NDAQ — Nasdaq, Inc.

Summary of Nasdaq (NDAQ) Q4 2025 Earnings Call

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Bad 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.

5. Notable 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.