Bridgemarq Real Estate Services® Reports Third Quarter Results and Declares Monthly Dividend
TORONTO, Nov. 14, 2025 /CNW/ - Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) today released its third quarter consolidated financial results and announced a monthly dividend to holders of the Company's restricted voting shares.
HIGHLIGHTS
- Year to date, the Company has grown its network by more than 640 net real estate professionals.
- Revenue in the third quarter amounted to $122.9 million. Franchise fees increased due to the benefit of fee increases implemented at the start of the year and an increase in the number of REALTORS®.
- The Company generated Adjusted Net Earnings of $1.0 million and $1.5 million in Free Cash Flow in the third quarter of 2025.
- The Board of Directors approved a dividend to shareholders of $0.1125 per Restricted Voting Share, payable on December 31, 2025, to shareholders of record on November 28, 2025.
THIRD QUARTER OPERATING RESULTS
Revenues during the third quarter were $122.9 million, compared to the $126.8 million generated in Q3 of 2024. For the year-to-date, revenues increased from $249.2 million to $308.9 million. The increase in revenues is substantially due to the inclusion of the operating results of the acquired businesses from April 1, 2024. Franchise fees for the quarter and the year-to-date increased due to the benefit of fee increases implemented at the start of the year and an increase in the number of REALTORS®.
During the quarter, the Company generated a net loss of $1.7 million or ($0.18) per fully diluted restricted voting share ("Share"), compared to a net loss of $10.8 million or ($1.14) per Share in the same quarter of 2024. The reduced loss in the quarter is largely driven by the valuation of the Exchangeable Units remaining unchanged in the quarter, compared to a loss of $10.8 million in the third quarter of 2024.
Cash provided by operating activities amounted to $1.3 million in the third quarter of 2025, compared to cash provided by operating activities of $2.7 million in the same quarter last year.
Adjusted Net Earnings, which measures earnings of the business before certain non-cash gains and losses on a fully diluted basis, amounted to $1.0 million in the third quarter of 2025, compared to $2.7 million in 2024. The decrease is primarily due to lower revenues and higher operating expenses, partly offset by lower commissions expense, lower depreciation charges, and lower interest expense on the Company's debt.
The Company generated $1.5 million in Free Cash Flow during the third quarter of 2025, a decrease from the $5.3 million generated in the same quarter last year, primarily due to increased capital expenditures in the quarter.
"Our agent networks continue to grow, and we continue to enhance the value and experience we deliver. The ability to attract and retain high-performing agents that our brands have demonstrated shows that our tools, technologies and resources are as relevant and competitively preferred as ever, especially in an environment of unpredictable market conditions," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc.
MARKET UPDATE
The Canadian residential real estate market grew by 5% in the third quarter compared to the same quarter last year.1 According to the Canadian Real Estate Association, total sales volumes increased 4% and the national average selling price rose 1%. On a quarter-over-quarter basis, unit sales and the average selling price posted decreases of 11% and 2%, respectively.
While sales volumes are up compared to last year, buyer activity remains below seasonal norms. Although housing affordability has improved in several major markets, many homebuyers remain cautious, holding back amid ongoing economic uncertainty. Market performance continues to diverge across the country. On a year-over-year and quarter-over-quarter basis, the Greater Toronto Area and Greater Vancouver markets reported declines in average home prices, while the Greater Montreal Area's residential market showed resilience, with continued upward price momentum.
On October 29th, in its seventh announcement of 2025, the Bank of Canada reduced its target for the overnight lending rate to 2.25%.2 Pointing to ongoing weakness in the Canadian economy, largely due to the impacts of tariffs and softness in the labour market, specifically in trade-sensitive industries, the central bank chose to cut the policy rate for the second consecutive month in October.
The Bank of Canada noted that, despite a slightly higher-than-expected Consumer Price Index (CPI) report in September, it expects inflationary pressures to ease in the months ahead. In September, Canada's CPI increased 2.4% year over year, up from the 1.9% recorded in August.3
| ________________________________ |
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| 1 |
CREA Canadian Housing Market Statistics |
| 2 |
Bank of Canada lowers policy rate to 2¼% , October 29, 2025 |
| 3 |
Consumer Price Index, September 2025, October 21, 2025 |
CASH DIVIDEND
The Company declared a cash dividend of $0.1125 per Restricted Voting Share payable on December 31, 2025, to shareholders of record on November 28, 2025. The dividend distribution represents a target annual dividend of $1.35 per Restricted Voting Share, which is consistent with 2024.
THE COMPANY NETWORK
As at September 30, 2025, the Franchise Network was comprised of 20,948 REALTORS® operating under 284 franchise agreements. The Company's corporately owned real estate brokerages operate 32 real estate locations in the Greater Toronto Area, Greater Vancouver and within the province of Quebec, with 2,505 sales representatives.
CONFERENCE CALL
The Company will host a conference call on Friday, November 14, 2025, 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/kDAEw9LxBMX.
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 20, 2025.
