• Revenue of $491.1 million, up 17% from $418.6 million in Q3/25

• Diluted earnings per share of $0.38, down 12% from $0.43 in Q3/25, including a 10 cent per share decrease related to net foreign exchange losses in Q3/26 compared with gains in Q3/25

• Adjusted diluted earnings per share^[1] of $0.63, up 21% from $0.52 in Q3/25

Toronto, Ontario--(Newsfile Corp. - October 29, 2026) - TMX Group Limited (TSX: X) ("TMX Group") announced results for the third quarter ended September 30, 2026.

Commenting on the company's performance through the first nine months of 2026, John McKenzie, Chief Executive Officer of TMX Group, said:

"In a year marked by major investments designed to better serve the needs of clients and stakeholders, accelerate our growth strategy, and build stronger for the future, TMX continues to deliver outstanding results. Overall revenue increased 16% compared with the first nine months of 2025, with double-digit, year-over-year increases in income from operations and earnings per share on an adjusted diluted basis. Performance highlights spanned the scope of our diverse enterprise, across domestic and international businesses, and traditional and new areas. As a result of the steps forward we have taken this year, TMX is better positioned to compete: more resilient, more responsive and better able to solve complex challenges for our growing client base around the world."

Commenting on the company's third quarter, David Arnold, Chief Financial Officer of TMX Group, said:

"It was another strong quarter with 17% overall revenue growth, and 21% higher adjusted diluted earnings per share compared to the third quarter of 2025. Organic revenue increased 11% year-over-year, highlighted by double-digit growth in revenue from TMX VettaFi, Derivatives Trading and Clearing, and Capital Formation. In addition to impressive business performance and excellent results, we advanced our long-term growth strategy by completing the acquisitions of Cboe Australia and RAFI Indices, funded with cash and debt. Our balance sheet is strong and we remain agile in our investment approach. Looking ahead, TMX's proven success in integrating new businesses and track record of deleveraging gives us confidence in our ability to return quickly to our long-term target range."

Key Highlights for the Third Quarter of 2026

• Revenue increased by 17% from Q3/25. Revenue excluding recent acquisitions of Verity, nuclear sector indices, TMX Australia Exchange, and RAFI Indices grew by 11% in Q3/26 compared with Q3/25 driven by increases in all segments including double-digit growth in Global Insights, Derivatives Trading and Clearing, and Capital Formation.

• Operating expenses increased by 35% from Q3/25, or 13% when excluding recent acquisitions of Verity, nuclear sector indices, TMX Australia Exchange, and RAFI Indices, merger and acquisition related items, and litigation costs. This increase included BOX's estimate of increased expenses from BOX Exchange LLC^[2]. This increase reflects higher net pass-through costs from BOX Exchange LLC in the period. Excluding the above mentioned BOX expense, operating expenses increased by approximately 9% reflecting higher headcount growth and merit increases, higher incentive plan costs, and higher IT spend.

• On July 31, 2026, we completed the acquisition of Cboe Australia (renamed TMX Australia Exchange) and on August 18, 2026, we completed the acquisition of RAFI Indices for an aggregate of US$635.2 million ($883.1 million) in cash, including working capital and other adjustments. To fund these strategic acquisitions and refinance the Series J debentures that matured in May 2026, we issued an aggregate of $1.1 billion in senior unsecured debentures across Series K (due September 2028), Series L (due September 2033), and Series M (due September 2036). Total debt including debentures and commercial paper was $2,756.2 million, with a weighted average cost of debt of 4.29%.

RESULTS OF OPERATIONS

Non-GAAP Measures

Adjusted net income is a non-GAAP measure^[3], while adjusted earnings per share, adjusted diluted earnings per share, and adjusted earnings per share compound annual growth rate (CAGR) are non-GAAP ratios^[4]. These measures and ratios do not have standardized meanings prescribed by GAAP and are, therefore, unlikely to be comparable to similar measures presented by other companies.

Management uses these measures and ratios, and excludes certain items, because it believes doing so provides investors a more effective analysis of underlying operating and financial performance, including, in some cases, our ability to generate cash. Management also uses these measures and ratios to more effectively measure performance over time, and excluding these items increases comparability across periods. The exclusion of certain items does not imply that they are non-recurring or not useful to investors.

We present adjusted earnings per share, adjusted diluted earnings per share, and adjusted net income to indicate ongoing financial performance from period to period, exclusive of a number of adjustments as outlined under the heading "Adjusted Net Income attributable to equity holders of TMX Group and Adjusted Earnings Per Share Reconciliation for Q3/26 and Q3/25" and "Adjusted Net Income attributable to equity holders of TMX Group and Adjusted Earnings Per Share Reconciliation for FNM/26 and FNM/25".

