OTC Markets Group Reports Third Quarter 2026 Financial Results

Operating expenses grew faster than revenue, narrowing operating margin despite higher net income and diluted earnings per share.

Rhea-AI Summary

OTC Markets Group (OTCM) reported third-quarter 2026 gross revenue of $33.8 million, increasing from the prior-year period across all three businesses. Gross revenue rose 7%, while net revenue increased 7% to $32.861 million. OTC Link revenue grew 17%, Market Data Licensing increased 7%, and Corporate Services rose 2%.

Operating income increased 2% to $10.8 million, but operating expenses rose 8% and operating margin narrowed to 32.9% from 34.6%. Net income increased 3% to $8.804 million, and diluted GAAP earnings per share rose 3% to $0.73.

The board approved a $1.75-per-share special dividend, payable December 3, 2026, and a $0.30 quarterly dividend, payable December 17, 2026. Third-quarter cash returned to shareholders totaled $3.7 million, versus $2.2 million a year earlier. Cash and cash equivalents reached $53.036 million at September 30, versus $49.231 million at year-end 2025.

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Positive

• Moderate pointGross revenue rose 7% to $33.845 million in third-quarter 2026 versus third-quarter 2025.
• Moderate pointOperating income increased 2% to $10.8 million year over year.
• Moderate pointNet income increased 3% to $8.804 million; diluted GAAP EPS rose 3% to $0.73.
• Moderate point. Forward-looking: it has not happened yet and may not happen.$1.75-per-share special dividend approved for Class A shareholders, payable December 3, 2026.
• Minor pointNet revenue increased 7% to $32.861 million year over year.

17 minor points

• Minor pointRevenue less transaction-based expenses increased 5% to $30.071 million year over year.
• Minor pointCash returned to shareholders reached $3.7 million during the quarter, versus $2.2 million a year earlier.
• Minor pointOTC Link revenue increased 17% to $7.489 million year over year.
• Minor pointTransaction-based revenue increased 32% across OTC Link ECN, OTC Link NQB and MOON ATS on higher share volumes.
• Minor pointAverage daily trades reached approximately 87,000 on OTC Link ECN and OTC Link NQB, versus approximately 59,000 a year earlier.
• Minor pointOTC Link subscribers increased by 5 year over year to 143 as of September 30, 2026.
• Minor pointMarket Data Licensing revenue increased 7% to $13.352 million year over year.
• Minor pointRedistributor-based revenue increased 7%; professional and non-professional user revenues increased 7% and 19%, respectively, quarter over quarter.
• Minor pointDirect-sold license revenue increased 11%, primarily reflecting certain license price increases and subscriber growth.
• Minor pointCorporate Services revenue increased 2% to $13.004 million year over year.
• Minor pointOTCQX revenue increased 6%, reflecting a higher average company count and price increases effective at the year's start.
• Minor pointOTCQB revenue increased 4%, reflecting a higher average company count and price increases.
• Minor pointAdjusted EBITDA increased 1% to $12.901 million; adjusted diluted EPS increased 1% to $1.07.
• Minor pointCash and cash equivalents increased to $53.036 million at September 30, 2026, from $49.231 million at December 31, 2025.
• Minor pointShort-term investments increased to $5.191 million at September 30, 2026, from $5.047 million at December 31, 2025.
• Minor pointTotal liabilities decreased to $51.955 million at September 30, 2026, from $59.644 million at December 31, 2025.
• Minor pointStockholders' equity increased to $52.326 million at September 30, 2026, from $40.465 million at December 31, 2025.

Negative

• Moderate pointOperating margin narrowed to 32.9% in third-quarter 2026 from 34.6% a year earlier.
• Moderate pointDeferred revenue decreased to $24.348 million at September 30, 2026, from $33.640 million at December 31, 2025.
• Minor pointOperating expenses increased 8% to $19.271 million, driven by higher professional fees, IT costs and compensation.
• Minor pointTransaction-based expenses increased to $2.790 million in third-quarter 2026 from $2.155 million a year earlier.
• Minor pointOTCID and Pink Limited DNS revenue decreased 3%, reflecting a similar decline in average subscriber company counts.

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Delivering Revenue, Operating Income, and Earnings Growth

Third Quarter 2026 Highlights:

• Gross revenues of $33.8 million for the quarter, up 7% versus the prior year period
• Operating income of $10.8 million for the quarter, up 2% versus the prior year period
• Operating profit margin of 32.9% for the quarter, versus 34.6% for the prior year period
• Net income of $8.8 million and quarterly diluted GAAP EPS of $0.73, each up 3% versus the prior year period
• Total cash returned to shareholders during the quarter of $3.7 million, consisting mainly of $3.6 million in dividends with the balance in repurchases of common shares, compared to $2.2 million in the prior year period
• Announcing special dividend of $1.75 per share and fourth quarter 2026 dividend of $0.30 per share
• 589 OTCQX^®, 1,117 OTCQB^®, and 1,037 OTCID^® companies at quarter end
• 143 unique OTC Link subscribers as of September 30, 2026, up 5 versus September 30, 2025
• Approximately 87,000 average daily trades on OTC Link ECN and OTC Link NQB during the quarter, versus approximately 59,000 during the prior year period
  

NEW YORK, Nov. 11, 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 third quarter of 2026.

