Bridgemarq Real Estate Services (BRE) investor relations material

Executive summary

• Q1 2026 revenue was CAD 69.9 million, down from CAD 78 million, reflecting Canadian market weakness and a reduced agent count.

• 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, as lower revenues were partially offset by reduced commissions expense.

• Free cash flow was CAD 1.9 million, down from CAD 4.1 million, impacted by lower operating income and higher capital expenditures.

• Dividend of CAD 0.1125 per share declared, annualized at CAD 1.35 per share, unchanged from 2025.

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.

• Cash provided by operating activities was CAD 0.3 million, versus cash used of CAD 1.6 million in Q1 2025, due to deferred interest payments and lower taxes.

Outlook and guidance

• Optimism for revenue growth in 2026, driven by new franchising prospects and agent recruitment.

• Ongoing investments in digital sales tools, AI capabilities, and professional development are expected to support future performance.

• Focus on improving EBITDA margins through operational optimization.

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