Nasdaq (NDAQ) Q1 2025 earnings summary

Executive summary

• Achieved double-digit revenue growth across all divisions in Q1 2025, with net revenues reaching up to $1.24 billion and adjusted growth as high as 12.5%.

• EPS grew 24% non-GAAP and 69% GAAP year-over-year, supported by strong operating leverage, robust cash flow, and effective expense management.

• All segments posted strong results: Market Services delivered record revenues and volumes, Financial Technology ARR rose up to 12%, and Index business achieved a sixth consecutive record quarter with $662 billion ETP AUM.

• Strategic initiatives included expanded efficiency programs targeting $140 million in synergies, over $100 million actioned, and a strengthened AWS partnership.

• Achieved an 82% win rate for eligible U.S. IPOs, with 45 offerings and $5 billion raised.

Financial highlights

• Net revenues reached up to $1.24 billion, up 11% year-over-year; Solutions revenue grew to $947 million, up 11% adjusted.

• Market Services net revenue rose 19% to $281 million, with record U.S. options and cash equities volumes.

• Financial Technology revenue increased 10% to $432 million, with Financial Crime Management Technology up 21%.

• Index revenue up 26% adjusted, with $27 billion net inflows and $662 billion average ETP AUM.

• Free cash flow reached $674 million, with $138 million in dividends and $115 million in share repurchases.

Outlook and guidance

• 2025 non-GAAP operating expense guidance set at $2.265–$2.325 billion; tax rate guidance at 22.5%–24.5%.

• Efficiency program targets $140 million in synergies and $100 million in cross-sell run rate revenue by 2027.

• Medium-term growth outlook: Capital Access Platforms 5–8%, Financial Technology 8–11%, Market Services 5–8%.

• Board approved a 13% increase in quarterly dividend to $0.27 per share, payable June 27, 2025.

• Management expects sustainable growth through 2025 and the medium term, supported by innovation and strategic investments.