OTC Markets Group Reports First Quarter 2025 Financial Results Delivering Revenue and Operating Income Growth

First Quarter 2025 Highlights:

• Gross revenues of $30.4 million for the quarter, up 10% versus the prior year period
• Operating income of $7.3 million for the quarter, up 9% versus the prior year period
• Operating profit margin of 24.7%, versus 25.0% for the prior year period
• Net income of $6.0 million, up 1% versus the prior year period, and quarterly diluted GAAP EPS of $0.50, up 2%
• Total cash returned to shareholders during the quarter of $5.1 million, comprised of dividends of $2.2 million and repurchases of common stock of $2.9 million
• Announcing second quarter 2025 dividend of $0.18 per share
• 548 OTCQX^® and 1,051 OTCQB^® companies at quarter end
• 14 graduates to a national securities exchange during the quarter
• 116 subscribers to OTC Link ECN as of March 31, 2025, up 4 versus March 31, 2024
• 141 unique OTC Link subscribers as of March 31, 2025, up 6 versus March 31, 2024
• Approximately 56,000 average daily trades during the quarter versus approximately 34,000 during the prior year period
• OTC Markets Group announced that in July 2025, it will launch OTCID^TM - a Basic Reporting Market for companies that meet a minimal current information standard and provide a management certification. The Pink Current Market will cease to exist

NEW YORK, May 07, 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 first quarter of 2025.

"During the first quarter of 2025, we remained focused on overnight trading and the launch of the OTCID Basic Market," said R. Cromwell Coulson, President and Chief Executive Officer. "We continued to certify and connect subscribers to MOON ATS^TM and OTC Overnight^TM, and open distribution channels for our overnight data feeds. We are in constant communication with issuers, advisors, investors and our broker-dealer community as we move towards the July 1^st OTCID launch date. We believe these key initiatives will increase the value of our regulated trading platforms for broker-dealers and improve the quality of our markets for investors."

"Our first quarter results highlighted the value of our diversified revenue streams and synergistic business lines," said Antonia Georgieva, Chief Financial Officer. "OTC Link revenues increased, supported by higher trading volume, with price increases and subscriber growth driving Market Data Licensing revenue growth. Our Corporate Services business saw sales improve but experienced a small decline in revenues due to a lower number of companies across our markets. We remain focused on our key initiatives and on driving growth in users and usage of our products."

First Quarter 2025 compared to First Quarter 2024

Financial Highlights

		Three Months Ended March 31,
(in thousands, except shares and per share data)			2025				2024			% change			$ change
OTC Link		$	6,563			$	5,397			22	%		1,166
Market data licensing			12,783				11,088			15	%		1,695
Corporate services			11,080				11,172			(1	%)		(92	)
Gross Revenues			30,426				27,657			10	%		2,769
Net revenues			29,432				26,817			10	%		2,615
Revenues less transaction-based expenses			27,057				25,309			7	%		1,748
Operating expenses			19,783				18,610			6	%		1,173
Income from operations			7,274				6,699			9	%		575
Operating profit margin			24.7	%			25.0	%
Income before provision for income taxes			7,424				6,874			8	%		550
Net income		$	6,040			$	5,984			1	%		56
Diluted earnings per share		$	0.50			$	0.49			2	%
Adjusted diluted earnings per share		$	0.81			$	0.76			7	%
Weighted-average shares outstanding, diluted			11,834,071				11,863,089			-

• Gross revenues of $30.4 million, up 10% over the prior year quarter. Revenues less transaction-based expenses up 7%.
• OTC Link revenues up 22%. Transaction-based revenues from OTC Link ECN and OTC Link NQB up 46% due to a higher volume of shares traded on those platforms. Contributing to the overall increase in OTC Link revenues were an increase in certain connectivity revenue due to growth in the number of connection licenses and higher QAP service revenue related to the higher volume of trading activity.
• Market Data Licensing revenues up 15%. Redistributor-based revenues increased 19%, with professional user revenues increasing 20%, and non-professional user revenues increasing 45% quarter over quarter. Revenues from direct sold licenses increased 22% primarily due to price increases and growth in subscribers as well as certain one-time revenue recognized during the quarter. Revenues from data and compliance solutions declined slightly at 1%, with lower revenue from EDGAR Online partially offset by increases in revenues from data services and our Blue Sky data product.
• Corporate Services revenues down 1%. Revenues from our OTCQB market declined 2%, reflecting a lower number of companies on the OTCQB market, offsetting price increases effective from the beginning of the year. Revenues from our OTCQX market and our Disclosure & News Service^® ("DNS") product increased 1% and 2%, respectively, in each case due to price increases offsetting a lower number of companies on the OTCQX markets or subscribing to DNS.
• Operating expenses increased 6%. The increase was primarily driven by a 3% increase in compensation and benefits, 33% increase in professional and consulting fees, and 34% increase in general, administrative and other, primarily due to higher bad debt.
• Operating income increased 9% and net income increased 1%, to $7.3 million and $6.0 million, respectively.
• Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 7% to $9.8 million, or $0.81 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 $0.18 per share of Class A Common Stock. The quarterly cash dividend is payable on June 18, 2025, to stockholders of record on June 4, 2025. The ex-dividend date is June 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. During the first quarter of 2025, the Company purchased 55,522 shares at an average price of $52.8575 per share.

