Q2 2025 Nasdaq Inc Earnings Call

July 24, 2025

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Otto Garrett: I would now like to hand, the conference over to auto Garrett Senior Vice President and Investor Relations Officer. Please go ahead.

Speaker Change: Good morning, everyone and thank you for joining us today to discuss Nasdaq's second quarter 2025, and as a result on the line our Edina Friedman, our chair and Chief Executive Officer, Sarah Young Wood, our Chief Financial Officer, and other members of the management team. After prepared remarks, we will open the line for Q&A. The press release and earnings presentation accompanying this call can be found on our investor.

Otto Garrett: Relations website.

Otto Garrett: I'd like to remind you that we will be making forward looking statements on this call that involve risks a summary of those risks is contained in our press release with a more complete description in our annual report on Form 10-K, we will discuss our financial performance on a non-GAAP basis, excluding the impact of divestitures and the impact of FX organic and adjusted growth rates are equivalent this quarter as they include the same period.

Otto Garrett: Over period adjustments definitions and reconciliations of U S. GAAP to non-GAAP adjustments can be found in our earnings presentation as well as in a file in the financial section of our Investor Relations website at IR Dot NASDAQ Dot com.

Otto Garrett: Also we have included a page in the appendix regarding the sale of our Nordic power futures business to Euronext and with that I will turn the call over to Anita. Thank you Joe and good morning, everyone. I will start with Nasdaq's second quarter results and will then review the performance across our divisions before handing the call over to Sarah for a more detailed discussion of our financials.

Speaker Change: Pleased with NASDAQ excellent overall financial performance in the quarter, we delivered $1 $3 billion in net revenue a year over year increase of 12% solutions revenues were $991 million, representing 10% year over year growth.

Speaker Change: Our overall annualized recurring revenue or <unk> grew 9% to $2 9 billion.

Speaker Change: Expenses were up just under 8% year over year, driven primarily by the timing of our annual compensation cycle as we communicated on last quarter's call.

Speaker Change: Operating income of $721 million grew 16% and we delivered 24% EPS growth.

Speaker Change: Our results continue to demonstrate the strength of our diversified platform and our ability to capture growth through cycles, particularly given the heightened volatility that the markets and our broader client help faced early in the quarter.

Speaker Change: More broadly, although macroeconomic uncertainty persists in the U S economy continues to demonstrate solid fundamentals as the labor market and consumer spending remain resilient.

Speaker Change: While GDP growth across Europe has still been muted expectations for a recovery in consumer demand and a rebound of investment into the region support an improving outlook.

Speaker Change: Across the business environment investment in technology transformation continues as companies focused on achieving benefits from AI.

Speaker Change: This is driving momentum across infrastructure modernization accelerated cloud readiness and enhanced data management.

Speaker Change: These dynamics are evidenced across the banking and capital market sectors, where clients are focused on technology investments to modernize our infrastructure improved our risk management and regulatory compliance and fight financial crime.

Speaker Change: Although uncertainty remains as to the longer term impact of trade and economic policies. This resilience is translated into a robust sales pipeline across our financial technology solutions as well as active markets index inflows and an improving IPO landscape.

Speaker Change: Turning to our high level financial performance within our divisions.

Speaker Change: Capital access platforms generated 9% revenue growth and 6% IRR growth.

Speaker Change: Technology delivered 10% revenue growth and 11% IRR growth, including 19% in financial crime management technology, 10% and regulatory technology and 9% in capital markets technology.

Speaker Change: And market services delivered 21% net revenue growth.

Speaker Change: I'll now I'll cover our business and operating operational highlights beginning with the capital access platforms rollout, where I'll start with data and listings.

Speaker Change: And our listings franchise the strong momentum in our switch program continued.

Speaker Change: Year to date $271 billion in market capitalization, including Shopify, and Kimberly Clark have switched to NASDAQ.

Speaker Change: This represents the best first half performance since the official launch of our switch program 20 years ago.

Speaker Change: Turning to Ipos in the second quarter, we welcomed 38, new operating companies to NASDAQ, representing a 79% win rate raising a total of $3 6 billion and extending nasdaq's listing listings leadership to 46 consecutive quarters.

Speaker Change: Year to date, we saw the highest level of new issuances in the first half since the first half of 2021, attracting 83 operating companies, including three of the top five largest ipos.

Speaker Change: With an overall, 81% win rates importantly, the strong performance of recent listings, especially of large cap companies has raised the optimism on the IPO outlook for the remainder of this year and into 2026.

Speaker Change: Our European listings business also delivered a great second quarter with six new listings year.

