Bridgemarq Real Estate Services (TSE:BRE) reported lower third-quarter revenue as a smaller agent network and softer Canadian housing activity weighed on its business, although cash flow and adjusted earnings improved from a year earlier.
Revenue fell to CAD 107.7 million from CAD 122.9 million in the third quarter of 2025. CEO Spencer Enright said the decline reflected persistently low resale transactions and a reduction in the number of realtors in the company’s network during the first quarter of 2026.
Bridgemarq reported net earnings of CAD 66.9 million, compared with a net loss of CAD 1.7 million a year earlier. CFO Wallace Wang cautioned that net earnings are affected by fair-value adjustments on exchangeable units, which are directly related to changes in the market price of the company’s restricted voting shares.
Adjusted net earnings, which account for certain non-cash and non-operating adjustments and payments to exchangeable-unit holders, rose to CAD 1.1 million from CAD 1.0 million.
Cash flow improves as revenue declines
Cash provided by operating activities increased to CAD 6 million from CAD 1 million. Wang attributed the increase primarily to lower interest payments related to distributions on exchangeable units, partly offset by lower operating income.
Free cash flow rose to CAD 1.9 million from CAD 1.5 million, as lower capital expenditures offset the decline in operating income, Wang said.
The company’s board approved a dividend of CAD 0.0125 per share, payable Dec. 31 to shareholders of record on Nov. 30. Enright said that represents an annualized dividend of CAD 0.05 per share.
Bridgemarq’s network had 19,707 realtors, including approximately 2,200 agents at corporately owned brokerages in the Greater Toronto Area, Greater Vancouver Area and Quebec, Wang said. Enright said the company had held steady market share as measured by the number of realtors across its organization.
Housing activity remains subdued
The value of Canadian home transactions fell 7% year over year to CAD 78.5 billion in the third quarter, driven by a 7% decline in unit sales, Wang said. The average selling price rose 0.2%.
In the Greater Toronto Area, transaction dollar volume declined 9%, with unit sales down 5% and the average selling price down 4%. Greater Vancouver transaction volume fell more than 9%, as unit sales declined 8% and average prices decreased nearly 2%.
Quebec residential transaction volume fell 5%, reflecting a nearly 8% decline in unit sales despite a 3% increase in the average selling price, Wang said.
Enright said economic uncertainty and ongoing trade negotiations with the United States weighed on consumer confidence. He also pointed to the Bank of Canada’s October increase in its overnight lending rate to 2.50% and rising bond yields as adding to borrowing costs. Management expects Canadian housing activity to remain subdued through the rest of 2026.
Investments target brands and agent productivity
Enright said Bridgemarq continued investing in advertising, technology and services for its network while controlling spending. Royal LePage launched a fall campaign on Meta and YouTube intended to build brand awareness and drive traffic to its website.
The company also relaunched its Greater Toronto Area luxury brokerage Johnston & Daniel, including a move to upgraded offices in Toronto’s Midtown neighborhood. At Proprio Direct, it advanced work on a consumer platform, an agent customer-management system and back-office infrastructure. Enright said the work could form the basis of a technology platform for brokerage operations across Bridgemarq.
Via Capitale added a franchise on Montreal’s South Shore with approximately 25 real estate professionals. Enright said the franchise, Via Capitale Du Sommet, joined from the RE/MAX network.
Looking ahead, Enright said the existing network was stable, with minimal renewal risks over the coming year, and that the company was building a pipeline of franchise and recruitment opportunities. Management remains focused on targeted investments and controlling operating expenses to maximize operating cash flow, he said.
About Bridgemarq Real Estate Services (TSE:BRE)
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.
