Nasdaq's Q3 Net Income Soars 67% on Strong Revenue Growth

Ticker: NDAQ · Form: 10-Q · Filed: 2025-10-23T00:00:00.000Z

Sentiment: bullish

Topics: Financial Performance, Revenue Growth, Net Income, Earnings Per Share, Market Infrastructure, Fintech, Capital Markets

Related Tickers: NDAQ, ICE, CME, LSEG

TL;DR

**Nasdaq is crushing it, with net income up 67% – buy the dip if you can find one!**

AI Summary

Nasdaq, Inc. reported a strong financial performance for the nine months ended September 30, 2025, with net income attributable to Nasdaq increasing significantly to $1,270 million, up from $762 million in the prior year, representing a 66.7% increase. Diluted earnings per share also saw a substantial rise to $2.19 from $1.32. Total revenues grew to $6,138 million from $5,370 million, an increase of 14.3%, driven by strong performances in Capital Access Platforms, Financial Technology, and Market Services. Capital Access Platforms revenue increased by $128 million to $1,588 million, Financial Technology revenue rose by $169 million to $1,352 million, and Market Services revenue increased by $471 million to $3,171 million. Operating income for the nine-month period surged to $1,702 million, a 32.9% increase from $1,281 million in the previous year. The company also saw a net gain on divestitures of $37 million, contributing to the improved income. Cash dividends declared per common share increased to $0.78 from $0.70, reflecting confidence in future performance. Despite increased operating expenses, including compensation and benefits rising to $1,033 million, the revenue growth and strategic initiatives led to robust profitability.

Why It Matters

Nasdaq's impressive 66.7% surge in net income and 14.3% revenue growth signals robust health in its core businesses, particularly in Capital Access Platforms and Financial Technology, which are crucial for long-term investor confidence. This performance suggests Nasdaq is effectively navigating competitive pressures from other exchanges and financial technology providers, reinforcing its market position. For employees, this growth could mean stability and potential for increased compensation, while customers benefit from continued investment in Nasdaq's platforms and services. The broader market sees a strong, stable infrastructure provider, which is vital for capital formation and efficient trading, potentially attracting more listings and trading volume to Nasdaq's ecosystem.

Risk Assessment

Risk Level: low — The company's net income attributable to Nasdaq increased by $508 million, or 66.7%, to $1,270 million for the nine months ended September 30, 2025, compared to $762 million in the prior year. This substantial increase in profitability, coupled with a 14.3% rise in total revenues to $6,138 million, indicates strong financial health and operational efficiency, mitigating immediate financial risks.

Analyst Insight

Investors should consider increasing their exposure to NDAQ, given the significant 66.7% increase in net income and strong revenue growth across all key segments. The company's consistent dividend increases also suggest a stable and growing return to shareholders, making it an attractive long-term holding.

Financial Highlights

debt To Equity
1.55
revenue
$6,138 million
operating Margin
27.7%
total Assets
$30,654 million
total Debt
$9,098 million
net Income
$1,270 million
eps
$2.19
gross Margin
64.7%
cash Position
$470 million
revenue Growth
+14.3%

Revenue Breakdown

SegmentRevenueGrowth
Capital Access Platforms$1,588 million+8.8%
Financial Technology$1,352 million+14.3%
Market Services$3,171 million+17.4%

Key Numbers

Key Players & Entities

FAQ

What were Nasdaq's total revenues for the nine months ended September 30, 2025?

Nasdaq's total revenues for the nine months ended September 30, 2025, were $6,138 million, an increase from $5,370 million in the same period of 2024.

How did Nasdaq's net income attributable to Nasdaq change year-over-year?

Net income attributable to Nasdaq increased significantly to $1,270 million for the nine months ended September 30, 2025, up from $762 million in the prior year, representing a 66.7% increase.

What was Nasdaq's diluted earnings per share for the nine months ended September 30, 2025?

Nasdaq's diluted earnings per share for the nine months ended September 30, 2025, was $2.19, a substantial increase from $1.32 reported in the same period of 2024.

Which business segments contributed most to Nasdaq's revenue growth?

Capital Access Platforms revenue increased by $128 million to $1,588 million, Financial Technology revenue rose by $169 million to $1,352 million, and Market Services revenue increased by $471 million to $3,171 million for the nine months ended September 30, 2025.

What was the trend in Nasdaq's operating income?

Operating income for the nine-month period ended September 30, 2025, surged to $1,702 million, a 32.9% increase from $1,281 million in the previous year.

Did Nasdaq declare higher dividends per common share?

Yes, cash dividends declared per common share increased to $0.78 for the nine months ended September 30, 2025, up from $0.70 in the same period of 2024.

