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

Second Quarter 2025 Highlights:

• Gross revenues of $30.5 million for the quarter, up 11% versus the prior year period
• Operating income of $8.8 million for the quarter, up 8% versus the prior year period
• Operating profit margin of 29.9%, versus 30.4% for the prior year period
• Net income of $7.3 million, up 8% versus the prior year period, and quarterly diluted GAAP EPS of $0.60, up 7%
• Total cash returned to shareholders during the quarter of $2.2 million, in the form of dividends
• Announcing third quarter 2025 dividend of $0.18 per share
• 556 OTCQX^® and 1,073 OTCQB^® companies at quarter end
• 18 graduates to a national securities exchange during the quarter
• 113 subscribers to OTC Link ECN as of June 30, 2025, versus 114 as of June 30, 2024
• 137 unique OTC Link subscribers as of June 30, 2025, versus 140 as of June 30, 2024
• Approximately 63,000 average daily trades during the quarter versus approximately 35,000 during the prior year period
• Launched OTCID with 1,035 OTCID companies as of July 1, 2025

NEW YORK, Aug. 06, 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 second quarter of 2025.

"During the second quarter, our team completed the work for the successful launch of our OTCID Basic Market on July 1, 2025," said R. Cromwell Coulson, President and Chief Executive Officer. "This evolution of our markets expands the opportunities available for public companies to support informed and efficient trading of their securities. Engaged public companies, who are committed to ongoing transparency, are critical to improving market quality. The future of investor relations is digital and having consistent and compliant information on investor screens and in broker machines will drive visibility and valuations."

"Our business delivered top and bottom line growth in the second quarter," said Antonia Georgieva, Chief Financial Officer. "We saw increased revenues across our business lines, with OTC Link benefitting from continued elevated trading volumes, and Market Data Licensing benefitting from price increases and subscriber growth. Our Corporate Services business saw continued improvement in sales. We remain committed to continuously enhancing our offerings, driving growth in users and usage of our products, and delivering long-term value to our shareholders."

Second Quarter 2025 compared to Second Quarter 2024

Financial Highlights

		Three Months Ended June 30,
(in thousands, except shares and per share data)			2025				2024			% change			$ change
OTC Link		$	6,447			$	5,408			19	%		1,039
Market data licensing			12,316				10,782			14	%		1,534
Corporate services			11,742				11,372			3	%		370
Gross Revenues			30,505				27,562			11	%		2,943
Net revenues			29,507				26,771			10	%		2,736
Revenues less transaction-based expenses			27,215				25,222			8	%		1,993
Operating expenses			18,384				17,082			8	%		1,302
Income from operations			8,831				8,140			8	%		691
Operating profit margin			29.9%				30.4%
Income before provision for income taxes			9,047				8,324			9	%		723
Net income		$	7,300			$	6,733			8	%		567
Diluted earnings per share		$	0.60			$	0.56			7	%
Adjusted diluted earnings per share		$	0.92			$	0.85			8	%
Weighted-average shares outstanding, diluted			11,830,514				11,838,453			-

• Gross revenues of $30.5 million, up 11% over the prior year quarter. Revenues less transaction-based expenses up 8%.
• OTC Link revenues up 19%. Transaction-based revenues from OTC Link ECN and OTC Link NQB up 40% 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, 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 14%. Redistributor-based revenues increased 20%, with professional user revenues increasing 28%, partially offset by a decline in non-professional user revenues of 31% quarter over quarter. Revenues from direct sold licenses increased 16% primarily due to price increases for certain licenses and growth in subscribers. Revenues from data and compliance solutions remained essentially unchanged, with lower revenue from EDGAR Online offset by increases in revenues from data services and our Blue Sky data product.
• Corporate Services revenues up 3%. Revenues from our OTCQX and OTCQB markets increased 2% and 4%, respectively, reflecting price increases effective from the beginning of the year, which offset a lower number of companies on the OTCQX and OTCQB markets. Revenues from our Disclosure & News Service^® ("DNS") product increased 13% due to price increases and a higher number of companies subscribing to DNS in anticipation of the July 1, 2025 launch of OTCID. 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, 21% increase in professional and consulting fees, and 12% increase in IT infrastructure and information services.
• Operating income and net income each increased 8%, to $8.8 million and $7.3 million, respectively.
• Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 8% to $11.1 million, or $0.92 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 September 18, 2025, to stockholders of record on September 4, 2025. The ex-dividend date is September 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 second 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.