Speaker Change: Year to date, NASDAQ exchanges in Europe welcomed 10, new listings, which similarly included three of the five largest ipos in Europe.

Speaker Change: Combined these these ipos raised two 2 billion euros, 53% of all IPO capital rates in Europe, and a fivefold increase in capital raise compared to the first half of 2024.

Speaker Change: We're particularly excited to see our Stockholm exchange continues to lead as Europe's premier destination for new listings underpinned by the relative valuation of its market and the strength of the local ecosystem.

Speaker Change: Our data business performance reflects strong and sustained sustained demand for our comprehensive and innovative data products with growth in new sales upsells and usage across our client segments and geographies.

Speaker Change: Our industry, leading index franchise continues to drive solid growth.

Speaker Change: We managed through heightened volatility as market value declines at the beginning of the quarter were offset by higher derivatives volumes, followed by a fast recovery in market values.

Speaker Change: Throughout the quarter inflows were strong at $20 billion over the last 12 months, we achieved a new record for net inflows of $88 billion.

Speaker Change: As volatility has stabilized we exit exited the quarter with a new record ETP AUM at 745 billion.

Speaker Change: We remain focused on product innovation with 33, new products launched during the quarter over half of which were international.

Our clients and geographies.

Our industry, leading index franchise continues to drive solid growth.

Right.

Speaker Change: Additionally, we continue to focus on growing our exposure to institutional clients with the launch of seven products within the insurance annuity space.

Right.

Oh great.

We managed through heightened volatility as market value declines at the beginning of the quarter were offset by higher derivative volumes, followed by a fast recovery in market values.

Hey, Matt.

Yeah.

Thank you.

Right.

Speaker Change: Earlier this week.

Got it.

Hi, guys.

Speaker Change: We were pleased to announce that NASDAQ and CME group signed an extension through 2039 of CME group's exclusive contract to offer futures and options on futures based on the NASDAQ100, and other NASDAQ industry indices, reflecting the companys share commitment to delivering value through trusted benchmark products.

Throughout the quarter inflows were strong at $20 billion over the last 12 months, we achieved a new record for net inflows of $88 million.

Yeah.

Right.

Okay.

Yes.

Yeah.

Dollars.

As volatility has stabilized we exit exited the quarter with a new record ETP AUM at $745 billion.

[laughter].

Okay.

We remain focused on product innovation with 33, new products launched during the quarter over half of which were international <unk>.

Speaker Change: I also want to provide a brief comment on proposed reclassification of the Invesco <unk> Trust.

Yeah.

Organization.

Quarter.

Speaker Change: NASDAQ was engaged with invesco as invesco explored these proposals.

International.

Additionally, we continue to focus on growing our exposure to institutional clients with the launch of seven products within the insurance annuity space.

Yeah.

Speaker Change: Importantly, the proposed change does not alter the terms of nasdaq's listing our licensing arrangements with invesco, nor the administration of the NASDAQ100 index we've.

Yes.

Good luck.

Let me see.

Earlier this week.

Pete.

We were pleased to announce that NASDAQ and CME group signed an extension through 2039 of CME group's exclusive contract to offer futures and options on futures based on the NASDAQ100, and other NASDAQ industry indices.

Speaker Change: We remain committed to our strategic partnership with Invesco and to delivering the trusted benchmark on which investors rely.

Right.

Nine.

Right.

Speaker Change: Within were phone insights corporate solutions delivered modest growth benefiting from our product and technology investments, which have enhanced our competitive position.

Sure.

Great.

No.

This is Mike.

Collecting the companys share commitment to delivering value through trusted benchmark products.

Yes.

Yeah.

Speaker Change: We drove several notable wins, including a NASDAQ for advantage sale to a large international bank, which is also a significant fintech clients.

Hum.

I also want to provide a brief comment on the proposed reclassification of the Invesco <unk> Trust.

Yeah.

Right.

Yeah.

NASDAQ was engaged with Invesco is invesco explored these proposals.

Yes.

Speaker Change: In analytics, we continue to see strong demand for our data link and investment solutions across the investment management community as well as improved gross retention rates.

It could go down.

Hello.

Importantly, the proposed change does not alter the terms of nasdaq's listing our licensing arrangements with invesco, nor the administration of the NASDAQ100 index.

Certainly.

Okay.

Thank you.

Infringements.

Speaker Change: Lastly across cap, we are focused on meeting the growing demand for private market solutions.

No.

Index.

We remain committed to our strategic partnership with Invesco.

Perfect.

Speaker Change: In June we announced a partnership to be the exclusive distributor of NASDAQ private markets take the API, bringing enhanced transparency and valuation visibility of private companies.

