Earnings release
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OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth Third Quarter 2025 Highlights: Gross revenues of $31.6 million for the quarter, up 15% versus the prior year period Operating income of $10.6 million for the quarter, up 23% versus the prior year period Operating profit margin of 34.6%, versus 32.4% for the prior year period Net income of $8.6 million, up 15% versus the prior year period, and quarterly diluted GAAP EPS of $0.71, up 16% Total cash returned to shareholders during the quarter of $2.2 million, in the form of dividends Announcing special dividend of $1.75 per share and fourth quarter 2025 dividend of $0.18 per share 553 OTCQX® and 1,097 OTCQB® companies at quarter end 19 graduates to a national securities exchange during the quarter 114 subscribers to OTC Link ECN as of September 30, 2025, unchanged from September 30, 2024 138 unique OTC Link subscribers as of September 30, 2025, versus 139 as of September 30, 2024 Approximately 59,000 average daily trades during the quarter versus approximately 35,000 during the prior year period 1,077 OTCID™ companies as of September 30, 2025. Launched OTCID with 1,035 companies on July 1, 2025 NEW YORK, Nov. 12, 2025 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced its financial results for the third quarter of 2025. “Following the successful launch of the OTCID Basic Market, we have seen continued uptake for our Corporate Services. By empowering public companies to actively publish ongoing information and demonstrate global governance, we accelerate our mission to create better informed and more efficient financial markets,” said R. Cromwell Coulson, President and Chief Executive Officer. “We have designed our data-driven markets, OTCQX, OTCQB, and OTCID, to provide the core functionality for public companies to take ownership of their US trading symbols, improve the quality of their trading market, and expand investor interest.” “Our business delivered strong top and bottom-line growth in the third quarter,” said Antonia Georgieva, Chief Financial Officer. “We saw increased revenues across our business lines, with OTC Link continuing to benefit from elevated trading volumes, and Market Data Licensing benefiting from price increases and subscriber growth. Our Corporate Services business saw a meaningful growth as a result of the launch of OTCID and continued improvement in sales. We remain focused on enhancing our value proposition to subscribers and driving growth in users and usage of our products.” Third Quarter 2025 compared to Third Quarter 2024 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 1/7
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Financial Highlights Three Months Ended September 30, (in thousands, except shares and per share data) 2025 2024 % change $ change OTC Link $6,420 $5,240 23 % 1,180 Market data licensing 12,520 10,862 15 % 1,658 Corporate services 12,695 11,292 12 % 1,403 Gross Revenues 31,635 27,394 15 % 4,241 Net revenues 30,659 26,634 15 % 4,025 Revenues less transaction-based expenses 28,504 25,199 13 % 3,305 Operating expenses 17,897 16,575 8 % 1,322 Income from operations 10,607 8,624 23 % 1,983 Operating profit margin 34.6 % 32.4 % Income before provision for income taxes 10,876 8,894 22 % 1,982 Net income $8,558 $7,428 15 % 1,130 Diluted earnings per share $0.71 $0.61 16 % Adjusted diluted earnings per share $1.06 $0.89 19 % Weighted-average shares outstanding, diluted 11,870,002 11,833,215 - Gross revenues of $31.6 million, up 15% over the prior year quarter. Revenues less transaction-based expenses up 13%. OTC Link revenues up 23%. Transaction-based revenues from OTC Link ECN and OTC Link NQB up 47% due to a higher volume of shares traded on those platforms. Contributing to the overall increase in OTC Link revenues were also an increase in OTC Link ATS messages revenue due to a higher number of messages, higher QAP service revenue related to the higher volume of trading activity, and an increase in certain connectivity revenue due to growth in the number of connection licenses. Market Data Licensing revenues up 15%. Redistributor-based revenues increased 23%, with professional user revenues increasing 30%, partially offset by a decline in non-professional user revenues of 7% quarter over quarter. Revenues from direct sold licenses increased 12% primarily due to price increases for certain licenses and growth in subscribers. Revenues from data and compliance solutions increased 3%, with increases in revenues from data services and our Blue Sky data product. 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 2/7
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Corporate Services revenues up 12%. Revenues from our OTCQX market increased 3%, reflecting improved sales and price increases effective from the beginning of the year, which offset a lower number of companies on the OTCQX market. OTCQB revenues increased 10% due to the same factors and a higher number of companies on the OTCQB market. Revenues from our Disclosure & News Service® (“DNS”) product, including both OTCID and Pink company subscribers to DNS, increased 48%. The July 1, 2025 launch of OTCID resulted in a substantial number of Pink companies upgrading to OTCID, which combined with price increases from the beginning of the year, drove the increase in DNS revenues. The previously announced retirement of OTCIQ Basic partially offset these increases. Operating expenses increased 8%. The increase was primarily driven by a 6% increase in compensation and benefits, 26% increase in professional and consulting fees, and 9% increase in IT infrastructure and information services. Operating income increased 23% and net income increased 15% to $10.6 million and $8.6 million, respectively. Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 19% to $12.8 million, or $1.06 per adjusted diluted share. Dividend Declaration – Quarterly Cash Dividend OTC Markets Group announced today that its Board of Directors authorized and approved a special cash dividend of $1.75 per share of Class A Common Stock and a quarterly cash dividend of $0.18 per share of Class A Common Stock. The special dividend is payable on December 4, 2025, to stockholders of record on November 24, 2025. The ex-dividend date is November 24, 2025. The quarterly cash dividend is payable on December 18, 2025, to stockholders of record on December 4, 2025. The ex-dividend date is December 4, 2025. Stock Buyback Program The Company is authorized to purchase shares from time to time on the open market, from employees and consultants, and through block trades, in compliance with applicable law. The Company did not repurchase any shares during the third quarter of 2025. On March 11, 2025, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A Common Stock. Non-GAAP Financial Measures In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance. Third Quarter 2025 Conference Call 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 3/7
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The Company will host a conference call and webcast on Thursday, November 13, 2025, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The call and webcast may be accessed as follows: Webcast: The conference webcast and management presentation can be accessed at the following link (replay available until November 12, 2026): https://edge.media-server.com/mmc/p/8khhvrco Live Call: Participants intending to ask a question during the live call and Q&A session should also register in advance at: https://register-conf.media-server.com/register/BI4ef1e994a28341088acdf4e15c30439d Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option. The Quarterly Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the corporate website at www.otcmarkets.com/about/investor-relations. About OTC Markets Group Inc. OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our public markets: OTCQX® Best Market, OTCQB® Venture Market, OTCID Basic Market, and Pink Limited™ Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATS® are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com. Investor Contact: Antonia Georgieva Chief Financial Officer Phone: (212) 220-2215 Email: ir@otcmarkets.com Media Contact: OTC Markets Group Inc. Phone: (212) 896-4428 Email: media@otcmarkets.com OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share information) 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 4/7
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Three Months Ended September 30, 2025 2024 OTC Link $ 6,420 $ 5,240 Market data licensing 12,520 10,862 Corporate services 12,695 11,292 Gross revenues 31,635 27,394 Redistribution fees and rebates (976 ) (760 ) Net revenues 30,659 26,634 Transaction-based expenses (2,155 ) (1,435 ) Revenues less transaction-based expenses 28,504 25,199 Operating expenses Compensation and benefits 11,162 10,506 IT Infrastructure and information services 2,896 2,657 Professional and consulting fees 1,916 1,525 Marketing and advertising 368 320 Occupancy costs 629 589 Depreciation and amortization 635 677 General, administrative and other 291 301 Total operating expenses 17,897 16,575 Income from operations 10,607 8,624 Other income Interest income 269 270 Income before provision for income taxes 10,876 8,894 Provision for income taxes 2,318 1,466 Net Income $ 8,558 $ 7,428 Earnings per share Basic $ 0.71 $ 0.62 Diluted $ 0.71 $ 0.61 Basic weighted average shares outstanding 11,778,799 11,726,025 Diluted weighted average shares outstanding 11,870,002 11,833,215 Non-GAAP Reconciliation 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 5/7
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Three Months Ended September 30, 2025 2024 Net Income $ 8,558 $ 7,428 Excluding: Interest expense (income) (269 ) (270 ) Provision for income taxes 2,318 1,466 Depreciation and amortization 635 677 Stock-based compensation expense 1,587 1,474 Adjusted EBITDA $ 12,829 $ 10,775 Adjusted diluted earnings per share $ 1.06 $ 0.89 Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance. OTC MARKETS GROUP INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share information) September 30, December 31, 2025 2024 Assets Current assets Cash and cash equivalents $47,806 $34,522 Short-term investments 4,860 4,513 Accounts receivable, net of allowance for credit losses of $255 and $326 8,651 8,097 Prepaid income taxes 2,445 244 Prepaid expenses and other current assets 2,113 2,237 Total current assets 65,875 49,613 Property and equipment, net 5,739 7,096 Operating lease right-of-use assets 9,876 10,951 Deferred tax assets, net 7,334 10,120 Goodwill 3,984 3,984 Intangible assets, net 6,393 6,829 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 6/7
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Long-term restricted cash 1,606 1,606 Other assets 362 543 Total Assets $101,169 $90,742 Liabilities and stockholders' equity Current liabilities Accounts payable $1,155 $1,175 Income taxes payable 382 54 Accrued expenses and other current liabilities 12,820 13,425 Deferred revenue 23,843 29,084 Total current liabilities 38,200 43,738 Income tax reserve 1,048 927 Operating lease liabilities 9,159 10,360 Total Liabilities 48,407 55,025 Commitments and contingencies Stockholders' equity Common stock - par value $0.01 per share Class A - 17,000,000 authorized, 12,912,671 issued, 12,021,239 outstanding at September 30, 2025; 12,815,075 issued, 11,979,165 outstanding at December 31, 2024 129 128 Additional paid-in capital 39,697 35,127 Retained earnings 38,608 23,200 Treasury stock - 891,432 shares at September 30, 2025 and 835,910 shares at December 31, 2024 (25,672 ) (22,738 ) Total Stockholders' Equity 52,762 35,717 Total Liabilities and Stockholders' Equity 101,169 90,742 11/13/25, 10:33 AM OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth | … https://www.otcmarkets.com/stock/OTCM/news/OTC-Markets-Group-Reports-Third-Quarter-2025-Financial-Results-Delivering-Strong-Revenue-Operating-Inc… 7/7