Nasdaq reported net revenue of $1.237 billion for the first quarter of 2025, marking an 11% year-over-year increase, or 12.5% on an adjusted basis.
Growth was driven by both the Solutions segment and Market Services. Solutions revenue reached $947 million, up 9%, or 11% adjusted, while Market Services net revenue climbed 19% to $281 million.
Annualized Recurring Revenue (ARR) rose 8% year-over-year to $2.83 billion, with organic growth of 9%. Financial Technology revenue grew 10% to $432 million, supported by a 21% increase in Financial Crime Management Technology revenue. The Index segment reported $193 million in revenue, up 14%, or 26% adjusted, with $27 billion in net inflows during the quarter.
GAAP diluted EPS rose significantly by 69% to $0.68. Non-GAAP diluted EPS came in at $0.79, reflecting 24% growth. Operating income on a GAAP basis was $547 million, up from $410 million a year earlier. On a non-GAAP basis, operating income reached $682 million, up 15%, and the non-GAAP operating margin increased to 55% from 53%.
Operating expenses on a GAAP basis decreased 3% to $690 million, while non-GAAP operating expenses rose 6% to $555 million due to technology and talent investments. Nasdaq repurchased $115 million in common stock and $279 million in senior notes during the quarter, while returning $138 million to shareholders via dividends.
In terms of business activity, Nasdaq welcomed 45 new operating company listings, raising nearly $5 billion in proceeds, and recorded a high 82% win rate. Notable transfers included Shopify, Thomson Reuters, and Domino’s Pizza, contributing to Nasdaq surpassing $3 trillion in market value for cumulative listing transfers.
Financial Technology ARR climbed 11% year-over-year, supported by growth in all subsegments. Verafin added 35 new SMB clients and secured multiple strategic wins, including cross-sells. AxiomSL signed a major digital bank and a large Tier 1 U.S. financial institution. Capital Markets Technology saw 25 upsells for Calypso and 17 for Market Technology, including a notable cross-sell to nuam, the consolidated operator in Latin America.
Nasdaq’s Index business also achieved record net inflows and launched 30 new index products, with recent products launched since 2020 accounting for 33% of net inflows over the past five years.
The company aims to launch 24/5 trading in the U.S. by the second half of 2026, pending regulatory approval. Additionally, Nasdaq deepened its cloud partnership with AWS to deliver scalable market infrastructure and plans to begin rollout in its Nordic markets.
For 2025, Nasdaq updated its non-GAAP operating expense guidance to between $2.265 billion and $2.325 billion, maintaining a non-GAAP tax rate range of 22.5% to 24.5%.
Wall Street2025-04-25