“The third quarter marked the first anniversary of establishing the OTCID Basic Market, and we are pleased to see it become an integral part of our market structure and product offering,” said R. Cromwell Coulson, President and Chief Executive Officer. “We also continued to evolve our trading platforms. As regulators establish clear rules of the road, we remain committed to helping our FINRA member broker-dealers, public company clients, and market data customers benefit from blockchain technology and lawful trading of tokenized stocks.”

“In the third quarter of 2026, we delivered continued revenue growth across all three business lines, resulting in a 7% increase in gross revenues,” said Antonia Georgieva, Chief Financial Officer. “OTC Link continued to benefit from higher trading volumes, while Corporate Services saw a higher average number of companies on our OTCQX and OTCQB markets. Market Data Licensing revenues increased, driven by price increases for certain licenses and subscriber growth. These results reflect continued momentum from the first half of the year.”

Third Quarter 2026 compared to Third Quarter 2025

Financial Highlights

		Three Months Ended September 30,
(in thousands, except shares and per share data)			2026				2025			% change			$ change
OTC Link		$	7,489			$	6,420			17	%		1,069
Market data licensing			13,352				12,520			7	%		832
Corporate services			13,004				12,695			2	%		309
Gross Revenues			33,845				31,635			7	%		2,210
Net revenues			32,861				30,659			7	%		2,202
Revenues less transaction-based expenses			30,071				28,504			5	%		1,567
Operating expenses			19,271				17,897			8	%		1,374
Income from operations			10,800				10,607			2	%		193
Operating profit margin			32.9%				34.6%
Income before provision for income taxes			11,069				10,876			2	%		193
Net income		$	8,804			$	8,558			3	%		246
Diluted earnings per share		$	0.73			$	0.71			3	%
Adjusted diluted earnings per share		$	1.07			$	1.06			1	%
Weighted-average shares outstanding, diluted			11,835,594				11,870,002			-

• Gross revenues of $33.8 million, up 7% over the prior year quarter.   Revenues less transaction-based expenses up 5%.
• OTC Link revenues up 17%, primarily due to transaction-based revenues from OTC Link ECN, OTC Link NQB, and MOON ATS increasing 32%, as a result of higher volume of shares traded on these platforms.  
• Market Data Licensing revenues up 7%. Redistributor-based revenues increased 7%, with professional user revenues increasing 7% and non-professional user revenues increasing 19% quarter over quarter. Revenues from direct sold licenses increased 11% primarily due to price increases for certain licenses and growth in subscribers. Revenues from data and compliance solutions were essentially flat.
• Corporate Services revenues up 2%. Revenues from our OTCQX market increased 6%, reflecting a higher average number of companies on the OTCQX market and price increases effective from the beginning of the year. OTCQB revenues increased 4% due to similar factors. Revenues from our OTCID market and from Pink Limited subscribers to the Disclosure & News Service^® (“DNS”) decreased 3%, reflecting a similar decline in the average number of companies subscribing to OTCID and DNS.
• Operating expenses increased 8%. The increase was driven by an 18% increase in professional and consulting fees, reflecting higher regulatory and clearing costs as a result of the increased trading volumes on OTC Link’s ATSs and a 16% increase in IT infrastructure and information services costs. Additionally, compensation and benefits expenses increased 4% due to higher cash-based incentive compensation targets for 2026 as well as an increase in other employee expenses.   
• Operating income increased 2% and net income increased 3% to $10.8 million and $8.8 million, respectively.
• Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 1% to $12.9 million, or $1.07 per adjusted diluted share.
  

Dividend Declaration – Quarterly and Special 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 $0.30 per share of Class A Common Stock. The special dividend is payable on December 3, 2026, to stockholders of record on November 23, 2026. The ex-dividend date is November 23, 2026. The quarterly cash dividend is payable on December 17, 2026, to stockholders of record on December 3, 2026.   The ex-dividend date is December 3, 2026.

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 third quarter of 2026, the Company purchased 2,917 shares at an average price of $52.21 per share.

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.

