Q4 2025 Bridgemarq Real Estate Services Inc Earnings Call

March 13, 2026

Speaker #2: This call is being recorded. All lines have been placed on mute to prevent any background noise. After speakers' remarks, there will be a question-and-answer session.

Speaker #2: For those of you dialed into the conference call, if you would like to ask a question, simply press the number one on your telephone keypad.

Speaker #2: And if you want to withdraw your question, simply press star, then two. For those of you joining us via webcast, if you would like to ask a question, simply type it into the Q&A box on your screen.

Speaker #2: We will answer these questions following the dial-in questions after the presentation, time permitting. And I would like to introduce Ms. Annelise Alighieri, Director of Investor Relations at Bridgemarq—sorry, at Bridgemarq Real Estate Services Inc. You may now begin your conference.

Operator: Anne-Elise Cugliari Allegritti, Director of Investor Relations at Bridgemarq Real Estate Services Inc. You may now begin your conference.

Operator 2: Anne-Elise Cugliari Allegritti, Director of Investor Relations at Bridgemarq Real Estate Services Inc. You may now begin your conference.

Anne-Elise Cugliari Allegritti: Thank you, Sylvie. Good morning, everyone, and thank you for being with us on the call today. I am joined by our Chief Executive Officer, Spencer Enright, and our Chief Financial Officer, Wallace Wang. They will begin today with a brief overview of our company's 2025 financial results, followed by remarks on operational highlights, company updates, and market developments. Following their remarks, Spencer and Wallace will be happy to take your questions. Please note, only analyst questions will be permitted on the dial-in line. All others who wish to submit a question are welcome to do so via the Q&A feature on the webcast. You can find the link to that webcast on the events page of our website. I want to remind everyone that some of the remarks expressed during this call may contain forward-looking statements.

Speaker #2: Thank you, Sylvie. Good morning, everyone, and thank you for being with us on the call today. I am joined by our Chief Executive Officer, Spencer Enright, and our Chief Financial Officer, Wallace Wang.

Speaker #2: They will begin today with a brief overview of our company's 2025 financial results, followed by remarks on operational highlights, company updates, and market developments.

Speaker #2: Following their remarks, Spencer and Wallace will be happy to take your questions. Please note, only analyst questions will be permitted on the dial-in line.

Speaker #2: All others who wish to submit a question are welcome to do so via the Q&A feature on the webcast, and you can find the link to that webcast on the events page of our website.

Speaker #2: I want to remind everyone that some of the remarks expressed during this call may contain forward-looking statements. You should not place reliance on these forward-looking statements because they involve known and unknown risks and uncertainties that may cause the actual results and performance of the company to differ materially from the anticipated future results expressed or implied by such statements.

Anne-Elise Cugliari Allegritti: You should not place reliance on these forward-looking statements because they involve known and unknown risks and uncertainties that may cause the actual results and performance of the company to differ materially from the anticipated future results expressed or implied by such statements. I encourage everyone to review the cautionary language found in our news release and on all of our regulatory filings. These can be found on our website and on SEDAR+. At this time, I will pass the call over to Mr. Spencer Enright to give a brief overview of our Q4 results.

Speaker #2: I encourage everyone to review the cautionary language found in our news release and on all of our regulatory filings. These can be found on our website and on Cedar Plus.

Speaker #2: At this time, I will pass the call over to Mr. Spencer Enright to give a brief overview of our fourth quarter results.

Spencer Enright: Thank you, Annalise Allegretti, and good morning, everyone. In 2025, Bridgemarq continued to build on its long-standing legacy as a leader in Canadian real estate through strategic investment, strong brand positioning, and our continued commitment to supporting real estate professionals across our network. While many sectors of the economy were affected by geopolitical turbulence and trade disruptions over the past year, the company remained resilient. Even as the overall real estate industry experienced an outflow of professionals, our brands continued to grow and attract top talent. This progress underscores the strength of our business model, commitment to innovation, and our ability to adapt in a changing market environment.

Speaker #3: Thank you, Annelise, and good morning, everyone. In 2025, Bridgemarq continued to build on its longstanding legacy as a leader in Canadian real estate, through strategic investment, strong brand positioning, and our continued commitment to supporting real estate professionals across our network.

Speaker #3: While many sectors of the economy were affected by geopolitical turbulence and trade disruptions over the past year, the company remained resilient. Even as the overall real estate industry experienced an outflow of professionals, our brands continued to grow and attract top talent.

Speaker #3: This progress underscores the strength of our business model, commitment to innovation, and our ability to adapt in a changing market environment. Revenue for 2025 amounted to $407 million, compared to $351 million generated in 2024, which is reflective of the addition of the brokerage operations we acquired on March 31st of that year.

