Bridgemarq Real Estate Services Inc., the parent company of Royal LePage, reported a notable decline in first-quarter revenue on Wednesday as a softer Canadian housing market and a smaller agent network weighed on results.
The Toronto-based company posted revenue of $69.9 million for the three months ended March 31, down roughly 10 percent from $78 million in the same period a year earlier.
CEO Spencer Enright described the quarter as one of “mixed market conditions.” He noted encouraging fundamentals such as lower interest rates, rising inventory and price stabilization, but added that persistent geopolitical uncertainty has continued to dampen overall demand.
Bridgemarq recorded a net loss of $3.2 million, or 33 cents per share, for the quarter, compared with net earnings of $6 million, or 64 cents per share, in Q1 2025. A significant factor in the swing was a $2.6-million accounting loss on the valuation of its exchangeable units, versus a $5.7-million gain on the same item a year earlier.
On the cash front, the company generated $0.3 million from operating activities, an improvement from the $1.6 million used in the prior-year quarter.
Agent network shrinks
Bridgemarq’s agent network contracted both quarter-over-quarter and year-over-year.
As of March 31, the franchise network included 19,488 agents across 281 franchise agreements, down about six percent from 20,757 at the end of 2025 and roughly three percent from 20,137 a year earlier.
The company’s corporate brokerages, operating in the Greater Toronto Area, Greater Vancouver and Quebec, employed 2,355 sales representatives at the end of the quarter.
During the earnings call, an analyst questioned the decline in agent counts, referencing a large brokerage that announced this year it would not renew with Royal LePage. Enright did not address that specific conversion but said such shifts occur in cycles and that he remains focused on growing the franchise network.
“I’m optimistic about ongoing conversations with prospects all across the country,” he said. “There are quite a few franchises within competing brands that are up for renewal that are engaging with us.”
Broader market pressures
The quarter’s results mirror challenging conditions across the Canadian real estate market.
Bridgemarq highlighted CREA data showing national transactional dollar volume fell eight percent year-over-year. CREA also reported that total sales volumes dropped seven percent and the national average selling price slipped one percent compared with the prior year.
Interest rate uncertainty is adding to the market’s headwinds. The Bank of Canada held its overnight rate at 2.25 percent in April, but Governor Tiff Macklem has indicated rates could rise if inflation remains elevated. Canada’s consumer price index increased 2.4 percent year-over-year in March, up from 1.8 percent in February, a change driven in part by higher gasoline prices linked to the conflict in Iran.
At the same time, potential disruptions tied to CUSMA renegotiations this summer could influence the bank’s policy in the opposite direction.
Enright said Bridgemarq remains optimistic and is focused on optimizing its business, citing investments in digital tools and AI capabilities across the network.
“We are confident our competitive offering remains as relevant and attractive as ever,” he said.