Second Quarter 2025 Conference Call

The Company will host a conference call and webcast on Thursday, August 7, 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 August 6, 2026):

https://edge.media-server.com/mmc/p/waw98toy

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/BI31042b021603457a9584c1a5fd9643b9

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: [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 June 30,
		2025				2024
OTC Link	$	6,447			$	5,408
Market data licensing		12,316				10,782
Corporate services		11,742				11,372
Gross revenues		30,505				27,562
Redistribution fees and rebates		(998	)			(791	)
Net revenues		29,507				26,771
Transaction-based expenses		(2,292	)			(1,549	)
Revenues less transaction-based expenses		27,215				25,222
Operating expenses
Compensation and benefits		11,573				10,934
IT Infrastructure and information services		2,858				2,545
Professional and consulting fees		1,842				1,521
Marketing and advertising		438				362
Occupancy costs		668				576
Depreciation and amortization		656				682
General, administrative and other		349				462
Total operating expenses		18,384				17,082
Income from operations		8,831				8,140
Other income
Other income		216				184
Income before provision for income taxes		9,047				8,324
Provision for income taxes		1,747				1,591
Net Income	$	7,300			$	6,733
Earnings per share
Basic	$	0.61			$	0.56
Diluted	$	0.60			$	0.56
Basic weighted average shares outstanding		11,769,861				11,723,459
Diluted weighted average shares outstanding		11,830,514				11,838,453
Non-GAAP Reconciliation
	Three Months Ended June 30,
		2025				2024
Net Income	$	7,300			$	6,733
Excluding:
Interest expense (income)		(215	)			(187	)
Provision for income taxes		1,747				1,591
Depreciation and amortization		656				682
Stock-based compensation expense		1,627				1,496
Adjusted EBITDA	$	11,115			$	10,315
Adjusted diluted earnings per share	$	0.92			$	0.85
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 and per share information)
	June 30,				December 31,
		2025				2024
Assets
Current assets
Cash and cash equivalents	$	36,796			$	34,522
Short-term investments		4,860				4,513
Accounts receivable, net of allowance for credit losses of $343 and $326		8,515				8,097
Prepaid income taxes		750				244
Prepaid expenses and other current assets		2,808				2,237
Total current assets		53,729				49,613
Property and equipment, net		6,229				7,096
Operating lease right-of-use assets		10,239				10,951
Deferred tax assets, net		11,031				10,120
Goodwill		3,984				3,984
Intangible assets, net		6,538				6,829
Long-term restricted cash		1,606				1,606
Other assets		460				543
Total Assets	$	93,816			$	90,742
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	1,102			$	1,175
Income taxes payable		3				54
Accrued expenses and other current liabilities		10,269				13,425
Deferred revenue		26,930				29,084
Total current liabilities		38,304				43,738
Income tax reserve		1,007				927
Operating lease liabilities		9,564				10,360
Total Liabilities		48,875				55,025
Commitments and contingencies
Stockholders' equity
Common stock - par value $0.01 per share
Class A - 17,000,000 authorized, 12,909,365 issued, 12,017,933 outstanding at June 30, 2025; 12,815,075 issued, 11,979,165 outstanding at December 31, 2024		129				128
Additional paid-in capital		38,270				35,127
Retained earnings		32,214				23,200
Treasury stock - 891,432 shares at June 30, 2025 and 835,910 shares at December 31, 2024		(25,672	)			(22,738	)
Total Stockholders' Equity		44,941				35,717
Total Liabilities and Stockholders' Equity		93,816				90,742