OTC Markets Group Q2 Earnings Call Highlights

OTC Markets Group reported record second-quarter results: Gross and net revenue rose 14%, while operating income increased 19% to $10.5 million, net income rose 17% to $8.6 million, and diluted GAAP EPS grew 18% to $0.71. Trading activity was the primary growth driver. OTC Link revenue increased 27%, transaction-based revenue rose 47%, and average daily transactions on OTC Link ECN and NQB climbed 50% year over year to roughly 95,000. Market data revenue grew 7% and corporate services revenue increased 14%, while the company returned $6.6 million to shareholders and declared a quarterly dividend of $0.30 per share. Management also highlighted digital-asset infrastructure and potential SEC recognition of OTCQX and OTCQB as longer-term opportunities, though regulatory uncertainty remains.

OTC Markets Group OTCMKTS: OTCM reported record second-quarter results as revenue increased across its OTC Link, market data and corporate services businesses, while operating income and earnings per share also rose. President and Chief Executive Officer Cromwell Coulson said gross revenue and net revenue each grew 14% during the quarter. The company’s trading-focused OTC Link unit posted 27% revenue growth, market data revenue increased 7%, and corporate services revenue rose 14%.

“This was another record quarter for OTC Markets Group, with each business line showing growth that contributed to our overall strong results,” Coulson said.

Chief Financial Officer Antonia Georgieva said second-quarter gross revenue totaled $34.8 million, up 14% from the same period a year earlier. Revenue less transaction-based expenses increased 12% to $30.6 million. Operating income rose 19% to $10.5 million. Operating margin expanded to 31.1% from 29.9% a year earlier. Net income increased 17% to $8.6 million. Diluted GAAP earnings per share rose 18% to $0.71. Adjusted EBITDA increased 14% to $12.7 million. Adjusted diluted earnings per share increased 13% to $1.04. Operating cash flow was $11.5 million and free cash flow was $11.4 million in the quarter, compared with $11.2 million for both measures in the prior-year period.

The company returned $6.6 million to shareholders during the quarter, including $3.6 million in dividends and $3 million in open-market share repurchases. For the first six months of 2026, OTC Markets generated $11.2 million in operating cash flow and $10.7 million in free cash flow, while returning $13.4 million to shareholders. Coulson also said the board declared a quarterly dividend of $0.30 per share on Aug. 4, payable in September.

OTC Link revenue rose 27% in the second quarter and 29% in the first half, supported by higher activity across the company’s alternative trading systems. Market-wide dollar volume exceeded $230 billion during the quarter and $460 billion for the first six months, according to Coulson. Georgieva said transaction-based revenue from OTC Link ECN, OTC Link NQB and MOON ATS increased 47%, while transaction-based expenses paid to liquidity providers rose 39%. Usage-based ATS revenue increased 6%, primarily due to greater trade-message volume. Average daily transactions on OTC Link ECN and OTC Link NQB reached roughly 95,000, a 50% year-over-year increase. MOON ATS recorded approximately 69,000 average trades and 7.8 million average shares traded per session. Georgieva cautioned that trading volumes are inherently unpredictable and could decline in the future. The company ended June with 144 unique broker-dealer subscribers across its ATS platforms, compared with 137 a year earlier. Coulson said the company continues to...