Bridgemarq Real Estate Services® Reports Annual Financial Results and Declares Monthly Dividend
TORONTO, March 13, 2026 /CNW/ - Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) reported its annual consolidated financial results and announced a monthly dividend to holders of the Company's restricted voting shares.
HIGHLIGHTS
- In 2025, the Company grew its network by more than 470 net real estate professionals, an increase of 2% while the Canadian industry contracted by 3%.
- Revenue for 2025 amounted to $407.4 million, compared to the $350.7 million generated in the prior year, due to the inclusion of the operating results of the acquired businesses from April 1, 2024, as well as fee increases and an increase in the number of agents in the network.
- The Company generated $10.6 million in Free Cash Flow in 2025, compared to $16.8 million in 2024.
- In the fourth quarter of 2025, the Company reached an agreement with its lender to extend the maturity of its credit facilities to December 31, 2031.
- The Board of Directors approved a dividend to shareholders of $0.1125 per Restricted Voting Share, payable on April 30, 2026, to shareholders of record on March 31, 2026.
FOURTH QUARTER OPERATING RESULTS
For the year ending December 31, 2025, revenues were $407.4 million, compared to $350.7 million generated in 2024. The increase is substantially due to the inclusion of the operating results of the acquired businesses from April 1, 2024. Franchise fees for the fourth quarter and the year increased due to the benefit of fee increases implemented at the start of 2025 and an increase in the number of REALTORS®.
In 2025, the Company generated net earnings of $7.3 million or $0.44 per fully diluted restricted voting share ("Share"), compared to a net loss of $10.3 million or ($1.09) per Share in 2024. In the fourth quarter, the Company generated net earnings of $8.4 million, compared to a net loss of $9.6 million during the same period in the prior year. The higher earnings for the year are primarily a result of an $11.3 million gain on the valuation of the Exchangeable Units, compared to a loss of $9.3 million in 2024. The fair valuation adjustment on the Exchangeable Units is directly related to changes in the market price of Bridgemarq's Restricted Voting Shares.
Cash flow from operations decreased by $7.2 million in 2025, compared to the prior year, primarily due to lower operating income, higher interest paid, and non-cash working capital changes. For the quarter, cash provided by operating activities amounted to $4.9 million, an increase from the $1.8 million recorded in the fourth quarter of 2024.
Adjusted Net Earnings, which measures earnings of the business before certain non-cash gains and losses on a fully diluted basis, amounted to $5.0 million in 2025, compared to $7.3 million in 2024. For the quarter, Adjusted Net Earnings amounted to a loss of $1.2 million, compared to a loss of $0.4 million in Q4 of 2024. The reduction in Adjusted Net Earnings is primarily due to higher commissions expense, higher operating expenses and higher income tax expense, partly offset by higher revenues, lower depreciation charges and lower interest expense on the Company's debt.
The Company generated $10.6 million in Free Cash Flow in 2025, compared to $16.8 million in 2024. In the fourth quarter, the Company generated $1.4 million, compared to $1.8 million in the same quarter the year prior.
"Our performance this year underscores the enduring strength of our brands and franchise networks. At a time when home resale transactions slowed and the number of nationally registered Realtors declined, Bridgemarq continued to grow its agent count," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc. "This growth reaffirms the enduring value that our brands, networks, services and technology provide to industry professionals today."
MARKET UPDATE
The Canadian residential real estate market declined by 16% in Q4 of 2025 compared to the same quarter in the prior year, and 6% for the full year compared to 2024.1 According to the Canadian Real Estate Association, unit sales recorded a 13% decrease in the fourth quarter compared to the same period in the prior year, while the national average selling price decreased 4%. On a quarter-over-quarter basis, the average selling price increased by 2% despite a decline in sales. For the full year, the national average selling price dipped 1% in 2025, and transaction volume declined by 4%.
Economic and geopolitical uncertainty weighed on homebuyer activity throughout 2025. Although borrowing costs continued to decline over the past year and inventory levels increased in most major regions, improving overall market balance, low consumer confidence continued to negatively impact sales activity. This softening was pronounced in the country's most expensive real estate markets, Greater Vancouver and the Greater Toronto Area.
