Nasdaq Reports 24.8% Revenue Growth to $2.09 Billion in Q1 2025

Nasdaq, Inc. reported significant financial growth in its first quarter of 2025, with total revenues reaching $2.09 billion, a 24.8% increase from $1.67 billion in the same period last year. The company's net income attributable to shareholders also saw a substantial rise, climbing 68.9% to $395 million, compared to $234 million in the first quarter of 2024. This resulted in diluted earnings per share of $0.68, up from $0.40 a year earlier. The increase in revenue was driven by strong performance across all business segments, particularly in Market Services, which generated $1.13 billion in revenue, a 42.8% increase year-over-year.

In terms of operational metrics, Nasdaq's Capital Access Platforms segment reported revenues of $515 million, up 7.4% from the previous year, while the Financial Technology segment saw revenues of $432 million, reflecting a 10.3% increase. The Market Services segment's growth was attributed to record trading volumes in cash equities and equity options, alongside a notable increase in transaction-based expenses, which rose to $853 million from $557 million. The company also reported a total of 5,299 companies listed across its exchanges as of March 31, 2025, with 4,139 listings on The Nasdaq Stock Market.

Strategically, Nasdaq has been focusing on enhancing its technology offerings and expanding its market presence. The company achieved an 82% win rate among eligible IPOs in the U.S., raising $5 billion in total proceeds. Additionally, the Financial Technology segment reported an 11% growth in Annualized Recurring Revenue (ARR), driven by new client acquisitions and upselling existing clients. Nasdaq's Index business also reached a record average Assets Under Management (AUM) of $662 billion, with net inflows of $27 billion during the quarter.

The company has been actively managing its expenses, with total operating expenses decreasing by 2.5% to $690 million compared to $707 million in the prior year. This reduction was primarily due to lower compensation and benefits expenses, which fell to $329 million from $340 million, largely influenced by a significant pension settlement charge recorded in the previous year. Nasdaq's headcount increased to 9,377 employees, reflecting its commitment to supporting growth in its Financial Technology segment.

Looking ahead, Nasdaq remains optimistic about its growth trajectory, citing favorable market conditions and ongoing strategic initiatives. The company anticipates continued revenue growth driven by increased trading volumes and the successful integration of recent acquisitions, including Adenza. Nasdaq's management has expressed confidence in its ability to navigate potential market challenges while maintaining a focus on innovation and operational efficiency.