Nasdaq’s Strong Q2 2025 Performance: Revenue Growth and Strategic Innovations
Nasdaq demonstrated impressive financial results for the second quarter of 2025, reporting net revenue of $1.3 billion—a notable 12% organic increase. This growth underscores Nasdaq’s resilience and commitment to supporting global financial institutions through various market environments.
Key Highlights from Q2 2025
Adena Friedman, Nasdaq’s Chair and CEO, expressed satisfaction with the company’s performance amidst a fluctuating market landscape. "Our broad-based growth through cycles showcases our pivotal role in helping clients seize opportunities, manage risks, and enhance their operational resilience," she stated.
The firm achieved a non-GAAP diluted earnings per share of $0.85, marking a 24% increase compared to the same quarter last year. Revenue from solutions—which includes Capital Access Platforms and Financial Technology—rose by 10% to reach $991 million. Furthermore, Nasdaq’s annualized recurring revenue (ARR) hit $2.9 billion, reflecting a 9% organic growth, with Software as a Service (SaaS) revenue jumping 12% to account for 37% of total ARR.
Technology Segments Boost Revenue Through Innovation
The Financial Technology segment reported a 10% revenue increase, totaling $464 million. This growth was bolstered by strong demand across various subsections, as the division attracted 57 new clients and achieved 130 upsells, including a record number of cross-sells.
Nasdaq Verafin, part of this segment, successfully secured 46 small-to-medium bank clients and executed its first proof of concept with a major European bank. The Financial Crime Management Technology division also welcomed three new enterprise clients, further demonstrating the strength of Nasdaq’s offerings.
AxiomSL experienced continued success with existing clients, achieving 34 upsells, while the Surveillance division signed six new clients and processed a remarkable volume of upsells.
Index Business Achieves Record Growth
In the indexing sector, revenue surged by 17% to $196 million, fueled by an unprecedented $745 billion in exchange-traded product (ETP) assets under management at the end of the quarter. The company saw $88 billion in net inflows over the past year, with $20 billion coming in the latest quarter alone.
Nasdaq introduced 33 new index products within this period, including several international offerings. Importantly, the firm extended its licensing agreement with CME Group until 2039, covering futures and options tied to Nasdaq-100 and other indexes.
Market Services Showcases Record Performance
Market Services reported record net revenue of $306 million, representing a 21% organic growth, primarily driven by U.S. cash equities and derivatives revenue. The company achieved all-time high trading volumes during the Russell reconstitution event, processing 2.5 billion shares in less than a second.
Additionally, Nasdaq’s North American markets experienced record-breaking message traffic, handling over 560 billion messages in a single day.
Continuous Listing Leadership
Nasdaq’s streak of listing leadership reached 46 consecutive quarters, with the first half of 2025 witnessing the highest volume of listings since 2021. The exchange welcomed 38 U.S. operating company IPOs that garnered more than $3.5 billion in proceeds, achieving a 79% success rate.
The exchange’s efforts to attract companies from other platforms have yielded nearly $50 billion in market value during the quarter and over $270 billion year-to-date, with notable switches from companies such as Shopify and Thomson Reuters.
Solid Financial Foundation Fuels Future Growth
Sarah Youngwood, Executive Vice President and CFO, highlighted Nasdaq’s strong financial position, stating that the results reflect the resilience of its business model, which is capable of exceptional revenue growth while generating significant free cash flow.
The company reported $746 million in cash flow from operations, which supports its deleveraging strategy. Furthermore, Nasdaq returned $155 million to shareholders through dividends and repurchased $100 million in common stock while repaying $400 million in senior unsecured notes.
Notably, Nasdaq achieved its 3.3x gross leverage goal 16 months ahead of schedule, showcasing its commitment to enhancing its financial foundation while investing in growth opportunities.
Committing to Strategic Priorities
Nasdaq is dedicated to executing its strategic goals for 2025, including integrating technologies, fostering innovation, and accelerating growth. The company has acted on approximately $130 million of its expanded net expense efficiency program, with completion anticipated by year-end.
On the innovation front, Nasdaq Verafin launched its Agentic AI workforce, aimed at minimizing the workload for anti-money laundering alert reviews. The Calypso division showcased its capabilities in digital asset management, while Nasdaq became the exclusive distributor of private market data, enhancing its service offerings.
With a focus on the "One Nasdaq" approach, the firm expects to exceed $100 million in run-rate revenue from cross-sells by the end of 2027, with cross-sells already making up over 15% of its Financial Technology pipeline.
With momentum across its divisions and a clear strategic vision, Nasdaq is poised to further its mission of driving inclusive growth and prosperity in the global economy.