"Market activity remains mixed from coast to coast. While market fundamentals remain strong – including lower interest rates, increased inventory and flat or declining prices – affordability challenges persist in select key markets, Toronto and Vancouver among them. We are navigating a period of persistent consumer uncertainty that is dampening overall demand. Despite these headwinds, our comprehensive service offerings are regarded as industry best-in-class and continue to be valued by our agents as critical elements to achieving their success in this challenging market," added Mr. Enright.
______________________________ | |
1 | CREA Canadian Housing Market Statistics |
CASH DIVIDEND
The Company declared a cash dividend of $0.1125 per Restricted Voting Share payable on April 30, 2026, to shareholders of record on March 31, 2026. Total dividends paid during 2025 amounted to $1.35 per Restricted Voting Share, consistent with 2024.
THE COMPANY NETWORK
As at December 31, 2025, the Franchise Network was comprised of 20,757 REALTORS® operating under 286 franchise agreements from 727 locations. The Company's corporately owned real estate brokerages operated 32 real estate locations in the Greater Toronto Area, Greater Vancouver and within the province of Quebec, with 2,413 sales representatives.
CONFERENCE CALL
Bridgemarq Real Estate Services Inc. will host a conference call on Friday, March 13, 2026, at 10 a.m. Eastern Daylight Time to discuss its fourth quarter financial results.
To access the call by telephone, please dial 1-888-699-1199 or 416-945-7677.
To access the call online, please visit https://app.webinar.net/8w0eKMlqZ1d
Please connect approximately ten minutes prior to the beginning of the call to ensure participation.
A transcript of the conference call will be available on the Company's website by Wednesday, March 18, 2026.
NON-GAAP FINANCIAL MEASURES
This news release makes reference to Free Cash Flow and Free Cash Flow per Share as well as Adjusted Net Earnings and Adjusted Net Earnings per Share, which are non-GAAP financial measures. These financial measures do not have any standardized meaning under International Financial Reporting Standards and, accordingly, may not be comparable to similar measures used by other companies.
Free Cash Flow represents operating income before deducting interest on leases, share-based compensation, depreciation and amortization and net impairment and write-off of intangible assets, minus current income tax expense, minus additions to property and equipment and intangible assets, minus repayment of contract transfer obligations, minus lease payments. Free Cash Flow per Share is calculated by dividing Free Cash Flow by the total number of Restricted Voting Shares outstanding, on a diluted basis. The Company believes that Free Cash Flow and Free Cash Flow per Share are useful supplemental measures of performance as they provide investors with an indication of the amount of cash flow generated by the Company which is available to holders of Restricted Voting Shares and Exchangeable Unitholders, subject to working capital and other investment requirements and principal debt repayments, if any.
Adjusted Net Earnings represents operating income minus income tax expense. Adjusted Net Earnings per Share is calculated by dividing Adjusted Net Earnings by the total number of Restricted Voting Shares outstanding, on a diluted basis. Management believes that Adjusted Net Earnings and Adjusted Net Earnings per Share are useful supplemental measures as they provide investors with an indication of the operating results of the Company on a fully-diluted basis (excluding certain non-cash or non-recurring items that do not directly impact the ongoing operations of the Company) as if all Exchangeable Units had been converted into Restricted Voting Shares at the beginning of the period presented.
