Earnings release
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OTC Markets Group Reports Second Quarter 2026 Financial Results Delivering Strong Revenue , Operating Income , and Earnings Growth Second Quarter 2026 Highlights : ⚫ Gross revenues of $ 34.8 million for the quarter , up 14 % versus the prior year period • • Operating income of $ 10.5 million for the quarter , up 19 % versus the prior year period Operating profit margin of 31.1 % for the quarter , versus 29.9 % for the prior year period • Net income of $ 8.6 million , up 17 % versus the prior year period , and quarterly diluted GAAP EPS of $ 0.71 , up 18 % • Total cash returned to shareholders during the quarter of $ 6.6 million , comprised of dividends of $ 3.6 million and • repurchases of common shares of $ 3.0 million , a three - fold increase versus the prior year period Announcing third quarter 2026 dividend of $ 0.30 per share • 585 OTCQX® and 1,101 OTCQB® companies at quarter end • 1,037 OTCIDⓇ companies at quarter end • 144 unique OTC Link subscribers as of June 30 , 2026 , up 7 versus June 30 , 2025 . . Approximately 95,000 average daily trades on OTC Link ECN and OTC Link NQB during the quarter , versus approximately 63,000 during the prior year period Approximately 69,000 average trades and 7.8 million average shares per session on MOON ATSⓇ • In July 2026 , OTC Markets Group announced a proposed strategic alliance with BitGo Bank & Trust and a new integration with Elysium's MatchHub platform to advance digital asset access NEW YORK , Aug. 05 , 2026 ( 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 second quarter of 2026 . " In the first half of 2026 , we saw the benefits of launching our OTCID Basic Market and building out our overnight trading capability , " said R. Cromwell Coulson , President and Chief Executive Officer . “ Our recently announced strategic alliances will allow us to connect digital asset trading and qualified custody infrastructure for blockchain native securities . As regulations rapidly develop for tokenized securities , OTC Link ATS , our Qualified Interdealer Quotation System , will support trading by our FINRA member broker - dealers and empower issuer innovation , investor access and regulatory compliance around these evolving technologies . " " In the second quarter of 2026 , we delivered strong financial results across all three business lines , with gross revenues increasing 14 % and operating income rising 19 % year over year , while expanding operating margin by 120 basis points , " said Antonia Georgieva , Chief Financial Officer . “ OTC Link revenues increased as a result of significantly higher trading volumes . Corporate Services experienced strong growth , led by OTCID and supported by a higher average number of companies on our OTCQX and OTCQB markets . Market Data Licensing revenues also increased , driven by price increases for certain licenses and subscriber growth . These results reflect the strength of our business and our disciplined execution . " Second Quarter 2026 compared to Second Quarter 2025 Financial Highlights Three Months Ended June 30 , ( in thousands , except % $ 2026 2025 shares and change change per share data ) OTC Link $ 8,211 $ 6,447 27 % 1,764 Market data licensing 13,153 12,316 7 % 837 Corporate services 13,391 11,742 14 % 1,649 Gross Revenues 34,755 30,505 14 % 4,250 Net revenues 33,743 29,507 14 % 4,236 Revenues less transaction- based expenses 30,565 27,215 12 % 3,350
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Operatingexpenses 20,077 18,384 9% 1,693 Incomefromoperations 10,488 8,831 19% 1,657 Operatingprofitmargin 31.1% 29.9% Incomebeforeprovision forincometaxes 10,746 9,047 19% 1,699 Net income $ 8,550 $ 7,300 17% 1,250 Dilutedearningsper share $ 0.71 $ 0.60 18% Adjusteddilutedearningsper share $ 1.04 $ 0.92 13% Weighted-averagesharesoutstanding,diluted 11,842,592 11,830,514 - Gross revenues of $34.8 million, up 14% over the prior year quarter. Revenues less transaction-based expenses up 12%. OTC Link revenues up 27%. Transaction-based revenues from OTC Link ECN, OTC Link NQB, and MOON ATS increased 47%, dueto a higher volume of shares traded on these platforms. Additionally, usage-based revenue from OTC Link ATS increased 6%primarily due to a higher number of messages. Market Data Licensing revenues up 7%. Redistributor-based revenues increased 8%, with professional user revenues increasing 6%and non-professional user revenues increasing 47% quarter over quarter. Revenues from direct sold licenses increased 10% primarilydue to price increases for certain licenses and growth in subscribers. Revenues from data and compliance solutions increased 1%,primarily as a result of increases in revenues from data services and our Blue Sky data product, offsetting a decline in revenuesfrom EDGAR Online. Corporate Services revenues up 14%. Revenues from our OTCQX market increased 9%, reflecting a higher average number ofcompanies on the OTCQX market and price increases effective from the beginning of the year. OTCQB revenues increased 10% dueto the same factors. Revenues from our OTCID market and from Pink Limited subscribers to the Disclosure & News Service (“DNS”)increased 32%. The July 1, 2025 launch of OTCID resulted in a substantial number of Pink companies upgrading to OTCID, whichdrove the increase in related revenues. Operating expenses increased 9%. The increase was primarily driven by a 54% increase in professional and consulting fees and 11%increase in IT infrastructure and information services costs. Professional and consulting fees reflect higher regulatory and clearingcosts as a result of the increased trading volumes on OTC Link’s ATSs, as well as certain accruals related to a regulatory matter. Operating income increased 19% and net income increased 17% to $10.5 million and $8.6 million, respectively. Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 14% to $12.7 million, or $1.04 peradjusted diluted share. Dividend Declaration – Quarterly Cash DividendOTC Markets Group announced today that its Board of Directors authorized and approved a quarterly cash dividend of $0.30 per share ofClass A Common Stock. The quarterly cash dividend is payable on September 17, 2026, to stockholders of record on September 3, 2026. The ex-dividend date is September 3, 2026.Stock Buyback ProgramThe Company is authorized to purchase shares from time to time on the open market, from employees and consultants, and through blocktrades, in compliance with applicable law. During the second quarter of 2026, the Company purchased 57,941 shares at an average priceof $52.46 per share.On March 2, 2026, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization torepurchase up to 300,000 shares of the Company’s Class A Common Stock. ® ®
