Nasdaq, Inc. (Nasdaq: NDAQ) has reported an impressive set of financial results for the first quarter of 2025, marking significant growth across its diversified business model. The company generated net revenue of $1.237 billion, reflecting an 11% increase year-over-year, or 12.5% on an adjusted basis. This growth is powered by strong performances in key segments, underpinned by Nasdaq’s strategic investments and operational efficiencies.
Net Revenue: $1.237 billion in Q1 2025, up 11% YoY and 12.5% adjusted.
Annualized Recurring Revenue (ARR): $2.831 billion, increased by 8% YoY, with a 9% organic increase. Notably, Annualized SaaS revenue surged 14%, making up 37% of total ARR.
Financial Technology Revenue: $432 million, up 10% YoY, with Financial Crime Management Technology revenue soaring 21%.
Index Revenue: \(193 million, a 14% growth or 26% on an adjusted basis; \)27 billion in net inflows recorded in Q1 2025.
GAAP Diluted Earnings Per Share (EPS) increased by 69% to $0.68.
Non-GAAP Diluted EPS rose 24% to $0.79.
Strong shareholder returns with \(138 million returned via dividends and \)115 million repurchased in common stock. Additionally, $279 million of senior unsecured notes were repurchased.
Nasdaq’s CEO Adena Friedman emphasized the resilience of Nasdaq’s business model in a challenging macroeconomic environment, highlighting the portfolio’s ability to drive sustainable growth. EVP and CFO Sarah Youngwood remarked on stellar EPS growth supported by robust revenue increases and strong operating leverage.
The company’s operating efficiency is reflected in a 3% reduction in GAAP operating expenses compared to the previous year, despite 6% growth on a non-GAAP basis driven by strategic investments in technology and talent. Operational cash flow was robust at $663 million for the quarter.
Capital Access Platforms: Revenues grew 8% reaching $515 million, driven by Data and Listing Services and Index revenues.
Financial Technology: ARR increased 12% organically. Key drivers include Nasdaq Verafin’s expansion in Financial Crime Management and AxiomSL’s growth in Regulatory Technology.
Market Services: Delivered $281 million in net revenue, up 19%, benefiting from record volumes in U.S. cash equities and derivatives.
Nasdaq continues to push boundaries with plans for 24⁄5 trading launch in the U.S. by late 2026, aiming to expand market access globally. The company also upgraded partnerships, notably with Amazon Web Services, enhancing cloud capabilities for market operators.
Comparing the Q1 2025 margin metrics to the FY 2024 baseline emphasizes the strong operating leverage and profitability: - FY 2024 net profit margin stood at approximately 15.1%, while Q4 2024 operating margin was around 23.5% and operating margin for the full year 2024 was approximately 25.0%. - The strong EPS growth, aligned with rising revenue and controlled expenses, signals enhanced shareholder value.
Nasdaq’s commitment to its “Integrate, Innovate, Accelerate” strategy indicates ongoing efforts to enhance efficiency and innovation. The $140 million expanded net expense efficiency program aims to unlock significant synergies by year-end 2025.
Nasdaq’s first quarter 2025 financial results reveal a resilient and growing enterprise leveraging technological innovation, strategic acquisitions, and expanded market access. The quantifiable growth in revenues, EPS, and recurring revenues indicates a robust trajectory for sustained shareholder value.
For more detailed information, please refer to the original 8-K filing: Nasdaq Q1 2025 Earnings.
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