Record Quarter with Strong Revenue Growth
Gross revenues grew 14% to $34.8 million and revenue less transaction-based expenses increased 12% to $30.4 million, representing a record quarter for OTC Markets Group with each business line contributing.
OTC Link and Trading Volume Surge
OTC Link revenues increased 31% year-over-year driven by robust trading: $230 billion in dollar volume (nearly 30% increase YoY), average daily trades on OTC Link ECN and NQB ~96,000 (up 70% YoY), MOON ATS averaged ~71,000 trades and ~7.2 million shares per session. Transaction-based revenue from these platforms rose 52%.
Corporate Services Momentum and Market Tier Growth
Corporate Services revenues increased 19%. OTCQX companies grew to 575 (+5% YoY, added 37 companies in Q1 vs 22 prior-year), OTCQB grew to 1,131 (+8% YoY, added 89 vs 60 prior-year). OTCID and related DNS revenues increased 51%, with 1,074 OTCID companies and a combined 1,456 OTCID + Pink DNS subscribers (up 12% YoY).
Improved Profitability and Margins
Operating income increased 19% to $8.6 million and operating margin expanded to 25.5% from 24.7% a year ago. Net income grew 17% to $7.1 million; diluted GAAP EPS rose 18% to $0.59.
Adjusted Earnings and EBITDA Growth
Adjusted EBITDA rose 14% to $11.2 million and adjusted diluted earnings increased 15% to $0.93 per share, reflecting underlying operating strength after excluding noncash stock-based compensation.
Capital Return and Shareholder Actions
Returned $6.8 million to shareholders in Q1 (33% increase YoY) including $3.6 million in dividends and $3.1 million in share repurchases. Board declared a quarterly dividend of $0.30 per share payable in June.
Strategic Progress: Blue Sky Compliance, Global Expansion and Digital Assets
Achieved Blue Sky compliance for OTCM shares in all 50 states, DC and 2 of 3 U.S. territories (near completion). Opened a Hong Kong office to expand APAC engagement. Investing in platform readiness for tokenized/digital asset securities as regulatory clarity improves.