Nasdaq (NasdaqGS:NDAQ) Q3 2025 Earnings Call October 21, 2025 08:00 AM ET Company ParticipantsOwen Lau - Managing DirectorAto Garrett - SVP and Head of Investor Relations OfficerAdena Friedman - Chair and CEOSarah Youngwood - CFOAlex Blostein - Managing DirectorBrian Bedell - DirectorDan Fannon - Managing DirectorConference Call ParticipantsAshish Sabadra - AnalystBenjamin Budish - Equity Research AnalystEli Abboud - AnalystJeff Schmitt - AnalystAlex Kramm - Managing Director and Senior Equity Research Anal ...

Financial Data and Key Metrics Changes - Nasdaq reported net revenue of $1.3 billion, an 11% year-over-year increase, with operating income rising 16% to $732 million and diluted EPS growing by 19% [6][24][36] - Annualized recurring revenue (ARR) grew 9% to $3 billion, marking a significant milestone [6][25] - Operating expenses were $583 million, up 5% year-over-year, leading to an operating margin of 56% and EBITDA margin of 58%, both up 2 percentage points from the previous year [24][33] Business Line Data and Key Metrics Changes - Capital Access Platforms generated revenue of $546 million, up 8%, with ARR growth of 6% [25][31] - Financial Technology delivered revenue of $457 million, up 13%, with ARR growth of 12% [28][29] - Market Services achieved net revenue of $303 million, reflecting a 13% growth driven by elevated market volumes [32] Market Data and Key Metrics Changes - Nasdaq welcomed operating companies that raised $6 billion in proceeds during the quarter, with over $14 billion raised year-to-date [10] - The index franchise recorded $91 billion in net inflows over the last 12 months, with $17 billion in the third quarter [12][26] - Nasdaq-listed securities represented 53% of total industry volume, up from 49% a year ago, indicating strong market presence [18] Company Strategy and Development Direction - Nasdaq is focused on integrating technology and AI into its solutions, enhancing its competitive position and providing value to clients [9][20] - The company aims to leverage its existing trading infrastructure to enable tokenized securities trading, reflecting a commitment to innovation in the digital asset space [20][40] - Nasdaq's strategic priorities include Integrate, Innovate, and Accelerate, with a focus on cross-selling and enhancing client engagement [19][23] Management's Comments on Operating Environment and Future Outlook - The U.S. economy remains resilient, with mixed economic signals, but overall consumer spending has picked up [8] - Nasdaq anticipates a meaningful pickup in IPO activity in the coming quarters, supported by a robust IPO pipeline [10][11] - Management expressed confidence in achieving strategic objectives and delivering sustainable growth despite a dynamic operating environment [36] Other Important Information - Nasdaq's gross leverage ratio improved to 3.1x, with a commitment to deleveraging and maintaining strong cash flow [34][36] - The company completed the sale of Nasdaq Solovis, which was deemed not a strategic fit, allowing for a more focused portfolio [15] Q&A Session Summary Question: Digital assets and growth opportunities - Management highlighted Nasdaq's long-standing involvement in the digital assets ecosystem and the relevance of its financial technology solutions as institutional interest in digital assets grows [39][40] Question: Tokenization proposal details - The tokenization initiative aims to allow investors to settle orders in a tokenized form, with collaboration with DTCC for settlement paths [44][46] Question: Operating expenses and 2026 outlook - Management indicated a consistent trajectory in operating expenses, aligned with strong revenue growth and ongoing investments in technology [52][53] Question: Financial crime management business performance - Management acknowledged variability in ARR growth due to implementation phases for new enterprise clients but expressed confidence in future growth [58][60] Question: Capital markets technology momentum - Strong demand for connectivity services and data center growth were noted as key drivers for the Capital Markets Technology business [62][64] Question: AI's impact on revenue synergy targets - Management confirmed that AI solutions are expected to accelerate cross-sell efforts and enhance client workflows, supporting revenue synergy targets [75][76] Question: BioCatch partnership implications - The partnership with BioCatch is seen as a strategic move to enhance Verafin's platform capabilities and expand its market reach [79]

Nasdaq (NasdaqGS:NDAQ) Q3 2025 Earnings Call October 21, 2025 08:00 AM ET Speaker1Good day and thank you for standing by. Welcome to Nasdaq Third Quarter 2025 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To rejoin your question, please press ...

NEW YORK, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the third quarter of 2025. Third quarter 2025 net revenue1 was $1.3 billion, an increase of 15% over the third quarter of 2024, or up 11% on an organic2 basis. This included Solutions3 revenue growing 15%, or up 10% on an organic basis.Annualized Recurring Revenue (ARR)4 of $3.0 billion increased 10% over the third quarter of 2024, or up 9% on an organic basis. Annualized SaaS revenue increased 12%, ...

