TMX Group outlined its growth strategy at the CIBC Eastern Institutional Investor Conference on Thursday, saying it aims to double revenue to CAD 2 billion from the current CAD 1 billion within seven years — half the time it took to reach the first milestone.
"It took us 14 years to go from CAD 500 million in revenue to CAD 1 billion. We would like to go from CAD 1 billion to CAD 2 billion in half the time," said David Arnold, an executive at TMX. "We are well on track to achieve that objective."
The plan, known internally as TM2X, relies heavily on acquisition and expansion rather than organic growth alone. Three significant transactions were announced in the first half of 2026, all expected to be accretive within the first year before synergies. The Refinitiv indices business, acquired by VettaFi, has closed and been integrated as a business unit. Cboe Australia has also closed and been renamed TMX Australia Exchange, though it is undergoing a technology transition. Cboe Canada remains under review by the Competition Bureau and the Ontario Securities Commission.
A fourth potential deal — combining TMX's stake in the BOX Options Market with MEMX — is awaiting approval from the U.S. Securities and Exchange Commission.
Arnold emphasized that the company views its approach differently than traditional M&A. "We do not have an M&A strategy, Scott, to really kind of put a fine point on it. We have an enterprise growth strategy for the firm," he said, responding to a question from CIBC analyst Scott Fletcher.
Leverage is expected to rise to between 1.5 and 2.5 times as a result of the transactions, Arnold said.
The financial backdrop is supportive. IPO activity in Canada during the first six months of 2026 already surpassed the total for all of 2025, and capital raising in the first eight months was up about 15% year over year, with financing activity specifically rising nearly 90%.
TMX's long-term targets include raising the share of recurring revenue to about two-thirds from roughly 53% currently, sourcing 50% of total revenue from outside Canada, and growing its Global Solutions, Insights and Analytics segment to represent half of total revenue. In capital formation, which accounts for about 18% of the overall franchise, the company is looking to Newsfile to grow and represent 50% of that segment.
Regarding the Australian link, TMX identified 27 Australian companies already listed in Canada as a potential bridge opportunity. On the U.S. side, Arnold noted the need to "balance off staying on par with the largest, most liquid market in the world, being the U.S., but also investing only in things that really have a return for the Canadian investor community."
John McKenzie, TMX's chief executive, was quoted by Arnold as saying he was "most impressed with the quality of the talent" at VettaFi after the acquisition.
At the conference, TMX stock was trading at a P/E ratio of 25 with a PEG ratio of 0.58. The company has a Piotroski Score of 9 and a 10-year dividend growth streak.