What were Nasdaq's cash and cash equivalents at September 30, 2025?

As of September 30, 2025, Nasdaq reported cash and cash equivalents of $470 million, compared to $592 million at December 31, 2024.

How much long-term debt did Nasdaq have at September 30, 2025?

Nasdaq's long-term debt stood at $8,667 million as of September 30, 2025, a decrease from $9,081 million at December 31, 2024.

What was the impact of divestitures on Nasdaq's financial results?

Nasdaq reported a net gain on divestitures of $37 million for the nine months ended September 30, 2025, contributing positively to its income before income taxes.

What is Nasdaq's current share count for common stock?

As of October 16, 2025, Nasdaq had 570,995,433 shares of common stock, $0.01 par value per share, outstanding.

Risk Factors

Industry Context

Nasdaq operates in the highly competitive financial technology and exchange services industry. Key trends include increasing demand for data analytics, regulatory technology (RegTech), and cloud-based solutions. The industry is characterized by significant investment in technology, cybersecurity, and compliance to meet evolving market demands and regulatory requirements.

Regulatory Implications

Nasdaq's operations are subject to stringent regulatory oversight from bodies like the SEC. Changes in market structure rules, data privacy regulations (e.g., GDPR, CCPA), and cybersecurity mandates can significantly impact compliance costs and operational strategies. Proactive engagement with regulators and robust compliance frameworks are essential.

What Investors Should Do

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Key Dates

Glossary

Capital Access Platforms
A segment of Nasdaq's business that provides services to help companies access capital, including listing services, capital markets solutions, and advisory services. (A key revenue driver for Nasdaq, showing significant growth.)
Financial Technology
Nasdaq's segment focused on providing technology solutions and services to financial institutions, including trading, risk management, and regulatory compliance tools. (Another significant growth area contributing to overall revenue.)
Market Services
This segment includes Nasdaq's core exchange operations, trading services, and data products, generating revenue from transaction fees, listing fees, and market data. (The largest revenue segment, though it experienced a Q3 decline.)
Default funds and margin deposits
Funds held by Nasdaq to cover potential defaults or margin requirements of participants in its clearing and trading services. (Represents a significant portion of assets and liabilities, reflecting the operational scale of its clearing functions.)
Goodwill
An intangible asset representing the excess of the purchase price of an acquired company over the fair value of its identifiable net assets. It reflects brand value, customer relationships, etc. (A substantial asset on the balance sheet, indicating significant past acquisitions.)
Accumulated other comprehensive loss
A component of equity that includes unrealized gains and losses on certain investments, foreign currency translation adjustments, and pension adjustments that have not been recognized in net income. (Reflects unrealized valuation changes impacting total equity.)
Noncontrolling interests
The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership interest of outside shareholders in the consolidated entity. (Indicates Nasdaq has partial ownership in some consolidated entities.)

Year-Over-Year Comparison

Nasdaq, Inc. has demonstrated robust year-over-year growth for the nine months ended September 30, 2025. Total revenues increased by 14.3% to $6,138 million, driven by strong performances across its key segments. Net income attributable to Nasdaq surged by 66.7% to $1,270 million, and diluted EPS rose to $2.19 from $1.32, indicating significant margin expansion and operational leverage. While operating expenses, such as compensation and benefits, have increased, the revenue growth has outpaced these increases, leading to a substantial 32.9% rise in operating income. The company also reported a net gain on divestitures, further boosting profitability compared to the prior year.

Filing Stats: 4,583 words · 18 min read · ~15 pages · Grade level 14.9 · Accepted 2025-10-23 10:34:03

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income 2 Condensed Consolidated Statements of Comprehensive Income 3 Condensed Consolidated Statements of Changes in Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 49

