OTC Markets Group Reports First Quarter 2026 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth

OTC Markets Group Reports First Quarter 2026 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth

OTC Markets Group Reports First Quarter 2026 Financial Results Delivering Strong Revenue, Operating Income, and Earnings Growth

First Quarter 2026 Highlights:

• Gross revenues of $34.8 million for the quarter, up 14% versus the prior year period
• Operating income of $8.6 million for the quarter, up 19% versus the prior year period
• Operating profit margin of 25.5% for the quarter, versus 24.7% for the prior year period
• Net income of $7.1 million, up 17% versus the prior year period, and quarterly diluted GAAP EPS of $0.59, up 18%
• Total cash returned to shareholders during the quarter of $6.8 million, comprised of dividends of $3.6 million and repurchases of common shares of $3.1 million, up 33% versus the prior year period
• Announcing second quarter 2026 dividend of $0.30 per share
• 575 OTCQX® and 1,131 OTCQB® companies at quarter end
• 1,074 OTCID® companies at quarter end
• 147 unique OTC Link subscribers as of March 31, 2026, up 6 versus March 31, 2025
• Approximately 96,000 average daily trades on OTC Link ECN and OTC Link NQB during the quarter, versus approximately 56,000 during the prior year period
• Approximately 71,000 average trades and 7.2 million average shares per session on MOON ATS®
• In May 2026, OTC Markets Group introduced a regional Hong Kong team to provide a hub for its Asia-Pacific growth initiatives

NEW YORK, May 06, 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 first quarter of 2026.

"Our first quarter results reflect meaningful progress in strengthening the connections between issuers, investors, and brokers across our markets," said R. Cromwell Coulson, President and Chief Executive Officer. "MOON ATS had a substantial increase in trading volume in NMS securities, supported by a growing base of dedicated subscribers. Our OTCID Basic Market is filling an important gap below our OTCQX Best and OTCQB Venture markets, to better connect issuers with investors and brokers."

"In the first quarter of 2026, our business delivered strong financial performance, with gross revenues increasing 14% year over year and operating income rising 19%, driving a similar increase in diluted GAAP earnings per share," said Antonia Georgieva, Chief Financial Officer. "We achieved solid growth across our core business lines. OTC Link revenues benefited from significantly higher trading activity versus the prior year period. Corporate Services experienced strong growth, led by OTCID and continued improvement in sales across our markets. Market Data Licensing revenues also increased, supported by price increases for certain licenses and subscriber growth. We remain focused on disciplined growth and expense management and execution of our initiatives that support long-term value creation for our subscribers and shareholders."

First Quarter 2026 compared to First Quarter 2025

Financial Highlights

		Three Months Ended March 31,
(in thousands, except shares and per share data)		2026				2025				% change			$ change
OTC Link		$	8,598			$	6,563			31	%		2,035
Market data licensing			13,007				12,783			2	%		224
Corporate services			13,232				11,080			19	%		2,152
Gross Revenues			34,837				30,426			14	%		4,411
Net revenues			33,842				29,432			15	%		4,410
Revenues less transaction-based expenses			30,395				27,057			12	%		3,338
Operating expenses			21,773				19,783			10	%		1,990
Income from operations			8,622				7,274			19	%		1,348
Operating profit margin			25.5	%			24.7	%
Income before provision for income taxes			8,844				7,424			19	%		1,420
Net income		$	7,077			$	6,040			17	%		1,037
Diluted earnings per share		$	0.59			$	0.50			18	%
Adjusted diluted earnings per share		$	0.93			$	0.81			15	%
Weighted-average shares outstanding, diluted			11,864,808				11,834,071			-

• Gross revenues of $34.8 million, up 14% over the prior year quarter. Revenues less transaction-based expenses up 12%.
• OTC Link revenues up 31%. Transaction-based revenues from OTC Link ECN, OTC Link NQB, and MOON ATS increased 52%, due to a higher volume of shares traded on these platforms. Additionally, usage-based revenue from OTC Link ATS increased 11% primarily due to a higher number of messages.
• Market Data Licensing revenues up 2%. Redistributor-based revenues increased 1%, with professional user revenues increasing 3%, largely offset by a decline in non-professional user revenues of 32% quarter over quarter. Revenues from direct sold licenses increased 3% primarily due to price increases for certain licenses and growth in subscribers, partially offset by the elimination of certain one-time revenue recognized during the prior year quarter. Revenues from data and compliance solutions increased 3%, primarily as a result of increases in revenues from data services and our Blue Sky data product.
• Corporate Services revenues up 19%. Revenues from our OTCQX market increased 7%, reflecting improved sales, price increases effective from the beginning of the year, and a higher average number of companies on the OTCQX market. OTCQB revenues increased 16% due to the same factors. Revenues from our OTCID market and from Pink Limited subscribers to the Disclosure & News Service® ("DNS") increased 51%. 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 10%. The increase was primarily driven by a 9% increase in compensation and benefits, 16% increase in IT infrastructure and information services, and 29% increase in professional and consulting fees.
• Operating income increased 19% and net income increased 17% to $8.6 million and $7.1 million, respectively.
• Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 14% to $11.2 million, or $0.93 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 $0.30 per share of Class A Common Stock. The quarterly cash dividend is payable on June 18, 2026, to stockholders of record on June 4, 2026. The ex-dividend date is June 4, 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 first quarter of 2026, the Company purchased 56,651 shares at an average price of $55.47 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.

