Bridgemarq Real Estate Services® Reports Second Quarter Results and Declares Monthly Dividend

Aug 14 2025 12:30 BST

TORONTO , Aug. 14, 2025 /CNW/ - Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) today released its second quarter consolidated financial results and announced a monthly dividend to holders of the Company's restricted voting shares.

HIGHLIGHTS

Revenue in the second quarter amounted to $108.0 million. Franchise fees for the second quarter and 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^®.
The Company generated Adjusted Net Earnings of $2.2 million and Free Cash Flow of $3.6 million in the second quarter of 2025.
The Board of Directors approved a dividend to shareholders of $0.1125 per Restricted Voting Share, payable on September 30, 2025, to shareholders of record on August 29, 2025.

SECOND QUARTER OPERATING RESULTS

Revenues during the second quarter were $108.0 million, compared to the $110.5 million generated in Q2 of 2024. For the year-to-date, revenues increased from $122.4 million to $186.0 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 second quarter and 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 $5.4 million or ($0.57) per fully diluted restricted voting share ("Share"), compared to net earnings of $10.5 million or $0.17 per Share in the same quarter of 2024. The lower earnings are largely driven by a loss of $4.9 million on the fair valuation of the Exchangeable Units in the second quarter of 2025, compared to a gain of $10.6 million in the same quarter of 2024.

Cash provided by operating activities amounted to $5.9 million in the second quarter of 2025, compared to cash provided by operating activities of $10.5 million in the same quarter last year. For the year-to-date, cash flow from operations decreased by $8.0 million compared to the same period last year, primarily due to higher interest expense and non-cash working capital changes.

Adjusted Net Earnings, which measures earnings of the business before certain non-cash gains and losses on a fully diluted basis, amounted to $2.2 million in the second quarter of 2025, compared to $2.6 million in 2024. The decrease is primarily due to lower revenues and higher operating costs, partly offset by lower interest expense on the Company's debt and lower depreciation charges.

The Company generated $3.6 million in Free Cash Flow during the second quarter of 2025, a decrease from the $5.6 million generated in the same quarter last year.

"As evidenced by recent major conversions to Royal LePage^®, brokers and agents from competing companies continue to flock to Bridgemarq's brands to access our comprehensive suite of services and support," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc. "Our ability to attract top-performing professionals and provide the infrastructure they need to thrive is a core driver of long-term shareholder value.

"One of our key advantages is offering multiple solutions for both realtors and consumers, positioning Bridgemarq not only as a market leader today, but as a company built to grow with the ever-evolving industry. As a leader in real estate AI innovation and adoption, we continue to equip our network with advanced tools that enhance productivity, marketing and client service. This strength enables our brands to navigate market turbulence and broader economic uncertainty with confidence."

MARKET UPDATE

The Canadian residential real estate market contracted by 4% in the second quarter of 2025 compared to the same period last year.¹ According to the Canadian Real Estate Association, total sales volumes declined 2% and the national average selling price also decreased 2%. On a quarter-over-quarter basis, sales volumes and average selling price posted increases of 44% and 2%, respectively.

Economic uncertainty stemming from trade tensions with the United States continued to dampen consumer confidence. As a result, many real estate markets experienced softer-than-usual activity during the typically busy spring season, particularly in large metropolitan areas such as Toronto and Vancouver. By contrast, the residential market in the province of Quebec continued to show strength, with both volumes and prices growing compared to last year. By the end of the second quarter of 2025, signs of improved consumer sentiment led to a gradual uptick in activity.

In its fifth announcement of 2025, the Bank of Canada held its target for the overnight lending rate at 2.75%, following two consecutive rate holds in April and June.² Although trade negotiations with the U.S. continue to evolve, the Canadian economy has shown overall resilience. This stability supports the central bank's decision to hold interest rates steady for the time being, with the option to cut should signs of economic weakness emerge.

Inflation remains within the Bank's target range. In June, Canada's Consumer Price Index increased 1.9% year over year, up from the 1.7% recorded in May.³ Strong economic fundamentals, including stability in Canada's job market and improved housing affordability, will be important in supporting the recovery of the broader housing market.

