In the first quarter, Bridgemarq continued to advance its leadership position in the Canadian real estate industry, supported by a strategic investment in AI, a strong and differentiated brand presence, and an ongoing commitment to empowering professionals across our network. The strength of our diverse business model, paired with a clear focus on innovation and adaptability, positions us to capitalize on new opportunities and drive continued growth in the months ahead, even as we navigate a dynamic and evolving macroeconomic landscape. Revenue for Q1 amounted to CAD 69.9 million, compared to CAD 78 million generated in the first quarter of 2025, which is reflective of weakness in the Canadian real estate market and a decrease in the number of realtors driven by the non-renewal of one of our large franchises within the Royal LePage network.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

At its meeting yesterday, our board of directors approved a dividend of CAD 0.1125 per share, payable on June 30th to shareholders of record on May 29th. This indicates an annualized dividend of CAD 1.35 per share, which is consistent with 2025. With that, I'll turn the call over to Wallace Wang for a closer look at our first quarter financial performance.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

Thank you, Spencer, and good afternoon, everyone. As Spencer mentioned, revenue during the first three months of the year amounted to CAD 69.9 million, a decrease over the CAD 78 million generated in the first quarter of 2025. This was primarily due to a lower agent count and softer real estate market conditions. The number of realtors in our network currently sits at 20,136. This includes more than 2,300 agents operating within the company's corporately owned real estate brokerages in the Greater Toronto Area, the Greater Vancouver Area, and within the province of Quebec. In the first quarter, the company generated a net loss of CAD 3.2 million compared to net earnings of CAD 6.0 million in 2025.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

The lower earnings are largely driven by a loss of CAD 2.6 million on the valuation of the exchangeable units in Q1, compared to a gain of CAD 5.7 million during the same quarter in 2025. In the first quarter, adjusted net earnings, which considers our operating earnings before certain non-cash, non-operating adjustments and payments to holders of the exchangeable units, amounted to CAD 1.8 million, down from CAD 3.1 million in the prior year. The reduction in adjusted net earnings is primarily due to the lower revenue, partly offset by lower commission expenses. Cash provided by operating activities amounted to CAD 0.3 million in the first quarter of 2026, compared to cash used in the operating activities of CAD 1.6 million in the same quarter last year.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

This improvement was primarily due to the deferral of interest payments related to distributions on the exchangeable units at a lower income tax rate, partly offset by lower revenues. The company generated CAD 1.9 million in free cash flow during the quarter, down from CAD 4.1 million during the same quarter last year. This is primarily due to lower operating income and higher capital expenditures during the quarter, some of which were one-time in nature.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

In terms of market data, the Canadian residential real estate market closed the first quarter of 2026 at CAD 50 billion, an 8% decline from 2025, driven by a 1% decline in the average selling price and a 7% decline in unit sales. In the first quarter, the Greater Toronto Area contracted by 13% year-over-year compared to the same period last year, driven by a 7% decline in both the average home prices and unit sales. The Greater Vancouver Area also contracted during the first quarter, with total transaction dollar volume decreasing 14% year-over-year, as selling prices and unit sales declined by 2% and 13% respectively. By contrast, in the province of Quebec, the residential real estate market recorded a modest 3% gain in Q1 compared to the previous year.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

This reflects a 6% increase in the average selling price, offset by a 3% decline in unit sales. Spencer will now provide additional insights into the market and an update on our operations.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Thanks, Wallace. As Wallace stated, market activity was mixed across the country last quarter, with Toronto and Vancouver showing continued softness. We did see some notable highlights in other regions, such as Quebec. Persistent consumer hesitancy, driven in part by housing affordability hurdles in large urban markets, combined with uncertainty in key economic factors such as interest rates and the economy in general, contributed to a subdued start in the 2026 spring housing market. In March, Canada's Consumer Price Index increased 2.4% year-over-year, up from the 1.8% recorded in February. This increase was driven largely by higher gasoline prices. The Bank of Canada's next rate decision is scheduled for June. It is uncertain what rate changes might take place, if any, given competing influences on the inflation index, including energy price impacts and the result of upcoming trade agreement negotiations.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Now I'd like to give you a few updates on the company's operations. First quarter marked significant progress across several strategic initiatives for us, with continued momentum across our core growth and innovation priorities. We saw meaningful progress in the adoption of AI across our network, with more than 12 virtual training sessions delivered to approximately 1,500 professionals. This high level of engagement reflects our ongoing commitment to equipping agents with productivity-enhancing tools that drive efficiency, scalability, and improved client outcomes. We also established our inaugural National Commercial Advisory Council, a strategic leadership group designed to generate new business opportunities within our Royal LePage Commercial real estate network of professionals. This initiative enhances our ability to respond to evolving market dynamics and support growth in the commercial segment.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

