OTC Markets Group Reports Fourth Quarter and Full Year 2024 Results Delivering Revenue Growth

Fourth Quarter and Full Year 2024 Highlights:

Gross revenues of $111.1 million for the year, up 1% versus 2023
Operating income of $32.2 million for the year, down 1% versus 2023
Operating profit margin of 29.9% for the year, versus 30.6% for 2023
Net income of $27.4 million for 2024, down 1% versus 2023, and GAAP diluted EPS of $2.26 versus $2.28 for 2023
Total cash returned to shareholders during 2024 of $29.5 million, comprised of dividends of $26.6 million and repurchases of common shares of $2.9 million, down 1% versus 2023
Announcing first quarter 2025 dividend of $0.18 per share
567 OTCQX^® and 1,050 OTCQB^® companies at year end
43 graduates to a national securities exchange during 2024
114 subscribers to OTC Link ECN as of year-end 2024, up 6 versus 2023
141 unique OTC Link subscribers, up 5 versus 2023
Approximately 38,000 average daily trades during 2024, versus approximately 32,000 during 2023
Fourth quarter gross revenues of $28.5 million, up 3% versus the prior year quarter
Fourth quarter operating income of $8.8 million, flat versus the prior year quarter
Fourth quarter operating profit margin of 31.6%, compared to 32.8% in the prior year quarter
OTC Markets Group announced that in July 2025, it will launch OTCID^TM – a Basic Reporting Market for companies that meet a minimal current information standard and provide management certification. The Pink Current Market will cease to exist
In September 2024, OTC Markets Group launched OTC Overnight^TM, a new offering for overnight trading in OTC equity securities
In November 2024, OTC Markets Group launched MOON ATS^TM, a new offering for overnight trading in NMS securities

NEW YORK, March 12, 2025 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced its financial results for the fourth quarter and full year 2024.

“In 2024, we focused on the groundwork for projects that we will prioritize in the current year: OTC Overnight to support trading in OTC securities, and MOON ATS to support trading in exchange-listed, NMS securities,” said R. Cromwell Coulson, President and Chief Executive Officer. “Additionally, we began the work to launch a new market – the OTCID Basic Reporting Market. The expected July 1, 2025 launch of OTCID will provide a more detailed distinction between each of our markets, support companies that publish basic disclosure for investors, and clearly label securities that trade with limited to no involvement from the issuer. We believe this will increase opportunities for companies to provide ongoing information and improve the quality of our markets.”

“In 2024, our gross revenues exceeded $110 million for the first time in our history,” said Antonia Georgieva, Chief Financial Officer. “OTC Link benefited from increased trading activity on our markets, while Market Data Licensing produced steady-state results. Our Corporate Services business continued to experience a decline in revenue and subscriber counts. We remain focused on driving growth in users and usage of our products, retaining existing subscribers, and continuously enhancing our product offerings.”

Fourth Quarter 2024 compared to Fourth Quarter 2023

	Quarter Ended December 31,
(in thousands, except shares and per share data)		2024			2023		% change		$ change
OTC Link	$	6,364		$	4,802		33	%	1,562
Market data licensing		10,893			10,881		-		12
Corporate services		11,194			11,922		(6	%)	( 728	)
Gross Revenues		28,451			27,605		3	%	846
Net revenues		27,660			26,772		3	%	888
Revenues less transaction-based expenses		25,503			25,442		-		61
Operating expenses		16,753			16,651		1	%	102
Income from operations		8,750			8,791		-		( 41	)
Operating profit margin		31.6	%		32.8	%
Income before provision for income taxes		9,050			9,065		-		( 15	)
Net income	$	7,215		$	7,001		3	%	214

Diluted earnings per share	$	0.60		$	0.58		3	%
Adjusted diluted earnings per share	$	0.91		$	0.89		2	%
Weighted-average shares outstanding, diluted		11,855,291			11,874,331		-

