OTC Markets Group delivered record second-quarter financial results driven primarily by increased trading activity across its platform businesses. The company reported gross revenue and net revenue each grew 14% during the quarter, with gross revenue totaling $34.8 million. Operating income expanded 19% to $10.5 million, while net income increased 17% to $8.6 million. Diluted GAAP earnings per share rose 18% to $0.71, and adjusted EBITDA climbed 14% to $12.7 million.
Trading activity emerged as the primary growth catalyst across the company’s marketplace operations. OTC Link revenue increased 27% in the quarter and 29% in the first half of the year. Transaction-based revenue from OTC Link ECN, OTC Link NQB and MOON ATS surged 47%, though transaction-based expenses paid to liquidity providers also rose 39%. Average daily transactions on OTC Link ECN and OTC Link NQB reached roughly 95,000, representing a 50% year-over-year increase. Market-wide dollar volume exceeded $230 billion during the quarter. The company ended June with 144 unique broker-dealer subscribers across its alternative trading systems, up from 137 a year earlier.
Other revenue streams showed more moderate growth. Market data licensing revenue increased 7%, driven by an 8% rise in redistributor-based revenue and a 10% increase in direct-sold license revenue. Data and compliance solutions revenue grew 1%. Non-professional-user revenue climbed 47% while professional-user revenue increased 6%. Corporate services revenue rose 14%, with OTCQX revenue up 9% and OTCQB revenue up 10%, supported by higher company counts and pricing adjustments effective at the start of the year.
Management highlighted longer-term growth opportunities in digital assets and potential regulatory developments. The company announced a strategic alliance with BitGo intended to bring digital-asset trading and custody infrastructure to broker-dealers using OTC Link. Management also noted that the SEC’s registered offering reform proposal would formally recognize OTCQX and OTCQB as qualifying public trading markets for at-the-market offerings. Additionally, the company opened a Hong Kong office earlier in the year, with initial contributions described as encouraging.
The company returned $6.6 million to shareholders during the quarter, including $3.6 million in dividends and $3 million in open-market share repurchases. The board declared a quarterly dividend of $0.30 per share on Aug. 4, payable in September. Operating expenses increased 9% during the quarter, driven primarily by a 54% rise in professional and consulting fees and an 11% increase in IT infrastructure costs.
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