TMX Group (TSE:X) management said the company closed 2025 with what it described as its “best year ever,” citing broad-based growth across business lines, record quarterly revenue in the fourth quarter, and continued momentum in trading activity and capital-raising.
Fourth-quarter results highlighted by record revenue and adjusted EPS growth
Chief Financial Officer David Arnold said TMX delivered record quarterly revenue of CAD 457.8 million in Q4 2025, up 16% from the same period a year earlier. Arnold attributed the performance to strength across business segments, with especially strong contributions from Derivatives Trading & Clearing, TMX VettaFi, TMX Datalinx, and Capital Formation.
Full-year 2025: double-digit growth across major businesses
CEO John McKenzie said 2025 featured strong increases in revenue and profitability, including 15% higher organic revenue versus 2024 and “record-adjusted earnings per share and operating income.” McKenzie said overall revenue rose 18% year over year, with double-digit growth from Derivatives Trading & Clearing, equity trading, TMX Trayport, and TMX VettaFi. Capital Formation revenue increased 9% for the year, which management attributed to stronger financings in the second half and additional listing fees, as well as the inclusion of a full year of Newsfile revenue.
McKenzie said operating expenses rose 16% in 2025, citing acquisition-related expenses, investment in organic growth, costs related to the SEC’s Consolidated Audit Trail (CAT), and higher litigation costs.
Segment performance: Global Insights, derivatives, trading, and listings
Arnold said Global Insights revenue increased 16% in Q4, supported by growth across its three businesses:
- TMX Datalinx revenue rose 18% year over year, including CAD 7.9 million from Verity (acquired October 1). Excluding Verity, Datalinx grew 5% organically on higher subscribers and usage, data feeds, and colocation revenue.
- TMX VettaFi revenue increased 23% in CAD and 25% in USD, including CAD 3.7 million from acquisitions (bond indices, ETF Stream, and nuclear sector indices). Excluding acquisitions, revenue increased 13%, driven by organic AUM growth and higher digital distribution revenue. Arnold said VettaFi AUM grew 49% from the end of 2024 to over $77 billion at December 31, 2025.
- Trayport revenue grew 11% in CAD (or 8% in GBP), driven by a 6% increase in total licensees, annual price adjustments, and incremental revenue from analytics and other trader products. Arnold said average recurring revenue annualized was approximately CAD 276 million (or GBP 150 million), up 17% and 14%, respectively.
In Derivatives Trading & Clearing, Arnold said revenue excluding BOX rose 27% year over year, supported by a 32% increase at the Montreal Exchange and 17% growth at CDCC. Derivatives volumes rose 10%, while the average rate per contract increased following the end of the CORRA market-making program after Q2 2025 and the end of the Government of Canada bond futures market-making program in late November 2025. He also said open interest at the end of December was up 33%.
Arnold reported BOX revenue increased 16% on 17% higher volumes.
In Equities and Fixed Income Trading & Clearing, revenue rose 13% in Q4, driven by equities trading growth. TMX marketplaces saw 38% volume growth overall, including 24% on TSX, 74% on TSX Venture, and 35% across AlphaX and Dark combined. Combined market share for TSX- and TSXV-listed issues was about 61%, down about two percentage points year over year. Fixed income trading revenue declined due to lower credit and swap activity.
In Capital Formation, Q4 revenue rose 13% year over year. Arnold said additional listing fees increased 53% on more transactions billed at maximum fee levels on TSX and TSXV, while sustaining and initial listing fees also grew with continued ETF growth. That was partially offset by a 5% decline in TMX Corporate Solutions revenue due mainly to lower net interest income from reduced yields and balances.
Trayport growth outlook and the drivers management emphasized
On questions about Trayport’s growth trajectory, management reiterated a long-term view. McKenzie said the business can be “lumpy” quarter to quarter due to client onboarding and renewals, and he repeated TMX’s “high single low double-digit” long-term growth expectations for Trayport.
Arnold said Trayport does not directly benefit from energy market trading volumes; revenue is primarily subscriber-based. He described the growth algorithm as a combination of annual CPI-linked pricing resets tied to the Bank of England’s consumer price index, client expansion in seats/licenses over time, and upsell of “premium products” such as algorithmic trading, charting, and analytics, alongside expansion into new asset classes and geographies. McKenzie added that TMX is working to expand beyond a more mature European base, citing ongoing development efforts in the U.S. and Asia and discussions around areas such as refined oil markets.
Arnold also noted a year-over-year decline in non-recurring consulting fees at Trayport (less than GBP 500,000), which he said was notable in the quarter but not a major driver of results overall.
Costs, leverage, dividend increase, and themes for 2026
Arnold said Q4 operating expenses increased 19%, driven by three notable items: a CAD 15.3 million CAT-related regulatory charge passed through to BOX, CAD 8.9 million in acquisition-related operating expenses, and a CAD 3.3 million increase in dispute and litigation costs. Excluding those items, he said operating expenses rose about 6%, largely due to compensation-related costs, higher IT operating costs, and increased amortization related to TMX’s post-trade system launch earlier in the year, partially offset by savings from a strategic realignment completed in 2025.
On the balance sheet, Arnold said the debt-to-adjusted EBITDA ratio ended the year at 2.2x, within TMX’s target range of 1.5x to 2.5x. TMX held about CAD 513 million in cash and marketable securities at December 31, including about CAD 273 million above a roughly CAD 240 million regulatory target; net of excess cash, leverage was 1.9x.
Arnold also announced the board approved a 9% increase in the quarterly dividend to CAD 0.24 per share, payable March 6 to shareholders of record February 20, putting the trailing 12-month payout ratio at 42%, within the company’s 40% to 50% target range.
Looking ahead, McKenzie pointed to trends including AI adoption, tokenization, 24-hour trading, and growth in private markets. He said TMX is evaluating tokenization use cases and expects near-term promise in areas such as tokenized collateral management, while also stressing the need for appropriate regulatory frameworks and standardization. On 24-hour equity trading, he said TMX is gauging client needs and broader ecosystem impacts, noting potential liquidity concerns for smaller issuers.
On capital formation, McKenzie said financing activity strengthened in the second half of 2025 and continued into early 2026. He described a “deep” IPO pipeline with interest returning from technology companies, while emphasizing timing remains uncertain and dependent on market conditions. He also discussed growth ambitions for Corporate Solutions, saying TMX aims for that revenue stream to become more than half of the broader Capital Formation and corporate solutions mix over time, given demand from private as well as public companies.
About TMX Group (TSE:X)
TMX Group Ltd is a company that operates several global markets to provide investment opportunities for its clients. TMX Group’s key operations include Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, and Trayport, which provides listing markets, trading markets, clearing facilities, depository services, technology solutions, data products, and other services to the global financial community.
