Nasdaq:NDAQ
NASDAQ, INC.
Nasdaq Inc (NDAQ) is a premier global provider of electronic communications networks, data analytics, and technology services powering stock markets worldwide.
Key Metrics
Investment Thesis
Bull Case
NDAQ offers compelling growth potential through its expanding digital assets ecosystem and increasing adoption of AI-driven data analytics solutions by institutional investors. The company's diversified business model across multiple market segments provides stable cash flows that can support continued share repurchases of $616M and dividend payments of $601M, enhancing shareholder returns in a volatile market environment.
Bear Case
Investors should consider the substantial accumulated other comprehensive loss of -$1.77B and a retained earnings deficit of $9.59B which may signal underlying valuation challenges or historical capital allocation issues. Additionally, the company's heavy reliance on technology infrastructure with long-term debt of $8.57B creates sensitivity to interest rate hikes and potential regulatory headwinds in the digital assets sector.
About NASDAQ, INC.
Nasdaq, Inc. operates as a leading data analytics and technology company that owns and operates the NASDAQ stock market, serving global investors with real-time pricing and data solutions. The company provides critical infrastructure for capital markets, offering equity trading, fixed income markets, and digital asset exchanges alongside its extensive financial data services.
Analysis
Management Discussion
The company demonstrated strong financial resilience with revenue growing to $8.26B in 2025 from $7.40B the prior year, driven by robust trading volumes and data demand. Net income surged to $1.79B, significantly outpacing the previous year's $1.11B, while maintaining healthy operating cash flow of $2.25B despite a net cash decrease of $1.07B due to strategic financing activities.
Industry Overview
The financial data and market infrastructure industry is rapidly evolving as traditional equities face competition from digital asset exchanges and decentralized finance platforms. Companies like Nasdaq must continuously innovate their technology stacks and expand service offerings to retain institutional clients who seek integrated solutions for trading, risk management, and real-time analytics.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.23B | $6.06B | $7.40B | $8.26B |
| Cost of Revenue | $2.64B | $2.17B | $2.75B | $3.01B |
| Gross Profit | $3.58B | $3.90B | $4.65B | $5.25B |
| Operating Expenses | $2.02B | $2.32B | $2.85B | $2.92B |
| Operating Income | $1.56B | $1.58B | $1.80B | $2.33B |
| G&A | $125.0M | $113.0M | $109.0M | $75.0M |
| Stock-Based Comp | $106.0M | $122.0M | $141.0M | $165.0M |
| D&A | $105.0M | $117.0M | $125.0M | $145.0M |
| Amortization | $153.0M | $206.0M | $488.0M | $487.0M |
| Other OpEx | $1.89B | $2.20B | $2.74B | $2.84B |
| Non-Operating Income | $-89.0M | $-177.0M | $-349.0M | $-186.0M |
| Interest Expense | $129.0M | $284.0M | — | — |
| Interest Income | $7.0M | $115.0M | $28.0M | $39.0M |
| Pre-Tax Income | $1.48B | $1.40B | $1.45B | $2.15B |
| Income Tax | $352.0M | $344.0M | $334.0M | $358.0M |
| Continuing Ops | $1.12B | $1.06B | $1.11B | $1.79B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.12B | $1.06B | $1.11B | $1.79B |
| Minority Interest | $-2.0M | $-2.0M | $-2.0M | $-1.0M |
| Net to Common | $1.12B | $1.06B | $1.12B | $1.79B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $8.60B | $9.10B | $7.79B | $8.00B |
| Cash & Equivalents | $502.0M | $453.0M | $592.0M | $604.0M |
