Q2 2026 TMX Group Ltd Earnings Call Transcript

Jul 31, 2026 / 12:00 PM GMT

Release Date Price: $36.81 (-0.11%)

Transcript

Key Points

Positve

TMX Group Ltd (TMXXF) delivered its 8th consecutive quarter of double-digit revenue growth, with total revenue up 16% year-over-year and adjusted diluted EPS up 19% in Q2 2026.
The company announced a transformative strategic investment to create Memex Group, a US-based options and equities exchange, positioning TMX Group Ltd (TMXXF) as the majority owner with ~59% stake and expanding its footprint in the world's most competitive marketplace.
TMX Group Ltd (TMXXF) saw strong performance across all segments, including a 40% increase in TMX Verify revenue (37% in USD) and a 22% increase in TMX Data Links revenue, driven by organic growth and recent acquisitions.
Capital formation activity surged, with overall capital raised up 51% in the first half of 2026, including a 108% increase in equity capital raised on TSX Venture, and the company welcomed 201 new listings, a 44% increase year-over-year.
The board approved an 8% increase to the quarterly dividend, bringing the payout ratio to 42%, while maintaining a strong balance sheet with a leverage ratio of 1.9x (1.6x net of excess cash).
TMX Group Ltd (TMXXF) expects the Memex Group transaction to be accretive to adjusted EPS within the first 12 months of closing, before any synergies, and has a proven track record of rapid deleveraging following prior acquisitions.

Negative

TMX Group Ltd (TMXXF)'s combined equities trading market share declined to approximately 59% in Q2 2026, down 3% from the same period last year, with Alpha volumes decreasing 25%.
The company's leverage ratio is projected to increase to up to 3.4 times on a pro forma basis, reflecting the funding of the Memex Group investment and other pending acquisitions, which is above its long-term target range.
TMX Tradeport revenue growth was muted by a GBP1.3 million decrease in non-recurring revenue compared to Q2 2025, primarily due to lower consulting services, impacting overall segment growth.
Box volumes declined 3% in the quarter, and the company noted that softer volumes and market share were partly due to a shift in market mix and potential staff distraction during the merger process.
The Memex Group transaction is subject to regulatory approvals, including the SEC and HSR filing, and is not expected to close until the second half of 2027, creating execution and timing risk.
Operating expenses increased 13% in Q2 2026, driven by acquisition-related costs, higher employee incentives, and a non-cash write-down of an intangible asset, partially offset by prior-year strategic realignment expenses.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

X.TO - TMX Group Ltd
Q2 2026 TMX Group Ltd Earnings Call
Jul 31, 2026 / 12:00PM GMT

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Presentation
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I didn't think I had to like I was going to wait.

Thank you for standing by.

This is the conference operator.

Welcome to the group Q2 2026 analyst conference call.

As a reminder, all participants are in listen-only mode and the conference is being recorded.

Should you need assistance during the conference call, you may signal an operator by pressing 0.

I would now like to turn the conference over to Amanda, director of investor relations, please go ahead, this thing.

Thank you, Rocco, and good morning everyone.

Thank you for joining us today to discuss the 2026 second quarter results for TMX Group, and last night's release with Memex, a US-based equities and options

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