Costs rose alongside revenue. Operating expenses increased 9% to $20.1 million, driven by a 54% jump in professional and consulting fees that included accruals tied to a regulatory matter, an 11% rise in IT infrastructure and information services to $3.2 million, and a 39% increase in transaction-based expenses to $3.2 million. Cash and cash equivalents declined to $45.4 million from $49.2 million at year-end 2025, and deferred revenue fell to $27.5 million from $33.6 million over the same period.
Management pointed to the launch of the OTCID Basic Market and the build-out of overnight trading capability as foundational drivers, and highlighted a July strategic alliance with BitGo Bank & Trust and a new integration with Elysium's MatchHub platform aimed at connecting digital-asset trading and qualified custody for blockchain-native securities. The stock gained 1.62% in the August 6 session, a muted reaction to the margin expansion and volume growth.
The quarter shows a market-infrastructure business converting higher trading volumes into wider margins while absorbing rising regulatory and technology costs. The strategic push into digital-asset plumbing could open a new revenue vein, but execution risk sits alongside the cost trajectory. Will the BitGo and Elysium integrations translate into sustained volume and fee growth before the expense base re-accelerates?
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