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Non-GAAP Financial MeasuresIn 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 thereconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace andare not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s currentfinancial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certainadditional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAPinformation, in evaluating its historical operating performance.Second Quarter 2026 Conference CallThe Company will host a conference call and webcast on Thursday, August 6, 2026, at 8:30 a.m. Eastern Time, during which managementwill discuss the financial results in further detail.Webcast:The conference webcast and management presentation can be accessed at the following link (replay available until August 5, 2027):https://edge.media-server.com/mmc/p/jwkugj9p 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/BI54a4d121e9f34659a633dada74a86487 Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Livecall 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 InvestorRelations section of our corporate website atwww.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-drivendisclosure 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. Ourinnovative model offers companies more efficient access to the U.S. financial markets.OTC Link ATS, OTC Link ECN, OTC Link NQB, OTC Overnight and MOON ATS are each an SEC-regulated ATS, operated by OTC LinkLLC, 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 GeorgievaChief Financial OfficerPhone: (212) 220-2215Email: ir@otcmarkets.comMedia Contact:OTC Markets Group Inc.Phone: (212) 896-4428Email: media@otcmarkets.com OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share information) Three Months Ended June30, 2026 2025 OTC Link $ 8,211 $ 6,447 Market data licensing 13,153 12,316 Corporate services 13,391 11,742 Gross revenues 34,755 30,505 Redistribution fees and rebates (1,012) (998) Net revenues 33,743 29,507 Transaction-based expenses (3,178) (2,292) Revenues less transaction-based expenses 30,565 27,215 Operating expenses Compensation and benefits 11,729 11,573 ® ® ® ® ® ®
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IT Infrastructure and informationservices 3,166 2,858 Professional and consulting fees 2,845 1,842 Marketing and advertising 472 438 Occupancy costs 720 668 Depreciation and amortization 564 656 General, administrative and other 581 349 Total operating expenses 20,077 18,384 Income from operations 10,488 8,831 Other income Interest income 258 216 Income before provision forincome taxes 10,746 9,047 Provision for income taxes 2,196 1,747 Net Income $ 8,550 $ 7,300 Earnings per share Basic $ 0.71 $ 0.61 Diluted $ 0.71 $ 0.60 Basic weighted average sharesoutstanding 11,799,504 11,769,861 Diluted weighted average sharesoutstanding 11,842,592 11,830,514 Non-GAAP Reconciliation Three Months Ended June30, 2026 2025 Net Income $ 8,550 $ 7,300 Excluding: Interest expense (income) (258) (215) Provision for income taxes 2,196 1,747 Depreciation and amortization 564 656 Stock-based compensationexpense 1,668 1,627 Adjusted EBITDA $ 12,720 $ 11,115 Adjusted diluted earnings pershare $ 1.04 $ 0.92 Note: We use non-GAAP financial measures of operatingperformance. Non-GAAP measures do not replace and are notsuperior to the presentation of our GAAP financial results, butare provided to improve overall understanding of the Company'scurrent financial performance. OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share information) June 30, December31, 2026 2025 Assets Current assets Cash and cash equivalents $45,420 $ 49,231 Short-term investments 4,973 5,047
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Accounts receivable, net of allowancefor credit losses of $282 and $267 9,775 9,053 Prepaid income taxes 942 249 Prepaid expenses and other currentassets 2,777 2,361 Total current assets 63,887 65,941 Property and equipment, net 4,979 5,557 Operating lease right-of-use assets 8,759 9,508 Deferred tax assets, net 5,440 6,809 Goodwill 3,984 3,984 Intangible assets, net 5,963 6,247 Long-term restricted cash 1,856 1,606 Other assets 1,044 457 Total Assets $95,912 $100,109 Liabilities and stockholders' equity Current liabilities Accounts payable $ 1,503 $ 1,184 Income taxes payable 257 138 Accrued expenses and other currentliabilities 11,336 14,884 Deferred revenue 27,516 33,640 Total current liabilities 40,612 49,846 Income tax reserve 1,133 1,050 Deferred compensation 432 - Operating lease liabilities 7,913 8,748 Total Liabilities 50,090 59,644 Commitments and contingencies Stockholders' equity Common stock - par value $0.01 pershare Class A - 17,000,000 authorized,12,992,763 issued, 11,986,739outstanding at June 30, 2026;12,912,423 issued, 12,020,991outstanding at December 31, 2025 130 129 Additional paid-in capital 44,489 41,364 Retained earnings 33,058 24,644 Treasury stock - 1,006,024 sharesat June 30, 2026 and 891,432 sharesat December 31, 2025 (31,855) (25,672) Total Stockholders' Equity 45,822 40,465 Total Liabilities and Stockholders'Equity 95,912 100,109 Source: OTC Markets © 2026 GlobeNewswire, Inc.