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: [phone]
Email: [e-mail]

Media Contact:

OTC Markets Group Inc.
Phone: [phone]
Email: [e-mail]

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