TMX Group Q2 Earnings Call Highlights

TMX Group delivered strong Q2 results: Revenue rose 16% to C$487.5 million, adjusted diluted EPS increased 19%, and all major business segments posted double-digit growth.

First-half capital raised climbed 51%, new listings increased 44% to 251, derivatives volumes rose 18% in Q2, and Global Insights revenue grew 18%, helped by acquisitions and higher indexing assets.

It plans to invest about US$800 million in the proposed MEMX-BOX combination for an expected 59% stake, while also advancing RAFI Indices and Cboe-related transactions; the board approved an 8% dividend increase to C$0.26 per share.

TMX Group TSE: X reported double-digit revenue growth across its businesses in the second quarter and first half of 2026, while outlining a series of acquisitions and investments intended to expand its presence in global exchange, data and indexing markets. Chief Executive Officer John McKenzie said the company’s first-half results reflected “balanced strength” across transaction-based and recurring-revenue businesses. Total revenue rose 16% in the first six months of 2026, while organic revenue, excluding acquisitions completed in 2025, increased 14%. Adjusted diluted earnings per share increased 27% for the period.

For the second quarter, TMX reported revenue of C$487.5 million, up 16% from a year earlier. Chief Financial Officer David Arnold said the company delivered its eighth consecutive quarter of double-digit growth in both total and organic revenue. Adjusted diluted earnings per share rose 19%, supported by a C$35 million, or 18%, increase in income from operations. Reported diluted earnings per share increased 96%, which Arnold said also reflected a non-cash foreign-exchange accounting gain on U.S.-dollar intercompany loans, compared with a loss in the prior-year period.

Global Insights segment revenue increased 18% in the quarter. Derivatives Trading and Clearing revenue rose 15%. Equities and Fixed Income Trading and Clearing revenue increased 13%. Capital Formation revenue grew, led by higher listing activity and corporate services revenue.

Operating expenses increased 13% in the second quarter. The increase included C$15.6 million in acquisition-related expenses tied to ETF Stream, Verity and nuclear-sector index acquisitions, along with integration expenses and acquired-intangible amortization. Excluding acquisition-related items, litigation-related costs and prior-year strategic realignment expenses, comparable operating expenses increased about 10%, largely due to compensation, headcount, technology investments and certain non-cash items.

McKenzie said Capital Formation revenue increased 20% in the first half, driven by listing fees and TSX Trust. Capital raised increased 51% in the first six months, led by corporate financings in the mining sector. TSX Venture equity capital raised totaled C$6.9 billion, up 108% from a year earlier. The company added 251 new listings during the first half, a 44% increase from the comparable period. McKenzie highlighted several initial public offerings, including Apotex’s C$1.5 billion June IPO, which he described as the largest life-science IPO in Canadian history, and Lumina Metals’ C$406 million IPO.

Revenue from Equities and Fixed Income Trading increased 25% in the first half, as combined volumes rose 32%. In the second quarter, equities and fixed-income trading revenue rose 16%, while clearing revenue increased 9%. Equities market volumes increased 15%, including gains of 17% on the TSX and 25% on TSX Venture. Alpha volumes declined 25%. TMX’s combined market ...