| Other Current Assets | $8.10B | $8.64B | $7.19B | $7.40B |
| Long-Term Assets | $12.26B | $23.20B | $22.61B | $23.05B |
| PP&E (Net) | $532.0M | $576.0M | $593.0M | $728.0M |
| Intangibles | $2.58B | $7.44B | $6.91B | $6.51B |
| Goodwill | $8.10B | $14.11B | $13.96B | $14.37B |
| Operating Leases | $444.0M | $402.0M | $375.0M | $447.0M |
| Other LT Assets | $218.0M | $285.0M | $362.0M | $481.0M |
| Total Assets | $20.87B | $32.29B | $30.39B | $31.05B |
| Current Liabilities | $8.84B | $9.03B | $7.90B | $7.96B |
| Current Leases | $54.0M | $62.0M | $55.0M | $60.0M |
| Deferred Revenue | $357.0M | $594.0M | $711.0M | $785.0M |
| Other Current Liab | $8.42B | $8.37B | $7.14B | $7.12B |
| Long-Term Liabilities | $5.87B | $12.44B | $11.29B | $10.86B |
| Long-Term Debt | $4.74B | $10.16B | $9.08B | $8.57B |
| LT Operating Leases | $452.0M | $417.0M | $388.0M | $462.0M |
| Other LT Liab | $682.0M | $1.86B | $1.82B | $1.82B |
| Total Liabilities | $14.70B | $21.47B | $19.20B | $18.82B |
| Shareholders' Equity | $6.16B | $10.83B | $11.20B | $12.23B |
| Paid-In Capital | $1.45B | $5.50B | $5.53B | $5.12B |
| Retained Earnings | $7.21B | $7.83B | $8.40B | $9.59B |
| AOCI | $-1.99B | $-1.92B | $-2.10B | $-1.77B |
| Total L&E | $20.87B | $32.29B | $30.39B | $31.05B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.12B | $1.06B | $1.11B | $1.79B |
| Non-Cash Adjustments | $409.0M | $624.0M | $292.0M | $374.0M |
| Working Capital Changes | $174.0M | $15.0M | $532.0M | $94.0M |
| Cash from Operations | $1.71B | $1.70B | $1.94B | $2.25B |
| Capital Expenditures | $152.0M | $158.0M | $207.0M | $266.0M |
| Cash from Investing | $49.0M | $-5.99B | $-953.0M | $-1.10B |
| Debt Issuances | $539.0M | — | $0 | — |
| Debt Repayments | $1.10B | $260.0M | $521.0M | $826.0M |
| Share Buybacks | — | $269.0M | $145.0M | $616.0M |
| Dividends Paid | $383.0M | $441.0M | $541.0M | $601.0M |
| Cash from Financing | $1.04B | $4.22B | $-2.56B | $-2.95B |
| FX Effect | $-1.29B | $202.0M | $-537.0M | $726.0M |
| Net Change in Cash | $1.50B | $124.0M | $-2.11B | $-1.07B |
| Beginning Cash | $5.50B | $6.99B | $7.12B | $5.01B |
| Ending Cash | $6.99B | $7.12B | $5.01B | $3.93B |
Frequently Asked Questions
How does NASDAQ, INC. make money?
Primary revenue streams include the NASDAQ Stock Market offering equity trading solutions and pricing data to institutional clients; the Fixed Income Business providing market infrastructure and data for bond markets; Digital Assets Exchange delivering cryptocurrency trading platforms; and Data & Analytics Services supplying real-time financial information to media outlets, search engines, and financial institutions.
What are the main risks for NDAQ?
Regulatory scrutiny and potential policy changes affecting cryptocurrency trading and market surveillance could impact the Digital Assets segment; high capital expenditure requirements to maintain cutting-edge electronic communication networks and cybersecurity defenses; and reliance on large institutional clients whose trading volumes may fluctuate based on broader economic conditions or geopolitical tensions.
What is NDAQ's competitive advantage?
Nasdaq benefits from a dominant global footprint with multiple exchange listings creating high switching costs for participants; a robust proprietary technology stack that enables superior data analytics capabilities and rapid innovation in digital assets; and a diversified revenue model across equities, fixed income, and emerging crypto markets that mitigates single-market volatility.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.