Nasdaq Inc. Reports Strong Q2 2025 Performance with Record Listings and Revenue Growth

Nasdaq Inc. operates as a global technology company dedicated to enhancing the efficiency, transparency, and integrity of capital markets. The firm's operations are categorized into three main business segments: Capital Access Platforms, Financial Technology, and Market Services. This structure allows Nasdaq to leverage its strengths and cater to a wide array of clients, including corporate entities, investment managers, and brokers.

Nasdaq extended its listing leadership streak to 46 consecutive quarters, marking a significant achievement as it recorded the highest number of first-half listings since 2021. In Q2 2025 alone, Nasdaq welcomed 38 U.S. operating company IPOs, which collectively raised over $3.5 billion. This influx contributed to attracting nearly $50 billion in market value from companies switching exchanges, bringing the year-to-date total to over $270 billion.

The Index segment experienced a remarkable $20 billion in net inflows, with the assets under management (AUM) of exchange-traded products (ETPs) reaching an all-time high of $745 billion. During this quarter, Nasdaq successfully launched 33 new Index products, including 21 international products and 12 in collaboration with new clients. This diversification not only enhances product offerings but also strengthens Nasdaq's position in the market.

The Financial Technology segment reported an impressive 12% growth in annual recurring revenue (ARR), primarily driven by increased client acquisition and successful cross-selling initiatives. This growth reflects Nasdaq's commitment to delivering advanced solutions across its technological platforms.

Market Services achieved record revenues in both cash equities and derivatives. The firm executed a staggering $102.5 billion in notional value during the Russell reconstitution, showcasing the increased trading volumes in the U.S. market compared to the previous year.

Nasdaq's performance in Q2 2025 was positively influenced by various macroeconomic factors. The trading volumes in the U.S. exhibited a notable increase compared to the same period in 2024, which significantly bolstered revenues from U.S. Equity Derivative Trading and Cash Equity Trading. Additionally, favorable market conditions supported higher valuations in Nasdaq Indices and increased volumes in Index derivatives, contributing to a robust sales pipeline across Financial Technology solutions.

The Capital Access Platforms segment reported increased revenues and ARR, driven by new listings and robust data sales. The total number of listed companies on The Nasdaq Stock Market surged to 914 ETPs as of June 30, 2025, from 645 ETPs in the previous year.

Index revenues were bolstered by higher average AUM in ETPs linked to Nasdaq indices and increased trading volumes on derivatives contracts associated with the Nasdaq-100 Index. However, this growth was partially offset by a one-time legal settlement recognized in Q1 2024.

Revenue growth in the Financial Technology segment was fueled by higher subscription revenues from new sales and price increases for existing clients, particularly in Financial Crime Management Technology and Regulatory Technology businesses.

Despite increased revenues in U.S. Equity Derivative Trading and Cash Equity Trading, the overall U.S. matched market share executed on Nasdaq's exchanges experienced a decline, highlighting the competitive landscape in market services.

Operating expenses rose primarily due to increased compensation and benefits associated with a growing headcount, which reached 9,492 employees by June 30, 2025. Investments in technology and communication infrastructure, particularly in cloud initiatives, further contributed to the increase in expenses.

Nasdaq benefited from increased interest income due to a higher average cash balance while interest expenses declined due to lower outstanding debt. Notably, net gains from divestitures included transactions related to the Nordic power futures business and Nasdaq Risk Modelling for Catastrophes.

As of June 30, 2025, Nasdaq's liquidity remained robust, supported by cash generated from operations and access to financing. The company reported cash and cash equivalents totaling $732 million, with strategic investments in money market funds and European government debt securities. A balanced approach to capital deployment was evident in Nasdaq's investments, debt repayments, and shareholder returns.

During Q2 2025, Nasdaq repaid its 2025 Notes amounting to $400 million and repurchased portions of its long-term debt, including the 2028, 2034, and 2052 Notes, maintaining a weighted average interest rate on debt obligations of approximately 3.7%.

Nasdaq Inc. demonstrated strong operational performance in Q2 2025, marked by significant growth across its business segments, successful product launches, and strategic financial management. The company continues to navigate a complex macroeconomic environment while pursuing opportunities for expansion and innovation, solidifying its position as a pivotal player in the global financial ecosystem. As the market evolves, Nasdaq's commitment to enhancing liquidity and transparency in capital markets remains steadfast, setting the stage for future growth and success.