Keep pulling the thread on Kyle Grieve.
OTC Markets has compounded its free cash flow at 14% annually over the last decade.
Over the last 10 years, OTC Markets Group has achieved a compound annual growth rate of 11% in revenue, 13% in profits, and 14% in free cash flow.
OTC Markets Group has nearly 60% gross margins and 34% operating profit margins, which is higher than Alphabet's operating margins.
Shawn O'Malley believes OTC Markets Group operates as a quasi-monopoly, as it is the only alternative for companies that do not meet the listing requirements of the New York Stock Exchange and NASDAQ.
Kyle Grieve believes OTC Markets Group's deep integration with regulatory bodies like FINRA and the SEC creates a massive barrier to entry for potential competitors.
A potential regulatory change by the SEC could allow national exchanges like the New York Stock Exchange or NASDAQ to list non-SEC registered companies, which would heavily impair OTC Markets Group's revenue.
The surge in trading volume in 2021 caused OTC Link's revenue to increase by 87% in a single year.
The New York Stock Exchange and NASDAQ are legally prohibited from listing non-SEC-registered foreign companies, which represents OTC Markets Group's largest growth segment.
The churn rate for OTC Markets Group's corporate services segment is between 5% and 7%, implying an average customer tenure of 14 to 20 years.
OTC Markets Group's capital distributions are equal to 100% of its Net Operating Profit After Tax (NOPAT).
CEO Cromwell Coulson directly owns over 27% of OTC Markets Group's outstanding shares, and his family collectively owns approximately 35%.
OTC Markets Group has gross margins of nearly 60% and operating profit margins of 34%.