OTC Markets Group Reports First Quarter 2025 Financial Results Delivering Revenue and Operating Income Growth

Core Insights - OTC Markets Group Inc. reported financial results for the first quarter of 2025, highlighting a focus on overnight trading and the upcoming launch of the OTCID Basic Market [2][4] - The company emphasized the importance of diversified revenue streams and synergistic business lines, with notable growth in OTC Link and Market Data Licensing revenues [2][4] Financial Performance - Gross revenues reached $30.4 million, a 10% increase compared to the first quarter of 2024 [3][4] - Net revenues also increased by 10% to $29.4 million, with revenues less transaction-based expenses rising by 7% to $27.1 million [3][4] - Operating income grew by 9% to $7.3 million, while net income saw a modest increase of 1% to $6.0 million [4][5] - The operating profit margin was reported at 24.7%, slightly down from 25.0% in the previous year [4][5] Revenue Breakdown - OTC Link revenues increased by 22% to $6.6 million, driven by higher trading volumes and connectivity revenue [3][9] - Market Data Licensing revenues rose by 15% to $12.8 million, with professional user revenues increasing by 20% and non-professional user revenues by 45% [3][9] - Corporate Services revenues experienced a slight decline of 1% to $11.1 million, attributed to a lower number of companies in the markets [3][9] Shareholder Returns - The company returned $5.1 million to shareholders in the quarter, consisting of $2.2 million in dividends and $2.9 million in stock repurchases [4][6] - A quarterly cash dividend of $0.18 per share was declared, payable on June 18, 2025 [6] Market Activity - The average daily trades during the quarter were approximately 56,000, compared to about 34,000 in the prior year [4][9] - The company plans to launch OTCID in July 2025, which will replace the Pink Current Market [4][9]