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 51 i About this Form 10-Q Throughout this Form 10-Q, unless otherwise specified: "Nasdaq," "we," "us" and "our" refer to Nasdaq, Inc. "Nasdaq Baltic" refers to collectively, Nasdaq Tallinn AS, Nasdaq Riga, AS, and AB Nasdaq Vilnius. "Nasdaq BX" refers to the cash equity exchange operated by Nasdaq BX, Inc. "Nasdaq BX Options" refers to the options exchange operated by Nasdaq BX, Inc. "Nasdaq Clearing" refers to the clearing operations conducted by Nasdaq Clearing AB. "Nasdaq CXC" and "Nasdaq CX2" refer to the Canadian cash equity trading books operated by Nasdaq CXC Limited. "Nasdaq First North" refers to our alternative marketplaces for smaller companies and growth companies in the Nordic and Baltic regions. "Nasdaq GEMX" refers to the options exchange operated by Nasdaq GEMX, LLC. "Nasdaq ISE" refers to the options exchange operated by Nasdaq ISE, LLC. "Nasdaq MRX" refers to the options exchange operated by Nasdaq MRX, LLC. "Nasdaq Nordic" refers to collectively, Nasdaq Clearing AB, Nasdaq Stockholm AB, Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd, and Nasdaq Iceland hf. "Nasdaq PHLX" refers to the options exchange operated by Nasdaq PHLX LLC. "Nasdaq PSX" refers to the cash equity exchange operated by Nasdaq PHLX LLC. "The Nasdaq Options Market" refers to the options exchange operated by The Nasdaq Stock Market LLC. "The Nasdaq Stock Market" refers to the cash equity exchange and listing venue operated by The Nasdaq Stock Market LLC. Nasdaq also provides the following list of abbreviations and acronyms used throughout this Quarterly Report on Form 10-Q as a tool for the reader. 2022 Revolving Credit Facility: $1.25 billion senior unsecured revolving credit facility, which matures on December 16, 2027 2025 Notes: $500 million aggregate principal amount issued of 5.650% senior unsecured notes, repaid in full by June 2025 2026 Notes: $500 million aggregate principal amount issued of 3.850% senior unsecured notes due June 30, 2026 2

Forward-Looking Statements

Forward-Looking Statements The SEC encourages companies to disclose forward-looking information so that investors can better understand a company's future prospects and make informed investment decisions. This Quarterly Report on Form 10-Q contains these types of statements. Words such as "may," "will," "could," "should," "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes" and words or terms of similar substance used in connection with any discussion of future expectations as to industry and regulatory developments or business initiatives and strategies, future operating results or financial performance, and other future developments are intended to identify forward-looking statements. These include, among others, statements relating to: our strategic direction; the integration of acquired businesses, including accounting decisions relating thereto; the scope, nature or impact of acquisitions, divestitures, investments or other transactional activities; the effective dates for, and expected benefits of, ongoing initiatives, including transactional activities and other strategic, restructuring, technology, de-leveraging and capital return initiatives; our products and services; the impact of pricing changes; tax matters; the cost and availability of liquidity and capital; and any litigation, or any regulatory or government investigation or action, to which we are or could become a party or which may affect us and any potential settlements of litigation, regulatory or governmental investigations or actions. Forward-looking statements involve risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, the following: our operating results may be lower than expected; our ability to successfully integrate acquired businesses or divest sold businesses or assets, including the fact that any integration or transition may be mor

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Nasdaq, Inc. Condensed Consolidated Balance Sheets (in millions, except share and par value amounts) September 30, 2025 December 31, 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 470 $ 592 Restricted cash and cash equivalents 227 31 Default funds and margin deposits (including restricted cash and cash equivalents of $ 3,744 and $ 4,383 , respectively) 5,750 5,664 Financial investments 53 184 Receivables, net 865 1,022 Other current assets 232 293 Total current assets 7,597 7,786 Property and equipment, net 689 593 Goodwill 14,336 13,957 Intangible assets, net 6,620 6,905 Operating lease assets 440 375 Other non-current assets 972 779 Total assets $ 30,654 $ 30,395 Liabilities Current liabilities: Accounts payable and accrued expenses $ 256 $ 269 Section 31 fees payable to SEC — 319 Accrued personnel costs 313 325 Deferred revenue 719 711 Other current liabilities 236 215 Default funds and margin deposits 5,750 5,664 Short-term debt 431 399 Total current liabilities 7,705 7,902 Long-term debt 8,667 9,081 Deferred tax liabilities, net 1,564 1,594 Operating lease liabilities 454 388 Other non-current liabilities 234 230 Total liabilities 18,624 19,195 Commitments and contingencies Equity Nasdaq stockholders' equity: Common stock, $ 0.01 par value, 900,000,000 shares authorized, shares issued: 597,402,009 at September 30, 2025 and 598,920,378 at December 31, 2024; shares outstanding: 572,746,191 at September 30, 2025 and 575,062,217 at December 31, 2024 6 6 Additional paid-in capital 5,351 5,530 Common stock in treasury, at cost: 24,655,818 shares at September 30, 2025 and 23,858,161 shares at December 31, 2024 ( 710 ) ( 647 ) Accumulated other comprehensive loss ( 1,847 ) ( 2,099 ) Retained earnings 9,223 8,401 Total Nasdaq stockholders' equity 12,023 11,191 Noncontrolling interests 7 9 Total equity 12,030 11,200 Total liabilities and equity $ 30,654 $ 30,395 See

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