Third Quarter 2026 Conference Call

The Company will host a conference call and webcast on Thursday, November 12, 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 November 11, 2027):

https://edge.media-server.com/mmc/p/muskm5zf        

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/BIaca795d0bd1e47659fcc088dba1f6b2a   

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^TM 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 September 30,
		2026				2025
OTC Link	$	7,489			$	6,420
Market data licensing		13,352				12,520
Corporate services		13,004				12,695
Gross revenues		33,845				31,635
Redistribution fees and rebates		(984	)			(976	)
Net revenues		32,861				30,659
Transaction-based expenses		(2,790	)			(2,155	)
Revenues less transaction-based expenses		30,071				28,504
Operating expenses
Compensation and benefits		11,617				11,162
IT Infrastructure and information services		3,362				2,896
Professional and consulting fees		2,253				1,916
Marketing and advertising		373				368
Occupancy costs		650				629
Depreciation and amortization		555				635
General, administrative and other		461				291
Total operating expenses		19,271				17,897
Income from operations		10,800				10,607
Other income
Interest income		269				269
Income before provision for income taxes		11,069				10,876
Provision for income taxes		2,265				2,318
Net Income	$	8,804			$	8,558
Earnings per share
Basic	$	0.73			$	0.71
Diluted	$	0.73			$	0.71
Basic weighted average shares outstanding		11,770,348				11,778,799
Diluted weighted average shares outstanding		11,835,594				11,870,002
Non-GAAP Reconciliation
	Three Months Ended September 30,
		2026				2025
Net Income	$	8,804			$	8,558
Excluding:
Interest expense (income)		(269	)			(269	)
Provision for income taxes		2,265				2,318
Depreciation and amortization		555				635
Stock-based compensation expense		1,546				1,587
Adjusted EBITDA	$	12,901			$	12,829
Adjusted diluted earnings per share	$	1.07			$	1.06
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)
	September 30,				December 31,
		2026				2025
Assets
Current assets
Cash and cash equivalents	$	53,036			$	49,231
Short-term investments		5,191				5,047
Accounts receivable, net of allowance for credit losses of $282 and $267		9,708				9,053
Prepaid income taxes		1,314				249
Prepaid expenses and other current assets		2,264				2,361
Total current assets		71,513				65,941
Property and equipment, net		4,736				5,557
Operating lease right-of-use assets		9,621				9,508
Deferred tax assets, net		5,741				6,809
Goodwill		3,984				3,984
Intangible assets, net		5,825				6,247
Long-term restricted cash		1,856				1,606
Other assets		1,005				457
Total Assets	$	104,281			$	100,109
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	1,645			$	1,184
Income taxes payable		1,671				138
Accrued expenses and other current liabilities		13,685				14,884
Deferred revenue		24,348				33,640
Total current liabilities		41,349				49,846
Income tax reserve		1,171				1,050
Deferred compensation		475				-
Operating lease liabilities		8,960				8,748
Total Liabilities		51,955				59,644
Commitments and contingencies
Stockholders' equity
Common stock - par value $0.01 per share
Class A - 17,000,000 authorized, 12,997,666 issued, 11,988,725 outstanding at September 30, 2026; 12,912,423 issued, 12,020,991 outstanding at December 31, 2025		130				129
Additional paid-in capital		45,938				41,364
Retained earnings		38,265				24,644
Treasury stock - 1,008,941 shares at September 30, 2026 and 891,432 shares at December 31, 2025		(32,007	)			(25,672	)
Total Stockholders' Equity		52,326				40,465
Total Liabilities and Stockholders' Equity		104,281				100,109

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were OTC Markets Group's third-quarter 2026 earnings?

OTC Markets Group reported net income of $8.804 million and diluted GAAP earnings of $0.73 per share for third-quarter 2026, each up 3% year over year. Gross revenue increased 7% to $33.845 million, while operating income increased 2% to $10.8 million.

When will OTCM pay its 2026 special and fourth-quarter dividends?

OTCM will pay its $1.75-per-share special dividend on December 3, 2026, and its $0.30-per-share quarterly dividend on December 17, 2026. The special dividend's record and ex-dividend dates are November 23, 2026. The quarterly dividend's record and ex-dividend dates are December 3, 2026. Both dividends apply to Class A Common Stock.

What drove OTC Markets Group's higher operating expenses in third-quarter 2026?

Higher professional and consulting fees, IT infrastructure costs and compensation drove the 8% operating expense increase. Professional and consulting fees rose 18%, reflecting higher regulatory and clearing costs from increased trading volumes. IT infrastructure and information services costs increased 16%, while compensation and benefits increased 4% on higher cash-based incentive targets and other employee expenses.

How many shares did OTC Markets Group repurchase in third-quarter 2026?

OTC Markets Group repurchased 2,917 shares at an average price of $52.21 per share during third-quarter 2026. On March 2, 2026, the board refreshed the repurchase program, authorizing purchases of up to 300,000 Class A common shares.

How many companies were on OTC Markets Group's markets at the end of third-quarter 2026?

At quarter-end, OTC Markets Group had 589 OTCQX companies, 1,117 OTCQB companies and 1,037 OTCID companies.