We have also presented long-term adjusted EPS CAGR as a financial objective which is the growth rate in adjusted diluted earnings per share over time, excluding items that impact the comparability of adjusted EPS from period to period, such as those outlined under the heading "Adjusted Net Income attributable to equity holders of TMX Group and Adjusted Earnings Per Share Reconciliation for Q3/26 and Q3/25" and "Adjusted Net Income attributable to equity holders of TMX Group and Adjusted Earnings Per Share Reconciliation for FNM/26 and FNM/25". The adjusted EPS CAGR is based on the assumptions outlined under the heading "Caution Regarding Forward-Looking Information - Assumptions related to long term financial objectives".

Similarly, we present the dividend payout ratio based on dividends paid divided by adjusted diluted earnings per share as a measure of TMX Group's ability to make dividend payments, exclusive of a number of adjustments as outlined under the heading "Adjusted Net Income attributable to equity holders of TMX Group and Adjusted Earnings Per Share Reconciliation for Q3/26 and Q3/25" and "Adjusted Net Income attributable to equity holders of TMX Group and Adjusted Earnings Per Share Reconciliation for FNM/26 and FNM/25".

Debt to Adjusted EBITDA ratio is a non-GAAP ratio defined as total long term debt and debt maturing within one year divided by Adjusted EBITDA. Adjusted EBITDA is calculated as net income excluding interest expense, income tax expense, depreciation and amortization, acquisition, integration and related items, litigation, dispute and related items, one-time income (loss), and other significant items that are not reflective of TMX Group's underlying business operations.

Quarter ended September 30, 2026 (Q3/26) Compared with Quarter ended September 30, 2025 (Q3/25)

The information below reflects the interim financial statements (unless otherwise indicated) of TMX Group for Q3/26 compared with Q3/25.

 

Net Income attributable to equity holders of TMX Group and Earnings per Share

Net income attributable to equity holders of TMX Group in Q3/26 was $105.8 million, or $0.38 per common share on a basic and diluted basis, compared with a net income attributable to equity holders of TMX Group of $120.5 million, or $0.43 per common share on a basic and diluted basis for Q3/25. The decrease in net income attributable to equity holders of TMX Group reflects higher net finance costs driven by a net foreign exchange gain on USD-denominated intercompany loans of $18.6 million in Q3/25 and a fair value loss on foreign exchange forwards in Q3/26 of $12.6 million. In addition, income from operations decreased by $6.4 million, driven by an increase in operating expenses of $78.9 million, partially offset by a $72.5 million increase in revenue.

The higher expenses reflected approximately $57.9 million of higher expenses related to recent acquisitions including Verity (acquired October 1, 2025), nuclear sector indices (October 2, 2025), TMX Australia Exchange (acquired July 31, 2026), and RAFI Indices (acquired August 18, 2026), as well as the pending MEMX Group transaction. The increase also includes approximately $8.2 million for BOX's estimate of expenses from BOX Exchange LLC^[7]. This increase reflects higher net pass-through costs from BOX Exchange LLC in the period. Partially offsetting these increases was $6.8 million of lower costs for litigation, dispute and related items. Excluding the expenses mentioned above, operating expenses increased by approximately 9% largely reflecting increased headcount and related costs including merit increases and incentive plan costs, as well as higher IT expenses mainly related to cloud services.

The 17% increase in revenue from Q3/25 to Q3/26 was largely attributable to a 26% increase in Global Insights driven by a 31% increase in TMX Datalinx and a 46% increase in TMX VettaFi; a 13% increase in Derivatives Trading and Clearing driven by a 24% increase in MX and CDCC; a 12% increase in Capital Formation; and an 8% increase in Equities and Fixed Income Trading and Clearing, driven by CDS and higher equity trading yields. Revenue excluding Verity, nuclear sector indices, TMX Australia Exchange, and RAFI Indices was up 11% in Q3/26 compared with Q3/25.

Adjusted Net Income attributable to equity holders of TMX Group^[8] and Adjusted Earnings per Share^[9] Reconciliation for Q3/26 and Q3/25

The following tables present reconciliations of net income attributable to equity holders of TMX Group to adjusted net income attributable to equity holders of TMX Group and earnings per share to adjusted earnings per share. The financial results have been adjusted for the following:

1. The amortization expenses of intangible assets in Q3/25 and Q3/26 related to the Maple transaction (TSX, TSXV, MX, Alpha, Shorcan), TSX Trust, TMX Trayport (including VisoTech and Tradesignal), AST Canada, BOX, Wall Street Horizon (WSH), TMX VettaFi, Newsfile, iNDEX Research, and Bond Indices. Q3/26 also includes amortization expenses of intangible assets related to Bond Indices (acquired February 20, 2025), ETF Stream (acquired June 16, 2025), Verity (acquired October 1, 2025), and nuclear sector indices (October 2, 2025). These costs are a component of Depreciation and amortization, and Non-controlling interests.

