Nasdaq beat Wall Street expectations in the second quarter with net revenue of $1.5 billion, up 15% year on year, and non-GAAP diluted earnings per share of $1.07 against the $0.98 consensus of 14 analysts. The exchange operator raised its quarterly dividend by 15% to $0.31 per share and listed SpaceX in the largest initial public offering in exchange history. Revenue growth was driven by strong performance across divisions, with the Index segment reaching $1 trillion in tracked assets for the first time as exchange-traded products saw record inflows. Shares opened at $92.71, up about 2% from Wednesday's close of $90.90, following the earnings announcement.
Nasdaq Reports Revenue Beat and Dividend Increase
The earnings beat was roughly 9% above consensus against a revenue beat of about 3%. GAAP diluted EPS was $0.89, up 14%. GAAP operating income rose 25% to $712 million, lifting GAAP operating margin to 47% from 44%, while the non-GAAP margin reached 57%. Operating expenses grew 7% on a GAAP basis, with increases driven by compensation, marketing tied to a stronger IPO market, and technology investment.
The board declared a quarterly dividend of $0.31 a share, up from $0.27 in both the prior quarter and the year-ago period. Nasdaq returned $174 million through dividends and $356 million through buybacks in the quarter, with $2.5 billion left on the repurchase authorization.
Index Division Surpasses $1 Trillion in Tracked Assets
Index revenue rose 38% to $271 million, or 35% adjusted for a $6 million one-time benefit from a contract modification, as exchange-traded products tracking Nasdaq indices passed $1 trillion in assets for the first time. End-of-period ETP assets under management reached $1.114 trillion against $745 billion a year earlier. Net inflows hit a record $51 billion in the quarter and $109 billion over twelve months.
Capital Access Platforms, the division housing Index, grew 19%. Financial Technology grew 16% to $539 million, with annualized recurring revenue up 16%. Market Services, the trading franchise, produced $340 million in net revenue and grew 11%.
Nasdaq Lists SpaceX in Record $75 Billion IPO
Nasdaq listed SpaceX in the second quarter, the largest IPO in exchange history, which priced 555.6 million shares at $135 to raise $75 billion and which Nasdaq puts at $86 billion in total proceeds. The stock closed its first day up 19% at a $2.1 trillion valuation, eclipsing Saudi Aramco's $29.4 billion record that had stood for seven years.
Cerebras, Quantinuum and Parabilis Medicines each set sector records in the same quarter, and Nasdaq took seven of the ten largest operating-company IPOs at a 74% win rate. SK hynix followed in the third quarter as the largest American depositary receipt listing in US market history.
Nasdaq Receives Approval for Tokenized Collateral and Event Options
Calypso, Nasdaq's trade lifecycle platform, supported proof-of-concept tokenized collateral trades on the Canton Network, with two large asset managers transmitting tokenized money market funds through it early in the third quarter. Nasdaq received SEC approval to list event options tied to the Nasdaq-100, with launch expected in the fourth quarter.
FAQ
What were Nasdaq's earnings results for the second quarter?
Nasdaq reported net revenue of $1.5 billion, up 15% year on year, and non-GAAP diluted earnings per share of $1.07 against the $0.98 consensus of 14 analysts. GAAP diluted EPS was $0.89, up 14%. GAAP operating margin reached 47%, up from 44%.
How much did Nasdaq raise its dividend?
The board declared a quarterly dividend of $0.31 per share, up from $0.27 in both the prior quarter and the year-ago period, representing a 15% increase.
What was the size of the SpaceX IPO that Nasdaq listed?
Nasdaq listed SpaceX in the largest IPO in exchange history, which priced 555.6 million shares at $135 to raise $75 billion. The stock closed its first day up 19% at a $2.1 trillion valuation, eclipsing Saudi Aramco's $29.4 billion record that had stood for seven years.
