01—Abstract
Summary
Summary of the 10-Q filed July 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) reported a strong second quarter and first half of 2025, demonstrating significant revenue growth and improved profitability.
Total revenues, less transaction-based expenses, increased by 12.7%a for the quarter and 11.7% for the first six months compared to the prior year. This growth was driven across all segments, notably by a 23.3% revenue increase in Market Services, a 9.8% increase in Capital Access Platforms, and a 10.3% increase in Financial Technology. Operating income saw a substantial rise of 34.2% for the quarter and 33.8% for the first half, reflecting effective cost management with total operating expenses remaining largely flat or decreasing year-over-year.
Net income attributable to Nasdaq more than doubled year-over-year for the quarter and showed a substantial 85.5% increase for the first half, leading to a significant improvement in diluted earnings per share to $0.78b and $1.46, respectively. The company highlighted its continued listing leadership, record ETP Assets Under Management (AUM), strong ARR growth in Financial Technology, and record U.S. cash equities and derivatives revenue in Market Services.
Despite increased headcount and investments in technology, Nasdaq managed its operating expenses effectively, demonstrating operational leverage. The company also returned capital to shareholders through increased dividends and a continued share repurchase program, signaling confidence in its financial health and future prospects.
02—Key points
Key Highlights
- Total revenues less transaction-based expenses grew by 12.7% in Q2 2025 and 11.7% in the first half of 2025 year-over-year.
- Operating income increased significantly by 34.2% in Q2 2025 and 33.8% in the first half of 2025.
- Net income attributable to Nasdaq more than doubled in Q2 2025 and increased by 85.5% in the first half of 2025.
- Diluted earnings per share rose to $0.78 in Q2 2025 and $1.46 in the first half of 2025, representing significant year-over-year growth.
- Market Services segment saw robust revenue growth of 23.3% in Q2 2025, driven by strong U.S. cash equities and derivatives trading.
- Capital Access Platforms demonstrated solid growth with a 9.8% revenue increase in Q2 2025, supported by strong performance in its Index business and Data & Listing Services.
- Financial Technology segment reported 10.3% revenue growth in Q2 2025 and 12% ARR growth, indicating healthy recurring revenue expansion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Nasdaq, Inc. kept $0.22.
- Revenue$2.09B100.0%
- Cost of revenue−$784.0M37.5%
- Gross profit$1.31B62.5%
- Operating costs−$738.0M35.3%
- Operating income$568.0M27.2%
- Interest, other & tax−$116.0M5.6%
- Net income$452.0M21.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 25, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.09B$1.79B | +16.6% |
| Cost of Revenue | $784.00M$633.00M | +23.9% |
| Gross Profit | $1.31B$1.16B | +12.7% |
| Operating Expenses | $738.00M$736.00M | +0.3% |
| Operating Income | $568.00M$423.00M | +34.3% |
| Net Income | $452.00M$222.00M | +103.6% |
| EPS (Basic) | $0.79$0.39 | +102.6% |
| EPS (Diluted) | $0.78$0.38 | +105.3% |
| Shares Outstanding (Basic) | 574.07M576.38M | −0.4% |
| Shares Outstanding (Diluted) | 578.98M578.95M | 0.0% |
05—Questions
Frequently Asked Questions
What were the main drivers of Nasdaq's revenue growth in the second quarter of 2025?
Nasdaq's revenue growth was primarily driven by strong performance across all three segments. Market Services saw a significant increase due to higher U.S. trading volumes in equities and derivatives. Capital Access Platforms benefited from continued listing leadership, growth in ETPs tracking Nasdaq indices, and increased data sales. Financial Technology contributed with strong ARR growth driven by new clients and expanded services.
How did Nasdaq manage its operating expenses, and what was the impact on profitability?
Nasdaq effectively managed its operating expenses, which remained relatively flat or decreased slightly year-over-year for both the quarter and the first half of 2025, despite increased investments in technology and headcount. This disciplined approach to expense management, combined with strong revenue growth, led to a substantial increase in operating income and net income, demonstrating improved operational leverage.
What is Nasdaq's strategy regarding capital return to shareholders?
Nasdaq continues to prioritize returning capital to shareholders. In the first six months of 2025, the company declared and paid cash dividends totaling $293 million. Additionally, Nasdaq maintained its share repurchase program, with $215 million in repurchases during the first half of 2025, and has a remaining authorization of $1.5 billion under its existing program, indicating a commitment to enhancing shareholder value.
Are there any significant upcoming events or trends that investors should be aware of based on this filing?
The filing mentions ongoing strategic initiatives, including the acceleration of efficiency gains through AI capabilities and location strategy as part of the Adenza restructuring. Nasdaq also noted the enactment of the 'One Big Beautiful Bill Act' (OBBBA) after the quarter's end, which is currently being evaluated for its financial impact, though it is not expected to be material. The divestiture of the Nordic power futures business was completed, with wind-down expected by mid-2026. Investors should continue to monitor the company's progress on its strategic initiatives and any potential impacts from new legislation.
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