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1. Company Snapshot

1.a. Company Description

Nasdaq, Inc.operates as a technology company that serves capital markets and other industries worldwide.The Market Technology segment includes anti financial crime technology business, which offers Nasdaq Trade Surveillance, a SaaS solution for brokers and other market participants to assist them in complying with market rules, regulations, and internal market surveillance policies; Nasdaq Automated Investigator, a cloud-deployed anti-money laundering tool; and Verafin, a SaaS technology provider of anti-financial crime management solutions.


This segment also handles assets, such as cash equities, equity derivatives, currencies, interest-bearing securities, commodities, energy products, and digital currencies.The Investment Intelligence segment sells and distributes historical and real-time market data; develops and licenses Nasdaq-branded indexes and financial products; and provides investment insights and workflow solutions.The Corporate Platforms segment operates listing platforms; and offers investor relations intelligence and governance solutions.


As of December 31, 2021, it had 4,178 companies listed securities on The Nasdaq Stock Market, including 1,632 listings on The Nasdaq Global Select Market; 1,169 on The Nasdaq Global Market; and 1,377 on The Nasdaq Capital Market.The Market Services segment includes equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and trade management service businesses.This segment operates various exchanges and other marketplace facilities across various asset classes, which include derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository services.


The company was formerly known as The NASDAQ OMX Group, Inc.and changed its name to Nasdaq, Inc.in September 2015.


Nasdaq, Inc.was founded in 1971 and is headquartered in New York, New York.

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1.b. Last Insights on NDAQ

Nasdaq, Inc.'s recent performance was driven by its increasing on-trading revenue base, impressive organic growth, and investments in proprietary data, supported by a solid capital position. The company's Q2 results reflected higher subscription revenues, growth in trading volume, and improved analytics revenues, with a 24% EPS growth and 13% revenue rise. Nasdaq's solid growth attributes, including strong profit margins and top-line growth factors, are expected to continue driving its performance.

1.c. Company Highlights

2. Nasdaq's Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

Nasdaq reported net revenue of $1.3 billion for Q3 2025, up 11% year-over-year, with solutions revenue exceeding $1 billion for the first time. The company delivered 19% EPS growth, with EPS coming in at $0.88, beating estimates of $0.852. Operating expenses were $583 million, up 5%, resulting in an operating margin of 56% and EBITDA margin of 58%. The strong revenue growth was driven by 8 percentage points of alpha, from new and existing clients and product innovation, and 3 percentage points from beta factors, due to elevated volumes in Market Services and higher valuation in NASDAQ indices.

Publication Date: Nov -25

📋 Highlights
  • Revenue Growth Acceleration:: Net revenue surged 11% YoY to $1.3 billion, driven by 8pp alpha (new clients, product innovation) and 3pp beta (elevated Market Services volumes and index valuations).
  • EPS Surpassing Targets:: Earnings per share (EPS) grew 19%, achieving the accretion milestone six months ahead of schedule, with operating margin at 56% and EBITDA margin at 58%.
  • Financial Technology Strength:: Financial Technology revenue rose 13% ($457 million), with 12% ARR growth and a 45% operating margin, up 1.5pp, fueled by fintech's 12% ARR expansion.
  • Cross-Sell Momentum:: The One Nasdaq strategy secured 4 cross-sell wins in Q3, with cross-sells accounting for 15% of the fintech sales pipeline and a $100M run-rate revenue target by 2027 on track.
  • Cost Efficiency & Cash Flow:: Operating expenses grew 5% to $583 million, yielding $150M+ in net expense efficiency, while free cash flow reached $516 million, supporting $115M in share repurchases.

Segment-wise Performance

Capital Access Platforms revenue was $546 million, up 8%, with data and listings revenue up 6% and ARR up 7%. Financial Technology revenue was $457 million, up 13%, with ARR growth of 12%. Market Services delivered 13% net revenue growth, driven by elevated market-wide equities volumes and record U.S. option industry volumes. The company's One Nasdaq strategy drove 4 cross-sell wins in financial technology, with cross-sells accounting for over 15% of the financial technology sales pipeline.

Growth Prospects and Innovation

Nasdaq is making significant strides in innovation, including the integration of AI into its products and business operations. The company sees AI as a significant opportunity, with two main programs focused on driving efficiency in product development and client implementations, and improving client experience. AI-powered solutions like Agentic AI in Verafin have shown to reduce workflow time by 80%, delivering a strong ROI to clients. The company is also working on tokenization, allowing for tokenized securities to trade on its exchange, with plans to settle trades in a digital wallet infrastructure.

Valuation and Outlook

With a P/E Ratio of 31.2 and EV/EBITDA of 20.01, Nasdaq's valuation suggests that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 7.7%. Nasdaq's ROE of 13.96% and ROIC of 7.69% indicate a strong return on equity. The company's dividend yield of 1.15% provides a relatively stable source of return. With a strong track record of revenue growth and margin expansion, Nasdaq is well-positioned to continue delivering value to shareholders.

Financial Technology and Regulatory Technology Performance

Financial Technology operating margin was 45%, up 1.5 percentage points. Regulatory Technology revenue grew 9%, with ARR up 11%, while Capital Markets Technology revenue grew 12%, with ARR up 10%. The company expects recent enterprise signings to translate into stronger revenue growth starting in Q4. Nasdaq's anti-financial crime business with Verafin is seeing robust sales in the SMB space, with new opportunities to grow and expand.

Market Services and Capital Management

Nasdaq's Market Services reported net revenue of $303 million, up 13%, driven by elevated market-wide equities volumes and record U.S. option industry volumes. The company generated free cash flow of $516 million and paid a dividend of $0.27 per share or $155 million. Nasdaq repurchased $69 million of debt and 1.2 million shares of common stock for $115 million, demonstrating its commitment to returning capital to shareholders.

