Summary of Nasdaq (NDAQ) Q4 2025 Earnings Call

1Key Financial Results and Metrics

Annual Results:

Net Revenue: $5.2 billion, up 12% YoY.

Solutions Revenue: $4 billion, up 11%.

Operating Income: $2.9 billion, up 16%.

Diluted EPS: $3.48, up 24%.

Q4 Results:

Net Revenue: $1.4 billion, up 13% YoY.

Solutions Revenue: $1.1 billion, up 12%.

Operating Income: $783 million, up 16%.

Diluted EPS: $0.96, up 27%.

ARR (Annual Recurring Revenue): Ended at $3.1 billion, up 10% YoY.

2Strategic Updates and Business Highlights

Nasdaq achieved significant milestones, surpassing $5 billion in annual net revenue for the first time.

The index franchise saw record average AUM and inflows, with a total of $99 billion in net inflows over the last year.

Market services delivered record revenues in US equities and options, with a notable $1.2 trillion in listing transfers.

The company successfully integrated AI into its operations, launching new AI-enabled products, including the Agentic AI workforce.

Nasdaq's Capital Access Platforms reported a strong IPO year, securing three of the top five IPOs in 2025.

The Financial Technology division grew by 11%, with Financial Crime Management Technology leading at 22% growth.

3Forward Guidance and Outlook

Nasdaq anticipates an active new issuance year in 2026, supported by a healthy pipeline of late-stage private companies and favorable market conditions.

The company expects to maintain a non-GAAP operating expense guidance of $2.455 billion to $2.535 billion for 2026.

Nasdaq aims to surpass $100 million in run-rate revenue from cross-sells by 2027, with cross-sells currently accounting for over 15% of the Financial Technology sales pipeline.

4Bad News, Challenges, or Points of Concern

The company expects a $9 million headwind each quarter in 2026 from delistings and changes to listing standards.

There is potential revenue variability due to the timing of enterprise client implementations in the Financial Technology segment.

The regulatory environment remains a challenge, particularly concerning the establishment of an Alternative Trading System (ATS) and the integration of tokenized equities.

5Notable Q&A Insights

Options Market: Nasdaq's recent SEC approval for expanded options expirations is expected to enhance market volumes and client participation.

Equity Options Volumes: Growth in equity options is attributed to a broader investor base, including retail and institutional investors, indicating a structural shift in market engagement.

Data and Listings Segment: There is optimism for accelerating new listings activity in 2026, despite some disruptions in 2025 due to external factors like the government shutdown.

Financial Crime Management: The segment is expected to see continued growth, although revenue variability may occur due to the timing of client implementations.

Tokenization of Equities: Nasdaq is focused on integrating tokenized equities with existing infrastructure while ensuring investor protection and issuer choice. Overall, Nasdaq reported a strong performance in 2025, with promising growth in various segments, although challenges related to regulatory changes and market conditions may impact future performance.