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 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]