2. Acquisition, integration and related items in Q3/25 and Q3/26 includes VettaFi (fully acquired on January 2, 2024), Bond Indices (acquired February 20, 2025), ETF Stream (acquired June 16, 2025), Verity (acquired October 1, 2025), net increase in change in fair value related to contingent payments accrual assumed as part of previous acquisitions, namely iNDEX Research, and potential merger, acquisition, and similar activities. Q3/25 also includes contingent payments accrual related to Newsfile, and VettaFi's legacy acquisition of ROBO Global. Acquisition, integration and related items in Q3/26 also includes nuclear sector indices (October 2, 2025), TMX Australia Exchange (acquired July 31, 2026), RAFI Indices (acquired August 18, 2026), and MEMX Group. These costs are included in Compensation and benefits, Selling, general and administration, Information and trading systems (Bond Indices), Net Finance Costs (VettaFi), and Non-controlling interests.

3. Litigation, dispute and related items in Q3/25 and Q3/26 includes net settlement provisions, and external legal and other advisory services related to matters which are outside of the ordinary course of business operations. These costs are included in Selling, general and administration.

4. Corporate financing FX translation (gain) / loss in Q3/25 and Q3/26. These changes are included in Net Finance Costs in Q3/26 and Q3/25.

The table below summarizes the presentation of the pre-tax adjustments related to Q3/26 and Q3/25:

 

 

Adjusted net income attributable to equity holders of TMX Group increased by 20% from $146.3 million in Q3/25 to $175.3 million in Q3/26 driven by an increase in income from operations (excluding expenses included in the table above).

 

Adjusted diluted earnings per share increased by 11 cents from $0.52 in Q3/25 to $0.63 in Q3/26 reflecting an increase in income from operations, and lower share count.

Revenue

 

Revenue was $491.1 million in Q3/26, up $72.5 million or 17% from $418.6 million in Q3/25 largely attributable to a 26% increase in Global Insights driven by a 31% increase in TMX Datalinx and a 46% increase in TMX VettaFi; a 13% increase in Derivatives Trading and Clearing driven by MX and CDCC; a 12% increase in Capital Formation driven by higher TSX Trust and higher sustaining listing fees and initial listing fees revenue; and an 8% increase in Equities and Fixed Income Trading and Clearing, driven by CDS and higher equity trading yields. There was an increase in revenue attributable to a favourable FX impact largely driven by a stronger USD and GBP relative to CAD in Q3/26 compared with Q3/25.

Q3/26 revenue included $26.4 million higher revenue related to the acquisitions of Verity (acquired October 1, 2025), nuclear sector indices (October 2, 2025), TMX Australia Exchange (acquired July 31, 2026), and RAFI Indices (acquired August 18, 2026). Revenue excluding Verity, nuclear sector indices, TMX Australia Exchange and RAFI Indices was up 11% in Q3/26 compared with Q3/25.

Operating expenses

 

Operating expenses in Q3/26 were $305.7 million, up $78.9 million or 35%, from $226.8 million in Q3/25. The increase reflected $11.8 million higher operating expenses related to Verity (acquired October 1, 2025), nuclear sector indices (October 2, 2025), TMX Australia Exchange (acquired July 31, 2026), and RAFI Indices (acquired August 18, 2026). There were also $43.9 million of higher acquisition, integration and related items, $2.2 million higher amortization expenses related to acquired intangibles, partially offset by $6.8 million of lower costs for litigation, dispute and related items.

Excluding the above mentioned expenses, operating expenses increased by approximately 13% in Q3/26 compared with Q3/25. The 13% or $27.9 million increase includes approximately $8.2 million related to BOX's estimate of increased expenses from BOX Exchange LLC. This increase reflected higher net pass-through costs from BOX Exchange LLC in the period.

Excluding the above mentioned BOX expense, operating expenses increased by approximately 9% or $19.7 million reflecting merit increases, higher headcount and related costs, higher short-term incentive plan costs, higher long-term incentive plan costs driven by higher share prices in Q3/26, higher severance, and higher IT expenses mainly related to cloud services, higher software license subscription and maintenance costs. There was also approximately $2.4 million higher expenses attributable to FX driven by a weaker CAD relative to USD and GBP in Q3/26 compared with Q3/25.

Additional Information

Share of (loss) from equity-accounted investments