OTC Markets Group Reports Third Quarter 2025 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth

Rhea-AI Summary

OTC Markets Group (OTCQX: OTCM) reported Q3 2025 gross revenues of $31.6M, up 15% year-over-year, with operating income $10.6M (+23%) and net income $8.6M (+15%). Operating margin was 34.6%. Adjusted EBITDA rose 19% to $12.8M (adjusted diluted EPS $1.06). The company launched OTCID on July 1, 2025 and reported 1,077 OTCID companies at quarter end. Trading activity increased to ~59,000 average daily trades from ~35,000 a year earlier. The board approved a $1.75 special cash dividend payable Dec 4, 2025, plus a quarterly dividend of $0.18 payable Dec 18, 2025.

The quarter saw revenue growth across OTC Link, Market Data Licensing, and Corporate Services, while operating expenses rose modestly.

Positive

• Gross revenue $31.6M up 15% YoY
• Operating income $10.6M up 23% YoY
• Net income $8.6M up 15% YoY
• Adjusted EBITDA $12.8M up 19%
• OTCID launched July 1, 2025 with 1,077 companies
• Special dividend $1.75 payable Dec 4, 2025

Negative

• No share repurchases executed in Q3 despite authorization to buy up to 300,000 shares
• Non-professional user revenues declined 7% quarter-over-quarter

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

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.
• 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

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)
	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
	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
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

FAQ

What were OTC Markets Group (OTCM) Q3 2025 revenues and net income?

Q3 2025 gross revenue $31.6M and net income $8.6M (both disclosed for the quarter).

When is OTC Markets Group's special dividend for OTCM payable and how much is it?

The special cash dividend of $1.75 per share is payable on December 4, 2025 to shareholders of record on November 24, 2025.

How did OTCM's operating profit margin change in Q3 2025?

Operating profit margin improved to 34.6% in Q3 2025 from 32.4% a year earlier.

How many companies were on OTCID at September 30, 2025 for OTCM?

OTCID had 1,077 companies as of September 30, 2025 following the July 1, 2025 launch.

What drove OTCM's OTC Link revenue growth in Q3 2025?

OTC Link revenue rose 23%, driven by a 47% increase in transaction-based revenues from higher trading volumes and increased message and connectivity revenue.

Will OTCM pay a regular dividend in Q4 2025 and when?

Yes. A quarterly cash dividend of $0.18 per share is payable on December 18, 2025 to holders of record on December 4, 2025.