Speaker Change: <unk> launch we have already signed two clients and the pipeline is building.

Speaker Change: For asset managers and asset owners are investment platform provides a wealth of private markets intelligence, which has become an increasingly powerful aspect to drive new sales and client retention.

We continue to see strong demand for our data link and investment solutions across the investment management community as well as improved gross retention rates.

Speaker Change: Turning next to financial technology, we delivered growth across products client segments and geographies.

Lastly across cap, we are focused on meeting the growing demand for private market solutions.

Speaker Change: This is driven by sustained demand for our mission critical technologies and terrific execution by our teams, especially considering the complexity of the landscape for financial institutions throughout the quarter.

In June we announced a partnership to be the exclusive distributor of NASDAQ private markets.

Bringing enhanced transparency and valuation visibility a private company.

Speaker Change: Our sales execution remains strong as we signed 57, new clients seven cross sell and a 130 <unk> during the quarter.

Since launch we have already signed two clients and the pipeline is building.

For asset managers and asset owners are investment platform provides a wealth of private markets intelligence, which has become an increasingly powerful aspect to drive new sales and client retention.

Speaker Change: Turning to a review of the subdivisions starting with financial crime management technology.

Speaker Change: NASDAQ Barragan had another solid quarter of execution across client segments and continued to lead the industry through product innovation.

Turning next to financial technology, we delivered growth across products client segments and geographies.

Speaker Change: And the enterprise client segment, serving tier one and tier two banks, we successfully executed on our land and expand strategy with three new signings, including one cross sell and to Upsells.

This was driven by sustained demand for our mission critical technologies and terrific execution by our teams, especially.

Speaker Change: We are also pleased with the ongoing progress in our up sell conversion timeline, maintaining that 50% reduction in the sales cycle as compared to the original contract.

Considering the complexity of the landscape for financial institutions throughout the quarter.

Our sales execution remains strong as we signed 57, new clients seven cross sells and 130 <unk> during the quarter.

Speaker Change: We signed our first proof of concept with a European tier one bank for our consortium based payments fraud offering during the quarter, marking a significant milestone in our early efforts to expand into Europe.

Speaker Change: Turning to a review of the subdivisions starting with financial crime management technology.

Speaker Change: NASDAQ Barragan had another solid quarter of execution across client segments and continued to lead the industry through product innovation.

Speaker Change: And demand among our small and medium sized clients segment also remains solid with 46, new clients signed in this quarter.

Speaker Change: Turning next to regulatory technology, where we signed seven new clients and for cross sells collectively.

Speaker Change: Revenue in <unk> growth in <unk> were driven by a combination of large prior year client bookings starting to go live in addition to in your bookings.

Speaker Change: We are also pleased with the ongoing progress in our upsell conversion timeline, maintaining that 50% reduction in the sales cycle as compared to the original contract.

Speaker Change: The improving clarity around the regulatory environment in the U S. For example, with the proposed changes to the supplementary leverage ratio has further contributed to the strength and diversity of our pipeline.

Speaker Change: And surveillance beyond the strong revenue and <unk> growth, we were pleased to sign three cross sell to existing market Tech clients, which included two market operators and a large financial institution.

Speaker Change: And demand among our small and medium sized clients segment also remains solid with 46, new client signed this quarter.

Speaker Change: Turning next to regulatory technology, where we signed seven new clients and for cross sells collectively.

Speaker Change: Capital markets technology delivered a solid quarter with strong momentum with further amplified by the normalization of sales cycles.

Speaker Change: Revenue in <unk> growth in <unk> were driven by a combination of large prior year client bookings starting to go live in addition to in your bookings.

Speaker Change: In market technology, we are pleased to see strong demand from traditional and emerging trade infrastructure clients for our technology infrastructure solutions as well as our operational expertise.

Speaker Change: We signed three clients to eclipse trading our fourth generation marketplace technology platform, including two fully managed services mandate, where we host and manage our clients' entire trading environment.

Speaker Change: One AWS hosted SaaS deployment.

Speaker Change: <unk> performance reflected momentum in subscription revenues, including strong demand in Europe, where we delivered two new clients in one cross sell and we remain confident in the pipeline for the rest of the year.

Speaker Change: Capital market technology delivered a solid quarter with strong momentum with further amplified by the normalization of sales cycles.

Speaker Change: Turning now to market services, the division delivered record net revenues, reflecting broad based strength across our U S and European markets.

Speaker Change: We are proud to support our clients with seamless trading experience as heightened volatility and rapidly evolving market conditions drove record industry volumes for U S cash equities and elevated volumes in U S equity options and European cash equities.