First Quarter 2026 Conference Call

The Company will host a conference call and webcast on Thursday, May 7, 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 May 7, 2027):

https://edge.media-server.com/mmc/p/v9vu9esf

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/BIef7277c4be20484dbd4b2649c80498ad

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

https://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 https://www.otcmarkets.com.

Investor Contact:

Antonia Georgieva
Chief Financial Officer
Phone: (212) 220-2215
Email: [email protected]

Media Contact:

OTC Markets Group Inc.Phone: (212) 896-4428Email: [email protected]

OTC MARKETS GROUP INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands, except share and per share information)
	Three Months Ended March 31,
	2026				2025
OTC Link	$	8,598			$	6,563
Market data licensing		13,007				12,783
Corporate services		13,232				11,080
Gross revenues		34,837				30,426
Redistribution fees and rebates		(995	)			(994	)
Net revenues		33,842				29,432
Transaction-based expenses		(3,447	)			(2,375	)
Revenues less transaction-based expenses		30,395				27,057
Operating expenses
Compensation and benefits		14,036				12,906
IT Infrastructure and information services		3,139				2,715
Professional and consulting fees		2,515				1,956
Marketing and advertising		346				343
Occupancy costs		731				638
Depreciation and amortization		607				660
General, administrative and other		399				565
Total operating expenses		21,773				19,783
Income from operations		8,622				7,274
Other income
Interest income		222				150
Income before provision for income taxes		8,844				7,424
Provision for income taxes		1,767				1,384
Net Income	$	7,077			$	6,040
Earnings per share
Basic	$	0.59			$	0.50
Diluted	$	0.59			$	0.50
Basic weighted average shares outstanding		11,805,504				11,756,815
Diluted weighted average shares outstanding		11,864,808				11,834,071
Non-GAAP Reconciliation
	Three Months Ended March 31,
	2026				2025
Net Income	$	7,077			$	6,040
Excluding:
Interest expense (income)		(222	)			(149	)
Provision for income taxes		1,767				1,384
Depreciation and amortization		607				660
Stock-based compensation expense		1,996				1,881
Adjusted EBITDA	$	11,225			$	9,816
Adjusted diluted earnings per share	$	0.93			$	0.81
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)
	March 31,2026				December 31,2025
Assets
Current assets
Cash and cash equivalents	$	41,276			$	49,231
Short-term investments		5,065				5,047
Accounts receivable, net of allowance for credit losses of $244 and $267		9,530				9,053
Prepaid income taxes		1,105				249
Prepaid expenses and other current assets		2,894				2,361
Total current assets		59,870				65,941
Property and equipment, net		5,393				5,557
Operating lease right-of-use assets		9,136				9,508
Deferred tax assets, net		5,742				6,809
Goodwill		3,984				3,984
Intangible assets, net		6,102				6,247
Long-term restricted cash		1,606				1,606
Other assets		647				457
Total Assets	$	92,480			$	100,109
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	868			$	1,184
Income taxes payable		174				138
Accrued expenses and other current liabilities		8,868				14,884
Deferred revenue		30,571				33,640
Total current liabilities		40,481				49,846
Income tax reserve		1,094				1,050
Deferred compensation		225				-
Operating lease liabilities		8,333				8,748
Total Liabilities		50,133				59,644
Commitments and contingencies
Stockholders' equity
Common stock - par value $0.01 per share
Class A - 17,000,000 authorized, 12,995,280 issued, 12,047,197 outstanding at March 31, 2026; 12,912,423 issued, 12,020,991 outstanding at December 31, 2025		130				129
Additional paid-in capital		42,925				41,364
Retained earnings		28,107				24,644
Treasury stock - 948,083 shares at March 31, 2026 and 891,432 shares at December 31, 2025		(28,815	)			(25,672	)
Total Stockholders' Equity		42,347				40,465
Total Liabilities and Stockholders' Equity		92,480				100,109

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Source: OTC Markets

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