_____________________________
1	CREA Canadian Housing Market Statistics
2	Bank of Canada holds policy rate at 2¾% , July 30, 2025
3	Consumer Price Index, June 2025, July 15, 2025

CASH DIVIDEND

The Company declared a cash dividend of $0.1125 per Restricted Voting Share payable on September 30, 2025, to shareholders of record on August 29, 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 June 30, 2025, the Franchise Network was comprised of 20,745 REALTORS^® operating under 282 franchise agreements together with non-franchise affiliation agreements. The Company's corporately owned real estate brokerages operate 36 real estate locations in the Greater Toronto Area, Greater Vancouver and within the province of Quebec, with 2,577 sales representatives.

In the second quarter, the Company expanded the Royal LePage brand with the addition of approximately 600 sales representatives to the network, primarily servicing clients in Mississauga, Oakville, Ottawa and the surrounding areas.

CONFERENCE CALL

The Company will host a conference call on Thursday, August 14, 2025, at 10:00 A.M. ET to discuss its second 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/zP45JL5N1YZ.

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 Wednesday, August 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 STATEMENT S

This news release contains forward-looking information and other "forward-looking statements". Words such as "ability", "attract", "continue", "driver", "emerge", "enhance," "ever-evolving", "evolve", "grow", "growing", "option", "provide", "recovery", "should", "time being", "to", "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.

Balance Sheet Highlights
(Unaudited)
($ 000's)	June 30,	December 31,
	2025	2024
Cash and cash equivalents	$ 11,415	$ 9,088
Cash held in trust	53,868	35,467
Other current assets	12,202	9,318
Total current assets	77,485	53,873
Non-current assets	99,221	103,572
Total assets	$ 176,706	$ 157,445


Accounts payable and accrued liabilities	$ 19,052	$ 16,837
Customer deposits	53,868	35,467
Interest payable on Exchangeable Units	909	909
Dividends payable to shareholders	1,067	1,067
Current income taxes payable	153	-
Lease liabilities	2,969	3,000
Exchangeable Units	93,166	93,916
Total current liabilities	171,184	151,196
Debt facilities	73,928	66,904
Other non-current liabilities	17,653	19,590
Total Liabilities	262,765	237,690
Shareholders' deficit	(86,059)	(80,245)
Total Liabilities and Shareholders' deficit	$ 176,706	$ 157,445



Interim Earnings Highlights
	Three months	Three months	Six months	Six months
(Unaudited)	ended	ended	ended	ended
(in 000's) except per Share amounts	June 30,	June 30,	June 30,	June 30,
	2025	2024	2025	2025
Gross Commission Income	$ 90,226	$ 92,037	$ 151,853	$ 92,037
Franchise fees	12,198	11,929	23,790	23,006
Other revenues	5,591	6,538	10,341	7,318
Revenues	108,015	110,504	185,984	122,361

Commissions	(85,858)	(87,052)	(142,698)	(87,052)
Cost of other revenue	(2,105)	(2,311)	(3,400)	(2,463)
Operating Expenses	(13,193)	(12,312)	(25,642)	(18,165)
Interest on debt	(945)	(1,205)	(1,845)	(2,488)
Interest on lease obligation	(279)	(320)	(565)	(320)
Share-based compensation	(53)	-	(53)	-
	5,582	7,304	11,781	11,873

Impairment and write-off of intangible assets	(41)	(169)	(41)	(1,721)
Depreciation and amortization	(2,933)	(3,473)	(5,844)	(5,168)
Interest on Exchangeable Units	(2,726)	(2,725)	(5,451)	(4,177)
Gain (loss) on fair value of Exchangeable Units	(4,936)	10,622	750	7,960
Gain on settlement of deferred payments	-	-	-	1,224
Gain on settlement of contract transfer obligation	-	-	-	99
Current income tax expense	(1,062)	(494)	(2,128)	(1,069)
Deferred income tax expense (recovery)	670	(536)	1,521	1,131
Net and comprehensive earnings (loss)	$ (5,446)	$ 10,529	$ 588	$ 10,152
Basic earnings (loss) per share	$ (0.57)	$ 1.11	$ 0.06	$ 1.07
Diluted earnings (loss) per share	$ (0.57)	$ 0.17	$ 0.06	$ 0.45


Cash Flow Highlights
(Unaudited)
($ 000's)