Financial Performance - Nasdaq's net revenue for 2Q25 was $1306 million, a 13% increase year-over-year[17] - Solutions revenue reached $991 million, up 10% year-over-year[17] - Non-GAAP operating income was $721 million, a 16% increase year-over-year[17] - Non-GAAP diluted EPS increased by 24% year-over-year to $085[17] - Annualized SaaS revenues grew by 13% year-over-year to $1098 million[17] - Annualized Recurring Revenue (ARR) increased by 10% year-over-year to $2931 million[17] Segment Highlights - Index ETP AUM reached a record level of $745 billion at quarter-end, bolstered by $88 billion in net inflows over the trailing twelve months[13] - Capital Access Platforms revenue grew organically by 9% year-over-year[38] - Financial Technology revenue grew organically by 10% year-over-year[38] - Market Services net revenue increased by 21% year-over-year to $306 million[70]

Core Insights - Nasdaq, Inc. reported strong financial results for the second quarter of 2025, with net revenue reaching $1,306 million, reflecting a 13% increase year-over-year [7][8]. - The company demonstrated resilience and broad-based growth across its business segments, particularly in Market Services and Financial Technology [5][6]. Financial Performance - Solutions revenue was $991 million, up 10% year-over-year [11]. - Market Services net revenue increased by 22% to $306 million [11]. - Annualized Recurring Revenue (ARR) reached $2,931 million, a 10% increase compared to the same quarter last year [8]. - GAAP diluted earnings per share (EPS) grew by 103% to $0.78, while non-GAAP diluted EPS increased by 24% to $0.85 [8][11]. Strategic Initiatives - The company is focused on enhancing value for clients and shareholders through innovation and deepening client relationships via its One Nasdaq approach [6]. - Nasdaq executed well on its capital allocation priorities, repaying $400 million of senior unsecured notes and returning $155 million to shareholders through dividends and $100 million through stock repurchases [7][8]. Market Trends and Client Demand - Financial Technology segment achieved solid revenue growth, driven by robust client demand, with 57 new clients and 130 upsells in the second quarter [12]. - Index revenue grew by 17%, with $20 billion in net inflows during the quarter, bringing total assets under management to a record $745 billion [15]. Operational Efficiency - The company maintained its operating expenses at $738 million, reflecting a strategic focus on efficiency despite increased investments in technology and personnel [11]. - Nasdaq is on track to achieve its $140 million expanded net expense efficiency program by year-end, having actioned approximately $130 million as of the end of the second quarter [15].

Core Viewpoint - Nasdaq and the Philippine Stock Exchange (PSE) are enhancing their technology partnership by upgrading PSE's trading infrastructure to Nasdaq's advanced platform, Nasdaq Eqlipse Trading, which aims to improve liquidity and resilience in the Philippine marketplace [1][5]. Group 1: Technology Partnership - The upgrade to Nasdaq Eqlipse Trading represents a significant investment by Nasdaq to modernize and strengthen its platform capabilities, allowing for enhanced functionality such as pre-trade risk management and advanced options pricing [2][4]. - PSE's decision to renew its partnership with Nasdaq is driven by the need for a reliable trading system that meets current and future requirements, emphasizing the importance of technology in PSE's strategic agenda [3][5]. Group 2: Market Impact - The Nasdaq Eqlipse platform is part of a broader initiative to develop a fully interoperable suite of solutions across trading, clearing, and data intelligence, marking a major milestone in Nasdaq's investment cycle [4]. - Nasdaq's technology is utilized by 97% of globally significant banks and half of the world's top 25 stock exchanges, indicating its critical role in enhancing market infrastructure and operational efficiency [6]. Group 3: Economic Context - The partnership aligns with the rapid economic growth of the Philippines, positioning Nasdaq to support local and global banks in navigating challenges and innovating in a digital and AI-driven environment [6]. - Nasdaq's presence in the Philippines is part of its strategy to drive modernization in the financial services industry, contributing to regulatory compliance and simplifying capital market operations [5][6].

Core Insights - Nasdaq, Inc. reported strong financial results for Q1 2025, highlighting resilience and growth across all divisions despite a rapidly changing environment [2][3][5] Financial Performance - Net revenue for Q1 2025 was $1,237 million, an increase of 11% year-over-year, with adjusted net revenue growth of 12.5% [5][6] - Solutions revenue reached $947 million, up 9% year-over-year, and 11% on an adjusted basis, driven by strong growth in Index and Financial Technology [5][6] - Market Services net revenue was $281 million, reflecting a 19% increase compared to the previous year [10] - Non-GAAP operating income was $682 million, a 15% increase year-over-year, with a non-GAAP operating margin of 55% [40] - GAAP diluted earnings per share (EPS) grew 69% to $0.68, while non-GAAP diluted EPS increased 24% to $0.79 [5][29] Annualized Recurring Revenue (ARR) - ARR for Q1 2025 was $2,831 million, an 8% increase year-over-year, with organic growth of 9% [5][6] - Financial Technology ARR grew 12% on an organic basis, indicating strong client engagement and product adoption [11] Strategic Initiatives - Nasdaq is focused on capital allocation strategies, including investing in organic growth, reducing debt, and share repurchases, returning $138 million to shareholders through dividends and $115 million through stock repurchases in Q1 2025 [3][10] - The company aims to enhance its market access with plans for 24/5 trading by 2026, pending regulatory approval [14] - Nasdaq's partnership with Amazon Web Services aims to provide new cloud-based solutions, enhancing its Financial Technology and Market Services divisions [14] Market Position and Client Engagement - Nasdaq maintained its leadership in listings, welcoming 45 operating company listings that raised nearly $5 billion in proceeds during the quarter [14] - The company achieved record cash equities and derivatives volumes in the U.S., with significant market share growth [14] - Nasdaq Verafin's Co-Pilot tool usage grew by 20% sequentially, demonstrating the value of its innovative solutions [14]