In the Proprio Direct network, we continue to advance our digital strategy with the rollout of a cloud-based customer experience platform, integrating marketing tools, lead management, and CRM capabilities. In parallel, the completion of a new learning management system has established a more structured and scalable training environment, supporting consistent professional development and long-term network performance. Our Via Capitale brand strengthens its market presence through a comprehensive digital advertising campaign, driving significant online engagement and expanding its reach across key social media platforms. These efforts are enhancing brand visibility, supporting agent recruitment, and reinforcing our competitive positioning in the province. Collectively, these initiatives are strengthening the foundation of our industry-leading brands, enhancing operational efficiency, and positioning the company to continue to capture new opportunities for growth while continuing to deliver long-term value for our shareholders.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

As we look ahead for the rest of the year, I am optimistic we will realize meaningful revenue growth across our total business, first through the conversion of a number of exciting franchising prospects in our sales funnel. Additionally, we continue to focus on revenue growth through agent recruiting while optimizing our brokerage operations to improve EBITDA margins. With that, I'll turn the call back to our operator and open up the call to questions.

[Operator]

Thank you, sir. Ladies and gentlemen, for those of you dialed into the conference call, as stated, you will need to press star followed by one on your telephone keypad. For those joining via the webcast, if you would like to ask a question, simply type it into the Q&A box on your screen. Thank you. Your first phone question will be from Jeff Fenwick at ATB Cormark.

[Jeff Fenwick, Analyst at ATB Cormark]

Hi, good afternoon, everyone. I wanted to start my questioning on the tech product that you've been rolling out to the brokers there, and just hoping to get a little more color on that. You mentioned AI. Are these solutions that you've been developing in-house and are rolling out? Then maybe related to that, you mentioned Proprio had had some things specific to it as well. I'm wondering if that's something that ends up getting shared across the rest of the banners within Bridgemarq?

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Yeah, there's a couple dimensions to that, Jeff. Thanks for the call and the question. First of all, with the rlpSPHERE product that we offer, which is a comprehensive CRM-based solution to our network of Royal LePager, we've embedded in that some intelligence that helps them be more productive with their marketing and as well as their customer management, and get more insights on the behavior of the clients that they're servicing.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

In addition to that, you know, across all of our banners, we're doing similar things, where we're empowering the agents to be more productive with the workflow that they have, in a more intelligent fashion. With the direct to consumer interactions we have with, on our multiple websites, we're also engaging with Canadians in more intelligent ways with kind of more behind-the-scenes AI intelligent software powering our websites. Also looking at lead generation, not just through traditional SEO, SEM-type of mechanisms, but also through, you know, the vehicles like ChatGPT, where actually we're getting more and more leads from consumers, as opposed to traditional, website-based search engines. There's a whole host of things.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

A lot of it's driven by productivity, but also, revenue monetization with lead management.

[Jeff Fenwick, Analyst at ATB Cormark]

Okay. That's very helpful. Thank you. You made some remarks there at the end of your comments with respect to, I guess, a full recruiting funnel. I know you had the one large group that didn't renew and that created a step-down. How should we think about, you know, the prospects over the year of kind of rebuilding that base of realtors and continuing to push forward here? What's the recruiting environment look like?