Speaker Change: Signed three clients to eclipse trading our fourth generation marketplace technology platform, including two fully managed services mandates, where we host and manage our clients' entire trading environment and one AWS hosted SaaS deployment.

Speaker Change: We successfully executed the Russell rebalance with over $2 5 billion shares matched at a record notional value of 102 billion further showcasing the strength and resiliency of our markets.

Speaker Change: In U S equities, we maintained our disciplined approach to pricing amid an exceptionally high volumes as we managed capture and optimize the value of our franchise.

Speaker Change: Turning now to market services, the division delivered record net revenues, reflecting broad based strength across our U S and European market.

Speaker Change: And European equities, we delivered sequential improvements in share.

Speaker Change: Further we continue to leverage our capabilities to capture off exchange activity in Europe as well as in the U S.

Speaker Change: Across the company overall, our excellent performance was driven by strong momentum across all three divisions underpinned by execution on our strategic priorities.

Speaker Change: Within our integrate priority we are on track to action, our expanded $140 million net expense efficiency program by year end with approximately $130 million action as of the end of the second quarter.

Speaker Change: In U S equities, we maintained our disciplined approach to pricing amid an exceptionally high volumes.

Speaker Change: We achieved a gross leverage ratio of three two times at quarter end over achieving our milestone set at the closing of the <unk> acquisition 16 months ahead of schedule.

Speaker Change: As he managed capture and optimize the value of our franchise.

Speaker Change: And European equities, we delivered sequential improvements in share.

Speaker Change: Further we continue to leverage our capabilities to capture off exchange activity in Europe as well as in the U S.

Speaker Change: Within our innovate priority, we remain focused on delivering new innovations to enhance our value proposition with clients.

Speaker Change: Across the company overall, our excellent performance was driven by strong momentum across all three divisions underpinned by execution on our strategic priorities.

Speaker Change: This week <unk> announced the launch of its <unk> AI workforce, a suite of digital workers that will deliver a step change in compliance effectiveness and efficiency.

Speaker Change: Early results from the first two agents in beta the digital sanctions analyst and the digital enhanced due diligence analyst demonstrated <unk> potential to address the most resource intensive compliance workflows.

Speaker Change: We achieved a gross leverage ratio of three two times at quarter end over achieving our milestone set at the closing of the <unk> acquisition 16 months ahead of schedule.

Speaker Change: For example, when on boarded into our banks alert triage workflow, our digital sanctions analysts automates, the acknowledgement screening and documentation processes, reducing alert review workload by more than 80%.

Speaker Change: Within our innovate priority, we remain focused on delivering new innovations to enhance our value proposition with clients.

Speaker Change: We also continued to expand the library of anti <unk> anti money laundering targeted topology analytics.

Speaker Change: This week <unk> announced the launch of his Gentex AI workforce, a suite of digital workers that will deliver a step change in compliance effectiveness and efficiency.

Speaker Change: <unk> Terrace finance, our terrorist financing analytics launched in Q1 and is already being leveraged by 900 clients nearly doubling adoption versus the end of the last quarter.

Speaker Change: Early results from the first two agents in beta the digital sanctions analyst and the digital enhanced due diligence analysts demonstrated <unk> potential to address the most resource intensive compliance workflows.

Speaker Change: Our drug trafficking and analytic launched this quarter and early beta has already driven strong client engagement.

Speaker Change: In addition, we're continuing to invest in new partnerships to enhance productivity abilities, including our partnership with fin Com, which supports advanced screening sanction screening.

Speaker Change: Beyond AI digital assets represents another key team driving our innovation as we focus on that maturation of the ecosystem and supporting institutional adoption for instance.

Speaker Change: We also continued to expand the library of anti <unk> anti money laundering targeted topology analytics.

Speaker Change: NASDAQ Calypso announced an innovative proof of concept, which will expand upon its industry, leading collateral management capabilities.

Speaker Change: Our turret finance, our terrorist financing analytics launched in Q1 and is already being leveraged by 900 clients nearly doubling adoption versus the end of the last quarter.

Speaker Change: The use case demonstrates our ability to integrate <unk> capabilities to allow us to help financial institutions manage collateral across asset classes and markets and a more dynamic and efficient manner.

Speaker Change: Our drug trafficking and analytic launched this quarter and early beta has already driven strong client engagement.

Speaker Change: We continue to work with our partners and clients to finalize the product build and are targeting launch in early to mid 2026.

Speaker Change: In addition, we're continuing to invest in new partnerships to enhance productivity abilities, including our partnership with <unk> Com, which supports advanced screening sanction screening.

