OTC Markets Group Reports Second Quarter 2026 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth
Rhea-AI Summary
OTC Markets Group (OTCQX: OTCM) reported second quarter 2026 gross revenues of $34.8 million, up 14% year over year, with net revenues up 14% and revenues less transaction-based expenses up 12%. Operating income rose 19% to $10.5 million, producing a 31.1% operating margin versus 29.9% a year ago.
Net income increased 17% to $8.6 million, with diluted EPS up 18% to $0.71 and adjusted diluted EPS up 13% to $1.04. Segment revenues grew across OTC Link (+27%), Market Data Licensing (+7%) and Corporate Services (+14%). The company returned $6.6 million to shareholders via dividends and buybacks and declared a $0.30 Q3 2026 dividend. Management highlighted strong trading volumes, especially on OTC Link and MOON ATS, and noted proposed digital asset alliances with BitGo Bank & Trust and Elysium’s MatchHub.
Positive
- Gross revenues up 14% YoY to $34.8 million in Q2 2026
- Operating income up 19% YoY to $10.5 million; margin 31.1%
- Diluted EPS up 18% YoY to $0.71; adjusted EPS $1.04 (+13%)
- Segment growth: OTC Link +27%, Corporate Services +14%, Market Data Licensing +7% YoY
- Cash returned to shareholders $6.6 million in Q2; $0.30 Q3 2026 dividend and 57,941 shares repurchased
- Higher trading activity: ~95,000 average daily trades on OTC Link ECN/NQB vs ~63,000 prior year; ~69,000 trades per session on MOON ATS
Negative
- Operating expenses up 9% YoY to $20.1 million in Q2 2026
- Professional and consulting fees up 54% YoY, including accruals related to a regulatory matter
- IT infrastructure and information services costs up 11% YoY to $3.2 million
- Transaction-based expenses up 39% YoY to $3.2 million
- Cash and cash equivalents down to $45.4 million from $49.2 million at December 31, 2025
- Deferred revenue decreased to $27.5 million from $33.6 million at December 31, 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Highlights:
- Gross revenues of
$34.8 million for the quarter, up14% versus the prior year period - Operating income of
$10.5 million for the quarter, up19% versus the prior year period - Operating profit margin of
31.1% for the quarter, versus29.9% for the prior year period - Net income of
$8.6 million , up17% versus the prior year period, and quarterly diluted GAAP EPS of$0.71 , up18% - 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
Second Quarter 2026 compared to Second Quarter 2025
Financial Highlights
| Three Months Ended June 30, | ||||||||||||||
| (in thousands, except shares and per share data) | 2026 | 2025 | % change | $ change | ||||||||||
| 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 | |||||||||
| Operating expenses | 20,077 | 18,384 | 9 | % | 1,693 | |||||||||
| Income from operations | 10,488 | 8,831 | 19 | % | 1,657 | |||||||||
| Operating profit margin | 31.1 | % | 29.9 | % | ||||||||||
| Income before provision for income taxes | 10,746 | 9,047 | 19 | % | 1,699 | |||||||||
| Net income | $ | 8,550 | $ | 7,300 | 17 | % | 1,250 | |||||||
| Diluted earnings per share | $ | 0.71 | $ | 0.60 | 18 | % | ||||||||
| Adjusted diluted earnings per share | $ | 1.04 | $ | 0.92 | 13 | % | ||||||||
| Weighted-average shares outstanding, diluted | 11,842,592 | 11,830,514 | - | |||||||||||
- Gross revenues of
$34.8 million , up14% over the prior year quarter. Revenues less transaction-based expenses up12% . - OTC Link revenues up
27% . Transaction-based revenues from OTC Link ECN, OTC Link NQB, and MOON ATS increased47% , due to a higher volume of shares traded on these platforms. Additionally, usage-based revenue from OTC Link ATS increased6% primarily due to a higher number of messages. - Market Data Licensing revenues up
7% . Redistributor-based revenues increased8% , with professional user revenues increasing6% and non-professional user revenues increasing47% quarter over quarter. Revenues from direct sold licenses increased10% primarily due to price increases for certain licenses and growth in subscribers. Revenues from data and compliance solutions increased1% , primarily as a result of increases in revenues from data services and our Blue Sky data product, offsetting a decline in revenues from EDGAR Online. - Corporate Services revenues up
14% . Revenues from our OTCQX market increased9% , reflecting a higher average number of companies on the OTCQX market and price increases effective from the beginning of the year. OTCQB revenues increased10% due to the same factors. Revenues from our OTCID market and from Pink Limited subscribers to the Disclosure & News Service® (“DNS”) increased32% . The July 1, 2025 launch of OTCID resulted in a substantial number of Pink® companies upgrading to OTCID, which drove the increase in related revenues. - Operating expenses increased
9% . The increase was primarily driven by a54% increase in professional and consulting fees and11% increase in IT infrastructure and information services costs. Professional and consulting fees reflect higher regulatory and clearing costs 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 increased17% 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 per adjusted diluted share.
Dividend Declaration – Quarterly Cash Dividend
OTC Markets Group announced today that its Board of Directors authorized and approved a quarterly cash dividend of
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. During the second quarter of 2026, the Company purchased 57,941 shares at an average price of
On March 2, 2026, 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.
Second Quarter 2026 Conference Call
The Company will host a conference call and webcast on Thursday, August 6, 2026, at 8:30 a.m. Eastern Time, during which management will 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. 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 our 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, OTC Overnight® 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) | |||||||
| Three Months Ended June 30, | |||||||
| 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 | |||||
| IT Infrastructure and information services | 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 for income 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 shares outstanding | 11,799,504 | 11,769,861 | |||||
| Diluted weighted average shares outstanding | 11,842,592 | 11,830,514 | |||||
| Non-GAAP Reconciliation | |||||||
| Three Months Ended June 30, | |||||||
| 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 compensation expense | 1,668 | 1,627 | |||||
| Adjusted EBITDA | $ | 12,720 | $ | 11,115 | |||
| Adjusted diluted earnings per share | $ | 1.04 | $ | 0.92 | |||
| 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. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands, except share information) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 45,420 | $ | 49,231 | |||
| Short-term investments | 4,973 | 5,047 | |||||
| Accounts receivable, net of allowance for credit losses of | 9,775 | 9,053 | |||||
| Prepaid income taxes | 942 | 249 | |||||
| Prepaid expenses and other current assets | 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 current liabilities | 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 | |||||||
| Class A - 17,000,000 authorized, 12,992,763 issued, 11,986,739 outstanding at June 30, 2026; 12,912,423 issued, 12,020,991 outstanding 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 shares at June 30, 2026 and 891,432 shares at December 31, 2025 | (31,855 | ) | (25,672 | ) | |||
| Total Stockholders' Equity | 45,822 | 40,465 | |||||
| Total Liabilities and Stockholders' Equity | 95,912 | 100,109 | |||||
