OTC Markets Group (OTCM) Q1 2026 earnings summary

Executive summary

• Gross revenues reached $34.8 million in Q1 2026, up 14% year-over-year, with net income at $7.1 million, a 17% increase, and operating income up 19% to $8.6 million; all business lines contributed to growth.

• Diluted GAAP EPS rose 18% to $0.59, and adjusted diluted EPS increased 15% to $0.93.

• OTC Link led with 31% revenue growth, driven by robust trading volume and MOON ATS ramp-up.

• Corporate Services revenues rose 19%, supported by OTCID Basic Market launch and increased client engagement.

• Strategic priorities include expanding overnight trading, onboarding subscribers, enhancing product functionality, and strengthening regulatory compliance.

Financial highlights

• Gross revenues: $34.8 million (+14%); net revenues: $30.4 million (+12%); net income: $7.1 million (+17%).

• Operating income: $8.6 million (+19%); operating margin: 25.5% (up from 24.7%).

• Adjusted EBITDA: $11.2 million (+14%).

• Fully diluted GAAP EPS: $0.59 (+18%); adjusted diluted EPS: $0.93 (+15%).

• Cash used in operating activities: $231,000; free cash flow: -$746,000.

Outlook and guidance

• Continued focus on expanding overnight trading, onboarding subscribers, and enhancing product functionality.

• Expectation of increased competition as exchanges enter the overnight NMS trading market.

• Strategic initiatives to achieve 100% Blue Sky compliance for OTCQX companies.

• Ongoing investment in digital asset and tokenized securities infrastructure.

• Management emphasizes long-term sustainable growth in earnings and free cash flow per share, with a focus on shareholder returns and strategic buybacks.