Speaker Change: Lastly, within our accelerate priority are one nasdaq's strategy drove seven cross sell wins across financial technology in the quarter for a total of 26 cross sell since <unk> acquisition.

Speaker Change: Beyond AI digital assets represents another key theme driving our innovation as we focus on that maturation of the ecosystem and supporting institutional adoption for instance.

Speaker Change: At the end of the quarter Cross sells accounted for over 15% of financial technology sales pipeline and we remain on track to surpass $100 million in run rate revenue from cross sell by the end of 2027.

Speaker Change: NASA Calypso announced an innovative proof of concept, which will expand upon its industry, leading collateral management capabilities.

Speaker Change: Looking ahead to the remainder of 2025, NASDAQ is well positioned to continue to deliver for our clients and shareholders.

Speaker Change: We continue to work with our partners and clients to finalize the product build and are targeting launch in early to mid 2026.

Speaker Change: While we remain conscious of the impact of sustained uncertainty in the economic and market environment. We continue to demonstrate that our diversified business can deliver through different cycles.

Speaker Change: This is reflective of our role as a trusted strategic partner to our clients across the financial ecosystem and our ability to help them navigate across market environments capture strategic opportunities manage risk and solidify their operational resilience.

Speaker Change: At the end of the quarter Cross sells accounted for over 15% of financial technology sales pipeline and we remain on track to surpass $100 million and run rate revenue from cross sell by the end of 2027.

Speaker Change: We enter the second half of the year with momentum across our platform and we will remain laser focused on supporting and innovating for our clients as the environment evolves in the period ahead.

Speaker Change: Looking ahead to the remainder of 2025 now I think is well positioned to continue to deliver for our clients and shareholders.

Speaker Change: With that I will now turn the call over to Sarah to provide more details on our financial results.

Sarah: Dana and good morning, everyone.

Sarah: In the second quarter of 2025, NASDAQ delivered one of our strongest quarters on record with 24% EPS growth.

Sarah: Underscoring the durability of the model and the consistency of our execution.

Sarah: Starting with quarterly results on slide 11.

Sarah: We reported net revenue of $1 3 billion.

Sarah: 12% with solutions revenue of $991 million up 10% operating expense was $585 million up just under 8% leading to an operating margin of 55% and EBITDA margin of 58%.

Speaker Change: With that I will now turn the call over to Sarah to provide more details on our financial results.

Sarah: Thank you Adena and good morning, everyone.

Sarah: In the second quarter of 2025, NASDAQ delivered one of our strongest quarters on record with 24% EPS growth.

Sarah: Up two percentage points.

Sarah: This resulted in net income of 492 million and diluted EPS of <unk> 85.

Sarah: Underscoring the durability of the model and the consistency of our execution.

Sarah: Up 24%.

Sarah: Starting with quarterly results on slide 11.

Sarah: Slide 12 shows the drivers of our 12% net revenue growth for the quarter.

Sarah: We reported net revenue of $1 3 billion.

Sarah: We generated eight and a half percentage points of basso, driven by new and existing clients and product innovation.

Sarah: 12% with solutions revenue of $991 million up 10% operating expense was $585 million up just under 8% leading to an operating.

Sarah: Meanwhile, Beta factors contributed three five percentage points of course excluded given by higher valuations in NASDAQ indexes and higher overall volumes in market services.

Sarah: <unk> margin of 55% and EBITDA margin of 58%.

Was up two percentage points.

Sarah: As shown on slide 13, we realized a second consecutive quarter of growth of 9%.

Sarah: This resulted in net income of 492 million and diluted EPS of <unk> 85.

Sarah: This included 9% included 11% growth in Fintech and SaaS revenue growth of 12%.

Sarah: Up 24%.

Sarah: Slide 12 shows the drivers of our 12% net revenue growth for the quarter.

Sarah: <unk> as a percentage of <unk> increased one percentage point to 37% compared to the second quarter of 2020.

Sarah: We generated eight and a half percentage points of <unk>, driven by new and existing clients and product innovation.

Sarah: Meanwhile.

Sarah: Let's review Division results starting on slide 14.

Sarah: Beta factors contributed three and five percentage points of growth this quarter, driven by higher valuations in NASDAQ indexes and higher overall volumes in market services.

Sarah: In capital asset platforms, we delivered revenue of $527 million.

Up 9% and with Al was up 6%.

Sarah: As shown on slide 13, we realized a hedge.

Sarah: Data on these things revenue was up 5% with <unk> up seven.

Sarah: <unk> consecutive quarter of growth of 9%.

