OTC Markets Group Inc. · OTC:OTCM
OTC Markets — Q2 2025 Earnings Presentation
16 slides from OTC Markets's earnings presentation, Aug 7, 2025
Slide 1: 2Q 2025 Earnings Presentation
2Q 2025 Earnings Presentation August 7, 2025
Slide 2: Earnings Call Agenda
Cromwell Coulson Earnings Call President, Chief Executive Officer Agenda I. Strategic Overview Antonia Georgieva Chief Financial Officer II. Financial Review: Q2 2025 Results III. Q&A Dan Zinn General Counsel & Chief of Staff 2
Slide 3: Cautionary Statement Regarding Forward Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This conference call and presentation materials may contain forward-looking statements about the Company's future plans, expectations, and objectives concerning, but not limited to, the Company's expected financial results for 2025. Words suc
Slide 4: Financial Trends and Highlights
Financial Trends and Highlights Revenue Trends OTC Link + 19% Gross Revenue $30.5M, ▲ 11% Market Data + 14% Licensing Net Income $7.3M, ▲ 8% Corporate + 3% Operating Margin Services ▼50 basis points 4
Slide 5: Our Strategic Priorities for 2025
Our Strategic Priorities for 2025 One Team, Increase the Transform the Mitigate Increase Users One Platform Number of Client Operational and Usage to Driving Securities on Connection Risk and Grow Revenue Results to our Markets: and Improve Strengthen across Build the Value Overnight the Quality of
Slide 6: Financial Review
Financial Review Q2 2025 Results 6
Slide 7: Q2 2025 Revenue
Q2 2025 Revenue Q2 2025 Q2 2024 ECN & NQB Revenue Market Data 30.5 M Gross revenues + 40% + 14% 11% 11.7 M Corporate services 3% Market data licensing 12.3 M Pro Users Revenue 14% ~63k Avg Daily Trades + 28 % OTC Link 6.4 M + 78% vs PYQ Non-pro Users Revenue 19% - 31% 21% Corporate Services BD Licen
Slide 8: Q2 2025 Expenses
Q2 2025 Expenses Q2 2025 Q2 2024 18.4 M OpEx (ex DEPR) as Operating Margin % of Gross Revenue Total operating expenses 8% 58% 29.9% General, administrative and other 0.3 M Depreciation and amortization 0.7 M Occupancy costs 0.7 M Marketing and advertising 0.4 M Professional and consulting fees 1.8 M
Slide 9: Q2 2025 Highlights
Q2 2025 Highlights Gross Revenues Revenues less Operating Income Net Income transaction-based 30.5M expenses 8.8M 7.3M + 11% 27.2M + 8% + 8% Operating Expenses + 8% Operating Margin Fully Diluted 18.4M, + 8% - 50 basis points GAAP EPS $0.60 Effective Tax Rate Adjusted EBITDA Cash Provided by Cash Re
Slide 10: Cash Flows & Capital Allocation Strategy
Cash Flows & Capital Allocation Strategy Free Cash Flow Shareholder Returns 14.7 7.7 7.0 7.3 7.3 5.1 10.2 6.7 4.3 3.0 YTD 2021 YTD 2022 YTD 2023 YTD 2024 YTD 2025 YTD 2021 YTD 2022 YTD 2023 YTD 2024 YTD 2025 Cash Flow from Operations Capital Expenditure Free Cash Flow Dividends Share Buybacks Total
Slide 11: Questions & Answers
OTC Markets _ Questions & Answers an Ay a W \| | 1] ] 7
Slide 12: Appendix
CT Markets Diicndix 12
Slide 13: Balance Sheet Summary
Balance Sheet Summary June 30, Decem ber 31, (in thousands) 2025 2024 % change Assets Cash and cash equivalents $ 36,796 $ 34,522 7% Short-term investments 4,860 4,513 8% Accounts receivable, net of allow ance for credit losses of $343 and $326 8,515 8,097 5% Other Current Assets 3,558 2,481 43% Tot
Slide 14: Income Statement Summary
Income Statement Summary Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share information) 2025 2024 % change 2025 2024 % change OTC Link $ 6,447 $ 5,408 19% $ 13,010 $ 10,805 20% Market data licensing 12,316 10,782 14% 25,098 21,870 15% Corporate services
Slide 15: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share information) 2025 2024 % change 2025 2024 % change Net Incom e $ 7,300 $ 6,733 8% $ 13,340 $ 12,717 5% Excluding: Interest expense (income) (215) (187) 15% (364) (362) 1%
Slide 16: Cash Flow Summary
Cash Flow Summary Six Months Ended June 30, (in thousands) 2025 2024 2023 2022 2021 Cash Flow from Operations 10,403 5,466 4,281 7,638 15,042 Capital Expenditure (158) (1,183) (1,285) (942) (350) Free Cash Flow $ 10,245 $ 4,283 $ 2,996 $ 6,696 $ 14,692 Dividends Paid (4,326) (4,309) (4,290) (4,268)