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. Please see Free Cash Flow reconciled to Cash Flow from Operating Activities for a reconciliation of Free Cash Flow to cash flow from operating activities in the consolidated statements of cash flows and Free Cash Flow for further information about Free Cash Flow and Free Cash Flow per Share.
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. Non-cash and non-recurring items excluded from the calculation of Adjusted Net Earnings are comprised of gains or losses on interest rate swaps, gains on settlement of liabilities and losses on amendment of the Company's debt facilities.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information and other "forward-looking statements". Words such as "ability", "ahead", "attract", "conditions", "continue", "continues", "deliver", "ease", "enhance", "expects", "grow", "momentum", "ongoing", "provide", "remain", "remains", "retain", "to", "uncertainty", "unpredictable", "upward", "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 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. |
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| Balance Sheet Highlights |
|
|
| (Unaudited) |
|
|
| ($ 000's) |
September 30, |
December 31, |
| |
2025 |
2024 |
| Cash and cash equivalents |
$ 9,550 |
$ 9,088 |
| Cash held in trust |
38,262 |
35,467 |
| Other current assets |
9,679 |
9,318 |
| Total current assets |
57,491 |
53,873 |
| Non-current assets |
99,403 |
103,572 |
| Total assets |
$ 156,894 |
$ 157,445 |
| |
|
|
| |
|
|
| Accounts payable and accrued liabilities |
$ 15,336 |
$ 16,837 |
| Customer deposits |
38,262 |
35,467 |
| Interest payable on Exchangeable Units |
909 |
909 |
| Dividends payable to shareholders |
1,067 |
1,067 |
| Lease liabilities |
3,050 |
3,000 |
| Exchangeable Units |
93,166 |
93,916 |
| Total current liabilities |
151,790 |
151,196 |
| Debt facilities |
78,040 |
66,904 |
| Other non-current liabilities |
18,051 |
19,590 |
| Total Liabilities |
247,881 |
237,690 |
| Shareholders' deficit |
(90,987) |
(80,245) |
| Total Liabilities and Shareholders' deficit |
$ 156,894 |
$ 157,445 |
| 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, |
| |
2025 |
2024 |
2025 |
2024 |
| Gross Commission Income |
$ 106,261 |
$ 109,624 |
$ 258,115 |
$ 201,661 |
| Franchise fees |
11,607 |
11,523 |
35,397 |
34,528 |
| Other revenues |
5,032 |
5,665 |
15,373 |
12,983 |
| Revenues |
122,900 |
126,812 |
308,885 |
249,172 |
| |
|
|
|
|
| Commissions |
(102,188) |
(104,444) |
(244,886) |
(191,496) |
| Cost of other revenue |
(2,370) |
(1,973) |
(5,770) |
(4,436) |
| Operating Expenses |
(11,840) |
(11,563) |
(37,485) |
(29,730) |
| Interest on debt |
(918) |
(1,102) |
(2,764) |
(3,590) |
| Interest on lease obligation |
(314) |
(314) |
(880) |
(634) |
| Share-based compensation |
(199) |
- |
(251) |
- |
| |
5,071 |
7,416 |
16,849 |
19,286 |
| |
|
|
|
|
| Impairment and write-off of intangible assets |
(107) |
(53) |
(147) |
(1,775) |
| Depreciation and amortization |
(2,933) |
(3,422) |
(8,777) |
(8,590) |
| Interest on Exchangeable Units |
(2,726) |
(2,726) |
(8,177) |
(6,903) |
| Gain (loss) on fair value of Exchangeable Units |
- |
(10,810) |
750 |
(2,850) |
| Gain on settlement of deferred payments |
- |
- |
- |
1,224 |
| Gain on settlement of contract transfer obligation |
- |
- |
- |
99 |
| Current income tax expense |
(148) |
(1,246) |
(2,276) |
(2,315) |
| Deferred income tax expense (recovery) |
(883) |
- |
638 |
1,131 |
| Net and comprehensive loss |
$ (1,726) |
$ (10,841) |
$ (1,140) |
$ (693) |
| Basic loss per share |
$ (0.18) |
$ (1.14) |
$ (0.12) |
$ (0.07) |
| Diluted loss per share |
$ (0.18) |
$ (1.14) |
$ (0.12) |
$ (0.07) |
| Cash Flow Highlights |
|
|
|
|
| (Unaudited) |
|
|
|
|
| ($ 000's) |
|
|
|
|
| |
|
|
|
|
| Cash provided by operating activities: |
$ 1,275 |
$ 2,673 |
$ 5,867 |
$ 15,296 |
| Cash provided by (used in) investing activities: |
(3,018) |
(319) |
(3,764) |
2,946 |
| Cash used for financing activities: |
