OTC Markets Group Reports First Quarter 2025 Financial Results Delivering Revenue and Operating Income Growth
OTC Markets Group (OTCM) reported strong Q1 2025 financial results with gross revenues of $30.4 million, up 10% year-over-year. Operating income increased 9% to $7.3 million, while net income grew 1% to $6.0 million. The company achieved quarterly diluted EPS of $0.50, up 2%.
Key revenue segments showed mixed performance: OTC Link revenues surged 22%, Market Data Licensing revenues increased 15%, while Corporate Services revenues slightly declined by 1%. The company returned $5.1 million to shareholders through dividends ($2.2M) and stock repurchases ($2.9M). A quarterly dividend of $0.18 per share was declared.
Notably, OTCM announced the upcoming launch of OTCID™ in July 2025, a new Basic Reporting Market that will replace the Pink Current Market. The company maintained strong market presence with 548 OTCQX® and 1,051 OTCQB® companies at quarter end.
OTC Markets Group (OTCM) ha riportato solidi risultati finanziari del primo trimestre 2025 con ricavi lordi pari a 30,4 milioni di dollari, in aumento del 10% rispetto all'anno precedente. Il reddito operativo è cresciuto del 9%, raggiungendo 7,3 milioni di dollari, mentre l'utile netto è aumentato dell'1% a 6,0 milioni di dollari. L'azienda ha registrato un utile diluito per azione trimestrale di 0,50 dollari, in crescita del 2%.
I principali segmenti di ricavo hanno mostrato performance miste: i ricavi di OTC Link sono aumentati del 22%, quelli da Market Data Licensing del 15%, mentre i ricavi dei Corporate Services sono leggermente diminuiti dell'1%. La società ha restituito 5,1 milioni di dollari agli azionisti tramite dividendi (2,2 milioni) e riacquisti di azioni (2,9 milioni). È stato dichiarato un dividendo trimestrale di 0,18 dollari per azione.
Da segnalare, OTCM ha annunciato il lancio previsto per luglio 2025 di OTCID™, un nuovo Basic Reporting Market che sostituirà il Pink Current Market. L'azienda ha mantenuto una forte presenza sul mercato con 548 società OTCQX® e 1.051 OTCQB® alla fine del trimestre.
OTC Markets Group (OTCM) reportó sólidos resultados financieros del primer trimestre de 2025 con ingresos brutos de 30.4 millones de dólares, un aumento del 10% interanual. El ingreso operativo creció un 9% hasta 7.3 millones de dólares, mientras que la utilidad neta aumentó un 1% a 6.0 millones de dólares. La compañía logró un BPA diluido trimestral de 0.50 dólares, un incremento del 2%.
Los principales segmentos de ingresos mostraron un desempeño mixto: los ingresos de OTC Link aumentaron un 22%, los de Market Data Licensing un 15%, mientras que los ingresos de Corporate Services disminuyeron ligeramente un 1%. La empresa devolvió 5.1 millones de dólares a los accionistas mediante dividendos (2.2M) y recompra de acciones (2.9M). Se declaró un dividendo trimestral de 0.18 dólares por acción.
Destaca que OTCM anunció el próximo lanzamiento de OTCID™ en julio de 2025, un nuevo Basic Reporting Market que reemplazará al Pink Current Market. La compañía mantuvo una fuerte presencia en el mercado con 548 compañías OTCQX® y 1,051 OTCQB® al cierre del trimestre.
OTC Markets Group(OTCM)는 2025년 1분기 재무 실적을 발표하며 총수익이 전년 동기 대비 10% 증가한 3,040만 달러를 기록했습니다. 영업이익은 9% 증가한 730만 달러, 순이익은 1% 증가한 600만 달러를 달성했습니다. 희석 주당순이익(EPS)은 분기 기준 0.50달러로 2% 상승했습니다.
주요 수익 부문은 혼재된 성과를 보였습니다: OTC Link 수익은 22% 급증했고, Market Data Licensing 수익은 15% 증가했으나 Corporate Services 수익은 1% 소폭 감소했습니다. 회사는 배당금(220만 달러)과 자사주 매입(290만 달러)을 통해 주주들에게 510만 달러를 환원했습니다. 분기 배당금으로 주당 0.18달러가 선언되었습니다.
특히 OTCM은 2025년 7월에 Pink Current Market을 대체할 새로운 Basic Reporting Market인 OTCID™를 출시할 예정임을 발표했습니다. 분기 말 기준 OTCQX® 기업 548개, OTCQB® 기업 1,051개로 강력한 시장 입지를 유지했습니다.
