Q4 2025 TMX Group Ltd Earnings Call Transcript
Key Points
- TMX Group Ltd (TMXXF) reported a sixth consecutive quarter of double-digit revenue growth, with an 18% increase in overall revenue compared to 2024.
- The company achieved record adjusted earnings per share and operating income, with adjusted diluted earnings per share increasing by 25% year-over-year.
- Derivatives Trading and Clearing revenue, excluding BOX, increased by 31% due to strong activity growth and successful product initiatives.
- TMX VettaFi and TMX Trayport both reported double-digit revenue growth, with TMX VettaFi's revenue increasing by 24% year-over-year.
- The company announced a 9% increase in its quarterly dividend, reflecting strong cash generation and a disciplined approach to capital deployment.
- Operating expenses increased by 16% year-over-year, driven by acquisition-related expenses and increased litigation costs.
- The 2025 fourth quarter diluted EPS was 29% lower than the previous year, impacted by noncash foreign exchange accounting losses.
- The company faced a $15.3 million regulatory charge related to the SEC's Consolidated Audit Trail, impacting BOX expenses.
- TMX Corporate Solutions revenue decreased by 5% in Q4, mainly due to lower net interest income revenue.
- The company's combined equities trading market share for TSX and TSXV listed issues decreased by 2% compared to the same period last year.
Thank you for standing by. This is the conference operator. Welcome to the TMX Group Limited Fourth Quarter 2025 Results Conference Call. (Operator Instructions)
I would now like to turn the conference over to Amin Mousavian, Vice President of Investor Relations and Treasury and Interim Chief Risk Officer. Please go ahead, Mr. Mousavian.
Thank you, Drew, and good morning, everyone. We join you today to discuss the 2025 4th quarter results for TMX Group. We announced our results for another outstanding quarter and our sixth consecutive double-digit revenue growth highlighting strong performance across all of our business units last night. Copies of our press release and MD&A are available on tmx.com under Investor Relations.
This morning, we have with us John McKenzie, our Chief Executive Officer; and David Arnold, our Chief Financial Officer. Following the opening remarks, we will have a question-and-answer session.
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