Sarah: 1%.

Sarah: This included 9% included 11% growth in Fintech and fast revenue growth of 12%.

Sarah: Revenue growth was pipeline need driven by data due to the positive impact of new sales up sales and usage with.

Sarah: <unk> as a percentage of <unk> increased one percentage point to 37% compared to the second quarter of 2020.

Sarah: With existing the benefits of new listings in pricing with pork.

Sarah: From the offset by <unk>, <unk> and lower amortization of <unk> initial listing fee.

Sarah: Let's review Division results starting on slide 14.

Sarah: This is consistent with our previous comments and we expect that to be the case for the remaining quarters of the year.

Sarah: In capital asset platform, we delivered revenue of $527 million.

Sarah: Up 9% and with Al was up 6%.

Sarah: Index revenue was up 17% in the quarter mainly.

Sarah: Mainly driven by average ETP AUM of 663 billion up 25%.

Sarah: Data on listings revenue was up 5% with <unk> up 7%.

Sarah: Revenue growth was pipeline need driven by data.

Sarah: This is due.

Sarah: To strong net inflows with more than half of the quarterly revenue growth driven by Alpha factors.

Sarah: Due to the positive impact of new sales up sales and usage with.

Sarah: <unk> included a record $88 billion of net inflows in the 12 months <unk>.

Sarah: With existing the benefits of new listings in pricing with a quote from the offset by delisting and lower amortization of <unk> initial listing fee.

Sarah: Including $20 billion in the second quarter.

Sarah: Volume based license revenue was also up modestly.

Sarah: This is consistent with our previous comments and we expect that to be the case for the remaining quarters of the year.

Sarah: Related contract volume up 15% was mostly offset by a mix shift towards my core contracts in the quarter, which hub lower capture.

Sarah: <unk> revenue was up 17% in the quarter.

Sarah: Mainly driven by average ETP AUM of $663 billion up 25%.

Sarah: In looks line in sites revenue and <unk> were both up 5% for the quarter.

Sarah: This is due.

Sarah: To strong net inflows with more than half of the quarterly revenue growth driven by Alpha factors.

Sarah: The increase was driven primarily by analytics, mainly investment in detailing.

Sarah: <unk> included a record $88 billion of net inflows in the 12 months, including.

Sarah: With continued demand from hedge funds asset managers asset owners and consultants who value our differentiated data.

Sarah: Including $20 billion in the second quarter.

Sarah: Corporate solutions also grew modestly due to pricing and key client wins.

Sarah: Volume based license revenue was also up modestly.

Sarah: Quarterly operating margin for the division was 58% up one percentage point.

Sarah: Related contract volume up 15% was mostly offset by a mix shift towards my core contracts in the quarter, which hub lower capture.

Sarah: Moving to financial technology on Slide 15.

Sarah: Revenue was $464 million.

Sarah: Yeah.

Sarah: In workflow and insights revenue NAR growth were both up 5% for the quarter.

Sarah: Up 10% with a growth of 11%.

Sarah: We are extremely proud of these results in the context of a tough political comps.

Sarah: The increase was driven primarily by analytics, mainly investment in detailing.

Sarah: Our business was resilient amid the modest delays, we described earlier in the quarter, which contributed to low single digit professional services revenue growth.

Sarah: With continued demand from hedge funds asset managers asset owners and consultants who value our differentiated data.

Sarah: The Division signed 57, new clients 130, Upsells on seven cross sales in the quarter.

Sarah: Corporate solutions also grew modestly due to pricing and key client wins.

Sarah: Quarterly operating margin for the division was 58% up one percentage point.

Sarah: Even with these wins cross sales continue to represent over 15% of the financial technology divisions pipeline.

Sarah: Moving to financial technology on Slide 15.

Sarah: With trends across all three subdivisions.

Sarah: Revenue was $464 million up 10% with a growth of 11%.

Sarah: Financial crime management technology revenue grew 20% with a growth of 19% we.

Sarah: We are extremely proud of these results in the context of a tough political comps.

Sarah: We signed 46, new SMB clients and three new enterprise deals, including one cross sale and to upsell.

Sarah: Our business was resilient amid a modest delays we described early in the quarter, which contributed to low single digit professional services revenue growth.

Sarah: Net revenue retention was 113%, reflecting strong client engagement, including the continued adoption of the Gen III energy research copilot and targeted typology in 90 days.

Sarah: The Division signed 57, new clients 130, Upsells and seven cross sales in the quarter.

Even with these wins cross sales continue to represent over 15% of the financial technologies Division pipeline.

