HIGHLIGHTS
Revenue in the first quarter amounted to $69.9 million, compared to the $78.0 million generated in the first quarter of 2025, primarily due to weakness in the Canadian market and a decrease in the number of REALTORS®.
Adjusted Net Earnings amounted to $1.8 million in the first quarter, compared to $3.1 million in Q1 2025 due to lower revenues, partly offset by lower commissions expense.
The Company generated $1.9 million in Free Cash Flow during the first quarter of 2026, compared to $4.1 million in 2025, primarily due to lower operating income and higher capital expenditures during the quarter.
The Board of Directors approved a dividend to shareholders of $0.1125 per Restricted Voting Share, payable on June 30, 2026, to shareholders of record on May 29, 2026.
FIRST QUARTER OPERATING RESULTS
Revenues during the first quarter of 2026 were $69.9 million, compared to the $78.0 million generated in Q1 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 first quarter, the Company generated a net loss of $3.2 million or $0.33 per fully diluted restricted voting share ("Share"), compared to net earnings of $6.0 million or $0.64 per Share in the same quarter in 2025. The lower earnings are largely driven by a loss of $2.6 million on the valuation of the Exchangeable Units in the first quarter of 2026, compared to a gain of $5.7 million in the same quarter in 2025. The fair value adjustment on the Exchangeable Units is directly related to changes in the market price of Bridgemarq's Restricted Voting Shares.
Cash provided by operating activities amounted to $0.3 million in the first quarter of 2026, compared to cash used in operating activities of $1.6 million in the same quarter last year, primarily due to the deferral of interest payments related to distributions on the Exchangeable Units and lower income taxes paid, 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 $1.8 million in the first quarter of 2026, compared to $3.1 million in 2025. The decrease in Adjusted Net Earnings is due to lower revenues, partly offset by lower commissions expense.
The Company generated $1.9 million in Free Cash Flow during the first quarter of 2026, compared to $4.1 million generated in the same quarter last year. This is primarily due to lower operating income and higher capital expenditures during the quarter.
"We continued to observe mixed market conditions in the first quarter, amid evolving global markets and shifting consumer behaviour. Although core market fundamentals are positive - highlighted by lower interest rates, increased inventory and price stabilization - persistent geopolitical uncertainty continues to act as a drag on overall demand," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc.
"Our business entered this period well positioned, having made deliberate investments in new digital sales tools, expanded AI capabilities and professional development resources, designed to support the performance of real estate professionals across our national network," noted Enright. "Notwithstanding broader market challenges, we have made significant operational strides this quarter, with excellent adoption of AI tools and training across our network, and an increased online presence through investment in digital advertising. We are confident our competitive offering remains as relevant and attractive as ever and will continue to prove to be the preferred model in the Canadian real estate market."
MARKET UPDATE
The Canadian market posted a national decline in transactional dollar volume of 8% in the first quarter of 2026, compared to the same period last year.1 According to the Canadian Real Estate Association, total sales volumes declined 7% and the national average selling price dipped 1% during the quarter, compared to the same period in 2025. On a quarter-over-quarter basis, sales and average selling price posted declines of 12% and 3%, respectively.
In its third announcement of 2026, the Bank of Canada held its target for the overnight lending rate at 2.25% in April.2 Rising global energy prices tied to the conflict in Iran are putting upward pressure on inflation. In March, Canada's CPI rose 2.4% year over year, up from 1.8% in February,3 driven largely by higher gasoline prices. Governor Tiff Macklem has indicated that the central bank may consider raising rates if elevated inflation levels persist. However, potential tariffs or trade restrictions from upcoming Canada–United States–Mexico Agreement negotiations this summer could weigh on economic growth and prompt rate cuts.
The Bank will continue to monitor economic conditions closely as it assesses the path for interest rates. The potential for higher borrowing costs may support demand in the coming months, as some consumers move to make a purchase before mortgage rates rise further.
CASH DIVIDEND
The Company declared a cash dividend of $0.1125 per Restricted Voting Share payable on June 30, 2026, to shareholders of record on May 29, 2026. The dividend distribution represents a target annual dividend of $1.35 per Restricted Voting Share, which is consistent with 2025.
THE COMPANY NETWORK
As at March 31, 2026, the Franchise Network was comprised of 19,488 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 2,355 sales representatives.
SHAREHOLDERS' MEETING AND CONFERENCE CALL
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1
CREA Canadian Housing Market Statistics
2
Bank of Canada holds policy rate at 2¼%, April 29, 2026
3
Consumer Price Index, March 2026, April 20, 2026
The Company will be holding its annual meeting of shareholders on Wednesday, May 13, 2026, at 10 a.m. Eastern Daylight Time. The meeting will be conducted as a virtual, live audio webcast.
To access the shareholders' meeting, please visit https://virtual-meetings.tsxtrust.com/1874 and follow the login instructions, using the case-sensitive password 'bresi2026'. Shareholders and proxyholders will require their unique control number, which is provided by TSX Trust Company Canada in accordance with the instructions provided to shareholders. Guests are welcome to join the meeting by following the platform's instructions on the morning of the meeting.
For more information on participation at the virtual, live audio webcast, please review the Company's meeting guide (https://www.bridgemarq.com/meeting-guide) and the Management Information Circular.
In addition, Bridgemarq Real Estate Services Inc. will host a conference call on Wednesday, May 13, 2026, at 3 p.m. Eastern Daylight Time to discuss its first 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/2ZO6oXBj9dL.
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 Tuesday, May 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 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 "aimed", "as", "be", "believes", "confident", "consider", "continue", "continues", "could", "evolving", "expanded", "further", "if", "investment", "investments", "may", "persist", "persistent", "potential", "prompt", "remains", "shifting", "support", "to", "uncertainty", "upcoming", "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 ...