Spencer Enright: Revenue for 2025 amounted to CAD 407 million, compared to CAD 351 million generated in 2024, which is reflective of the addition of the brokerage operations we acquired on 31 March 2024. At its meeting yesterday, our board of directors approved a dividend of CAD 0.1125 per share, payable on 30 April to shareholders of record on 31 March. This indicates an annualized dividend of CAD 1.35 per share, which is consistent with 2024. With that, I'll turn the call over to Wallace for a closer look at our full year financial performance.

Speaker #3: At its meeting yesterday, our board of directors approved a dividend of $11.25 per share, payable on April 30, to shareholders of record on March 31.

Speaker #3: This indicates an annualized dividend of $1.35 per share, which is consistent with 2024. And with that, I'll turn the call over to Wallace for a closer look at our full-year financial performance.

Wallace Wang: Thank you, Spencer, and good morning, everyone. As Spencer mentioned, revenue for 2025 was up year over year. In the Q4, revenues amounted to CAD 98 million, compared to CAD 101 million in the Q4 of 2024. The number of realtors in our network currently sits at 21,409. This includes more than 2,400 agents operating within the company's corporately owned real estate brokerages in the Greater Toronto Area, Greater Vancouver, and within the province of Quebec. We grew our network by more than 470 real estate professionals on a net basis, an increase of 2% compared to last year. By contrast, the total number of realtors in the country contracted by 3%.

Speaker #4: Thank you, Spencer, and good morning, everyone. As Spencer mentioned, revenue for 2025 was up year over year. In the fourth quarter, revenues amounted to $98 million, compared to $101 million in the fourth quarter of 2024.

Speaker #4: The number of realtors in our network currently sits at 21,409. This includes more than 2,400 agents operating within the company's corporately owned real estate brokerages in the Greater Toronto Area, Greater Vancouver, and within the province of Quebec.

Speaker #4: We grew our network by more than 470 real estate professionals on a net basis, an increase of 2% compared to last year. By contrast, the total number of realtors in the country contracted by 3%.

Wallace Wang: In 2025, the company generated net earnings of CAD 7.3 million, compared to a net loss of CAD 10.3 million in 2024. The higher net earnings for the year are primarily a result of an 11.3 million gain on the valuation of the exchangeable units. Compared to a loss of CAD 9.3 million in 2024. In 2025, adjusted net earnings, which considers our net operating earnings before certain non-cash, non-operating adjustments and payments to holders of exchangeable units, amounted to CAD 5 million, down from CAD 7.3 million in the prior year. The reduction in adjusted net earnings is primarily due to the lower operating income generated in the year.

Speaker #4: In 2025, the company generated net earnings of $7.3 million, compared to a net loss of $10.3 million in 2024. The higher net earnings for the year are primarily a result of an $11.3 million gain on the valuation of the exchangeable unit, compared to a loss of $9.3 million in 2024.

Speaker #4: In 2025, adjusted net earnings, which considers our net operating earnings before certain non-cash, non-operating adjustments, and payments to holders of exchangeable units, amounted to $5 million.

Speaker #4: Down from $7.3 million in the prior year. The reduction in adjusted net earnings is primarily due to the lower operating income generated in the year.

Wallace Wang: Cash provided by operating activities decreased by CAD 7.2 million in 2025 compared to the prior year, primarily due to lower operating income, higher interest payments, and working capital changes. Finally, the company generated CAD 10.6 million free cash flow in 2025, down from CAD 16.8 million in 2024. This is partly due to increased capital expenditures during the year as the company continued to invest in its agent network. Economic and geopolitical uncertainty weighed on home buying activity throughout 2025, creating softness in the country's most expensive markets as concerned consumers held back. The Canadian residential real estate market closed the year at CAD 220 billion, a 6% decline from 2024. For the full year, the national average selling price dipped by 1%, while sales volume declined by 4%.

Speaker #4: Cash provided by operating activities decreased by $7.2 million in 2025, compared to the prior year, primarily due to lower operating income, higher interest payments, and working capital changes.

Speaker #4: Finally, the company generated $10.6 million in free cash flow in 2025, down from $16.8 million in 2024. This is partly due to increased capital expenditures during the year, as the company continued to invest in its agent network.

Speaker #4: Economic and geopolitical uncertainty weighed on home buying activity throughout 2025, creating softness in the country's most expensive markets, as concerned consumers held back. The Canadian residential real estate market closed the year at $220 billion, a 6% decline from 2024.

Speaker #4: For the full year, the national average selling price dipped by 1%, while sales volume declined by 4%. In 2025, the Greater Toronto Area real estate market contracted by 12% year over year, driven by a 4% decline in average home prices and an 8% decline in unit sales.

