TMX Group (X) closed up 5% after another strong quarter of double-digit revenue growth, which accelerated relative to the prior three prints…

… thanks to a 26% increase in GSIA segment revenue, with contribution from the company’s $683M RAFI acquisition boosting results out of VettaFi…

… and its Cboe Australia deal lifting Datalinx results. With GSIA running at higher margins than TMX’s total business, the top line beat flowed through to EPS…

… and to cash generation, which should help the company return to sub-2.5x leverage within two years after closing its Cboe Canada and $2.3B MEMX Group deals.

That process could keep a lid on splashy M&A for now, but it could pull the equity lever for the right opportunity - with the stock trading above its long-term average valuation.

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