(122) |
(4,299) |
(1,641) |
(11,850) |
| Net change in cash and cash equivalents during the period |
(1,865) |
(1,944) |
462 |
6,392 |
| Cash and cash equivalents, beginning of the period |
11,415 |
14,080 |
9,088 |
5,743 |
| Cash and cash equivalents, end of the period |
$ 9,550 |
$ 12,135 |
$ 9,550 |
$ 12,135 |
| Free Cash Flow Highlights |
|
|
|
|
| (Unaudited) |
|
|
|
|
| (in 000's) except per Share amounts |
|
|
|
|
| |
|
|
|
|
| Free Cash Flow |
$ 1,546 |
$ 5,308 |
$ 9,204 |
$ 14,984 |
| Free Cash Flow per Share |
$ 0.10 |
$ 0.34 |
$ 0.59 |
$ 1.05 |
| 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) |
September 30, |
September 30, |
September 30, |
September 30, |
| |
2025 |
2024 |
2025 |
2024 |
| |
|
|
|
|
| Cash flow from operating activities |
$ 1,275 |
$ 2,673 |
$ 5,867 |
$ 15,296 |
| Add (deduct): |
|
|
|
|
| Interest on Exchangeable Units |
2,726 |
2,726 |
8,177 |
6,903 |
| Interest on Lease Obligation |
314 |
314 |
880 |
634 |
| Share-based compensation |
199 |
- |
251 |
- |
| Current Income tax expense |
(148) |
(1,246) |
(2,276) |
(2,315) |
| Income taxes paid |
711 |
831 |
2,253 |
2,402 |
| Changes in non-cash working capital |
835 |
1,680 |
1,872 |
(3,260) |
| Interest expense |
(3,958) |
(4,125) |
(11,821) |
(11,126) |
| Interest paid |
3,631 |
3,871 |
10,904 |
9,689 |
| Interest income |
312 |
521 |
927 |
1,148 |
| Interest received |
(312) |
(521) |
(927) |
(1,148) |
| Lease payments |
(1,021) |
(1,098) |
(3,139) |
(2,171) |
| Additions to property and equipment and intangible assets |
(3,018) |
(319) |
(3,764) |
(1,065) |
| Repayment of contract transfer obligation and other |
- |
- |
- |
(3) |
| Free Cash Flow |
$ 1,546 |
$ 5,308 |
$ 9,204 |
$ 14,984 |
| Adjusted Net Earnings Highlights |
|
|
|
|
| (Unaudited) |
|
|
|
|
| (in 000's) except per Share amounts |
|
|
|
|
| |
|
|
|
|
| Adjusted net earnings |
$ 1,000 |
$ 2,695 |
$ 6,287 |
$ 7,737 |
| Adjusted net earnings per share |
$ 0.06 |
$ 0.17 |
$ 0.40 |
$ 0.52 |
| |
|
Three months |
Three months |
Nine months |
Nine months |
| |
(Unaudited) |
ended |
ended |
ended |
ended |
| |
($ 000's) |
September 30, |
September 30, |
September 30, |
September 30, |
| |
|
2025 |
2024 |
2025 |
2024 |
| |
Gross Commission Income |
$ 106,261 |
$ 109,624 |
$ 258,115 |
$ 201,661 |
| |
Franchise fees |
11,607 |
11,523 |
35,397 |
34,528 |
| |
Other revenue |
5,032 |
5,665 |
15,373 |
12,983 |
| |
Revenues |
122,900 |
126,812 |
308,885 |
249,172 |
| |
|
|
|
|
|
| |
Commissions |
(102,188) |
(104,444) |
(244,886) |
(191,496) |
| |
Cost of other revenue |
(2,370) |
(1,973) |
(5,770) |
(4,436) |
| |
Operating Expenses |
(11,840) |
(11,563) |
(37,485) |
(29,730) |
| |
Interest on debt |
(918) |
(1,102) |
(2,764) |
(3,590) |
| |
Interest on lease obligation |
(314) |
(314) |
(880) |
(634) |
| |
Share-based compensation |
(199) |
- |
(251) |
- |
| |
Depreciation, amortization and impairment |
(3,040) |
(3,475) |
(8,924) |
(10,365) |
| |
Operating Income |
2,031 |
3,941 |
7,925 |
8,921 |
| |
|
|
|
|
|
| |
Current income tax expense |
(148) |
(1,246) |
(2,276) |
(2,315) |
| |
Deferred income tax expense (recovery) |
(883) |
- |
638 |
1,131 |
| |
Adjusted net earnings |
$ 1,000 |
$ 2,695 |
$ 6,287 |
$ 7,737 |
| |
Three months |
Three months |
Nine months |
Nine months |
| (Unaudited) |
ended |
ended |
ended |
ended |
| ($ 000's) |
September 30, |
September 30, |
September 30, |
September 30, |
| |
2025 |
2024 |
2025 |
2024 |
| Net and comprehensive loss |
$ (1,726) |
$ (10,841) |
$ (1,140) |
$ (693) |
| Add (deduct): |
|
|
|
|
| |
|
|
|
|
| Interest on Exchangeable Units |
2,726 |
2,726 |
8,177 |
6,903 |
| Gain (loss) on fair value of Exchangeable Units |
- |
10,810 |
(750) |
2,850 |
| Gain on settlement of deferred payments |
- |
- |
- |
(1,224) |
| Gain on settlement of contract transfer obligation |
- |
- |
- |
(99) |
| Adjusted net earnings |
$ 1,000 |
$ 2,695 |
$ 6,287 |
$ 7,737 |
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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