Bridgemarq Real Estate Services® Reports Third Quarter Financial Results
TORONTO, Nov. 12, 2026 /CNW/ -- Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) today released its third quarter consolidated financial results.
HIGHLIGHTS
- Revenue in the third quarter amounted to $107.7 million, compared to $122.9 million generated in the third quarter of 2025, primarily due to weakness in the Canadian real estate market and a decrease in the number of REALTORS®.
- Adjusted Net Earnings amounted to $1.1 million in the third quarter, compared to $1.0 million in Q3 2025.
- The Company generated $1.9 million in Free Cash Flow during the third quarter of 2026, compared to $1.5 million in 2025.
- The Board of Directors approved a dividend to shareholders of $0.0125 per Restricted Voting Share, payable on December 31, 2026, to shareholders of record on November 30, 2026.
THIRD QUARTER OPERATING RESULTS
Revenues during the third quarter of 2026 were $107.7 million, compared to $122.9 million generated in Q3 of 2025. The decrease in revenues is due primarily to weakness in the Canadian market and a decrease in the number of REALTORS®.
During the third quarter, the Company generated net earnings of $66.9 million or $0.04 per fully diluted Restricted Voting Share ("Share"), compared to a net loss of $1.7 million or $0.18 per Share in the same quarter in 2025. The Company's net earnings are impacted by the fair value adjustment on the Exchangeable Units, which is directly related to changes in the market price of Bridgemarq's Restricted Voting Shares.
Cash provided by operating activities amounted to $6.0 million in the third quarter of 2026, compared to cash provided by operating activities of $1.0 million in the same quarter last year, primarily due to a decrease in and the deferral of interest payments related to distributions on the Exchangeable Units, partly offset by reduced revenues.
Adjusted Net Earnings, which measures earnings of the business before certain non-cash gains and losses on a fully diluted basis, amounted to $1.1 million in the third quarter of 2026, compared to $1.0 million in 2025.
The Company generated $1.9 million in Free Cash Flow during the third quarter of 2026, compared to $1.5 million generated in the same quarter last year.
"The Canadian housing market continues to face headwinds, with consumer hesitancy, economic uncertainty and rising borrowing costs weighing on activity. Following a delayed spring market that extended into early summer, housing activity moderated during the third quarter, as ongoing trade tensions with the United States further dampened consumer confidence and contributed to softer sales across many Canadian markets," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc. "Despite these challenges, Bridgemarq maintained a stable market share, as measured by the number of REALTORS® across our organization. During the quarter, we made progress in stabilizing cash flow from operations, managed spending at prudent levels and continued to invest in strengthening our competitiveness.
"We remain confident in the long-term outlook for the Canadian residential real estate market and anticipate an eventual improvement in market conditions. Our established network remains stable, with limited renewal risk over the coming years, while our pipeline of franchising and recruitment opportunities continues to grow. We continue to focus on enhancing long-term shareholder value through strategic investments in marketing, franchise growth and agent productivity, while maintaining disciplined operating expenditures to maximize cash flow from operations."
MARKET UPDATE
The Canadian residential real estate market contracted by 7.0% in Q3 of 2026 compared to the same quarter last year, and declined by 18.5% over the second quarter of 2026.1 According to the Canadian Real Estate Association, total sales volumes declined 7.2% in the third quarter, compared to the same period in 2025. However, the national average selling price remained virtually flat, increasing 0.2% compared to the Q3 of 2025. On a quarter-over-quarter basis, sales volume decreased 15.3%, while the average selling price fell 3.7% over the second quarter.
The Bank of Canada raised its target for the overnight lending rate to 2.50% on October 28th, marking the first increase to the key rate in more than three years.2 Energy prices have remained elevated amid the ongoing conflict in the Middle East, adding to inflationary pressures and raising concerns about further price increases. Canada's Consumer Price Index (CPI) rose 3.1% year over year in September, up from 3.0% in August,3 with higher gasoline prices accounting for much of the increase. While the central bank's Governing Council has left the door open to further rate increases, they have signalled that they will proceed cautiously, continuing to assess inflation risks and broader economic conditions.
CASH DIVIDEND
The Company declared a cash dividend of $0.0125 per Restricted Voting Share payable on December 31, 2026, to shareholders of record on November 30, 2026. The dividend distribution represents a target annual dividend of $0.05 per Restricted Voting Share.
THE COMPANY NETWORK
As at September 30, 2026, the Franchise Network was comprised of 18,998 REALTORS® operating under 281 franchise agreements. The Company's corporately owned real estate brokerages operate in the Greater Toronto Area, Greater Vancouver and within the province of Quebec, with 2,220 sales representatives.
CONFERENCE CALL
The Company will host a conference call on Thursday, November 12, 2026, at 10:00 A.M. ET to discuss its third 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/29aDWKmr8j7.
