Nasdaq's Q2 2025 Earnings Call: Unpacking Contradictions in Sales Cycles, Regulatory Challenges, and Growth Drivers

Sales cycle dynamics and market volatility, regulatory uncertainties and AxiomSL implementations, index business growth drivers, and Verafin growth and demand are the key contradictions discussed in Nasdaq's latest 2025Q2 earnings call.



Revenue and Operating Income Growth:
- Nasdaq reported net revenue of $1.3 billion for Q2 2025, marking a 12% year-over-year increase, and operating income of $721 million, which grew 16%.
- This growth was driven by strong performance across Capital Access Platforms, Financial Technology, and Market Services, as well as solid fundamentals in the U.S. economy.

Index and Data Performance:
- The index revenue was up 17% in Q2 with average ETP AUM reaching $663 billion, indicating a 25% increase.
- This growth was attributed to strong net inflows, including $20 billion in Q2 and $88 billion over the last 12 months, as well as the launch of 33 new index products.

IPO and New Listings:
- Nasdaq welcomed 38 new operating companies to its listings in Q2, representing a 79% win rate, raising $3.6 billion.
- This success was due to the strong momentum in the switch program and a robust pipeline, with the expectation for strong IPO performance continuing into 2026.

Financial Technology Subdivision:
- Financial Technology revenue grew 10% with ARR increasing 11%, driven by sustained demand for critical technologies and effective execution.
- Key contributions came from Financial Crime Management Technology, with a 19% ARR growth, and new client signings and upsells across subdivisions.