Bridgemarq Real Estate Services (BRE) investor relations material

Executive summary

• Revenue for Q1 2026 was CAD 69.9 million, down from CAD 78 million in Q1 2025, reflecting Canadian market weakness, loss of a major franchise, and fewer REALTORS®.

• Net loss of CAD 3.2 million ($0.33 per share) versus net earnings of CAD 6.0 million ($0.64 per share) in Q1 2025, mainly due to a CAD 2.6 million loss on Exchangeable Units valuation.

• Adjusted net earnings were CAD 1.8 million, down from CAD 3.1 million year-over-year, as lower revenues were partially offset by reduced commissions expense.

• Strategic initiatives included AI adoption, digital platform rollouts, and new advisory councils to empower professionals and enhance brand strength.

• Dividend of CAD 0.1125 per share declared, consistent with the prior year.

Financial highlights

• Gross Commission Income fell to CAD 54.8 million from CAD 61.6 million year-over-year.

• Franchise fees and other revenues declined, contributing to the total revenue drop.

• Operating expenses and commissions both decreased, but not enough to offset revenue decline.

• Free cash flow was CAD 1.9 million, down from CAD 4.1 million, due to lower operating income and higher, partly one-time, capital expenditures.

• Cash provided by operating activities improved to CAD 0.3 million from cash used of CAD 1.6 million, due to deferred interest payments and lower taxes.

Outlook and guidance

• Optimism for revenue growth driven by new franchise conversions, agent recruitment, and ongoing investments in digital sales tools, AI capabilities, and professional development.

• Focus on optimizing brokerage operations to improve EBITDA margins.

• Mixed market conditions are anticipated to persist, with potential for higher borrowing costs and continued geopolitical uncertainty.

• No forward guidance on dividends; board reviews monthly.