AI Takeaway
Nasdaq (NDAQ) delivered strong FY2025 results with revenue growing 11.6% to $8.26B and net income surging 60.1% to $1.79B, driven by significant operating leverage and margin expansion across its diversified financial technology and market infrastructure businesses.
Revenue
$8.26B
++11.65% YoY
EPS (Basic)
$3.12
++60.82% YoY
Gross Margin
63.5%
++0.71% YoY
Operating Income
$2.33B
++29.64% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 11.6% year-over-year to $8.26B in FY2025 (from $7.40B in FY2024), reflecting broad-based demand for Nasdaq's financial technology solutions, market services, and data analytics offerings. This growth demonstrates the resilience and scalability of Nasdaq's diversified business model.
Source: Source: 10-K Income Statement, Financial Data
Operating income surged 29.6% to $2.33B, with operating margin expanding approximately 390 basis points to 28.2% from 24.3% in the prior year. This outpaced revenue growth substantially, indicating strong cost discipline and operating leverage inherent in Nasdaq's platform-based business model.
Source: Source: 10-K Income Statement, Financial Data
Net income jumped 60.1% to $1.79B and diluted EPS rose 60.1% to $3.09 (from $1.93), significantly outperforming the 11.6% revenue growth rate. This acceleration likely reflects reduced non-recurring charges, improved operating efficiency, and favorable below-the-line items compared to the prior year.
Source: Source: 10-K Income Statement, Financial Data
2 more insights available
Upgrade to unlockNasdaq carries $8.57B in long-term debt and a debt-to-equity ratio of approximately 1.54x, largely reflecting financing from its acquisition of Adenza. While total liabilities declined slightly in FY2025, the elevated debt load increases interest expense burden and limits financial flexibility if business conditions deteriorate. Sustained cash flow generation is critical to managing this leverage profile.
Source: Source: 10-K Balance Sheet, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.96 versus the $0.93 analyst consensus — a +3.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.26B | $7.4B | +11.65% |
Cost of Revenue | $3.01B | $2.75B | +9.52% |
Gross Profit | $5.25B | $4.65B | +12.91% |
Operating Income | $2.33B | $1.8B | +29.64% |
Net Income | $1.79B | $1.12B | +60.07% |
EPS (Basic) | $3.12 | $1.94 | +60.82% |
EPS (Diluted) | $3.09 | $1.93 | +60.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $31.05B | $30.39B | +2.16% |
Current Assets | $8B | $7.79B | +2.79% |
Total Liabilities | $18.82B | $19.2B | -1.95% |
Current Liabilities | $7.96B | $7.9B | +0.75% |
Stockholders' Equity | $12.23B | $11.19B | +9.26% |
Cash & Equivalents | $604M | $592M | +2.03% |
Long-Term Debt | $8.57B | $8.58B | -0.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.25B | $1.94B | +16.30% |
Investing Cash Flow | $-1.1B | $-953M | -15.42% |
Financing Cash Flow | $-2.95B | $-2.56B | -15.31% |
Dividends Paid | $601M | $541M | +11.09% |
Share Buybacks | $616M | $145M | +324.83% |
D&A | $145M | $125M | +16.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 63.5% | 62.8% | +0.71% |
Operating Margin | 28.2% | 24.3% | +3.92% |
Net Margin | 21.6% | — | — |
ROE | 14.6% | — | — |
ROA | 5.8% | — | — |
Current Ratio | $1.005 | — | — |
Debt to Equity | $1.539 | — | — |
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Nasdaq's revenue grew 11.6% year-over-year to $8.26B in FY2025, up from $7.40B in FY2024. This growth was broad-based across Nasdaq's financial technology, market services, and data analytics businesses, reflecting strong demand for its diversified platform offerings.
The standout takeaway from Nasdaq's FY2025 results was the dramatic acceleration in profitability, with net income surging 60.1% to $1.79B and diluted EPS rising to $3.09 from $1.93. Operating margin expanded nearly 400 basis points to 28.2%, and the company returned over $1.2B to shareholders through dividends and buybacks.
Yes, Nasdaq paid $601M in dividends in FY2025, up 11.1% from $541M in FY2024, consistent with the company's revenue growth rate. Additionally, share buybacks surged 324.8% to $616M, signaling strong confidence in the company's cash generation capacity.
Key risks for Nasdaq include its elevated leverage with $8.57B in long-term debt and a debt-to-equity ratio of 1.54x from acquisition financing, as well as a very thin current ratio of approximately 1.005x that leaves limited short-term liquidity buffer. Integration risk from large acquisitions and exposure to cyclical capital markets activity also represent meaningful concerns for investors.
Nasdaq's overall financial health appears solid, with strong and growing operating cash flow of $2.26B, improving profitability metrics, and a declining total liabilities balance. However, the company carries significant debt at $8.57B long-term and a near-breakeven current ratio of 1.005x, which investors should monitor as potential vulnerabilities if market conditions weaken.