Fourth Quarter 2024 Financial Highlights

Gross revenues of $28.5 million, up 3% over the prior year quarter. Revenues less transaction-based expenses flat to the prior year quarter.
OTC Link revenues up 33%. Transaction-based revenues from OTC Link ECN and OTC Link NQB up 56%, predominantly reflecting the benefit of higher trading volumes on these platforms. Additionally, revenue from OTC Link ATS messages increased 22% due to higher number of messages and fee increases. Further contributing to the overall increase in OTC Link revenues was an increase in certain connectivity revenue due to the introduction of additional fees in 2024.
Market Data Licensing revenues were flat to the prior year quarter. Redistributor-based revenues decreased 4%, with professional user revenues declining 5%, and non-professional user revenues increasing 1% quarter over quarter. Market Data Licensing saw a lower number of professional users during the quarter, compared to the prior year quarter, reflected in a 3% decline in period-end number of professional users, while the addition of a new redistributor relationship at the end of the third quarter of 2024 gradually drove a 12% increase in the period-end number of non-professional users. Revenues from direct sold licenses increased 5% primarily due to growth in subscribers and corresponding revenue from broker-dealer enterprise licenses. Revenues from data and compliance solutions increased 4%, due to price increases for certain licenses and additional fees driving higher data services and Blue Sky data revenue, partially offset by lower EDGAR Online revenue due to subscriber cancellations.
Corporate Services revenues were down 6% quarter over quarter, driven by a 4% decrease in revenues from each of our OTCQX and OTCQB markets, and a 6% decrease in revenues from the Disclosure & News Service^® (“DNS”), in each case due to a lower number of companies on our markets or subscribing to DNS, which more than offset the impact of the annual, incremental price increases effective at the beginning of 2024. Also contributing to the decline in Corporate Services revenues for the quarter was lower revenue from our Virtual Investor Conferences^® (“VIC”) product due to fewer events held and a lower number of participants per event.
Operating expenses increased 1% over the prior year quarter. The increase was primarily driven by a 7% increase in compensation and benefits and a 16% increase in IT infrastructure and information services costs, partially offset by a 42% reduction in professional and consulting fees, as certain one-time costs in the prior year quarter did not recur.
Operating income was flat to the prior year quarter at $8.8 million, while net income increased 3% to $7.2 million.
Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 2% to $11.0 million, or $0.91 per adjusted diluted share.

Fiscal Year 2024 Results compared to Fiscal Year 2023

	Year Ended December 31,
(in thousands, except shares and per share data)		2024			2023		% change		$ change
OTC Link	$	22,409		$	19,599		14	%	2,810
Market data licensing		43,626			43,368		1	%	258
Corporate services		45,029			46,928		(4	%)	( 1,899	)
Gross Revenues		111,064			109,895		1	%	1,169
Net revenues		107,882			106,658		1	%	1,224
Revenues less transaction-based expenses		101,233			101,134		-		99
Operating expenses		69,021			68,540		1	%	481
Income from operations		32,212			32,594		(1	%)	( 382	)
Operating profit margin		29.9	%		30.6	%
Income before provision for income taxes		33,142			33,497		(1	%)	( 355	)
Net income	$	27,360		$	27,661		(1	%)	( 301	)

Diluted earnings per share	$	2.26		$	2.28		(1	%)
Adjusted diluted earnings per share	$	3.41		$	3.37		1	%
Weighted-average shares outstanding, diluted		11,840,819			11,863,180		-

Fiscal Year 2024 Financial Highlights

Gross revenues of $111.1 million, up 1%. Revenues less transaction-based expenses flat to the prior year.
OTC Link revenues up 14%, primarily driven by a 21% increase in revenues from OTC Link ECN and OTC Link NQB, due to a higher volume of shares traded on those platforms, and a 16% increase in revenue from OTC Link ATS messages, due to fee increases offsetting a lower number of messages. Further contributing to the overall increase in OTC Link revenues was an increase in certain connectivity revenue due to the introduction of additional fees.
Market Data Licensing revenues up 1%. A 4% increase in revenues from direct sold licenses and a 2% increase in revenues from data and compliance solutions, in each case due to the same drivers as described in the fourth quarter results, were largely offset by a 2% decline in redistributor-based revenues, due to lower professional and non-professional user revenues.
Corporate Services revenues down 4%. OTCQB and DNS revenues were down 5% and 7%, respectively, due to a lower number of companies subscribing to OTCQB and DNS, more than offsetting the impact of pricing adjustments. OTCQX revenues were relatively flat, with incremental pricing adjustments offsetting the lower number of companies on the OTCQX market. Lower revenues from VIC, due to the same drivers as described in the fourth quarter results, also contributed to the overall decline in Corporate Services revenues.
Operating expenses were up 1%, reflecting a 4% increase in compensation and benefits, a 3% increase in IT infrastructure and information services costs, and a 12% increase in depreciation and amortization, substantially offset by a 22% decline in professional and consulting fees, due to approximately $1.4 million in one-time costs related to an SEC matter and approximately $1.1 million in non-recurring integration costs related to EDGAR Online, each in the prior year.
Operating income and net income each decreased 1% to $32.2 million and $27.4 million, respectively.
Adjusted EBITDA increased 1% to $41.3 million, or $3.41 per adjusted diluted share.

Dividend Declaration – Quarterly Cash Dividend

OTC Markets Group announced today that its Board of Directors authorized and approved a quarterly cash dividend of $0.18 per share of Class A Common Stock. The quarterly cash dividend is payable on March 31, 2025, to stockholders of record on March 24, 2025. The ex-dividend date is March 24, 2025.

Stock Buyback Program

The Company is authorized to purchase shares from time to time on the open market, from employees and consultants, and through block trades, in compliance with applicable law.

On March 11, 2025, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A Common Stock.

Non-GAAP Financial Measures

In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.

Fourth Quarter and Full Year 2024 Conference Call

The Company will host a conference call and webcast on Thursday, March 13, 2025, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail.