Detailed reconciliations of these non-GAAP financial measures are included in the Company's MD&A.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information and other "forward-looking statements". Words such as "be", "believes", "enduring", "may not", "persist", "uncertainty", "will", and other expressions that are predictions of or could indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those indicated in the forward-looking statements include, but are not limited to: changes in the supply or demand of houses for sale in Canada or in any particular region within Canada, changes in the selling price for houses in Canada or any particular region within Canada, changes in the Company's cash flow, changes in the Company's strategy with respect to and/or ability to pay dividends, changes in the productivity of the Company's REALTORS® or the commissions they charge their customers, changes in government policy, laws or regulations which could reasonably affect the housing markets in Canada or the economy in general, changes to any products or services developed or offered by the Company, consumer response to any changes in the housing markets in Canada or any changes in government policy, laws or regulations, changes in general economic conditions (including interest rates, consumer confidence, inflation and other general economic factors or indicators), changes in global and regional economic growth (including international trade relations, the impact of tariffs, political uncertainty), changes in the demand for and prices of natural resources on local and international markets, the level of residential real estate transactions, competition from other real estate brokers or from discount and/or Internet-based real estate alternatives, the closing of existing real estate brokerage offices, other developments in the residential real estate brokerage industry or the Company that reduce the number of REALTORS® in the Company's network or revenue from the Company's network of REALTORS®, our ability to maintain brand equity through the use of trademarks, the methods used by shareholders or analysts to evaluate the value of the Company and its publicly-traded securities, natural disasters, war or acts of terrorism, changes in tax laws or regulations, and other risks detailed in the Company's annual information form, which is filed with securities commissions and posted on SEDAR+ at https://www.sedarplus.ca. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to management. Material factors or assumptions that were applied in drawing conclusions or making estimates set out in the forward-looking statements include, but are not limited to: anticipated economic conditions, anticipated impact of government policies, anticipated financial performance, anticipated market conditions, business prospects, the successful execution of the Company's business strategies and recent regulatory developments. The factors underlying current expectations are dynamic and subject to change. Although the forward-looking statements contained in this release are based upon what management believes are reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Bridgemarq Real Estate Services
Bridgemarq is a leading provider of services to residential real estate brokers and a network of more than 21,000 REALTORS® through its franchise network and corporately owned brokerages. We operate in Canada under the Royal LePage®, Proprio Direct®, Via Capitale®, Johnston & Daniel® and Les Immeubles Mont-Tremblant brands. For more information, go to www.bridgemarq.com.
BRIDGEMARQ® & DESIGN / BRIDGEMARQ REAL ESTATE SERVICES® and JOHNSTON & DANIEL® are registered trademarks of Residential Income Fund L.P. and are used under licence. ROYAL LEPAGE® is a registered trademark of Royal Bank of Canada and is used under licence. VIA CAPITALE® is a registered trademark of 9120 Real Estate Network L.P. and is used under licence. PROPRIO DIRECT® is a registered trademark of Proprio Direct Inc. and is used under licence. |