Wallace Wang: In 2025, the Greater Toronto Area real estate market contracted by 12% year-over-year, driven by a 4% decline in the average home prices and an 8% decline in unit sales. The Greater Vancouver real estate market also recorded double-digit decline in 2025, with total transaction dollar volume decreasing 14% year-over-year as selling prices and unit sales declined by 4% and 10% respectively. By contrast, in the province of Quebec, the residential real estate market reported a 16% increase compared to the previous year. This reflects an 8% increase in both unit sales and the average selling price. Spencer will now provide additional insights into the market and an update on our operations.

Speaker #4: The Greater Vancouver real estate market also recorded a double-digit decline in 2025, with total transaction dollar volume decreasing 14% year over year, as selling prices and unit sales declined by 4% and 10%, respectively.

Speaker #4: By contrast, in the province of Quebec, the residential real estate market recorded a 16% increase compared to the previous year. This reflects an 8% increase in both unit sales and the average selling price.

Speaker #4: Spencer will now provide additional insights into the market and an update on our operations.

Spencer Enright: Thanks, Wallace. Home buyer activity throughout 2025 remained below typical levels, weighed down by economic uncertainty that persisted from early in the year. As a result, market conditions varied widely across regions. With home prices continuing to soften, affordability in the Greater Toronto and Vancouver markets continued to gradually improve, which, other factors being equal, does improve opportunities for first-time buyers and those otherwise in a position to act. Increased inventory levels shifted conditions in favor of buyers in these markets, which creates a favorable environment for home sale transactions once other external economic factors eventually stabilize. Meanwhile, Quebec's housing market continues to demonstrate resilience and growth. Tight supply conditions have driven home price gains in the province over the last year, similar to regions in the prairies and Atlantic Canada.

Speaker #3: Thanks, Wallace. Home buyer activity throughout 2025 remained below typical levels, weighed down by economic uncertainty that persisted from early in the year. As a result, market conditions varied widely across regions.

Speaker #3: With home prices continuing to soften, affordability in the Greater Toronto and Vancouver markets continued to gradually improve, which, other factors being equal, does improve opportunities for first-time buyers and those otherwise in a position to act.

Speaker #3: Increased inventory levels shifted conditions in favor of buyers in these markets, which creates a favorable environment for home sale transactions once other external economic factors eventually stabilize.

Speaker #3: Meanwhile, Quebec's housing market continued to demonstrate resilience and growth. Tight supply conditions have driven home price gains in the province over the last year, similar to regions in the Prairies and Atlantic Canada.

Spencer Enright: The Bank of Canada held its target rate for the overnight lending rate at 2.25% since October 2025. While the central bank is widely expected to maintain this level at its scheduled announcement next week, it has signaled a readiness to support economic growth as conditions warrant. Inflation has largely stabilized. In January, Canada's consumer price index increased 2.3% year over year, down from the 2.4% recorded in December, which remains within the central bank's target range. Now I'd like to give you a few updates on the company's operations. 2025 was a year of meaningful progress in both market share growth and innovation. In Ontario, the acquisition of two major brokerages from one of our top US competitors brought approximately 900 agents into the Royal LePage brand network.

Speaker #3: The Bank of Canada held its target rate for the overnight lending rate at 2.25% since October 2025. While the central bank is widely expected to maintain this level at its scheduled announcement next week, it has signaled the readiness to support economic growth as conditions warrant.

Speaker #3: Inflation has largely stabilized. In January, Canada's Consumer Price Index increased 2.3% year over year, down from the 2.4% recorded in December, which remains within the central bank's target range.

Speaker #3: Now, I'd like to give you a few updates on the company's operations. 2025 was a year of meaningful progress in both market share growth and innovation.

Speaker #3: In Ontario, the acquisition of two major brokerages from one of our top U.S. competitors brought approximately 900 agents into the Royal LePage brand network.

Spencer Enright: In Quebec, our Via Capitale brand and network expanded with the addition of roughly 200 agents. Alongside these strategic additions, our brands continued to attract and retain high-performing professionals through organic growth, underscoring the strengths of our value proposition. Over the past year, we've reinforced our Royal LePage brand's Canadian first positioning and showcased the strength of our brands and service offerings through the launch of two national digital advertising campaigns. Together, these campaigns generated more than 16 million impressions and helped strengthen brand awareness among consumers across the country. In 2025, we also continued to advance our digital modernization and professional development initiatives with a focus on strengthening regulatory compliance and improving operational effectiveness. We launched a new recruiting microsite to help our franchisees grow as well.

Speaker #3: In Quebec, our Via Capitale brand and network expanded with the addition of roughly 200 agents. Alongside the strategic additions, our brands continued to attract and retain high-performing professionals through organic growth, underscoring the strengths of our value proposition.