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.

First Quarter 2025 Conference Call

The Company will host a conference call and webcast on Thursday, May 8, 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 May 7, 2026):

https://edge.media-server.com/mmc/p/5vwtdq3q

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/BI6b79867bad5f4586a7cd407f82eecd3b

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

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 three public markets: OTCQX^® Best Market, OTCQB^® Venture Market and Pink^® Open 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: [phone]
Email: [e-mail]

Media Contact:

OTC Markets Group Inc.
Phone: [phone]
Email: [e-mail]

OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share information)
	Three Months Ended March 31,
		2025				2024
OTC Link	$	6,563			$	5,397
Market data licensing		12,783				11,088
Corporate services		11,080				11,172
Gross revenues		30,426				27,657
Redistribution fees and rebates		(994	)			(840	)
Net revenues		29,432				26,817
Transaction-based expenses		(2,375	)			(1,508	)
Revenues less transaction-based expenses		27,057				25,309
Operating expenses
Compensation and benefits		12,906				12,522
IT Infrastructure and information services		2,715				2,699
Professional and consulting fees		1,956				1,466
Marketing and advertising		343				263
Occupancy costs		638				585
Depreciation and amortization		660				653
General, administrative and other		565				422
Total operating expenses		19,783				18,610
Income from operations		7,274				6,699
Other income
Other income		150				175
Income before provision for income taxes		7,424				6,874
Provision for income taxes		1,384				890
Net Income	$	6,040			$	5,984
Earnings per share
Basic	$	0.50			$	0.50
Diluted	$	0.50			$	0.49
Basic weighted average shares outstanding		11,756,815				11,705,383
Diluted weighted average shares outstanding		11,834,071				11,863,089
Non-GAAP Reconciliation
	Three Months Ended March 31,
		2025				2024
Net Income	$	6,040			$	5,984
Excluding:
Interest expense (income)		(149	)			(175	)
Provision for income taxes		1,384				890
Depreciation and amortization		660				653
Stock-based compensation expense		1,881				1,826
Adjusted EBITDA	$	9,816			$	9,178
Adjusted diluted earnings per share	$	0.81			$	0.76
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,				December 31,
		2025				2024
Assets
Current assets
Cash and cash equivalents	$	29,016			$	34,522
Short-term investments		3,871				4,513
Accounts receivable, net of allowance for credit losses of $462 and $326		9,268				8,097
Prepaid income taxes		430				244
Prepaid expenses and other current assets		2,771				2,237
Total current assets		45,356				49,613
Property and equipment, net		6,697				7,096
Operating lease right-of-use assets		10,597				10,951
Deferred tax assets, net		10,573				10,120
Goodwill		3,984				3,984
Intangible assets, net		6,684				6,829
Long-term restricted cash		1,606				1,606
Other assets		553				543
Total Assets	$	86,050			$	90,742
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	854			$	1,175
Income taxes payable		1,457				54
Accrued expenses and other current liabilities		7,388				13,425
Deferred revenue		27,001				29,084
Total current liabilities		36,700				43,738
Income tax reserve		962				927
Operating lease liabilities		9,964				10,360
Total Liabilities		47,626				55,025
Commitments and contingencies
Stockholders' equity
Common stock - par value $0.01 per share
Class A - 17,000,000 authorized, 12,904,727 issued, 12,013,295 outstanding at
March 31, 2025; 12,815,075 issued, 11,979,165 outstanding at December 31, 2024		129				128
Additional paid-in capital		36,889				35,127
Retained earnings		27,078				23,200
Treasury stock - 891,432 shares at March 31, 2025 and 835,910 shares at December 31, 2024		(25,672	)			(22,738	)
Total Stockholders' Equity		38,424				35,717
Total Liabilities and Stockholders' Equity	$	86,050			$	90,742