Cash provided by operating activities:	$ 5,863	$ 10,549	$ 4,593	$ 12,624
Cash provided by (used in) investing activities:	(366)	(789)	(746)	3,265
Cash used for financing activities:	(1,260)	(4,274)	(1,520)	(7,552)
Net change in cash and cash equivalents during the period	4,237	5,486	2,327	8,337
Cash and cash equivalents, beginning of the period	7,178	8,594	9,088	5,743
Cash and cash equivalents, end of the period	$ 11,415	$ 14,080	$ 11,415	$ 14,080


Free Cash Flow Highlights
(Unaudited)
(in 000's) except per Share amounts

Free Cash Flow	$ 3,565	$ 5,647	$ 7,660	$ 9,680
Free Cash Flow per Share	$ 0.23	$ 0.36	$ 0.49	$ 0.68



Free Cash Flow Reconciled to Cash Flow from Operating Activities


	Three months	Three months	Six months	Six months
(Unaudited)	ended	ended	ended	ended
($ 000's)	June 30,	June 30,	June 30,	June 30,
	2025	2024	2025	2025

Cash flow from operating activities	$ 5,863	$ 10,549	$ 4,593	$ 12,624
Add (deduct):
Interest on Exchangeable Units	2,726	2,725	5,451	4,177
Interest on Lease Obligation	279	320	565	320
Share-based compensation	53	-	53	-
Current Income tax expense	(1,062)	(494)	(2,128)	(1,069)
Income taxes paid	831	821	1,542	1,571
Changes in non-cash working capital	(3,405)	(5,803)	1,036	(4,938)
Interest expense	(3,950)	(4,177)	(7,861)	(7,001)
Interest paid	3,654	3,436	7,273	5,818
Interest income	343	529	615	627
Interest received	(343)	(529)	(615)	(627)
Lease payments	(1,059)	(1,073)	(2,118)	(1,073)
Additions to property and equipment and intangible assets	(366)	(658)	(746)	(746)
Repayment of contract transfer obligation and other	1	1	-	(3)
Free Cash Flow	$ 3,565	$ 5,647	$ 7,660	$ 9,680



Adjusted Net Earnings Highlights
(Unaudited)
(in 000's) except per Share amounts

Adjusted net earnings	$ 2,216	$ 2,632	$ 5,289	$ 5,046
Adjusted net earnings per share	$ 0.14	$ 0.17	$ 0.34	$ 0.35




	Three months	Three months	Six months	Six months
(Unaudited)	ended	ended	ended	ended
($ 000's)	June 30,	June 30,	June 30,	June 30,
	2025	2024	2025	2025
Gross Commission Income	$ 90,226	$ 92,037	$ 151,853	$ 92,037
Franchise fees	12,198	11,929	23,790	23,006
Other revenue	5,591	6,538	10,341	7,318
Revenues	108,015	110,504	185,984	122,361

Commissions	(85,858)	(87,052)	(142,698)	(87,052)
Cost of other revenue	(2,105)	(2,311)	(3,400)	(2,463)
Operating Expenses	(13,193)	(12,312)	(25,642)	(18,165)
Interest on debt	(945)	(1,205)	(1,845)	(2,488)
Interest on lease obligation	(279)	(320)	(565)	(320)
Share-based compensation	(53)	-	(53)	-
Depreciation, amortization and impairment	(2,974)	(3,642)	(5,885)	(6,889)
Operating Income	2,608	3,662	5,896	4,984

Current income tax expense	(1,062)	(494)	(2,128)	(1,069)
Deferred income tax expense (recovery)	670	(536)	1,521	1,131
Adjusted net earnings	$ 2,216	$ 2,632	$ 5,289	$ 5,046





	Three months	Three months	Six months	Six months
(Unaudited)	ended	ended	ended	ended
($ 000's)	June 30,	June 30,	June 30,	June 30,
	2025	2024	2025	2025
Net and comprehensive earnings (loss)	$ (5,446)	$ 10,529	$ 588	$ 10,152
Add (deduct):

Interest on Exchangeable Units	2,726	2,725	5,451	4,177
Gain (loss) on fair value of Exchangeable Units	4,936	(10,622)	(750)	(7,960)
Gain on settlement of deferred payments	-	-	-	(1,224)
Gain on settlement of contract transfer obligation	-	-	-	(99)
Adjusted net earnings (loss)	$ 2,216	$ 2,632	$ 5,289	$ 5,046

SOURCE Bridgemarq Real Estate Services Inc.

Company Announcements

Bridgemarq Real Estate Services® Reports Second Quarter Results and Declares Monthly Dividend