Nasdaq, Inc. (NDAQ) posted a standout performance in the first quarter of 2025, marked by robust revenue growth, enhanced profitability, and strong execution across strategic priorities. Total revenues surged to $2,090 million, up from $1,674 million a year ago, while net revenue (revenues less transaction-based expenses) climbed 11% year-over-year (YoY) to $1,237 million, or 12.5% on an adjusted basis. Profitability saw notable improvements, with GAAP net income rising to $395 million from $234 million, and GAAP diluted EPS increasing 69% YoY to $0.68. On a non-GAAP basis, net income grew to $456 million, driving a 24% YoY rise in non-GAAP diluted EPS to $0.79.

Each of Nasdaq’s segments contributed to the strong quarter. The Capital Access Platforms segment delivered $515 million in revenue, up 8% YoY, driven by a 14% increase in Index revenues to $193 million, supported by $27 billion in net inflows and record average ETP AUM of $662 billion. The Financial Technology segment posted $432 million in revenue, up 10% YoY, with standout growth in Financial Crime Management (+21%), Regulatory Technology (+12%), and Capital Markets Technology (+7%). Its Annualized Recurring Revenue (ARR) rose 11% (or 12% organically). Meanwhile, Market Services generated $281 million in net revenue, up 19% YoY, buoyed by record U.S. cash equities and derivatives volumes amid heightened market activity.

Nasdaq also maintained solid cash generation, with $663 million in operating cash flow. It returned $138 million to shareholders via dividends and $115 million through share repurchases, with $1.6 billion remaining under its buyback authorization. The firm also continued deleveraging, retiring $279 million in senior notes for a net purchase price of $257 million.

As of March 31, Nasdaq reported total assets of $30,647 million, cash and cash equivalents of $690 million, and long-term debt of $8,926 million, down from year-end levels. Total equity stood at $11,555 million.

On the expense side, GAAP operating expenses decreased 3% YoY to $690 million, thanks to lower administrative and compensation costs. However, non-GAAP operating expenses increased 6% (or 7% organically) to $555 million, reflecting ongoing investment in technology and talent. Non-GAAP operating income rose 15% to $682 million. The company’s ARR reached $2.83 billion, up 8% YoY (or 9% organically), with SaaS revenues growing 14% and now representing 37% of ARR.

Strategic momentum remained strong. The Financial Technology division secured 40 new clients and 92 upsells, while Nasdaq Verafin added 35 SMB clients and won Tier 2 bank contracts. In Market Services, record revenue was supported by plans for 24/5 U.S. trading expansion by H2 2026. The firm also deepened its cloud partnership with Amazon Web Services to deliver market infrastructure solutions.

Guidance for 2025 includes non-GAAP operating expenses of $2,265 million to $2,325 million and a non-GAAP tax rate of 22.5% to 24.5%.

CEO Adena Friedman emphasized Nasdaq’s strength in navigating evolving markets while delivering cross-divisional growth. CFO Sarah Youngwood highlighted strong operating leverage and free cash flow as enablers of continued investment and capital returns. Overall, Nasdaq’s Q1 results underline a solid trajectory toward sustained long-term growth, backed by strong recurring revenue, expanding SaaS footprint, and prudent capital management.