Please connect approximately ten minutes prior to the beginning of the call to ensure participation.
A transcript of the conference call will be available in the Investor Centre section of the Company's website by Thursday, November 19, 2026.
___________________________
1 CREA Canadian Housing Market Statistics
2 Bank of Canada raises the policy rate by 25 basis points to 2½%, October 28, 2026
3 Consumer Price Index, September 2026, October 19, 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 after investing activities and lease payment.
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 "as", "anticipate", "assess", "be", "believes", "continue", "continues", "continuing", "enhancing", "eventual", "further", "grow", "growth", "impact", "improvement", "indication", "may not", "ongoing", "outlook", "proceed", "remain", "remains", "risk", "to", "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 approximately 20,000 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) | September 30, | December 31, |
2026 | 2025 | |
Cash and cash equivalents | $ 7,724 | $ 5,752 |
Other current assets | 12,678 | 11,930 |
Total current assets | 20,402 | 17,682 |
Non-current assets | 97,650 | 94,784 |
Total assets | $ 118,052 | $ 112,466 |
Accounts payable and accrued liabilities | $ 20,540 | $ 18,596 |
Current income taxes payable | 59 | - |
Liabilities associated with assets held for sale | - | 223 |
Debt facilities | 2,750 | - |
Interest payable on Exchangeable Units | - | 909 |
Dividends payable to shareholders | - | 1,067 |
Deferred payments | 8,113 | 2,622 |
Lease liabilities | 2,213 | 2,893 |
Exchangeable Units | 18,746 | 82,606 |
Total current liabilities | 52,421 | 108,916 |
Debt facilities | 73,041 | 72,994 |
Other non-current liabilities | 22,287 | 16,334 |
Total Liabilities | 147,749 | 198,244 |
Shareholders' deficit | (29,697) | (85,778) |
Total Liabilities and Shareholders' deficit | $ 118,052 | $ 112,466 |
Interim Earnings Highlights | ||||
Three months | Three months | Nine months | Nine months | |
(Unaudited) | ended | ended | ended | ended |
(in 000's) except per Share amounts | September 30, | September 30, | September 30, | September 30, |
2026 | 2025 | 2026 | 2025 | |
Gross Commission Income | $ 91,405 | $ 106,261 | $ 228,163 | $ 258,115 |
Franchise fees | 11,210 | 11,607 | 34,223 | 35,397 |
Other revenues | 5,113 | 5,032 | 12,689 | 15,373 |
Revenues | 107,728 | 122,900 | 275,075 | 308,885 |
Commissions | (87,981) | (102,188) | (217,143) | (244,886) |
Cost of other revenue | (2,563) | (2,370) | (4,796) | (5,770) |
Operating Expenses | (11,680) | (11,840) | (36,155) | (37,485) |
Interest on debt | (1,105) | (918) | (3,121) | (2,764) |
Interest on lease obligation | (334) | (314) | (849) | (880) |
Share-based compensation | 127 | (199) | (133) | (251) |
4,192 | 5,071 | 12,878 | 16,849 | |
Impairment and write-off of intangible assets | (93) | (107) | (732) | (147) |
Depreciation and amortization | (2,824) | (2,933) | (8,480) | (8,777) |
Interest on Exchangeable Units | - | (2,726) | (5,451) | (8,177) |
Loss on fair value of Exchangeable Units | 66,235 | - | 63,860 | 750 |
Gain on sale of investment | - | - | 161 | - |
Gain on deferred payments | 946 | - | 1,075 | - |
Gain (loss) on termination of lease | (30) | - | 352 | - |
Loss on debt facility amendment | (1,381) | - | (1,381) | - |
Current income tax expense | (212) | (148) | (1,551) | (2,276) |
Deferred income tax recovery (expense) | 43 | (883) | 1,752 | 638 |
Net and comprehensive earnings (loss) | $ 66,876 | $ (1,726) | $ 62,483 | $ (1,140) |
Basic earnings (loss) per share | $ 7.05 | $ (0.18) | $ 6.59 | $ (0.12) |
Diluted earnings (loss) per share | $ 0.04 | $ (0.18) | $ 0.26 | $ (0.12) |
Cash Flow Highlights | |||||
(Unaudited) | |||||
($ 000's) | |||||
Cash provided by operating activities: | $ 6,012 | $ 960 | $ 14,357 | $ 4,987 | |
Cash used in investing activities: | (1,615) | (3,018) | (4,022) | (3,764) | |
Cash used in financing activities: | (4,636) | 193 | (8,363) | (761) | |
