01—Abstract
Summary
Summary of the 10-Q filed April 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) reported strong financial results for the first quarter of 2025, demonstrating robust revenue growth and improved profitability.
Total revenues increased significantly, driven by strong performance across all key segments, particularly Market Services which saw a substantial year-over-year increase. The company also highlighted its continued focus on innovation and client engagement, reflected in an 11%a ARR growth for its Financial Technology segment and record performance in its Index business. Nasdaq's operational efficiency is also evident in the reduction of operating expenses, contributing to a significant increase in operating income and net income attributable to Nasdaq.
02—Key points
Key Highlights
- Total revenues increased by 24.8% to $2.09 billion in Q1 2025 compared to $1.67 billion in Q1 2024, driven by strong performance across all segments.
- Market Services segment revenue grew by 42.8% to $1.13 billion, fueled by increased trading volumes and SEC fee rates.
- Financial Technology segment delivered 11% ARR growth and saw revenue increase by 10.3% to $432 million.
- Capital Access Platforms segment revenue increased by 7.4% to $515 million, with the Index business achieving its sixth consecutive record quarter.
- Operating expenses decreased by 2.5% to $690 million, leading to a substantial 33.5% increase in operating income to $547 million.
- Net income attributable to Nasdaq surged by 68.9% to $395 million, resulting in diluted earnings per share of $0.68, up from $0.40 in the prior year.
- The company declared a cash dividend of $0.24 per share, a 9.1% increase year-over-year, and repurchased $115 million of common stock during the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Nasdaq, Inc. kept $0.19.
- Revenue$2.10B100.0%
- Cost of revenue−$859.0M41.0%
- Gross profit$1.24B59.0%
- Operating costs−$690.0M32.9%
- Operating income$547.0M26.1%
- Interest, other & tax−$152.0M7.3%
- Net income$395.0M18.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 28, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.10B$1.67B | +25.2% |
| Cost of Revenue | $859.00M$557.00M | +54.2% |
| Gross Profit | $1.24B$1.12B | +10.7% |
| Operating Expenses | $690.00M$707.00M | −2.4% |
| Operating Income | $547.00M$410.00M | +33.4% |
| Net Income | $395.00M$234.00M | +68.8% |
| EPS (Basic) | $0.69$0.41 | +68.3% |
| EPS (Diluted) | $0.68$0.40 | +70.0% |
| Shares Outstanding (Basic) | 575.05M575.45M | −0.1% |
| Shares Outstanding (Diluted) | 579.98M578.93M | +0.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of Nasdaq's revenue growth in Q1 2025?
Nasdaq's revenue growth in Q1 2025 was primarily driven by strong performance in its Market Services segment, which benefited from higher trading volumes and increased SEC fee rates. The Financial Technology segment also contributed with a solid 10.3% revenue increase and 11% ARR growth, while the Capital Access Platforms segment saw a 7.4% rise, with the Index business performing particularly well.
How did Nasdaq manage its operating expenses?
Nasdaq effectively managed its operating expenses, reducing them by 2.5% in Q1 2025 compared to the prior year. This was largely due to a pre-tax charge recorded in Q1 2024 related to pension plan termination, and a decrease in restructuring charges as the divisional realignment program nears completion. These expense reductions contributed significantly to the increase in operating income.
What is Nasdaq's outlook regarding shareholder returns?
Nasdaq remains committed to returning value to shareholders. In Q1 2025, the company declared a cash dividend of $0.24 per share, representing a 9.1% increase year-over-year. Additionally, Nasdaq repurchased $115 million worth of its common stock during the quarter, demonstrating its active approach to capital deployment.
Are there any significant new risks or challenges highlighted in this filing?
While this filing doesn't introduce entirely new risks, it does mention an ongoing inspection by the European Commission concerning potential competition law concerns related to the trading of Nordics financial derivatives. Nasdaq is cooperating with the investigation, but the duration, outcome, and potential remedies or fines remain uncertain.
06—Continue