TMX Group Limited Reports Results for Third Quarter of 2025

Executive Summary

• TMX Group reported Q3 2025 revenue of $418.6 M, up 18% YoY to $353.8 M in Q3 2024.
• Diluted earnings per share rose 43% to $0.43 from $0.30; adjusted diluted EPS increased 27% to $0.52.
• Net income attributable to equity holders jumped 46% to $120.5 M (up from $82.7 M).

Key Details

• Revenue Growth Drivers:
• Derivatives Trading & Clearing +27% ($105.7 M vs $83.2 M)
• TMX VettaFi +35% ($173.9 M vs $146.9 M)
• TMX Trayport +16% ($68.0 M vs $61.8 M)
• TMX Datalinx +12% ($45.3 M vs $40.4 M)
• Equities & Fixed Income Trading +18% ($68.0 M vs $61.8 M)
• Operating Expenses: $226.8 M (up 14% YoY); comparable expenses rose ~7% after excluding acquisition‑related items.
• Acquisition Activity: Completed purchase of Verity (U.S. buy‑side research & analytics provider) for US$97.9 M cash on Oct 1 2025; adds to TMX Datalinx offering.
• Non‑GAAP Measures: Adjusted net income $146.3 M (+27% YoY); adjusted diluted EPS $0.52 (+27%).
• Credit Ratings: Morningstar DBRS reaffirmed Long‑Term Issuer Rating AA (low) and Senior Unsecured Debt rating AA; Commercial Paper rating R‑1 (middle).
• Net Finance Costs: Decreased to $8.7 M from $29.1 M, driven by FX gain on USD intercompany loans.
• Effective Tax Rate: 28% for Q3 2025 (unchanged YoY).
• Nine‑Month Results (FNM 2025 vs FNM 2024): Revenue $1.259 B (+18%); Adjusted net income $428.9 M (+26%).
• Guidance/Outlook: Management highlighted continued focus on accelerating growth, leveraging global insights platforms, and integrating recent acquisitions.

Notable Quotes

“TMX's exceptional performance through the first three quarters of the year… reflects a balanced business model and our opportunistic global growth strategy.” – John McKenzie, CEO
“Outstanding Q3 results showcase strong year‑over‑year growth in revenue, earnings per share, income from operations, and positive operating leverage.” – David Arnold, CFO