Webcast:
The conference webcast and management presentation can be accessed at the following link (replay available until March 12, 2026):
https://edge.media-server.com/mmc/p/n6hcdcqb

Live Call:
Participants intending to ask a question during the live call and Q&A session should also register in advance at:
https://register.vevent.com/register/BI27b59e5597d341e1a1a461fb3784f94d

Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option.

OTC Markets Group’s Annual Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of our corporate website at www.otcmarkets.com/investor-relations/overview.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX^® Best Market, OTCQB^® Venture Market, and Pink^® Open Market.

Our OTC Link^® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATS are each an SEC-regulated ATS, operated by OTC Link LLC, a FINRA and SEC-registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

Investor Contact:

Antonia Georgieva
Chief Financial Officer
Phone: (212) 220-2215
Email: ir@otcmarkets.com

Media Contact:

OTC Markets Group Inc.
Phone: (212) 896-4428
Email: media@otcmarkets.com


OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share information)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
OTC Link	$	6,364		$	4,802		$	22,409		$	19,599
Market data licensing		10,893			10,881			43,626			43,368
Corporate services		11,194			11,922			45,029			46,928
Gross revenues		28,451			27,605			111,064			109,895
Redistribution fees and rebates		(791	)		(833	)		(3,182	)		(3,237	)
Net revenues		27,660			26,772			107,882			106,658
Transaction-based expenses		(2,157	)		(1,330	)		(6,649	)		(5,524	)
Revenues less transaction-based expenses		25,503			25,442			101,233			101,134
Operating expenses
Compensation and benefits		10,160			9,460			44,123			42,467
IT Infrastructure and information services		2,673			2,298			10,574			10,311
Professional and consulting fees		1,783			3,077			6,294			8,048
Marketing and advertising		422			315			1,368			1,194
Occupancy costs		619			591			2,369			2,360
Depreciation and amortization		668			554			2,681			2,398
General, administrative and other		428			356			1,612			1,762
Total operating expenses		16,753			16,651			69,021			68,540
Income from operations		8,750			8,791			32,212			32,594
Other income
Other income		300			274			930			903
Income before provision for income taxes		9,050			9,065			33,142			33,497
Provision for income taxes		1,835			2,064			5,782			5,836
Net Income	$	7,215		$	7,001		$	27,360		$	27,661

Earnings per share
Basic	$	0.61		$	0.59		$	2.29		$	2.32
Diluted	$	0.60		$	0.58		$	2.26		$	2.28

Basic weighted average shares outstanding		11,729,845			11,669,376			11,721,215			11,658,694
Diluted weighted average shares outstanding		11,855,291			11,874,331			11,840,819			11,863,180


Non-GAAP Reconciliation
	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net Income	$	7,215		$	7,001		$	27,360		$	27,661
Excluding:
Interest expense (income)		(312	)		(312	)		(940	)		(844	)
Provision for income taxes		1,835			2,064			5,782			5,836
Depreciation and amortization		668			554			2,681			2,398
Stock-based compensation expense		1,573			1,493			6,370			5,858
Adjusted EBITDA	$	10,979		$	10,800		$	41,253		$	40,909

Adjusted diluted earnings per share	$	0.91		$	0.89		$	3.41		$	3.37

Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance.

OTC MARKETS GROUP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)

	December 31,
		2024			2023
Assets
Current assets
Cash and cash equivalents	$	34,522		$	34,101
Short-term investments		4,513			3,622
Accounts receivable, net of allowance for credit losses of $326 and $451		8,097			7,680
Prepaid income taxes		244			1,324
Prepaid expenses and other current assets		2,237			1,865
Total current assets		49,613			48,592
Property and equipment, net		7,096			8,429
Operating lease right-of-use assets		10,951			12,324
Deferred tax assets, net		10,120			7,691
Goodwill		3,984			3,984
Intangible assets, net		6,829			7,411
Long-term restricted cash		1,606			1,586
Other assets		543			508
Total Assets	$	90,742		$	90,525

Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	1,175		$	2,152
Income taxes payable		54			141
Accrued expenses and other current liabilities		13,425			14,065
Deferred revenue		29,084			29,267
Total current liabilities		43,738			45,625
Income tax reserve		927			778
Operating lease liabilities		10,360			11,895
Total Liabilities		55,025			58,298
Commitments and contingencies
Stockholders' equity
Common stock - par value $0.01 per share
Class A - 17,000,000 authorized, 12,815,075 issued, 11,979,165 outstanding at
December 31, 2024; 12,716,135 issued, 11,931,366 outstanding at December 31, 2023		128			127
Additional paid-in capital		35,127			29,469
Retained earnings		23,200			22,425
Treasury stock - 835,910 shares at December 31, 2024 and 784,769 shares at December 31, 2023		(22,738	)		(19,794	)
Total Stockholders' Equity		35,717			32,227
Total Liabilities and Stockholders' Equity	$	90,742		$	90,525

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