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

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Fourth Quarter and Full Year 2024 Highlights:

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• 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

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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.”

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Fourth Quarter 2024 compared to Fourth Quarter 2023

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.

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Fiscal Year 2024 Results compared to Fiscal Year 2023

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.

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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.

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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.

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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

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