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Nasdaq Inc (NASDAQ:NDAQ) delivered strong financial results in its second quarter of 2025, according to the company’s quarterly presentation released on July 24. The financial exchange operator reported double-digit growth across key metrics, with net revenue increasing 13% year-over-year to $1.31 billion and non-GAAP diluted earnings per share jumping 24% to $0.85.
The stock rose 0.82% to $89 in premarket trading following the release, building on its recent momentum. Nasdaq shares have traded between $64.33 and $90.84 over the past 52 weeks.
Quarterly Performance Highlights
Nasdaq’s Q2 2025 results demonstrated the strength of its diversified platform, with growth across all major business segments. The company’s solutions revenue, which accounts for 76% of total revenue, increased 10% year-over-year to $991 million.
As shown in the following comprehensive financial results table, Nasdaq achieved significant improvements in profitability metrics, with non-GAAP operating income rising 16% to $721 million and operating margin expanding by 2 percentage points to 55%:
The company’s recurring revenue streams showed solid growth, with Annualized Recurring Revenue (ARR) increasing 10% year-over-year to $2.93 billion. Annualized SaaS revenue grew even faster at 13% to reach $1.1 billion, now representing 37.5% of total ARR.
"Our diversified business model, the role we play with our clients as a trusted partner, and the mission-critical nature of our solutions positions us well to deliver growth, profitability, and free cash flow generation," said Adena Friedman, CEO of Nasdaq, echoing similar sentiments from the previous quarter’s earnings call.
Segment Performance
Capital Access Platforms
The Capital Access Platforms segment, which includes Index, Data and Listing Services, and Workflow and Insights, delivered strong results in Q2 2025. Revenue increased 10% year-over-year to $527 million, while operating income grew 13% to $306 million.
A standout performer was Nasdaq’s Index business, which saw assets under management (AUM) in exchange-traded products (ETPs) reach a record $745 billion at quarter-end. This growth was bolstered by $88 billion in net inflows over the trailing twelve months, including $20 billion in Q2 2025 alone.
The following chart illustrates the consistent growth in Index ETP AUM and the strong net inflows over recent quarters:
Nasdaq maintained its leadership in the U.S. IPO market, achieving an 81% win rate for eligible U.S. operating company IPOs in the first half of 2025. The company welcomed 83 operating company listings in 1H25 and added more than $270 billion in market value through its switch program.
Financial Technology
The Financial Technology segment showed robust growth, with revenue increasing 10% year-over-year to $464 million and operating income rising 9% to $217 million. ARR for this segment grew 12% to $1.62 billion, with SaaS revenue representing a growing portion of the total.
As shown in the following operational highlights, Nasdaq’s Financial Technology segment continued to expand its client base and deepen existing relationships:
Particularly strong performance came from Nasdaq Verafin, which signed 46 new small-and-medium bank clients, a Tier 2 client via a cross-sell, and two enterprise client upsells. AxiomSL delivered 34 upsells, including the renewal of a large bank and a cross-sell.
The detailed financial performance of the Financial Technology segment shows consistent growth across all subsegments:
Market Services
The Market Services segment, which includes trading services across various asset classes, delivered record net revenue of $306 million, up 22% year-over-year. Operating income surged 33% to $194 million, with operating margin expanding by 5 percentage points to 63%.
Nasdaq maintained its leadership position across key markets, including:
- #1 market share in multi-listed U.S. options (29%)
- #1 single venue of liquidity for traded-listed U.S. cash equities
- #1 market share in European cash equities markets (72%)
The following slide illustrates Nasdaq’s market share and revenue capture across different asset classes:
During the Russell reconstitution, Nasdaq’s Closing Cross successfully executed 2.5 billion shares in 0.871 seconds across Nasdaq-listed securities, representing a record $102.5 billion in notional value.
Strategic Initiatives and Financial Outlook
Nasdaq continues to execute on its strategic pillars of Liquidity, Transparency, and Integrity. Recent accomplishments include signing three clients to its Nasdaq Eqlipse Trading technology solution and launching 33 new Index products in Q2 2025.
The company’s strategic focus areas and recent accomplishments are summarized in the following slide:
On the financial front, Nasdaq is making progress on its deleveraging efforts, with gross leverage now at 3.2x. The company repaid senior unsecured notes during the quarter as part of its commitment to optimizing its capital structure for long-term investor returns.
CFO Sarah Youngwood noted, "We have an incredible organic growth path in front of us, and that is where we are focused," reiterating the company’s confidence in its organic growth strategy.
For the full year 2025, Nasdaq provided operating expense guidance of $2.295-2.335 billion on a non-GAAP basis and expects a non-GAAP tax rate of 22.5-24.5%.
The strong Q2 2025 results build on Nasdaq’s momentum from Q1, when the company also exceeded analyst expectations with EPS of $0.79 and revenue of $1.24 billion. The consistent performance across multiple quarters demonstrates Nasdaq’s ability to execute its growth strategy effectively while navigating market challenges.
Full presentation:
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