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Yeah. I think when we look at any individual years or quarter by quarter, a lot of that has variability to it in terms of the number of agents we might bring into the network through new franchising. We've talked about this in the past, Jeff. I think, you know, as you model it, you might wanna base it on historical norms of what we had through franchising. I'm optimistic with what we've got in terms of ongoing conversations with prospects all across the country. There's quite a few, you know, franchises from competing brands that are up for renewal respectively within their frameworks that are engaging with us and have reached out to us. That happens every year.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

One year after another, depending on the cycles of their renewal of existing contracts, we might see more, we might see less. This year could be one of those years where we see a bit more. Again, each one is a personal decision. And there's probability against each one, you know, so they're not all guaranteed. This year could shape up to be a pretty robust one. Again, within kind of what you would have seen historically, in the, in the, you know, the kind of variability year by year that we would have seen before.

[Jeff Fenwick, Analyst at ATB Cormark]

Okay, that's helpful. Maybe you could put it in the context of the larger competitive market out there. Looks like, you know, industry consolidation is continuing. We saw The Real Brokerage Inc. announcing the acquisition of RE/MAX. I think in Canada, you had myAbode invest into Sutton Group as a fintech sort of partnership there. What's your read on what's happening in the industry here, and how Bridgemarq is positioned within that today?

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Well, I think we're positioned pretty well for a couple reasons. One, you know, competitors that are undergoing significant transformational change has uncertainty attached to it. Actually, since some of those announcements, we've seen an uptick in the number of inbound, unsolicited calls to us from those competitive franchises asking for a conversation. You know, that uncertainty creates a lot of disturbance with the groups. On our end, we're as stable as we have been for over 110 years. We've been a franchising model since the early 1990s, we represent a stable home for all of our, you know, proprietor operators that are part of our network.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

You know, on that end, it's created opportunity for us to have new conversations that, you know, maybe we would have been trying in the past without a lot of success. We're not sure where that'll go in terms of short-term, you know, movement. Certainly over the next, you know, balance of this year, in the next year, you know, as people's, you know, contracts come up for renewal on their end, they're reaching out to us now wanting to understand more about what we offer. That's exciting, and I think that that creates opportunity for us.

[Jeff Fenwick, Analyst at ATB Cormark]

Okay. Thanks for that. Maybe one on just the financial dynamics in the context of a market where activity has been depressed, still deferring, you know, dividends with your largest shareholder for now. When I look at leverage levels in the business, they are kind of steadily climbing higher here. Not clear to me that, you know, the end of the one year deferral period, which I believe was one year, that you might not need to extend it. We start to get into a situation where leverage is maybe getting a little uncomfortable for you. You know, how do you characterize how you want to navigate the business here over the next kind of six to 12 months in that perspective?

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

Yeah. Jeff, maybe I'll answer it in two parts. One is with respect to dividends, and the other one, is with respect to the leverage. I would say on the dividend front, we are obviously, again, monitoring the situation very closely. We're working with the board, and these decisions are made, you know, on a monthly basis by the board. We're not able to provide any forward guidance on that. You know, we are watching it, the situation very closely. From a leverage standpoint, I'll say two things. one is, you know, I'm sure, you know, as you follow our financials, Q1 is typically a, you know, a quarter with a lot of working capital outflows. You know, namely the annual employee bonus.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

Generally speaking, we do expect to draw on our operating lines to fund those working capitals. As the season starts, the spring market starts, we're expecting to see more cash inflows than we're expecting to pay down some of that debt. Obviously, having said that, this leverage, debt reduction is gonna be one of our capital allocation priorities that we're gonna be looking at in conjunction with everything else that's going on within the business, including dividends, including all of these additional accretive CapEx opportunities that we're looking at. We'll manage it that way.

[Jeff Fenwick, Analyst at ATB Cormark]

Okay, great. Thanks for those answers. That's all I had.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

Great. Thanks, Jeff.

[Operator]

At this time, we have no other phone questions registered.

[Wallace Wang, CFO at Bridgemarq Real Estate Services]

There are currently also no questions on the webcast.

[Spencer Enright, CEO at Bridgemarq Real Estate Services]

All right then. Thanks, Wallace. I'd like to thank everyone once again for joining us on today's call. We look forward to speaking with you again after we release our second quarter results in August.

[Operator]

Thank you, sir. Ladies and gentlemen, this does conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your lines.

Participants

Executives

• Anne-Elise Cugliari Allegritti, Director of Investor Relations
• Spencer Enright, CEO
• Wallace Wang, CFO

Analysts

• Jeff Fenwick, Analyst at ATB Cormark