Speaker #3: Over the past year, we reinforced our Royal Page brand's Canadian-first positioning and showcased the strengths of our brands and service offerings through the launch of two national digital advertising campaigns.

Speaker #3: Together, these campaigns generated more than 16 million impressions and helped strengthen brand awareness among consumers across the country. In 2025, we also continued to advance our digital modernization and professional development initiatives, with a focus on strengthening regulatory compliance and improving operational effectiveness.

Speaker #3: We launched a new recruiting microsite to help our franchisees grow as well. We continue to expand the adoption of practical AI tools across our network, and delivered training on the Google Suite of AI-powered applications to help professionals integrate these technologies into their daily workflows.

Spencer Enright: We continued to expand the adoption of practical AI tools across our network and delivered training on Google Workspace for AI-powered applications to help professionals integrate these technologies into their daily workflows. Within our Proprio Direct network, several initiatives were implemented to enhance the digital experience for both professionals and consumers. Updated website technology and improved internal platforms were introduced to strengthen brand consistency, enhance usability, and optimize lead generation. Proprio Direct also expanded its accredited training, onboarding, and continuing education programs, providing our real estate professionals with structured integration support and access to ongoing professional development resources.

Speaker #3: Within our Proprio direct network, several initiatives were implemented to enhance the digital experience for both professionals and consumers. Updated website technology and improved internal platforms were introduced to strengthen brand consistency, enhance usability, and optimize lead generation.

Speaker #3: Proprio Direct also expanded its accredited training, onboarding, and continuing education programs, providing our real estate professionals with structured integration support and access to ongoing professional development resources.

Spencer Enright: Together, these initiatives strengthen the foundation of our industry-leading brands, positioning the company to capture new opportunities for growth while delivering long-term value for our shareholders. As we look ahead, we are committed to building on the progress achieved in 2025 while adapting proactively within an uncertain industry sector environment. With stable cash flows and diverse opportunities for expansion, Bridgemarq's operating model remains well-positioned for sustained success. With that, I'll turn the call back to our operator and open the call to questions.

Speaker #3: Together, these initiatives strengthened the foundation of our industry-leading brands, positioning the company to capture new opportunities for growth while delivering long-term value for our shareholders.

Speaker #3: As we look ahead, we are committed to building on the progress achieved in 2025, while adapting proactively within an uncertain industry sector environment. With stable cash flows and diverse opportunities for expansion, Bridgemarq's operating model remains well-positioned for sustained success.

Speaker #3: With that, I'll turn the call back to our operator and open the call to questions.

Operator 2: Thank you, sir. Ladies and gentlemen, as stated, if you are dialed in via the conference call, please press star one on your telephone keypad if you have a question, and to withdraw, press star two. For those joining via the webcast, you will need to type your question into the Q&A box on your screen. Thank you. Once again, ladies and gentlemen from the phone, please press star one if you have a question. At this time, it appears we have no questions on the phone.

Operator: Thank you, sir. Ladies and gentlemen, as stated, if you are dialed in via the conference call, please press star one on your telephone keypad if you have a question, and to withdraw, press star two. For those joining via the webcast, you will need to type your question into the Q&A box on your screen. Thank you. Once again, ladies and gentlemen from the phone, please press star one if you have a question. At this time, it appears we have no questions on the phone.

Speaker #1: Thank you, sir. Ladies and gentlemen, as stated, if you are dialed in via the conference call, please press star one on your telephone keypad if you have a question, and to withdraw, press star two.

Speaker #1: And for those joining via the webcast, you will need to type your question into the Q&A box on your screen. Thank you. Once again, ladies and gentlemen on the phone, please press star one if you have a question.

Speaker #1: And at this time, it appears we have no questions on the phone.

Wallace Wang: There are currently no other questions on the webcast as well.

Speaker #4: There are currently no other questions on the webcast as well.

Operator 2: Please proceed, gentlemen.

Operator: Please proceed, gentlemen.

Spencer Enright: Okay. Yeah. Well, thank you. Thank you, operator. Thanks everybody for joining us on the call. We appreciate your interest in the business and look forward to speaking to you again after our Q1 results. Thank you.

Speaker #1: Please proceed, gentlemen.

Speaker #3: Okay. Yeah. Well, thank you. Thank you, operator. And thanks, everybody, for joining us on. We appreciate your interest in the business, and look forward to speaking to you again after our first quarter results.

Speaker #3: Thank you.

Operator 2: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines. Have yourselves a good weekend.

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines. Have yourselves a good weekend.

Speaker #1: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines.

Q4 2025 Bridgemarq Real Estate Services Inc Earnings Call

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