OTC Markets Group Inc.

First-quarter 2026 gross revenues were $34.8 million, up 14% year over year, and revenue less transaction-based expenses increased 12% to $30.4 million. Operating income rose 19% to $8.6 million, operating margin expanded to 25.5% from 24.7%, net income increased 17% to $7.1 million, and diluted GAAP EPS was $0.59, up 18%. Adjusted EBITDA was $11.2 million, up 14%, and adjusted diluted EPS was $0.93, up 15%. Cash used in operating activities was $231,000 and free cash flow was negative $746,000. Looking ahead, management did not give formal revenue or EPS guidance, but said it remains focused on disciplined execution, selective investment, and shareholder returns; the board declared a quarterly dividend of $0.30 per share payable in June, and the company also continued opportunistic share repurchases.

Cromwell Coulson framed the quarter as evidence that OTC Markets’ strategy is working, citing growth in OTC Link, Market Data, and Corporate Services and saying the company is strengthening the platform through incremental product and market-structure improvements. He highlighted long-term priorities around overnight trading, OTCID adoption, Blue Sky compliance, digital asset preparedness, and expanding internationally with the new Hong Kong office. His tone was upbeat and confident, but he also stressed that execution, compliance, and market quality remain central to the company’s model.

Antonia Georgieva said operating expenses increased 10% year over year, driven by 9% higher compensation and benefits, a 16% increase in IT infrastructure and information services, and a 29% increase in professional and consulting fees. She noted transaction-based revenue rose 52% while transaction-based expenses rose 45%, reflecting higher trading activity and the fact that MOON ATS generates revenue without paying liquidity rebates. She also cited a 33% increase in capital returned to shareholders in the quarter, totaling $6.8 million, including $3.6 million in dividends and $3.1 million in share repurchases, while emphasizing continued focus on financial flexibility.

Analysts focused on the SEC’s proposal for semiannual reporting, with management saying it was not a surprise and that the comment process will be important. The company said the proposal could reduce reporting burden and improve flexibility, but it also raised concerns about information gaps, blackout periods, and how quarterly-style disclosures would be replaced. Questions also centered on nonprofessional market data users, transaction-based expenses, MOON ATS revenue contribution, and OTCID adoption; management said the nonprofessional decline was tied to the loss of a broker-dealer customer in prior periods, MOON revenue is meaningful but not separately disclosed, and OTCID growth reflected both new adoption and some migration from disclosure/news products rather than large movement from OTCQX or OTCQB.