Bridgemarq Real Estate Services(TM) Reports Second Quarter Results and Declares Monthly Dividend

Executive Summary

• Bridgemarq Real Estate Services reported a net loss of $5.4 million ($0.57 per diluted share) for Q2 2025, a significant decline from the $10.5 million net earnings reported in Q2 2024.
• The decline in profitability was primarily driven by a $4.9 million loss on the fair valuation of Exchangeable Units, compared to a $10.6 million gain in the prior year period.
• Despite the net loss, the company reported Adjusted Net Earnings of $2.2 million and Free Cash Flow of $3.6 million for the quarter.

Key Details

• Revenue: Q2 2025 revenue was $108.0 million, down from $110.5 million in Q2 2024. Year-to-date revenue increased to $186.0 million from $122.4 million in the same period last year, largely due to the inclusion of acquired businesses.
• Net Loss: Reported a net loss of $5.4 million ($0.57 per fully diluted share) for Q2 2025, compared to net earnings of $10.5 million ($0.17 per share) in Q2 2024.
• Adjusted Net Earnings: Reported $2.2 million for Q2 2025, down from $2.6 million in Q2 2024. The decrease was attributed to lower revenues and higher operating costs, partially offset by lower interest expense and depreciation.
• Free Cash Flow: Generated $3.6 million in Q2 2025, a decrease from $5.6 million in Q2 2024.
• Cash Flow from Operations: Cash provided by operating activities was $5.9 million in Q2 2025, compared to $10.5 million in Q2 2024. Year-to-date cash flow from operations decreased by $8.0 million compared to the prior year.
• Dividend Declaration: The Board declared a monthly dividend of $0.1125 per Restricted Voting Share. The dividend is payable on September 30, 2025, to shareholders of record on August 29, 2025. This represents a target annual dividend of $1.35 per share.
• Balance Sheet Highlights (as of June 30, 2025):
  • Total Assets: $176.7 million (up from $157.4 million at Dec 31, 2024).
  • Cash and Cash Equivalents: $11.4 million.
  • Total Liabilities: $262.8 million.
  • Shareholders' Deficit: $(86.1) million.
• Network Expansion: As of June 30, 2025, the franchise network comprised 20,745 REALTORS® under 282 franchise agreements. The company added approximately 600 sales representatives to the Royal LePage brand in Q2 2025.
• Market Context: The Canadian residential real estate market contracted 4% in Q2 2025 year-over-year. Sales volumes declined 2% and average selling prices decreased 2% year-over-year, though quarter-over-quarter sales volumes increased 44%.

Notable Quotes

• "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.
• "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."