Bridgemarq Real Estate Services Inc.

Good morning. My name is Sylvie, and I would like to welcome everyone to the Bridgemark Real Estate Services, Inc. 2025 Third Quarter Results Conference Call. This call is being recorded. Note that all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. For those of you dialed in to the conference call, if you would like to ask a question, simply press star then the number one on your telephone keypad. And if you would like to withdraw your question, press star then two. For those of you joining us via webcast, if you would like to ask a question, simply type it into the Q&A box on your screen. We will answer these questions following the dial-in questions after the presentation, time permitting. I would now like to introduce Mr. Spencer Enright, Chief Executive Officer of Bridgewater Real Estate Services, Inc. Mr. Enright, you may begin your conference.

Thank you, Operator. Good morning, everyone, and thanks for joining us on the call today. I'm joined by our Chief Financial Officer, Wallace Wang. I will begin with a brief overview of our company's third quarter results. Wallace will then discuss our financial results in more detail. And I'll conclude by providing some remarks on operational highlights, company updates, and market development. Following our remarks, Wallace and I would be happy to take your questions. I want to remind you that some of the remarks expressed during this call may contain forward-looking statements. You should not place reliance on these forward-looking statements because they involve known and unknown risks and uncertainties that may cause the actual results and performance of the company to differ materially from the anticipated future results expressed or implied by such forward-looking statements. I encourage everyone to review the cautionary language found in our news release and on our regulatory filings. These can be found on our website and on CDAR+. So we continue to build on the strong momentum established in the first half of 2025, an encouraging sign given broader economic challenges and ongoing geopolitical certainty including U.S. trade tensions that continue to affect the Canadian economy. Despite ongoing uncertainty in both the housing market and the wider economic environment, we have continued to successfully attract and retain high-performing agents across our brands. Our comprehensive suite of tools, training services, and technology offerings, which are all tailored specifically to the needs of Canadian realtors, have been a key differentiator over our competitors, helping us remain competitive and deliver exceptional value to our network. Revenue for the first nine months of the year was $309 million, compared to $249 million in 2024. As a reminder, last year's results reflect the addition of the brokerage businesses, which were acquired on March 31st, 2024. At its meeting yesterday, our Board of Directors approved a dividend of $11.25 per share, payable on December 31st, to shareholders of record on November 28th. This indicates an annualized dividend of $1.35 per share, which is consistent with 2024. And with that, I'll turn the call over to Wallace for a closer look at our third quarter financial performance.

Great. Thank you, Spencer, and good morning, everyone. Revenue in the third quarter was $123 million, slightly lower than the $127 million reported in the third quarter of 2024. Franchise fees increased for the quarter and the first nine months of the year, driven by the fee increases implemented at the beginning of 2025, as well as an increase in the number of realtors in our network. There are currently 21,617 realtors in our network, an increase of 3% since the end of last year. By contrast, the total number of CREA realtors has decreased by 2% since the end of last year. In the third quarter, the company generated a net loss of $1.7 million compared to a net loss of $10.8 million in 2024. The reduced loss in the quarter is largely driven by the valuation of the exchangeable units remaining unchanged in the quarter compared to a loss of $10.8 million in the third quarter of 2024. Our adjusted net earnings, which considers our operating earnings before certain non-cash, non-operating adjustments and payments to holders of exchangeable units, amounted to $1.0 million in the third quarter. Cash provided by operating activities amounted to $1.3 million in the third quarter of 2025, compared to $2.7 million last year. The company generated $1.5 million in free cash flow in Q3, down from the $5.3 million generated in the same quarter of 2024. This is primarily driven by increased capital expenditures during the quarter. The Canadian residential real estate market grew in the third quarter of 2025, closing at approximately $84 billion, an increase of 5% compared to the same period in 2024, driven by a modest 1% increase in the average selling price and a 4% increase in sales volume. This is largely driven by the province of Quebec, where the residential real estate market recorded a 20% increase in transactional dollar volume during the third quarter of 2025, compared to the previous year, closing at more than $12 billion. This reflects a 10% increase in unit sales and a 9% increase in the average selling price. The Greater Toronto Market and the Greater Vancouver Market recorded declines in the average home prices compared to last year. The number of units sold during the quarter increased in both markets. As a reminder, market data is generally reported on a firm deal basis, whereas the company recognizes revenues when the transactions are closed. Spencer will now provide additional insights into the market and an update on our operations.