Sarah: In addition to persistent execution in the SME segment, consistent contributed to growth and ongoing momentum in product innovation.

Sarah: Trends across all three subdivisions.

Sarah: Financial crime management technology revenue grew 20% with a growth of 19%.

Sarah: The business continues to make strong progress in moving up market and it's showing early traction with our international expansion.

Sarah: We signed 46, new SMB clients and three new enterprise deals, including one cross sale and to upsell.

Sarah: As a reminder, the sales cycles and time to value for tier one and tier two deals can take longer to flow into the subscription revenue run rate.

Sarah: Net revenue retention was 113%, reflecting strong client engagement, including the continued adoption of the Gen II energy research copilot and targeted typology analysis.

Sarah: But the momentum in the business for.

Sarah: We more than doubled enterprise signings year to date versus all of 2024, which will begin to translate into strong growth was from this client segment.

Sarah: In addition to persistent execution in the SME segment, consistent contributed to growth and ongoing momentum in product innovation.

Sarah: In the fourth quarter.

Sarah: Regulatory technology revenue grew 11% with <unk> up 10% for the quarter.

Sarah: The business continues to make strong progress in moving up market and it's showing early traction with our international expansion.

Sarah: The division signed seven new clients 67, upsell and cross sell.

Sarah: Revenue growth reflects solid performance, despite modest client readiness delays driven by regulatory uncertainty.

Sarah: As a reminder, the sales cycles and time to value for tier one and tier two deals can take longer to flow into the subscription revenue run rate.

Sarah: As we get clarity from regulators professional services revenue should start to improve in the fourth quarter and early 2026.

Sarah: But the momentum in the business versus the more.

Sarah: More than doubled enterprise signings year to date versus all of 2024, which will begin to translate into stronger growth from this client segment starting in the fourth quarter.

Sarah: Capital market technology revenue grew 8% with <unk> up.

Sarah: 9% for the quarter and with four new clients 61 up sales and cross sale.

Sarah: Regulatory technology revenue grew 11% with <unk> up 10% for the quarter.

Sarah: Financial technology operating margin was 47%, which was flat versus the prior year quarter.

Sarah: The division signed seven new clients 67, upsell and cross sell.

Sarah: As we wrap up our solutions division.

Sarah: We expect our 2025 revenue growth outlook for this division and subdivisions to be generally consistent with our comments provided in the April earnings call.

Sarah: Revenue growth reflects solid performance, despite modest client readiness delays driven by regulatory uncertainty.

Sarah: As we get clarity from regulators professional services revenue should start to improve in the fourth quarter and early 2026.

Sarah: Turning to market services on slide 16.

Sarah: We had record net revenue of $306 million, reflecting growth of 21%.

Sarah: Capital market technology revenues grew 8% with <unk> up 9% for the quarter and with four new clients 61 up sale and to cross sell.

Sarah: This included a <unk>.

Sarah: Second consecutive record net revenue quarter in both U S options and U S cash equities.

Sarah: Financial technology operating margin was 47%, which was flat versus the prior year quarter.

Sarah: Growth was primarily driven by the increase in market wide volumes, but also included higher share and slightly higher capture in U S options.

Sarah: As we wrap up our solutions division.

Sarah: We expect our 2025 revenue growth outlook for this division and subdivisions to be generally consistent with our comments provided in the April earnings call.

Sarah: Growth in index options.

Sarah: Higher capture in European derivatives, and higher U S tape plan revenue.

Sarah: Market services operating margin was 63% up five percentage points highlighting the strong operating leverage of this platform.

Sarah: Turning to market services on slide 16.

Sarah: We had record net revenue of $306 million, reflecting growth of 21%.

Sarah: Moving to expenses on slide 17.

Sarah: This included a <unk>.

Sarah: Second consecutive record net revenue quarter in both U S options and U S cash equities.

Sarah: We had operating expense of $585 million up just under 8% consistent with expectations provided last quarter and driven by strong investments in technology and people to support revenue and drive innovation and growth employee compensation and other increases largely due to inflation.

Sarah: Growth was primarily driven by the increase in market wide volumes, but also included higher share and slightly higher capture in U S options.

Sarah: Growth in index options.

Sarah: Higher capture in European derivatives, and higher U S tape plan revenue.

Sarah: This resulted in an operating margin and EBITDA margin, both up two percentage points to 55 and 68% respectively.

Sarah: Market services operating margin was 63% up five percentage points highlighting the strong operating leverage of this platform.

Sarah: We are maintaining the midpoint of our organic expense expectations for the year, which carries forward our trajectory of healthy operating leverage accompanying our strong revenue performance.

