OTC Markets Group Inc (OTCM)
OTHER OTC:OTCM
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OTC Markets Group
(OTC:OTCM)
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Rating:77Outperform
Price Target:
$60.00
â–²(16.23% Upside)
Action:Reiterated
Date:05/14/26
The score is led by strong financial performance (high margins, conservative leverage, and excellent cash conversion). Earnings call signals are net-positive with growth and capital returns, but are tempered by cost inflation and some business-line volatility. Technicals are the main drag due to weak short-term trend and muted momentum, while valuation is supported by a solid dividend yield and a reasonable P/E.
Positive Factors
Free Cash Flow Strength
Very high free cash flow (FCF ≈99% of net income, TTM) and recent FCF growth provide durable internal funding for buybacks, dividends, and targeted reinvestment. Strong cash conversion enhances financial flexibility and lowers dependency on external financing across business cycles.
Negative Factors
Revenue Volatility
Top-line cyclicality tied to market activity and issuer counts increases forecasting risk and can stress margins if volumes or issuer fees decline. Durable revenue variability makes earnings less predictable and raises reliance on cash buffers to sustain capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Very high free cash flow (FCF ≈99% of net income, TTM) and recent FCF growth provide durable internal funding for buybacks, dividends, and targeted reinvestment. Strong cash conversion enhances financial flexibility and lowers dependency on external financing across business cycles.
Read all positive factors
OTC Markets Group (OTCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$621.51M
Dividend Yield4.83%
Average Volume (3M)4.16K
Price to Earnings (P/E)22.3
Beta (1Y)0.05
Revenue Growth13.80%
EPS Growth16.95%
CountryUS
Employees134
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.69
Shares Outstanding11,975,122
10 Day Avg. Volume6,241
30 Day Avg. Volume4,164
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)14.92
Price to Sales (P/S)4.98
P/FCF Ratio12.47
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue4.77
Enterprise Value/Gross Profit9.79
Enterprise Value/Ebitda14.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.86
Revenue Forecast (FY)$129.00M
OTC Markets Group Business Overview & Revenue Model
Company Description
OTC Markets Group Inc. engages in the financial market business in the United States and internationally. It offers OTC Link Alternative Trading System, an interdealer quotation and trade messaging system; OTC Dealer, a real-time, front-end applic...
How the Company Makes Money
OTC Markets Group primarily generates revenue by charging issuers and market participants for access to its markets and associated services. Key revenue streams include: (1) Issuer-related fees: companies pay to be quoted and to qualify for, move ...
OTC Markets Group Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: record revenues, strong OTC Link trading volume, healthy growth across Corporate Services, expanding margins, and proactive shareholder returns and strategic initiatives (Blue Sky compliance, Hong Kong expansion, digital asset readiness). Offsetting items include rising operating and transaction-based expenses, a sharp decline in nonprofessional user revenues (driven by customer migration), small negative free cash flow, and competitive/regulatory uncertainty for Overnight trading (MOON) as exchanges plan to enter the market. On balance, the company showed growth momentum and disciplined capital returns while acknowledging cost increases and near-term uncertainties.Positive Updates
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.
Negative Updates
Rising Operating Expenses
Operating expenses increased 10% YoY. Key drivers included compensation and benefits up 9%, IT infrastructure and information services up 16%, and professional & consulting fees up 29%, pressuring near-term cost base.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management's forward-looking guidance emphasized capital returns, market structure initiatives and compliance targets, anchored to Q1 benchmarks: the Board declared a $0.30 quarterly dividend payable in June and said it will continue opportunistic buybacks (Q1 buybacks $3.1M; total Q1 shareholder returns $6.8M including $3.6M in dividends); management expects exchanges to enter the Overnight NMS market by year‑end and will continue to scale Overnight/MOON activity (Q1 MOON ≈71,000 trades/session and ≈7.2M shares/session; OTC Link average daily trades ≈96,000, +70% YoY; OTC Link revenue +31% YoY; transaction‑based revenue +52% vs transaction‑based expenses +45% to ~$3.4M); they aim for 100% Blue Sky compliance as a metric for OTCQX companies (OTCM already compliant in all 50 states + DC and 2 of 3 territories) and are expanding internationally with a Hong Kong office; these plans were presented alongside Q1 results of gross revenues $34.8M (+14%), revenue less transaction expenses $30.4M (+12%), operating income $8.6M (+19%) and margin 25.5%, net income $7.1M (+17%), GAAP diluted EPS $0.59 (+18%), adjusted EBITDA $11.2M (+14%) and improved free cash flow of -$746k.OTC Markets Group Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 124.27M | 121.33M | 101.23M | 109.89M | 105.15M | 99.91M |
| Gross Profit | 60.59M | 51.71M | 57.11M | 58.67M | 58.62M | 56.59M |
| EBITDA | 42.09M | 40.80M | 34.89M | 34.99M | 38.91M | 39.81M |
| Net Income | 32.17M | 31.14M | 27.36M | 27.66M | 30.81M | 30.48M |
Balance Sheet | ||||||
| Total Assets | 92.48M | 103.41M | 90.74M | 90.53M | 89.62M | 82.25M |
| Cash, Cash Equivalents and Short-Term Investments | 46.34M | 54.28M | 39.03M | 37.72M | 37.37M | 50.39M |
| Total Debt | 8.33M | 10.86M | 12.47M | 13.95M | 15.24M | 16.46M |
| Total Liabilities | 50.13M | 62.94M | 55.02M | 58.30M | 59.81M | 57.30M |
| Stockholders Equity | 42.35M | 40.47M | 35.72M | 32.23M | 29.80M | 24.95M |
Cash Flow | ||||||
| Free Cash Flow | 48.61M | 48.42M | 31.57M | 31.47M | 32.24M | 45.06M |
| Operating Cash Flow | 49.23M | 48.64M | 32.87M | 33.04M | 33.68M | 46.46M |
| Investing Cash Flow | -1.81M | -754.00K | -2.19M | -5.19M | -16.39M | -1.40M |
| Financing Cash Flow | -35.15M | -33.18M | -30.24M | -31.10M | -30.31M | -28.40M |
OTC Markets Group Technical Analysis
Negative
51.62
Price Trends
53.62
Negative
53.52
Negative
51.93
Positive
Market Momentum
-0.57
Positive
40.98
Neutral
10.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTCM, the sentiment is Negative. The current price of 51.62 is below the 20-day moving average (MA) of 53.72, below the 50-day MA of 53.62, and below the 200-day MA of 51.93, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTCM.
OTC Markets Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $36.83B | 19.07 | 24.63% | 1.06% | 10.61% | 53.46% | |
78 Outperform | $104.83B | 22.98 | 15.25% | 3.92% | 7.54% | 18.50% | |
77 Outperform | $621.51M | 22.32 | 71.29% | 4.83% | 13.80% | 16.95% | |
77 Outperform | $85.67B | 15.78 | 13.57% | 1.19% | 14.25% | 42.14% | |
75 Outperform | $51.13B | 23.18 | 15.91% | 1.07% | 5.79% | 50.79% | |
71 Outperform | $6.59B | 15.43 | 30.01% | 0.84% | 8.39% | 10.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
OTCM
OTC Markets Group
52.00
4.42
9.30%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.