OTC Markets Group AI Stock Analysis
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OTC Markets Group (OTCM) AI Stock Analysis
OTC Markets Group
(Other OTC:OTCM)
The company's financial health is a major strength, anchored by a debt-light balance sheet and excellent cash conversion, complemented by a high dividend yield. However, the stock is under significant technical pressure, trading below all major moving averages with weak momentum. The earnings call confirmed strong strategic progress and revenue growth, but rising costs and near-term margin contraction are key risks to monitor.
OTC Markets Group (OTCM) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $625.54M
- Dividend Yield
- 5.42%
- Average Volume (3M)
- 7,231
- Price to Earnings (P/E)
- 18.6
- Beta (1Y)
- 0.19
- Revenue Growth
- 12.73%
- EPS Growth
- 15.60%
- Country
- US
- Employees
- 130
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Data & Stock Exchanges
OTC Markets Group Business Overview & Revenue Model
Company Description
OTC Markets Group Inc. is a significant participant in global financial markets, operating both within the United States and internationally. The company provides a comprehensive suite of trading and quotation systems. This includes the OTC Link Alte...
How the Company Makes Money
OTC Markets Group primarily generates revenue by operating OTC trading/quotation markets and selling related services and data. Key revenue streams include: (1) Issuer and listing/market services fees: companies whose securities are quoted on OTC Mar...
OTC Markets Group Earnings Call Summary
The call was predominantly positive, with broad-based revenue growth, strong OTC Link and market data performance, record OTC market dollar volume, progress on strategic regulatory and digital-asset initiatives, new leadership, and increased shareholder returns. These positives were partly offset by higher operating expenses, margin contraction, lower cash flow, declining Moon ATS activity, volatility in OTCID and DNS-related counts, modestly lower international additions, and the fact that several regulatory initiatives remain proposals or works in progress.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said it hopes the SEC’s proposed recognition of OTCQX and OTCQB for at-the-market offerings becomes effective “as soon as possible,” while noting the opportunity will “not be a day 1” change; NMS exchanges are expected to enter overnight trading “starting in December,” and the company is preparing for tokenized and digital asset securities. Total OTC market dollar volume traded was “over $670 billion” through the end of the third quarter, “more than 27%” above the record level through the same point in 2025, and management said it will continue investing in operations, supporting broker-dealer subscribers, and monitoring OTCID renewals, though it is “only 1 year” into the product and considers it “too early days.” On capital allocation, the board declared a special dividend of $1.75 per share and a quarterly dividend of $0.30 per share each payable in December; management said it will continue quarterly dividends, assess the special dividend at year-end, and may invest that money in an opportunity that would be accretive for shareholders.
OTC Markets Group Financial Statement Overview
Summary
Financial performance is strong, driven by a fortress balance sheet with minimal debt and exceptional 73.7% ROE. Cash flow generation is robust with near-perfect free cash flow conversion. However, TTM gross margin compression to 47% and a decline from peak EBIT margins temper the score.
Income Statement
72PositiveBalance Sheet
85Very PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.75M | 121.33M | 101.23M | 109.89M | 105.15M | 99.91M |
| Gross Profit | 60.98M | 51.71M | 57.11M | 58.67M | 58.62M | 56.59M |
| EBITDA | 43.77M | 40.80M | 34.89M | 34.99M | 38.91M | 39.81M |
| Net Income | 33.67M | 31.14M | 27.36M | 27.66M | 30.81M | 30.48M |
Balance Sheet | ||||||
| Total Assets | 104.28M | 103.41M | 90.74M | 90.53M | 89.62M | 82.25M |
| Cash, Cash Equivalents and Short-Term Investments | 58.23M | 54.28M | 39.03M | 37.72M | 37.37M | 50.39M |
| Total Debt | 10.87M | 10.86M | 12.47M | 13.95M | 15.24M | 16.46M |
| Total Liabilities | 51.95M | 62.94M | 55.02M | 58.30M | 59.81M | 57.30M |
| Stockholders Equity | 52.33M | 40.47M | 35.72M | 32.23M | 29.80M | 24.95M |
Cash Flow | ||||||
| Free Cash Flow | 47.22M | 48.42M | 31.57M | 31.47M | 32.24M | 45.06M |
| Operating Cash Flow | 47.81M | 48.64M | 32.87M | 33.04M | 33.68M | 46.46M |
| Investing Cash Flow | -1.32M | -754.00K | -2.19M | -5.19M | -16.39M | -1.40M |
| Financing Cash Flow | -41.01M | -33.18M | -30.24M | -31.10M | -30.31M | -28.40M |
OTC Markets Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTCM, the sentiment is Negative. The current price of 52.20 is below the 20-day moving average (MA) of 52.59, below the 50-day MA of 53.53, and below the 200-day MA of 53.06, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTCM.
OTC Markets Group Peers Comparison
Overall Rating
ICE83Outperform
NDAQ79Outperform
SPGI79Outperform
CBOE69Neutral- OTCM68Neutral
FDS68Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ICE | 83Outperform | $99.40B | 24.25 | 14.08% | 1.14% | 13.51% | 33.41% |
| NDAQ | 79Outperform | $60.30B | 29.32 | 17.29% | 1.07% | 11.94% | 30.40% |
| SPGI | 79Outperform | $135.82B | 28.16 | 17.54% | 0.78% | 5.99% | 22.20% |
| CBOE | 69Neutral | $38.49B | 26.64 | 26.84% | 0.80% | 14.31% | 50.84% |
| OTCM | 68Neutral | $636.92M | 18.64 | 73.70% | 5.42% | 12.73% | 15.60% |
| FDS | 68Neutral | $11.69B | 22.75 | 25.61% | 1.36% | 6.65% | -7.20% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| OTCM | Otc Markets Group | 52.20 | 1.65 | 3.25% | |
| CBOE | Cboe Global Markets | 375.42 | 120.15 | 47.07% | |
| FDS | Factset Research | 332.69 | 63.86 | 23.75% | |
| ICE | Intercontinental Exchange Inc. | 178.51 | 30.16 | 20.33% | |
| SPGI | S&P Global | 473.59 | 15.19 | 3.31% | |
| NDAQ | Nasdaq OMX | 108.47 | 23.89 | 28.24% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 14, 2026