OTC Markets Group Inc.

DELTAX CAPITAL | PUBLIC COMPANY RESEARCH
JULY 17 2026

OTC Markets Group Inc. (OTCQX: OTCM) provides trading infrastructure, market data, and issuer services for securities traded outside the NYSE and Nasdaq. This report examines whether its recurring revenue reflects a durable competitive advantage or a business more exposed to trading cycles than it appears.

WHAT WE FOUND.

• A strong recurring business. OTCM reported $125.3 million in 2025 gross revenue, with 81% described as subscription-based and recurring. Cash generation was strong, and the company had no debt.

• A competitive, cyclical market. Broker relationships matter, but customers can use competing venues. OTC dollar volume rose 82% from 2023 to 2025; fixed costs could amplify the effect of a slowdown on profits.

• Tokenization needs evidence. Regulatory permissions and technical preparation for tokenized securities were real, but the report found no disclosed OTCM-specific tokenization activity or revenue to include in its core valuation.

The base discounted cash flow estimate was $47.44 per share, against the $53.50 closing price on July 16, 2026. The conclusion: strong business quality, but no clear valuation discount under the report’s base assumptions. Regulation and thin stock liquidity remain material risks.

Read the full OTC Markets Group research report (PDF)

Prepared by Matthew Schaller, Founder and Chief Investment Officer, DeltaX Capital LLC, a South Carolina-registered investment adviser serving the Charleston area.

General, impersonal research; not individualized investment advice or a recommendation to buy, sell, or hold. Valuation estimates are not price targets or predictions.