Bridgemarq Real Estate Services Inc., the parent company of Royal LePage, reported a 12.4 per cent decline in third-quarter (Q3) revenue as Canada’s sluggish housing market continued to weigh on transactions and the company’s agent network shrank to fewer than 19,000 Realtors.

The Toronto-based company generated $107.7 million in revenue during the three months ended Sept. 30, down from $122.9 million in the same period last year. 

“Canada’s spring housing market initially showed signs of improvement earlier this year, though momentum from late spring and early summer did not carry through the third quarter,” CEO Spencer Enright said during an analyst call Thursday.

Enright pointed to persistently low transaction levels across Canada, along with economic uncertainty and “cautious consumer sentiment.” He also cited concerns surrounding trade relations with the United States and additional affordability pressures following the Bank of Canada’s October interest rate hike.

Despite the challenging conditions, Enright said the company remained focused on managing its financial position.

“We made progress in stabilizing our cash flows generated from operations, and managed spending at prudent levels given current market conditions, while investing purposefully to improve competitiveness,” he said.

 

Agent network continues to shrink

 

Bridgemarq’s franchise network continued to contract during the quarter, ending September with 18,998 Realtors operating under 281 franchise agreements.

That represents a decline of 1,950 Realtors, or 9.3 per cent, from the 20,948 agents reported at the same time last year.

The network shed 354 Realtors during the third quarter alone, falling from 19,352 at the end of June. Franchise agreements declined from 285 to 281 over the same period.

 

Net earnings and cash flow improve 

 

Bridgemarq reported net earnings of $66.9 million in Q3, compared with a net loss of $1.7 million a year earlier. The company’s bottom line is significantly affected by value adjustments tied to its Exchangeable Units, which fluctuate with Bridgemarq’s share price.

Adjusted net earnings, which exclude certain non-cash gains and losses, were $1.1 million, up slightly from $1 million in Q3 2025.

Free cash flow also improved, rising to $1.9 million from $1.5 million a year earlier. Cash provided by operating activities increased to $6 million from $1 million in the comparable quarter. 

The company’s board approved a quarterly dividend of 1.25 cents per Restricted Voting Share, payable Dec. 31 to shareholders of record on Nov. 30.