OTC Markets Group (OTCM) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec des revenus bruts de 30,4 millions de dollars, en hausse de 10 % par rapport à l'année précédente. Le résultat opérationnel a augmenté de 9 % pour atteindre 7,3 millions de dollars, tandis que le résultat net a progressé de 1 % à 6,0 millions de dollars. La société a réalisé un bénéfice dilué par action trimestriel de 0,50 $, en hausse de 2 %.
Les principaux segments de revenus ont affiché des performances mitigées : les revenus d’OTC Link ont bondi de 22 %, ceux de Market Data Licensing ont augmenté de 15 %, tandis que les revenus des Corporate Services ont légèrement diminué de 1 %. La société a reversé 5,1 millions de dollars aux actionnaires sous forme de dividendes (2,2 M$) et de rachats d’actions (2,9 M$). Un dividende trimestriel de 0,18 $ par action a été déclaré.
Notamment, OTCM a annoncé le lancement prochain d’OTCID™ en juillet 2025, un nouveau Basic Reporting Market qui remplacera le Pink Current Market. La société a maintenu une forte présence sur le marché avec 548 entreprises OTCQX® et 1 051 entreprises OTCQB® à la fin du trimestre.
Die OTC Markets Group (OTCM) meldete starke Finanzergebnisse für das erste Quartal 2025 mit Bruttoeinnahmen von 30,4 Millionen US-Dollar, was einem Anstieg von 10 % im Jahresvergleich entspricht. Das Betriebsergebnis stieg um 9 % auf 7,3 Millionen US-Dollar, während der Nettogewinn um 1 % auf 6,0 Millionen US-Dollar zunahm. Das Unternehmen erzielte ein verwässertes Ergebnis je Aktie von 0,50 US-Dollar, ein Plus von 2 %.
Die wichtigsten Umsatzsegmente zeigten gemischte Ergebnisse: Die Einnahmen von OTC Link stiegen um 22 %, die Erlöse aus Market Data Licensing um 15 %, während die Einnahmen aus Corporate Services leicht um 1 % zurückgingen. Das Unternehmen gab 5,1 Millionen US-Dollar an die Aktionäre zurück durch Dividenden (2,2 Mio.) und Aktienrückkäufe (2,9 Mio.). Es wurde eine Quartalsdividende von 0,18 US-Dollar pro Aktie angekündigt.
Bemerkenswert ist, dass OTCM die bevorstehende Einführung von OTCID™ im Juli 2025 ankündigte, einem neuen Basic Reporting Market, der den Pink Current Market ersetzen wird. Das Unternehmen behielt mit 548 OTCQX®- und 1.051 OTCQB®-Unternehmen zum Quartalsende eine starke Marktpräsenz bei.
- Gross revenues increased 10% YoY to $30.4 million
- Operating income grew 9% to $7.3 million
- OTC Link revenues surged 22% with 46% growth in transaction-based revenues
- Market Data Licensing revenues up 15% with strong growth across all segments
- $5.1 million returned to shareholders through dividends and buybacks
- Average daily trades increased significantly to 56,000 from 34,000 in prior year
- Operating profit margin slightly decreased to 24.7% from 25.0%
- Corporate Services revenues declined 1% due to lower number of companies
- Operating expenses increased 6% driven by higher compensation and bad debt
- OTCQB market revenues declined 2% due to lower number of companies
First Quarter 2025 Highlights:
- Gross revenues of
$30.4 million for the quarter, up10% versus the prior year period - Operating income of
$7.3 million for the quarter, up9% versus the prior year period - Operating profit margin of
24.7% , versus25.0% for the prior year period - Net income of
$6.0 million , up1% versus the prior year period, and quarterly diluted GAAP EPS of$0.50 , up2% - 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 OTCIDTM – 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 ATSTM and OTC OvernightTM, 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 1st 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 , up10% over the prior year quarter. Revenues less transaction-based expenses up7% . - OTC Link revenues up
22% . Transaction-based revenues from OTC Link ECN and OTC Link NQB up46% 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 increased19% , with professional user revenues increasing20% , and non-professional user revenues increasing45% quarter over quarter. Revenues from direct sold licenses increased22% 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 at1% , 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 declined2% , 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 increased1% and2% , 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 a3% increase in compensation and benefits,33% increase in professional and consulting fees, and34% increase in general, administrative and other, primarily due to higher bad debt. - Operating income increased
9% and net income increased1% , 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
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
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: (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, | |||||||
| 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 | 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 | |||||||
| 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 | |||
FAQ
What were OTC Markets Group's (OTCM) Q1 2025 earnings results?
How much dividend did OTC Markets Group declare for Q2 2025?
What is OTCID and when will it launch?
How many shares did OTCM repurchase in Q1 2025?
What was the performance of OTC Markets Group's key business segments in Q1 2025?