3. NewsRoom

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Life After Mag 7

00:05

Source: seekingalpha.com

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BNY and Nasdaq Invest in Blockchain Tech Company Digital Asset

Dec -04

Source: pymnts.com

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Coinbase to Participate in 53rd Annual Nasdaq London Investor Conference

Dec -03

Source: businesswire.com

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Nasdaq Reports November 2025 Volumes

Dec -03

Source: globenewswire.com

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Zacks Small-Cap Research Initiates Coverage on Nasdaq listed Blue Gold Limited

Dec -03

Source: globenewswire.com

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Nasdaq, Inc. (NDAQ) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Nasdaq Halts MaxsMaking Inc.

Dec -02

Source: globenewswire.com

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BRODSKY & SMITH SHAREHOLDER UPDATE: Notifying Investors of the Following Investigations: Repare Therapeutics Inc. (Nasdaq – RPTX), Axalta Coating Systems Ltd. (NYSE – AXTA), Blue Foundry Bancorp (Nasdaq – BLFY), Golden Entertainment, Inc (Nasdaq - GDEN)

Dec -02

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.49%)

6. Segments

Market Services

Expected Growth: 6.5%

Market Services from Nasdaq, Inc. grew 6.5% due to increased trading volumes, driven by market volatility and investor activity. Strong performance in index licensing and analytics also contributed, as Nasdaq's indexes, such as the Nasdaq-100, remained popular among investors. Additionally, growth in cloud-based services and digital transformation initiatives further fueled the segment's expansion.

Corporate Services

Expected Growth: 5.8%

Nasdaq's Corporate Services growth (5.8%) is driven by increasing demand for governance, risk, and compliance solutions. The segment benefits from recurring revenue streams, expanded client base, and cross-selling opportunities. Additionally, Nasdaq's strategic acquisitions and investments in technology enhance its offerings, contributing to the growth.

Capital Access Platforms

Expected Growth: 9.0%

Capital Access Platforms' 9.0% growth is driven by increasing demand for streamlined equity capital markets, driven by Nasdaq's expanding client base, modular platform offerings, and strategic acquisitions enhancing its market position, alongside growing need for efficient and compliant fundraising solutions.

Financial Technology

Expected Growth: 8.0%

The Financial Technology segment's 8.0% growth is driven by increasing demand for digital payments, online lending, and blockchain solutions. Rising adoption of mobile banking, regulatory support for fintech innovation, and investments in AI and cybersecurity also fuel growth. Additionally, partnerships between fintech firms and traditional financial institutions enhance market reach and offerings.

7. Detailed Products

Nasdaq Market Technology

Provides technology solutions for exchanges, clearinghouses, and other market infrastructure providers to support trading, clearing, and settlement operations.

Nasdaq Trading and Execution

Offers trading and execution services for buy-side and sell-side firms, including agency brokerage services, and trading platforms.

Nasdaq Market Data

Provides real-time and historical market data to support trading, research, and analytics for a wide range of customers.

Nasdaq Listing Services

Supports companies in listing their shares on the Nasdaq stock exchange, providing guidance on listing requirements and compliance.

Nasdaq Index and Analytics

Offers index and analytics solutions, including Nasdaq indexes, data analytics, and insights to support investment decisions.

Nasdaq Cloud Services

Provides cloud-based solutions for financial institutions, exchanges, and other market participants to support their technology infrastructure.

Nasdaq Risk and Surveillance

Offers risk management and market surveillance solutions to help firms monitor and manage risk, detect market abuse, and ensure compliance.

8. Nasdaq, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nasdaq, Inc. operates a unique stock exchange and provides a range of services including trading, listing, and market data. The threat of substitutes is low because there are no close substitutes for a stock exchange, and the company's services are highly specialized.

Bargaining Power Of Customers

Nasdaq, Inc.'s customers include broker-dealers, institutional investors, and listed companies. While these customers have some bargaining power, Nasdaq's dominant position in the market and the high cost of switching to a different exchange limit their ability to negotiate prices and terms.

Bargaining Power Of Suppliers

Nasdaq, Inc.'s suppliers include technology providers, data centers, and other service providers. The company has a large number of suppliers and is not dependent on any one supplier, which limits the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low because establishing a new stock exchange requires significant investment in technology, infrastructure, and regulatory compliance. Additionally, Nasdaq's brand recognition and established relationships with customers and listed companies create barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the stock exchange industry is medium. While there are a limited number of stock exchanges, Nasdaq competes with other exchanges such as the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE). However, each exchange has its own unique characteristics and strengths, which limits the intensity of competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.86%
Debt Cost 5.24%
Equity Weight 53.14%
Equity Cost 9.24%
WACC 7.36%
Leverage 88.18%

11. Quality Control: Nasdaq, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CME Group

A-Score: 7.1/10

Value: 2.0

Growth: 5.9

Quality: 8.5

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
BNY Mellon

A-Score: 6.7/10

Value: 3.9

Growth: 6.6

Quality: 6.8

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Nasdaq

A-Score: 5.7/10

Value: 2.2

Growth: 5.8

Quality: 6.7

Yield: 3.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
ICE

A-Score: 5.4/10

Value: 2.7

Growth: 6.1

Quality: 6.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
MSCI

A-Score: 5.3/10

Value: 2.8

Growth: 7.9

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
S&P Global

A-Score: 5.1/10

Value: 1.5

Growth: 6.7

Quality: 8.0

Yield: 1.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.29$

Current Price

90.29$

Potential

-0.00%

Expected Cash-Flows