Bridgemarq Real Estate Services TSE: BRE reported lower first-quarter revenue and adjusted earnings as softer Canadian housing market conditions and a reduced agent count weighed on results, while management highlighted artificial intelligence initiatives, franchise recruiting opportunities and continued dividend payments.
Chief Executive Officer Spencer Enright said the company continued to advance its position in Canadian real estate through “a strategic investment in AI, a strong and differentiated brand presence, and an ongoing commitment to empowering professionals across our network.” He said the company’s business model and focus on innovation position it to pursue growth opportunities despite “a dynamic and evolving macroeconomic landscape.”
Revenue Falls as Agent Count Declines
Revenue for the first quarter was CAD 69.9 million, down from CAD 78.0 million in the first quarter of 2025. Enright said the decline reflected weakness in the Canadian real estate market and a decrease in the number of realtors, driven by the non-renewal of one large franchise within the Royal LePage network.
Chief Financial Officer Wallace Wang said Bridgemarq’s network currently has 20,136 realtors, including 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 Quebec.
The company reported a net loss of CAD 3.2 million for the quarter, compared with net earnings of CAD 6.0 million a year earlier. Wang attributed the decrease largely to a CAD 2.6 million loss on the valuation of exchangeable units in the quarter, compared with a CAD 5.7 million gain in the same period last year.
Adjusted net earnings, which Wang said reflects operating earnings before certain non-cash, non-operating adjustments and payments to holders of exchangeable units, were CAD 1.8 million, compared with CAD 3.1 million in the prior-year quarter. The decline was primarily due to lower revenue, partly offset by lower commission expenses.
Cash provided by operating activities was CAD 0.3 million, compared with cash used in operating activities of CAD 1.6 million in the first quarter of 2025. Wang said the improvement was mainly due to the deferral of interest payments related to distributions on exchangeable units and a lower income tax rate, partly offset by lower revenue. Free cash flow fell to CAD 1.9 million from CAD 4.1 million, reflecting lower operating income and higher capital expenditures, some of which Wang described as one-time in nature.
The company’s board approved a dividend of CAD 0.1125 per share, payable June 30 to shareholders of record on May 29. Enright said the payout represents an annualized dividend of CAD 1.35 per share, consistent with 2025.
Canadian Housing Market Remains Mixed
Wang said the Canadian residential real estate market ended the first quarter at CAD 50 billion in transaction dollar volume, an 8% decline from the prior year. The decrease was driven by a 1% drop in average selling price and a 7% decline in unit sales.
In the Greater Toronto Area, the market contracted 13% year over year, reflecting a 7% decline in both average home prices and unit sales.
In the Greater Vancouver Area, transaction dollar volume fell 14%, with selling prices down 2% and unit sales down 13%.
In Quebec, the residential real estate market rose 3%, as a 6% increase in average selling price offset a 3% decline in unit sales.
Enright said activity was mixed across the country, with continued softness in Toronto and Vancouver and “notable highlights” in other regions such as Quebec. He cited persistent consumer hesitancy, housing affordability challenges in large urban markets and uncertainty around interest rates and the broader economy as factors behind a subdued start to the spring housing market.
Enright also noted that Canada’s Consumer Price Index increased 2.4% year over year in March, up from 1.8% in February, largely due to higher gasoline prices. He said the Bank of Canada’s next rate decision is scheduled for June and that any potential rate change remains uncertain given competing influences on inflation, including energy prices and trade agreement negotiations.
AI, Digital Tools and Brand Initiatives Advance
Management emphasized several operational initiatives aimed at improving agent productivity and strengthening the company’s brands. Enright said Bridgemarq delivered more than 12 virtual AI training sessions to approximately 1,500 professionals during the quarter.
In response to an analyst question from Jeff Fenwick of ATB Cormark, Enright said the company has embedded intelligence into its rlpSPHERE product, a CRM-based solution offered to the Royal LePage network. He said the tools are designed to help agents be more productive in marketing and customer management, and to provide better insight into client behavior.
Enright said similar efforts are underway across all of Bridgemarq’s banners, including using AI-driven software behind the company’s consumer-facing websites. He also said the company is seeing lead generation opportunities through tools such as ChatGPT, in addition to traditional search engine optimization and search engine marketing channels.
Within Proprio Direct, Enright said the company continued the rollout of a cloud-based customer experience platform integrating marketing tools, lead management and CRM capabilities. He also said the completion of a new learning management system created a more structured and scalable training environment.
For Via Capitale, Enright said a digital advertising campaign is increasing online engagement and expanding the brand’s reach across social media platforms, supporting agent recruitment and strengthening its competitive position in Quebec.
Management Sees Recruiting Opportunities Amid Industry Change
Enright said Bridgemarq is focused on revenue growth through converting franchise prospects, recruiting agents and optimizing brokerage operations to improve EBITDA margins. Asked about the recruiting environment following the non-renewal of a large franchise, he said franchise additions can vary by quarter and year, but management is optimistic about ongoing discussions with prospects across the country.
Enright also addressed industry consolidation, saying competitors undergoing “significant transformational change” can create uncertainty. He said Bridgemarq has seen an uptick in unsolicited inbound calls from competitive franchises following recent industry announcements, adding that the company’s long operating history and franchising model position it as a stable alternative for owner-operators.
Wang, responding to a question about leverage and dividend deferrals with the company’s largest shareholder, said dividend decisions are made monthly by the board and that management is monitoring the situation closely. He said the first quarter typically includes working capital outflows, including annual employee bonuses, and that the company expects stronger cash inflows as the spring market progresses. Wang said debt reduction will be one of Bridgemarq’s capital allocation priorities, alongside dividends and capital expenditure opportunities.
About Bridgemarq Real Estate Services TSE: BRE
Bridgemarq Real Estate Services 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.
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