TMX Group Limited Reports Results for The Fourth Quarter of 2025

Executive Summary

• TMX Group reported record quarterly revenue of $457.8 M, up 16% YoY to $393.3 M in Q4 2024.
• Diluted earnings per share fell to $0.41 from $0.58 (‑29%) due to a $0.19 per‑share foreign‑exchange loss; adjusted diluted EPS rose 22% to $0.60.
• The Board approved a 9% dividend increase to $0.24 per common share, the fourth raise in two years.

Key Details

• Revenue: $457.8 M (↑16% YoY); excluding recent acquisitions up 13%. Growth driven by:
• Derivatives Trading & Clearing (+27% revenue; higher rate per contract)
• MX trading volumes (+10%)
• Capital Formation (+13%)
• TMX VettaFi (+23%)
• Equities & Fixed Income Trading (+23%)
• TMX Trayport (+11%)
• Operating Expenses: $252.1 M (↑19% YoY); core expense increase ≈6% after excluding acquisition‑related items, mainly higher headcount, merit increases, software licences, and PTM project depreciation.
• Income from Operations: $205.7 M (↑14%).
• Net Income Attributable to Equity Holders: $115.2 M (↓28%) vs. $159.3 M in Q4 2024.
• Negative impact: $11.1 M foreign‑exchange loss on monetary assets/liabilities (vs. $52.6 M gain prior year).
• Adjusted Net Income: $167.0 M (↑23%).
• Earnings per Share: Basic & Diluted $0.41 (↓29%); Adjusted diluted EPS $0.60 (↑22%).
• Dividend: Board approved increase of $0.02 (9%) to $0.24 per share; payable to shareholders of record 2026‑02‑20.
• Segment Highlights (Q4 2025):
• Capital Formation: $81.8 M (+13%) – listing fees up across TSX/TSXV.
• Equities & Fixed Income Trading: $75.4 M (+13%); securities volume ↑38% YoY.
• Derivatives Trading & Clearing: $114.9 M (+22%); MX contracts +10%, rate per contract higher.
• BOX (options clearing): $48.7 M (+16%); volumes up 17%; market‑share down 1 pt to 6%.
• Global Insights (Trayport, Datalinx, VettaFi): $185.6 M (+16%).
• Acquisition‑Related Impacts: Revenue included $11.6 M from recent acquisitions (Bond Indices, ETF Stream, Verity, nuclear sector indices). Operating expenses reflected higher integration and amortization costs tied to these purchases.
• Cash Flow Highlights (Quarter):
• Operating cash flow: $223.6 M (+25%).
• Financing cash outflow reduced to $(162.4) M from $(237.0) M, driven by lower debt repayments and higher net credit facilities.
• Investing cash outflow rose to $(142.0) M (↑$85.2 M), mainly due to $69.9 M acquisition of subsidiaries and $57.8 M capital expenditures.
• Balance Sheet (12/31/2025): Total assets $50,721 M; total liabilities $45,749 M; equity attributable to shareholders $4,758 M.
• Tax & Effective Rate: Income tax expense $42.4 M; effective tax rate 27% (up from 23%).

Notable Quotes

• John McKenzie, CEO: “TMX’s outstanding results for the year… highlight the benefits of a diverse, high‑performance business model and our adaptive approach to meeting rapidly‑evolving client needs.”
• David Arnold, CFO: “We remain focused on accelerating growth and today’s 9% dividend increase underscores our commitment to delivering increased value to shareholders.”