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:
$63.00
▲(22.05% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by strong financial performance (profitability, low/improving leverage, and excellent cash conversion) and a constructive earnings outlook supported by product launches and shareholder returns. Valuation is reasonable with an attractive dividend yield. Technicals are supportive but not decisive due to mixed momentum signals (slightly negative MACD despite the uptrend).
Positive Factors
Revenue Growth
Consistent double-digit revenue growth over three quarters indicates strong market demand and effective business strategies, supporting long-term expansion.
Negative Factors
Increased Transaction-Based Expenses
Rising transaction-based expenses could pressure profit margins, potentially impacting cash flow and limiting reinvestment in growth opportunities.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent double-digit revenue growth over three quarters indicates strong market demand and effective business strategies, supporting long-term expansion.
Read all positive factors
OTC Markets Group (OTCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$646.66M
Dividend Yield4.83%
Average Volume (3M)4.16K
Price to Earnings (P/E)19.4
Beta (1Y)0.07
Revenue Growth7.58%
EPS Growth7.48%
CountryUS
Employees134
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)1.14
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/Revenue4.92
Enterprise Value/Gross Profit9.84
Enterprise Value/Ebitda14.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.81
Revenue Forecast (FY)$127.19M
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 generates revenue through several key streams. Primarily, it earns money from transaction fees charged to brokers and market participants for executing trades on its platform. Additionally, the company provides subscription-based...
OTC Markets Group Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call highlights a strong operating year: record revenues, double-digit growth across quarters, expanding margins, robust adjusted EBITDA, healthy cash flow, and successful strategic launches (OTCID and momentum for Moon ATS). Management announced a higher quarterly dividend and opportunistic buybacks, reinforcing shareholder returns. The main concerns are rising transaction-based expenses (up 39% year), volatility in trading volumes and retail/nonprofessional users, churn and net-addition variability in Corporate Services, and competitive/timing risk for overnight trading as incumbents and exchanges enter the space. On balance, the positives (record results, margin expansion, cash generation, product launches and shareholder returns) outweigh the challenges, though execution and market-volume risk remain important to monitor.Positive Updates
Record Revenue and Year-over-Year Growth
Gross revenues reached $125.3M for full-year 2025, up 13% year-over-year; net revenues grew ~12%. Q4 gross revenues were $32.7M, up 15% versus prior-year quarter. Company delivered double-digit gains across all four quarters of 2025.
Negative Updates
Material Increase in Transaction-Based Expenses
Transaction-based expenses increased 39% for the full year 2025, substantially faster than revenue growth in some areas and offsetting transaction-driven gains. Q4 transaction-based expenses rose 12%.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Year-over-Year Growth
Gross revenues reached $125.3M for full-year 2025, up 13% year-over-year; net revenues grew ~12%. Q4 gross revenues were $32.7M, up 15% versus prior-year quarter. Company delivered double-digit gains across all four quarters of 2025.
Read all positive updates
Company Guidance
OTC Markets’ 2026 guidance centers on scaling overnight trading (Moon ATS/OTC Overnight) and growing Corporate Services/OTCID while continuing shareholder returns and preparing for tokenized securities pending regulatory clarity; the Board declared a quarterly dividend of $0.30 per share (payable March) and said the company will opportunistically resume buybacks after returning $32.6M to investors in 2025 (+10%). Management said it will work to raise the share of “connected” companies above the ~25% of securities that today represent roughly 31% of Q4 dollar volume, and expects some NMS overnight activity in 2026 as it builds Moon’s network. The plan is to drive revenue and margin expansion off a 2025 base of $125.3M gross revenue (+13% YoY), with OTC Link +17%, Market Data +15%, Corporate Services +8%, adjusted EBITDA $47.6M (+15%), FY diluted EPS $2.58 (adjusted diluted earnings $3.94), operating margin 31.5% (Q4 36.3%), and continued investment in people (operating expenses +7% in 2025; compensation ~63% of expenses). Operational metrics to watch as execution proceeds include OTCQX 574 companies (137 adds in 2025), OTCQB 1,106 (293 adds), OTCID 1,052 companies (1,508 combined OTCID/Pink DNS subscribers), and ATS subscribers 145 (OTC Link ECM 117; OTC Link ATS 77).OTC Markets Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 121.33M | 101.23M | 109.89M | 105.15M | 99.91M |
| Gross Profit | 51.71M | 57.11M | 58.67M | 58.62M | 56.59M |
| EBITDA | 40.80M | 34.89M | 34.99M | 38.91M | 39.81M |
| Net Income | 31.14M | 27.36M | 27.66M | 30.81M | 30.48M |
Balance Sheet | |||||
| Total Assets | 103.41M | 90.74M | 90.53M | 89.62M | 82.25M |
| Cash, Cash Equivalents and Short-Term Investments | 54.28M | 39.03M | 37.72M | 37.37M | 50.39M |
| Total Debt | 10.86M | 12.47M | 13.95M | 15.24M | 16.46M |
| Total Liabilities | 62.94M | 55.02M | 58.30M | 59.81M | 57.30M |
| Stockholders Equity | 40.47M | 35.72M | 32.23M | 29.80M | 24.95M |
Cash Flow | |||||
| Free Cash Flow | 48.42M | 31.57M | 31.47M | 32.24M | 45.06M |
| Operating Cash Flow | 48.64M | 32.87M | 33.04M | 33.68M | 46.46M |
| Investing Cash Flow | -754.00K | -2.19M | -5.19M | -16.39M | -1.40M |
| Financing Cash Flow | -33.18M | -30.24M | -31.10M | -30.31M | -28.40M |
OTC Markets Group Technical Analysis
Positive
51.62
Price Trends
53.34
Positive
52.61
Positive
51.99
Positive
Market Momentum
0.10
Negative
53.31
Neutral
93.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTCM, the sentiment is Positive. The current price of 51.62 is below the 20-day moving average (MA) of 53.03, below the 50-day MA of 53.34, and below the 200-day MA of 51.99, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 93.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $108.60B | 24.28 | 14.48% | 3.92% | 5.84% | 8.51% | |
80 Outperform | $31.08B | 23.89 | 22.99% | 1.06% | 16.74% | 26.74% | |
77 Outperform | $646.66M | 19.40 | 70.52% | 4.83% | 7.58% | 7.48% | |
72 Outperform | $95.29B | 28.00 | 11.60% | 1.19% | 8.96% | 30.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $50.07B | 26.70 | 15.03% | 1.07% | 16.41% | 68.03% | |
61 Neutral | $6.84B | 24.33 | 25.12% | 0.84% | 7.76% | 15.92% |
* Financial Sector Average
OTCM
OTC Markets Group
54.00
9.75
22.04%
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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.