TMX Group Limited

TMX reported Q2 2026 total revenue of $487.5 million, up 16% year over year. Reported diluted EPS increased 96%, helped by a net foreign exchange noncash accounting gain versus a noncash loss in Q2 2025, while adjusted diluted EPS rose 19%. Segment revenue growth was 18% in Global Insights, 23% in Derivatives Trading and Clearing, 13% in Capital Formation, and 13% in Equities and Fixed Income Trading and Clearing. For the first half, revenue grew 16%, organic revenue excluding certain acquisitions rose 14%, and adjusted diluted EPS increased 27%. Guidance-wise, management did not give quarterly or full-year financial guidance, but said the MEMX transaction is expected to be accretive to adjusted EPS within the first 12 months after closing, before synergies, and targeted to close in the second half of 2027; RAFI is expected to close by the end of Q3 and the first leg of Cboe Australia is expected to close imminently.

John McKenzie framed the quarter as part of a strong first half and said TMX is now a deeper, more global platform built to compete internationally. He emphasized that the company is pushing ahead with a series of strategic moves—RAFI Indices, Cboe Australia/Cboe Canada, and MEMX/BOX—meant to strengthen the core ecosystem while expanding globally. His tone was confident and execution-focused, with repeated emphasis on balance sheet strength, team capacity, and long-term value creation.

David Arnold highlighted eight consecutive quarters of double-digit total and organic revenue growth and said business was 'firing on all cylinders.' He cited Q2 revenue of $487.5 million, adjusted diluted EPS up 19%, operating expenses up 13% reported and about 10% on a comparable basis, cash and marketable securities of over $517 million, debt to adjusted EBITDA of 1.9x, and leverage of 1.6x net of excess cash. He also said the board approved an 8% dividend increase to $0.26 per share and that the payout ratio was 42%, within the 40% to 50% target range. On the MEMX deal, he said TMX intends to finance it with debt, expects accretion within 12 months of closing before synergies, and believes leverage can return to target within 2 years.

Analysts focused heavily on whether TMX can manage three transactions at once without distracting from the organic business; management said the closings are staggered, different teams will handle different integrations, and the company has capacity from both a financial and execution standpoint. Questions also centered on the MEMX/BOX valuation, synergies, and close risk; David said the deal is accretive before synergies, with revenue synergies more meaningful than cost synergies, while John said the process was not an auction and that SEC approval is the main regulatory step. Trayport’s slower growth was another concern, and David explained it was largely a timing issue tied to site-license renewal cycles and nonrecurring revenue, adding that Trayport remains a high-growth business and should move back toward high-single to low-double-digit growth in 2027 and beyond.