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
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 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 | ||||||
