Mr. Spencer Enright reports

BRIDGEMARQ REAL ESTATE SERVICES REPORTS ANNUAL FINANCIAL RESULTS AND DECLARES MONTHLY DIVIDEND

Bridgemarq Real Estate Services Inc. has released its annual consolidated financial results and declared a monthly dividend to holders of the company's restricted voting shares.

Highlights:

• In 2025, the company grew its network by more than 470 net real estate professionals, an increase of 2 per cent while the Canadian industry contracted by 3 per cent.
• Revenue for 2025 amounted to $407.4-million, compared with the $350.7-million generated in the prior year, due to the inclusion of the operating results of the acquired businesses from April 1, 2024, as well as fee increases and an increase in the number of agents in the network.
• The company generated $10.6-million in free cash flow in 2025, compared with $16.8-million in 2024.
• In the fourth quarter of 2025, the company reached an agreement with its lender to extend the maturity of its credit facilities to Dec. 31, 2031.
• The board of directors approved a dividend to shareholders of 11.25 cents per restricted voting share, payable on April 30, 2026, to shareholders of record on March 31, 2026.

Fourth quarter operating results

For the year ending Dec. 31, 2025, revenues were $407.4-million, compared with $350.7-million generated in 2024. The increase is substantially due to the inclusion of the operating results of the acquired businesses from April 1, 2024. Franchise fees for the fourth quarter and the year increased due to the benefit of fee increases implemented at the start of 2025 and an increase in the number of Realtors.

In 2025, the company generated net earnings of $7.3-million, or 44 cents per fully diluted restricted voting share, compared with a net loss of $10.3-million, or a loss of $1.09 per share, in 2024. In the fourth quarter, the company generated net earnings of $8.4-million, compared with a net loss of $9.6-million during the same period in the prior year. The higher earnings for the year are primarily a result of an $11.3-million gain on the valuation of the exchangeable units, compared with a loss of $9.3-million in 2024. The fair-valuation adjustment on the exchangeable units is directly related to changes in the market price of Bridgemarq's restricted voting shares.

Cash flow from operations decreased by $7.2-million in 2025, compared with the prior year, primarily due to lower operating income, higher interest paid and non-cash working capital changes. For the quarter, cash provided by operating activities amounted to $4.9-million, an increase from the $1.8-million recorded in the fourth quarter of 2024.

Adjusted net earnings, which measure earnings of the business before certain non-cash gains and losses on a fully diluted basis, amounted to $5-million in 2025, compared with $7.3-million in 2024. For the quarter, adjusted net earnings amounted to a loss of $1.2-million, compared with a loss of $400,000 in Q4 2024. The reduction in adjusted net earnings is primarily due to higher commissions expense, higher operating expenses and higher income tax expense, partly offset by higher revenues, lower depreciation charges and lower interest expense on the company's debt.

The company generated $10.6-million in free cash flow in 2025, compared with $16.8-million in 2024. In the fourth quarter, the company generated $1.4-million, compared with $1.8-million in the same quarter the year prior.

"Our performance this year underscores the enduring strength of our brands and franchise networks. At a time when home resale transactions slowed and the number of nationally registered Realtors declined, Bridgemarq continued to grow its agent count," said Spencer Enright, chief executive officer of Bridgemarq Real Estate Services. "This growth reaffirms the enduring value that our brands, networks, services and technology provide to industry professionals today."

Market update

The Canadian residential real estate market declined by 16 per cent in Q4 2025 compared with the same quarter in the prior year and 6 per cent for the full year compared with 2024. According to the Canadian Real Estate Association, unit sales recorded a 13-per-cent decrease in the fourth quarter compared with the same period in the prior year while the national average selling price decreased 4 per cent. On a quarter-over-quarter basis, the average selling price increased by 2 per cent despite a decline in sales. For the full year, the national average selling price dipped 1 per cent in 2025 and transaction volume declined by 4 per cent.

Economic and geopolitical uncertainty weighed on homebuyer activity throughout 2025. Although borrowing costs continued to decline over the past year and inventory levels increased in most major regions, improving overall market balance, low consumer confidence continued to negatively impact sales activity. This softening was pronounced in the country's most expensive real estate markets, Greater Vancouver and the Greater Toronto Area.

"Market activity remains mixed from coast to coast. While market fundamentals remain strong -- including lower interest rates, increased inventory, and flat or declining prices -- affordability challenges persist in select key markets, Toronto and Vancouver among them. We are navigating a period of persistent consumer uncertainty that is dampening overall demand. Despite these headwinds, our comprehensive service offerings are regarded as industry best-in-class and continue to be valued by our agents as critical elements to achieving their success in this challenging market," added Mr. Enright.

Cash dividend

The company declared a cash dividend of 11.25 cents per restricted voting share payable on April 30, 2026, to shareholders of record on March 31, 2026. Total dividends paid during 2025 amounted to $1.35 per restricted voting share, consistent with 2024.

The company network

As at Dec. 31, 2025, the franchise network comprised 20,757 Realtors operating under 286 franchise agreements from 727 locations. The company's corporately owned real estate brokerages operated 32 real estate locations in the Greater Toronto Area and Greater Vancouver and within the province of Quebec, with 2,413 sales representatives.

Conference call

Bridgemarq Real Estate Services will host a conference call on Friday, March 13, 2026, at 10 a.m. Eastern Daylight Time to discuss its fourth quarter financial results.

To access the call by telephone, please dial 1-888-699-1199 or 416-945-7677.

Please connect approximately 10 minutes prior to the beginning of the call to ensure participation.

A transcript of the conference call will be available on the company's website by Wednesday, March 18, 2026.

About Bridgemarq Real Estate Services Inc.

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. The company operates in Canada under the Royal LePage, Proprio Direct, Via Capitale, Johnston & Daniel, and Les Immeubles Mont-Tremblant brands.

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