Financial Data and Key Metrics Changes - In 2025, the company achieved net revenues of $5.2 billion, a 12% increase year-over-year, and solutions revenue grew 11% to $4 billion [6][8] - The annual operating income was $2.9 billion, up 16%, with diluted EPS growth of 24% [8][25] - Fourth quarter net revenue was $1.4 billion, up 13% year-over-year, with solutions revenue of $1.1 billion, up 12% [8][25] - Operating expenses in the fourth quarter were $609 million, an 8% increase year-over-year, leading to an operating margin of 56% [8][25] Business Line Data and Key Metrics Changes - Capital access platforms delivered quarterly revenue of $572 million, up 12%, and annual revenue of $2.1 billion, up 10% [27] - Financial technology revenue in the quarter was $498 million, up 12%, with annual revenue of $1.85 billion, up 11% [30] - Market services achieved record annual net revenue of $1.2 billion, up 17% year-over-year, driven by elevated volumes in U.S. equities and options [20][34] Market Data and Key Metrics Changes - The index franchise saw net inflows of $99 billion over the last 12 months, including a record $35 billion in the fourth quarter [14][29] - The average ETP AUM reached a record $860 billion in the fourth quarter, reflecting a 36% increase [29] - The company secured three of the five top IPOs of 2025, including the largest IPO of the year, Medline [12] Company Strategy and Development Direction - The company focuses on integrating, innovating, and accelerating its operations, with a strong emphasis on AI and cross-selling initiatives [9][11] - The One Nasdaq strategy has driven significant cross-sell wins, contributing to over 15% of the financial technology sales pipeline [11] - The company aims to expand its digital asset initiatives and enhance trading capabilities, including plans for 23x5 trading in the Nasdaq Stock Market [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a complex operating environment characterized by volatile trading dynamics and geopolitical tensions [5][6] - The outlook for 2026 is optimistic, with expectations of accelerating capital markets activity and a healthy pipeline of late-stage private companies [13][22] - Management highlighted the importance of client engagement and the need for innovative solutions to meet evolving market demands [21][22] Other Important Information - The company achieved a gross leverage ratio of 2.9x, outperforming expectations, and received upgrades in debt ratings from Moody's and S&P [9][24] - Free cash flow for 2025 was approximately $2.2 billion, with a conversion ratio of 109% [38] - The company paid dividends totaling $601 million in 2025 and repurchased 7.2 million shares for $616 million [39] Q&A Session Summary Question: Impact of SEC approval for expanded options expirations - Management noted that the approval allows clients more choices for managing risk and is expected to drive market volumes and participation [42][44] Question: Growth in equity options volumes - Management indicated that the growth is driven by a broadening investor base and increased engagement in equity options, particularly with ETFs [47][48] Question: Data and listings segment performance - Management highlighted momentum in new issuances and active dialogue with late-stage private companies looking to go public [51][53] Question: Financial crime management outlook - Management discussed the variability in revenue due to implementation timing for enterprise deals and expressed excitement about the pipeline for 2026 [56][58] Question: Nasdaq's ambitions in the off-exchange space - Management expressed interest in having more flexibility to innovate within the exchange rules and the potential for M&A in the off-exchange space [61][62] Question: Capital allocation strategy - Management emphasized a focus on organic growth, dividends, share repurchases, and evaluating opportunistic deals [65] Question: FinTech growth expectations - Management acknowledged strong momentum in the FinTech business and expressed optimism about client engagement and opportunities for 2026 [70]