TMX Group (X) Q2 2026 earnings summary

Executive summary

• Achieved double-digit revenue growth across all segments in Q2 2026, with total revenue up 16% year-over-year to CAD 487.5 million.

• Diluted EPS rose 96% to $0.51, including a $0.20 per share benefit from net FX gains; adjusted diluted EPS increased 19% to $0.62.

• Announced a transformative $2.3 billion (CAD 3.2 billion) strategic combination of MEMX and BOX into MEMX Group, with a majority 59% stake.

• Strategic initiatives included the acquisition of RAFI Indices and continued execution of the TM2X growth strategy, including Cboe Australia and Cboe Canada acquisitions.

• Income from operations increased 18% year-over-year, reflecting strong organic growth and contributions from recent acquisitions.

Financial highlights

• Organic revenue (excluding 2025 acquisitions) rose 14% year-over-year for H1 2026.

• Adjusted Diluted EPS increased 27% for H1 2026; Q2 Adjusted Diluted EPS up 19%.

• Net income attributable to equity holders was $142.6 million, up 92% from Q2 2025.

• Capital Formation revenue up 20% year-over-year; Equities and Fixed Income Trading revenue up 25%; Derivatives Trading and Clearing revenue up 26%.

• Global Insights segment revenue up 18% in Q2, with TMX VettaFi revenue up 40%.

Outlook and guidance

• MEMX Group transaction expected to close in H2 2027, accretive to Adjusted EPS within 12 months of closing, before synergies.

• Combined MEMX and BOX revenue grew at a 27% CAGR over the past three years; future growth expected in the high single to double digits.

• The RAFI Indices acquisition is expected to close by Q3 2026, and the MEMX Group transaction is anticipated to close in the second half of 2027, both subject to regulatory approval.

• Leverage ratio projected to rise to 3.4x pro forma but expected to return to target range (1.5x-2.5x) within two years post-closing.

• Management remains focused on executing long-term growth strategies, including global expansion and product transformation.