Net increase in cash and cash equivalents during the period | (239) | (1,865) | 1,972 | 462 | |
Cash and cash equivalents, beginning of the period | 7,963 | 11,415 | 5,752 | 9,088 | |
Cash and cash equivalents, end of the period | $ 7,724 | $ 9,550 | $ 7,724 | $ 9,550 |
Free Cash Flow Highlights | |||||
(Unaudited) | |||||
(in 000's) except per Share amounts | |||||
Free Cash Flow | $ 1,892 | $ 1,548 | $ 6,018 | $ 9,204 | |
Free Cash Flow per Share | $ 0.12 | $ 0.10 | $ 0.38 | $ 0.59 |
Free Cash Flow Reconciled to Cash Flow from Operating Activities | ||||
Three months | Three months | Nine months | Nine months | |
(Unaudited) | ended | ended | ended | ended |
($ 000's) | Sept. 30, | Sept. 30, | Sept. 30, | Sept. 30, |
2026 | 2025 | 2026 | 2025 | |
Cash flow from operating activities | $ 6,012 | $ 960 | $ 14,357 | $ 4,987 |
Add (deduct): | ||||
Interest on Exchangeable Units | - | 2,726 | 5,451 | 8,177 |
Interest on Lease Obligation | 334 | 314 | 849 | 880 |
Deferred payments | (909) | - | (6,360) | - |
Share-based compensation | (127) | 199 | 133 | 251 |
Current Income tax expense | (212) | (148) | (1,551) | (2,276) |
Income taxes paid | 462 | 711 | 1,019 | 2,253 |
Changes in non-cash working capital | (1,867) | 835 | (1,243) | 1,872 |
Interest expense | (1,439) | (3,958) | (9,421) | (11,821) |
Interest paid | 2,155 | 3,946 | 9,859 | 11,784 |
Interest income | 263 | 312 | 654 | 927 |
Interest received | (263) | (312) | (654) | (927) |
Lease payments | (902) | (1,020) | (2,892) | (3,139) |
Additions to property and equipment and intangible assets | (1,615) | (3,018) | (4,022) | (3,764) |
Gain on sale of investment | - | - | (161) | - |
Repayment of contract transfer obligation and other | - | 1 | - | - |
Free Cash Flow | $ 1,892 | $ 1,548 | $ 6,018 | $ 9,204 |
Adjusted Net Earnings Highlights | ||||
(Unaudited) | ||||
(in 000's) except per Share amounts | ||||
Adjusted net earnings | $ 1,106 | $ 1,000 | $ 3,867 | $ 6,287 |
Adjusted net earnings per share | $ 0.07 | $ 0.06 | $ 0.25 | $ 0.40 |
Three months | Three months | Nine months | Nine months | |
(Unaudited) | ended | ended | ended | ended |
($ 000's) | Sept. 30, | Sept. 30, | Sept. 30, | Sept. 30, |
2026 | 2025 | 2026 | 2025 | |
Gross Commission Income | $ 91,405 | $ 106,261 | $ 228,163 | $ 258,115 |
Franchise fees | 11,210 | 11,607 | 34,223 | 35,397 |
Other revenue | 5,113 | 5,032 | 12,689 | 15,373 |
Revenues | 107,728 | 122,900 | 275,075 | 308,885 |
Commissions | (87,981) | (102,188) | (217,143) | (244,886) |
Cost of other revenue | (2,563) | (2,370) | (4,796) | (5,770) |
Operating Expenses | (11,680) | (11,840) | (36,155) | (37,485) |
Interest on debt | (1,105) | (918) | (3,121) | (2,764) |
Interest on lease obligation | (334) | (314) | (849) | (880) |
Share-based compensation | 127 | (199) | (133) | (251) |
Depreciation, amortization and impairment | (2,917) | (3,040) | (9,212) | (8,924) |
Operating Income | 1,275 | 2,031 | 3,666 | 7,925 |
Current income tax expense | (212) | (148) | (1,551) | (2,276) |
Deferred income tax recovery | 43 | (883) | 1,752 | 638 |
Adjusted net earnings | $ 1,106 | $ 1,000 | $ 3,867 | $ 6,287 |
Three months | Three months | Nine months | Nine months | |
(Unaudited) | ended | ended | ended | ended |
($ 000's) | Sept. 30, | Sept. 30, | Sept. 30, | Sept. 30, |
2026 | 2025 | 2026 | 2025 | |
Net and comprehensive earnings (loss) | $ 66,876 | (1,726) | $ 62,483 | (1,140) |
Add (deduct): | ||||
Interest on Exchangeable Units | - | 2,726 | 5,451 | 8,177 |
Loss on fair value of Exchangeable Units | (66,235) | - | (63,860) | (750) |
Loss on debt facility amendment | 1,381 | - | 1,381 | - |
Loss (gain) on termination of lease | 30 | - | (352) | - |
Gain on sale of investment | - | - | (161) | - |
Gain on deferred payments | (946) | - | (1,075) | - |
Adjusted net earnings | $ 1,106 | $ 1,000 | $ 3,867 | $ 6,287 |
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: 416.510.5783
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