10-QPeriod: Q2 FY2025

NASDAQ, INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 25, 2025For Securities:NDAQ

Summary

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% 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 $0.78 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.

Financial Highlights

54 data points
Beta

Revenue

$2.09B

62.5% Gross Margin

Net Income

$452.00M

21.6% Net Margin

EPS (Diluted)

$0.78

Total Assets

$30.38B

Cash & Equivalents

$732.00M

Free Cash Flow

$687.00M

Financial Statements
Beta
Revenue$2.09B
Cost of Revenue$784.00M
Gross Profit$1.31B
Operating Expenses$738.00M
Operating Income$568.00M
Net Income$452.00M
EPS (Basic)$0.79
EPS (Diluted)$0.78
Shares Outstanding (Basic)574.07M
Shares Outstanding (Diluted)578.98M

Key Highlights

  • 1Total revenues less transaction-based expenses grew by 12.7% in Q2 2025 and 11.7% in the first half of 2025 year-over-year.
  • 2Operating income increased significantly by 34.2% in Q2 2025 and 33.8% in the first half of 2025.
  • 3Net income attributable to Nasdaq more than doubled in Q2 2025 and increased by 85.5% in the first half of 2025.
  • 4Diluted 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.
  • 5Market Services segment saw robust revenue growth of 23.3% in Q2 2025, driven by strong U.S. cash equities and derivatives trading.
  • 6Capital 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.
  • 7Financial Technology segment reported 10.3% revenue growth in Q2 2025 and 12% ARR growth, indicating healthy recurring revenue expansion.

Frequently Asked Questions

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.

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.

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.

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.