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. |
Bridgemarq Real Estate Services Inc. | ||
Balance Sheet Highlights | ||
(Unaudited) | ||
($ 000's) | December 31, | December 31, |
2025 | 20241 | |
Cash and cash equivalents | $ 5,752 | $ 9,088 |
Other current assets | 11,930 | 9,318 |
Total current assets | 17,682 | 18,406 |
Non-current assets | 94,784 | 103,572 |
Total assets | $ 112,466 | $ 121,978 |
Accounts payable and accrued liabilities | $ 18,596 | $ 16,837 |
Liabilities associated with assets held for sale | 223 | - |
Interest payable on Exchangeable Units | 909 | 909 |
Dividends payable to shareholders | 1,067 | 1,067 |
Deferred payments | 2,622 | - |
Lease liabilities | 2,893 | 3,000 |
Exchangeable Units | 82,606 | 93,916 |
Total current liabilities | 108,916 | 115,729 |
Debt facilities | 72,994 | 66,904 |
Other non-current liabilities | 16,334 | 19,590 |
Total Liabilities | 198,244 | 202,223 |
Shareholders' deficit | (85,778) | (80,245) |
Total Liabilities and Shareholders' deficit | $ 112,466 | $ 121,978 |
1Restated |
Interim Earnings Highlights | ||||
Three months | Three months | |||
(Unaudited) | ended | ended | Year ended | Year ended |
(in 000's) except per Share amounts | December 31, | December 31, | December 31, | December 31, |
2025 | 2024 | 2025 | 2024 | |
Gross Commission Income | $ 83,555 | $ 86,699 | $ 341,669 | $ 288,360 |
Franchise fees | 10,948 | 10,466 | 46,345 | 44,994 |
Other revenues | 3,988 | 4,333 | 19,361 | 17,316 |
Revenues | 98,491 | 101,498 | 407,375 | 350,670 |
Commissions | (80,209) | (83,411) | (325,095) | (274,907) |
Cost of other revenue | (596) | (714) | (6,366) | (5,150) |
Operating Expenses | (13,025) | (12,204) | (50,507) | (41,932) |
Interest on debt | (919) | (1,056) | (3,683) | (4,646) |
Interest on lease obligation | (237) | (303) | (1,117) | (936) |
Share-based compensation | (62) | - | (313) | - |
3,443 | 3,810 | 20,294 | 23,099 | |
Impairment and write-off of intangible assets | (1,491) | (854) | (1,638) | (2,629) |
Depreciation and amortization | (2,909) | (3,404) | (11,686) | (11,995) |
Interest on Exchangeable Units | (2,726) | (2,726) | (10,902) | (9,628) |
Gain (loss) on fair value of Exchangeable Units | 10,560 | (6,436) | 11,310 | (9,286) |
Gain on settlement of deferred payments | - | - | - | 1,224 |
Gain on settlement of contract transfer obligation | - | - | - | 99 |
Loss on termination of lease | - | (45) | - | (45) |
Loss on disposal of property and equipment | - | (12) | - | (12) |
Loss on disposal of capital assets | (139) | - | (139) | - |
Gain on deferred payments | 126 | - | 126 | - |
Gain on debt facility amendment | 1,833 | - | 1,833 | - |
Current income tax expense | (45) | (592) | (2,321) | (2,907) |
Deferred income tax expense (recovery) | (246) | 627 | 393 | 1,758 |
Net and comprehensive earnings (loss) | $ 8,406 | $ (9,632) | $ 7,270 | $ (10,322) |
Basic earnings (loss) per share | $ 0.89 | $ (1.02) | $ 0.77 | $ (1.09) |
Diluted earnings (loss) per share | $ 0.04 | $ (1.02) | $ 0.44 | $ (1.09) |
Cash Flow Highlights | ||||
(Unaudited) | ||||
($ 000's) | ||||
Cash provided by operating activities: | $ 4,923 | $ 1,803 | $ 9,910 | $ 17,099 |
Cash provided by (used in) investing activities: | (1,417) | (463) | (5,181) | 2,483 |
Cash used for financing activities: | (7,304) | (4,387) | (8,065) | (16,237) |
Net change in cash and cash equivalents | (3,798) | (3,047) | (3,336) | 3,345 |
Cash and cash equivalents, beginning of the period | 9,550 | 12,135 | 9,088 | 5,743 |
Cash and cash equivalents, end of the period | $ 5,752 | $ 9,088 | $ 5,752 | $ 9,088 |
Free Cash Flow Highlights | ||||
(Unaudited) | ||||
(in 000's) except per Share amounts | ||||
Free Cash Flow | $ 1,381 | $ 1,821 | $ 10,588 | $ 16,810 |
Free Cash Flow per Share | $ 0.09 | $ 0.12 | $ 0.67 | $ 1.18 |
