OTC Markets Group (OTCM) Q2 2026 earnings summary

Executive summary

• Achieved record gross revenue growth of 14% year-over-year in Q2 2026, reaching $34.8 million, with net income up 17% to $8.6 million and operating income up 19%.

• All business lines contributed to strong results, with growth driven by higher trading volumes, increased market data licensing, and robust corporate services.

• Strategic initiatives included the launch of OTCID Basic Market, expansion of overnight trading, opening a Hong Kong office, and alliances to advance digital asset trading and custody infrastructure.

• Strategic priorities focused on increasing securities and activity, expanding connected companies, mitigating operational risk, and driving share value.

Financial highlights

• Gross revenues reached $34.8 million, up 14% year-over-year; net revenues (less transaction-based expenses) grew 12% to $30.6 million.

• Operating income increased 19% to $10.5 million; operating margin expanded to 31.1% from 29.9%.

• Net income was $8.6 million, up 17%; diluted GAAP EPS was $0.71, up 18%; adjusted EBITDA rose 14% to $12.7 million; adjusted diluted EPS was $1.04, up 13%.

• Operating cash flow for Q2 was $11.5 million; free cash flow was $11.4 million.

• Operating expenses rose 9%, mainly due to higher professional fees and IT costs.

Outlook and guidance

• Focus remains on disciplined execution, selective investment to support growth, and returning capital to shareholders while maintaining flexibility.

• Management emphasized long-term sustainable growth in earnings and free cash flow per share.

• Strategic focus on digital asset trading, regulatory advocacy, and international growth as tokenized securities regulations evolve.

• Quarterly cash dividend of $0.30 per share declared for Q3 2026, payable September 17, 2026.