Bridgemarq reports 10% revenue drop in Q2

Bridgemarq Real Estate Services Inc., the parent company of Royal LePage, reported a decline in second-quarter (Q2) revenue Thursday, though executives pointed to improving momentum as the quarter progressed.

The Toronto-based company posted revenue of $97.5 million in Q2, down roughly 10 per cent from the $108 million it recorded in the same period a year earlier. The company attributed the drop primarily to weakness in the Canadian housing market and a decrease in the number of Realtors in its network.

CEO Spencer Enright said housing market activity was “slower to build than expected this spring,” but that the company saw encouraging signs as the quarter went on. “Buyers and sellers are gradually returning to the market, supported by stable borrowing costs,” he said. “Although consumers remain cautious, the broader trends point to a more balanced environment heading into the second half of the year.”

Bridgemarq ended the quarter with a net loss of $1.2 million, or 13 cents per share, an improvement from a net loss of $5.4 million, or 57 cents per share, in Q2 2025. As with previous quarters, the bottom line was shaped largely by non-cash fair value adjustments tied to the company’s Exchangeable Units, which move with Bridgemarq’s share price.

Adjusted net earnings, which strip out those non-cash items, came in at $0.9 million, down from $2.2 million a year earlier, which the company attributed to lower revenue that was only partly offset by reduced commissions expense. Free cash flow was $2.2 million, compared with $3.6 million in the same quarter last year, reflecting lower operating income and higher capital expenditures. Cash from operating activities, however, rose to $8.1 million from $5.9 million, helped by the deferral of interest payments on the Exchangeable Units and lower income taxes paid.

As of June 30, 2026, the franchise network consisted of 19,352 agents operating under 285 franchise agreements, compared to 20,745 agents under 282 franchise agreements as of June 30, 2025.

New dividend structure takes effect

The results are the first since Bridgemarq overhauled its dividend policy. In July, the company’s shares dropped more than 50 per cent in a single session after it announced a new capital allocation framework that slashed its payout — moving from a monthly dividend of 11.25 cents per share (an annualized rate of $1.35) to a quarterly dividend with a new annualized rate of $0.05 per share, a cut of roughly 96 per cent. Bridgemarq framed the move at the time as a bid to free up cash for growth and industry consolidation, including franchise conversions, acquisitions and technology investment.

Thursday’s release confirmed that framework is now in motion: subsequent to quarter-end, the board approved the new expected annualized dividend rate of five cents per Restricted Voting Share, to be paid quarterly if and when declared.

Enright reiterated that the company’s network investments remain a priority regardless of the payout change. “Our focus remains on equipping our vast network with the tools, technology and support needed to perform in any market environment,” he said, pointing to a redesigned digital platform, expanded AI capabilities and professional development resources rolled out during the quarter. “We believe our competitive offering remains highly relevant and continues to differentiate us in the competitive Canadian market.”

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