Free Cash Flow Reconciled to Cash Flow from Operating Activities | ||||
Three months | Three months | Twelve months | Twelve months | |
(Unaudited) | ended | ended | ended | ended |
($ 000's) | December 31, | December 31, | December 31, | December 31, |
2025 | 2024 | 2025 | 2024 | |
Cash flow from operating activities | $ 4,923 | $ 1,803 | $ 9,910 | $ 17,099 |
Add (deduct): | ||||
Interest on Exchangeable Units | 2,726 | 2,726 | 10,902 | 9,628 |
Interest on Lease Obligation | 237 | 303 | 1,117 | 936 |
Deferred payments | (2,727) | - | (2,727) | - |
Share-based compensation | 62 | - | 313 | - |
Current Income tax expense | (45) | (592) | (2,321) | (2,907) |
Income taxes paid | 441 | 507 | 2,694 | 2,909 |
Changes in non-cash working capital | (1,671) | (1,028) | 204 | (4,284) |
Interest expense | (3,882) | (4,083) | (15,702) | (15,210) |
Interest paid | 3,848 | 3,758 | 15,632 | 13,447 |
Interest income | 631 | 378 | 1,557 | 1,526 |
Interest received | (631) | (378) | (1,557) | (1,526) |
Lease payments | (1,114) | (1,105) | (4,253) | (3,276) |
Additions to property and equipment and intangible assets | (1,417) | (463) | (5,181) | (1,528) |
Repayment of contract transfer obligation and other | - | (5) | - | (4) |
Free Cash Flow | $ 1,381 | $ 1,821 | $ 10,588 | $ 16,810 |
Adjusted Net Earnings Highlights | ||||
(Unaudited) | ||||
(in 000's) except per Share amounts | ||||
Adjusted net earnings (loss) | $ (1,248) | $ (413) | $ 5,042 | $ 7,326 |
Adjusted net earnings (loss) per share | $ (0.08) | $ (0.03) | $ 0.32 | $ 0.49 |
Three months | Three months | Twelve months | Twelve months | |
(Unaudited) | ended | ended | ended | ended |
($ 000's) | December 31, | December 31, | December 31, | December 31, |
2025 | 2024 | 2025 | 2024 | |
Gross Commission Income | $ 83,555 | $ 86,699 | $ 341,669 | $ 288,360 |
Franchise fees | 10,948 | 10,466 | 46,345 | 44,994 |
Other revenue | 3,988 | 4,333 | 19,361 | 17,316 |
Revenues | 98,491 | 101,498 | 407,375 | 350,670 |
Commissions | (80,209) | (83,411) | (325,095) | (274,907) |
Cost of other revenue | (596) | (714) | (6,366) | (5,150) |
Operating Expenses | (13,025) | (12,204) | (50,507) | (41,932) |
Interest on debt | (919) | (1,056) | (3,683) | (4,646) |
Interest on lease obligation | (237) | (303) | (1,117) | (936) |
Share-based compensation | (62) | - | (313) | - |
Depreciation, amortization and impairment | (4,400) | (4,258) | (13,324) | (14,624) |
Operating Income | (957) | (448) | 6,970 | 8,475 |
Current income tax expense | (45) | (592) | (2,321) | (2,907) |
Deferred income tax expense (recovery) | (246) | 627 | 393 | 1,758 |
Adjusted net earnings (loss) | $ (1,248) | $ (413) | $ 5,042 | $ 7,326 |
Three months | Three months | Twelve months | Twelve months | |
(Unaudited) | ended | ended | ended | ended |
($ 000's) | December 31, | December 31, | December 31, | December 31, |
2025 | 2024 | 2025 | 2024 | |
Net and comprehensive earnings (loss) | $ 8,406 | (9,632) | $ 7,270 | (10,322) |
Add (deduct): | ||||
Interest on Exchangeable Units | 2,726 | 2,726 | 10,902 | 9,628 |
Gain (loss) on fair value of Exchangeable Units | (10,560) | 6,436 | (11,310) | 9,286 |
Gain on debt facility amendment | (1,833) | - | (1,833) | - |
Gain on settlement of deferred payments | - | - | - | (1,224) |
Gain on settlement of contract transfer obligation | - | - | - | (99) |
Loss on termination of lease | - | 45 | - | 45 |
Loss on disposal of property and equipment | - | 12 | - | 12 |
Loss on disposal of capital assets | 139 | - | 139 | - |
Gain on deferred payments | (126) | - | (126) | - |
Adjusted net earnings (loss) | $ (1,248) | $ (413) | $ 5,042 | $ 7,326 |
SOURCE Bridgemarq Real Estate Services Inc.
For more information, please contact: Anne-Elise Cugliari Allegritti, Director of Investor Relations, Bridgemarq Real Estate Services, [email protected], Tel: 416-510-5333
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