OTC Markets Q2: 14% Revenue Growth Looks Clean-But the Real Opportunity May Still Be Ahead

OTCM's Q2 was solid, but the market may still be underestimating what comes next

OTC Markets Group's second quarter was more than a clean reporting period. The numbers suggest a franchise that is still expanding, while the more important question is whether investors will start valuing upcoming catalysts rather than only past strength.

Strong revenue and margin growth

OTCM posted $34.8 million in gross revenue, up 14% year over year. Profitability improved too: operating income rose 19%, the operating profit margin reached 31.1% versus 29.9% a year earlier, and diluted EPS increased 18% to $0.71. The company also returned $6.6 million to shareholders during the quarter and announced a third-quarter dividend of $0.30 per share.

Why the story is really about optionality

The current quarter explains why OTCM still deserves attention. The next step is whether the company can connect that strength to three forward-looking drivers: potential SEC reform on registered offering reform, digital-asset infrastructure through the BitGo alliance, and broader international reach via the new Hong Kong office. If those pieces gain traction, the valuation story could shift from a strong legacy platform to a broader market-services franchise.

The base business is broadening across listings, trading, and monetization

The quarter matters because OTCM's core franchise is showing up in several places at once: the number of companies on its platforms, the activity on its venues, and its ability to grow both data access and marketplace access revenues.

The issuer base remains broad

At quarter end, OTCM reported 585 OTCQX companies, 1,101 OTCQB companies, and 1,037 OTCID companies. That gives the business a meaningful inventory of issuers to support. Management also pointed to the Hong Kong office as part of a broader international push, which matters because OTCM's opportunity is not limited to one market cycle.

Trading activity is clearly stronger

The usage data was one of the strongest parts of the quarter. OTCM reported approximately 95,000 average daily trades on OTC Link ECN and OTC Link NQB during the quarter, versus approximately 63,000 during the prior year period. It also reported approximately 69,000 average trades and 7.8 million average shares per session on MOON ATS. That suggests demand is broad-based, not limited to a single venue.

The network effects are starting to show as well. OTC Link had 144 unique OTC Link subscribers as of June 30, 2026, up 7 versus June 30, 2025. That does not prove pricing power by itself, but it does suggest the platform is becoming more useful to participants over time.

OTCID is already contributing meaningfully

The newer listing lane is helping diversify growth. Management said the OTCID Basic market continues to be a significant growth engine, attracting over 1,100 companies and contributing to a 32% revenue increase in the OTCID and Pink Limited segment. That is a useful reminder that OTCM is not leaning on a single legacy product line.

The main risk remains the same as always: trading activity can cool. But as long as listings stay healthy and activity remains elevated, the base business is doing more than defending the franchise. It is creating room for the next phase of growth to matter.

The bigger upside case depends on capital raising and tokenization

The base business already has credibility. The more interesting bull case is whether policy change and tokenization can help OTCM move beyond reporting and trading fees and capture a larger share of the issuance stack.

Registered offering reform could widen the funnel

The clearest rerating path is not just more trading; it is more capital raising. The SEC's proposed registered offering reform would formally recognize OTCQX and OTCQB as qualifying public trading markets, which could enable at-the-market offerings and reduce the capital-raising burden for issuers.

That matters because OTCM already has traffic and participants. Management highlighted robust trading activity and nearly 145 unique subscribers across its ATSs. If the final rulebook improves the fundraising utility of those markets, OTCM could capture more of the value chain rather than only listing and trading revenue.

Of course, a proposed rule is not the same as a finalized rule, and issuer adoption could be slow. But parts of a valuation often expand before the new revenue is fully visible in reported numbers.

ST22 is the clearest proof test for tokenization

The company is also trying to build a more complete digital-asset stack. The ST22 Security Token model is built around direct issuer board authorization, SEC-registered transfer agent custody, CUSIP assignment, and 1:1 preferred share backing. The submission also says OTCM integrates protective conversion triggers and programmable compliance controls to help mitigate counterparty and bankruptcy risks.

That is the right kind of unglamorous detail. It suggests OTCM is trying to build a compliant operating layer rather than simply announce a token initiative. Pilots still do not equal recurring revenue, but if ST22-style issuance starts producing repeatable listing, transfer, or data fees, investors would have a reason to value OTCM as more than a legacy market platform.

What to watch next

Rulemaking matters more than promotional headlines

The key policy milestone is the SEC's registered offering reform. The signal to watch is not press-release enthusiasm but whether the final rule meaningfully changes issuer behavior and counsel language around capital raising.

Operating watchpoints

• Watch whether elevated trading activity proves durable or fades after this quarter's surge.
• Watch whether the momentum in the OTCID Basic market continues to be a significant growth engine, attracting over 1,100 companies and contributing to a 32% revenue increase in the OTCID and Pink Limited segment.
• Watch whether shareholder returns remain supported. OTCM already showed it can return cash, with $6.6 million returned to shareholders during the quarter.

New initiatives still need proof

MOON ATS is still early. Management described approximately 69,000 average trades and 7.8 million average shares per session on MOON ATS, which is interesting but not yet a mature revenue stream.

The harder test is ST22. If the ST22 Security Token model begins producing repeatable listing, custody, or transaction fees, the market will have a clearer reason to value OTCM as a broader infrastructure franchise rather than only a legacy toll road.