Nasdaq Inc.
NDAQBusiness Overview
ticker: NDAQ step: 01 generated: 2026-05-13 source: quick-research
Nasdaq, Inc. (NDAQ) — Business Overview
Business Description
Nasdaq, Inc. is a global technology company serving the financial industry — far beyond simply running the Nasdaq stock exchange. The company has strategically transformed from a pure exchange operator into a diversified financial technology provider through acquisitions of Verafin (financial crime management, 2021), and most significantly Adenza (Calypso + AxiomSL, $10.5B, Nov 2023). FY2025 net revenue crossed $5.2B for the first time, with Solutions revenue (recurring software/data) reaching $4.0B — ~77% of net revenue. The company serves 6,500+ broker-dealers, 2,600+ banks, and 450+ exchanges globally.
Revenue Model
Three segments: (1) Capital Access Platforms — index data (Nasdaq-100, etc.), listings fees, IPO services, ESG/sustainability products, investor relations software; (2) Financial Technology (FinTech) — Financial Crime Management Technology (Verafin), Regulatory Technology (AxiomSL), Capital Markets Technology (Calypso), and trade surveillance; (3) Market Services — U.S. equities/options/fixed income trading, Nordic/Baltic exchanges. The strategic shift is toward recurring SaaS/subscription revenue (37% of ARR is annualized SaaS, growing 14% YoY) and away from transaction-based revenue tied to market volatility.
Products & Services
- Nasdaq-100 Index / ETF licensing: Powers the QQQ ETF; index licensing fees on ~$662B+ ETP AUM
- Verafin: AI-powered financial crime management (anti-money laundering, fraud detection) for banks
- AxiomSL: Regulatory reporting software; 350+ financial institutions in 55+ countries
- Calypso: Capital markets treasury and risk management platform
- eVestment / Solovis: Investment analytics for asset managers
- FinancialFrameworks: Core banking SaaS
- Nasdaq MarketSite / Listings: NYSE competitor for IPO listings and listed company services
- Surveillance & Trade Analytics: Market surveillance technology for 130+ exchanges globally
Customer Base & Go-to-Market
Global financial institutions — banks, broker-dealers, exchanges, asset managers, and regulators. Sticky enterprise SaaS contracts with 5-7 year average terms. Nasdaq's 42 cross-sell deals between Adenza close and end of 2025 demonstrate the commercial opportunity of selling FinTech products to Capital Access Platforms clients and vice versa.
Competitive Position
In exchange technology: competes with ICE, CBOE, and CME. In financial technology: competes with FIS, Finastra, Broadridge, and SS&C for different parts of the tech stack. Nasdaq's differentiation is the combination of exchange credibility, regulatory-grade product quality, and now the post-Adenza FinTech suite that covers compliance → risk management → capital markets trading from a single vendor.
Key Facts
- Founded: 1971 (as NASDAQ stock market)
- Headquarters: New York, NY
- Employees: ~7,500
- Exchange: NASDAQ
- Sector / Industry: Financials / Financial Exchanges & Data
- Market Cap: ~$45–50B
Financial Snapshot
ticker: NDAQ step: 04 generated: 2026-05-13 source: quick-research
Nasdaq, Inc. (NDAQ) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue (GAAP) | $6.23B | $6.06B | $7.40B | +22.0% |
| Net Revenue (mgmt.) | ~$3.60B | ~$3.97B | ~$4.64B | +16.9% |
| Gross Margin | ~60% | ~60% | ~60% | |
| Operating Margin | ~25% | ~29% | ~27% | |
| Net Income | $1.12B | $1.79B | $1.91B | +6.9% |
| EPS (diluted) | ~$1.34 | ~$2.09 | ~$2.25 | +7.7% |
GAAP revenue jumped 22% in FY2024 due to the Nov 2023 Adenza acquisition adding ~$1.4B annualized. Net revenue (management metric) strips out certain items and is the preferred comparability metric. FY2025 net revenue: $5.2B (+12% adjusted), first time crossing $5B. Solutions revenue (recurring software/data) reached $4.0B in FY2025.
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Net Revenue (FY2025) | $5.2B (record) |
| Solutions Revenue (FY2025) | $4.0B (~77% of net revenue) |
| Annualized SaaS Revenue Growth | +14% YoY |
| Long-Term Debt (post-Adenza) | ~$8-9B (elevated) |
| Leverage Ratio | ~3.1x (targeting 3.0x by year-end 2025) |
| Debt Repaid (FY2025) | $826M |
| Capital Returned (FY2025) | >$1.2B (dividends + buybacks) |
| Quarterly Dividend | $0.27/share (+13% raise); ~$1.08 annualized |
| Adenza Synergies | $150M expense savings achieved; $100M revenue synergies target by 2027 |
Key Ratios (approximate)
- P/E: ~34–36x | EV/EBITDA: ~22–25x | FCF Yield: ~3–4%
- Revenue Growth (Solutions, FY2025): +12% adjusted | SaaS ARR Growth: +14%
- Cross-sell deals (Adenza-era): 42 major deals executed
- S&P credit upgrade to BBB+ in 2025
Growth Profile
Nasdaq is a compounding financial technology platform with an accelerating shift toward recurring, high-margin SaaS revenue. The Adenza acquisition (AxiomSL + Calypso, $10.5B in Nov 2023) was the pivotal transformation move — adding regulatory and capital markets technology to Nasdaq's existing FinTech footprint and creating the cross-sell opportunity that generated 42 deals by end of 2025. Management raised revenue targets at the February 2026 Investor Day.
Forward Estimates
- FY2026 guidance: Double-digit Solutions revenue growth; AI strategy taking center stage
- Adenza revenue synergies: $100M target by 2027 (cross-sells still being executed)
- Leverage: Target <3.0x by year-end 2025 (S&P upgrade facilitates further debt reduction)
- Analyst consensus: ~26 Buy, 8 Hold; price targets $75–100+ (median ~$85–90)
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $NDAQ.