Bridgemarq Real Estate Services Inc.

Revenue in Q2 was $97.5 million versus $108 million in Q2 2025. Net loss was $1.2 million compared with a net loss of $5.4 million last year, and adjusted net earnings were $900 thousand versus $2.2 million a year ago. Cash provided by operating activities was $8.9 million, up from $5.9 million, and free cash flow was $2.2 million. Management did not give next-quarter revenue or EPS guidance; instead, it pointed to a new annualized dividend rate of $0.50 per restricted voting share and said the first quarterly dividend under the new framework is expected with Q3 results in November.

Spencer Enright framed the quarter as one of continued strategic investment despite mixed housing conditions. He said Bridgemarq is strengthening its leadership position through technology, innovation, and brand leadership, while positioning the company for a gradually stabilizing housing market. He was upbeat about the new capital allocation framework, saying it gives the company more flexibility to invest in AI, pursue acquisitions, and support long-term shareholder value.

Wallace Wang said the revenue decline was primarily driven by lower agent count and softer market conditions, with the network at 19.4 thousand realtors. He noted that cash flow improved because of deferred interest payments related to exchangeable units, while free cash flow was constrained by lower operating income and higher capital expenditures, including some one-time items tied to the head office move. On expenses, he said the company is balancing tighter cost control with continued investment in bench strength and capabilities, while Spencer added they are managing premises and other fixed costs down and still investing in brands and growth.

Jeff Fenwick asked about the decline in broker count, whether agents were being poached, and whether the new dividend and capital policy would change recruitment strategy. Management said the year-to-date decline was mainly due to the first-quarter loss of a key franchise, while second-quarter agent count was “pretty stable” and churn was typical, with no meaningful competitor-specific losses. He also asked whether franchisees were seeking fee relief; Spencer said there was no pricing pressure and that feedback focused instead on better tools, CRM-style functionality, and easier content creation. Wallace said higher capex this quarter was partly one-time head office move spending, and deferred interest on exchangeable units could be paid in cash, stock, or a mix, with a decision to be made with the board.