TMX Group (X) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of CAD 421.7 million, up 15% year-over-year, with strong growth across derivatives, equities, and Global Insights, and record income from operations.

• Adjusted diluted EPS grew 21% to $0.52, while reported diluted EPS decreased 28% to $0.26 due to a $0.14 per share net FX loss on USD intercompany loans.

• Revenue growth was broad-based, with notable contributions from derivatives, equity trading and clearing, and Global Insights.

• For the first half of 2025, revenue grew 18% and operating income increased 22% year-over-year, reflecting sustained momentum in key business drivers.

• Strategic focus remains on innovation, client needs, and expanding into new asset classes and geographies.

Financial highlights

• Q2 2025 revenue reached CAD 421.7 million, up 15% year-over-year, and net income attributable to equity holders was $74.1 million, down 26% due to higher net finance costs from FX losses.

• Adjusted net income for Q2 2025 was $145.9 million, up 21% year-over-year.

• Cash flows from operating activities increased 25% to $262.7 million in Q2 2025.

• Q2 2025 operating expenses rose 13% to $229.6 million, driven by acquisitions, higher payroll, IT costs, and strategic re-alignment expenses.

• Organic revenue (excluding recent acquisitions) increased 16% in the first half of 2025.

Outlook and guidance

• Revenue growth expected to continue, with new product launches and expansion in Global Insights and derivatives.

• Post-Trade Modernization system launched; revenue from new products expected in the back half of the year, with annual amortization and depreciation expenses of ~$10 million mostly offset by related annual savings starting Q3 2025 and reaching full run-rate in 2026.

• EBITDA margin improvement driven by strong revenue growth, with long-term revenue growth objectives reaffirmed.

• Management remains committed to executing long-term growth strategies, accelerating growth, and managing debt.

• Dividend increased by 10% to $0.22 per share, the fifth increase in three years.