Sarah: Moving to expenses on slide 17.

Sarah: We had operating expense of $585 million up just under 8%.

Sarah: Now that we have started to experience a more consistent FX impact.

Sarah: Distance with expectations provided last quarter and driven by strong investments in technology and people to support revenue and drive innovation and growth employee compensation and other increases largely due to inflation.

Sarah: Johan progress we are updating our 2025 non-GAAP expense guidance to reflect the.

Sarah: The impact of movements in FX rates.

Sarah: And to narrow the overall range with six months left to the year.

Sarah: This resulted in an operating margin and EBITDA margin, both up two percentage points to 55 and 68% respectively.

Sarah: Our guidance is now a range of $2 $2 95 billion to $2 335 billion.

Sarah: The $20 million increase in the midpoint of our guidance is entirely due to FX with no change to the organic expense growth rate implied by the midpoint of our guidance.

Sarah: Due to the offsetting positive FX impact on net revenue, we expect the change in effect to have no impact on operating income.

Sarah: Now that we have started to experience a more consistent FX impact as the year has progressed, we are updating our 2025 non-GAAP expense guidance to reflect the impact of movements in FX rates.

Sarah: Lastly on expense.

Sarah: We have action approximately a $130 million out of $140 million of efficiency program as of the end of the second quarter and our team is.

Sarah: And to narrow the overall range with six months left to the year.

Sarah: Guidance is now a range of $2 295 billion to $2 335 billion.

Sarah: <unk> is well positioned to continue to deliver on the program we.

Sarah: We maintain our 2025 non-GAAP tax rate guidance of $22 five to 24, 5%.

Sarah: The $20 million increase in the midpoint of our guidance is entirely due to FX with no change to the organic expense growth rate implied by the midpoint of our guidance.

Sarah: Turning to capital allocation on slide 18.

Sarah: <unk> generated free cash flow of $467 million in the second quarter.

Sarah: Due to the offsetting positive FX impact on net revenue, we expect the change in effect to have no impact on operating income.

Sarah: The strong level of cash flow enabled us to support deleveraging by dividends and share repurchases.

Sarah: Lastly on expense.

Sarah: Have action approximately $130 million out of $140 million of efficiency program as of the end of the second quarter and our team is well positioned to continue to deliver on the program.

Sarah: We paid a dividend of 27 per share or $155 million in the quarter, representing a 34% annualized payout ratio.

Sarah: In our continued commitment towards deleveraging, we paid down the $400 million remaining on the June 2025 bonds at maturity using cash on hand.

Sarah: We maintain our 2025 non-GAAP tax rate guidance of $22 five to 24, 5%.

Sarah: We reached a gross leverage ratio of three <unk> at the end of the quarter over achieving our two three X milestone 16 months early.

Sarah: Turning to capital allocation on slide 18, NASDAQ generated free cash flow of $467 million in the second quarter.

Sarah: This strong level of cash flow enabled us to support deleveraging, our dividend and share repurchases.

The $3 two X ratio improved from three four X.

Sarah: <unk> <unk>.

Sarah: Slide a 0.1 ex headwind from Unt weakness related to euro.

Sarah: We paid a dividend of 27 per share or $155 million in the quarter, representing a 34% annualized payout ratio.

Sarah: We also repurchased a total of $1 2 million shares of our common stock for roughly $100 million in the second quarter.

Sarah: In our continued commitment towards deleveraging, we paid down the $400 million remaining on the June 2025 bonds at maturity using cash on hand.

Sarah: Which included the completion of our annual employee addition related with purchases in April.

Sarah: Well, our opportunistic repurchases beyond that commitment.

Sarah: We reached a gross leverage ratio of three <unk> at the end of the quarter over achieving our $2 three X milestones 16 months early.

Sarah: As we continue to execute against our compelling organic growth strategy will remain focused on organic investments in the business, our dividend program and opportunistic debt and share repurchases.

Sarah: The $3 two X ratio improved from three four X.

Sarah: <unk> ago.

Sarah: Slide a 0.1 ex headwind from USD weakness related to euro.

Sarah: In closing.

Sarah: NASDAQ delivered excellent results amid a dynamic operating environment exemplified by our second consecutive quarter of double digit net revenue growth and was up 9%.

Sarah: We also repurchased a total of $1 2 million shares of our common stock for roughly $100 million in the second quarter.

Sarah: Which included the completion of our annual and pollution related repurchases in April as well.

Sarah: We continue to demonstrate strong operating leverage and make meaningful progress on our capital strategy.

Sarah: <unk> seek repurchases beyond that commitment.

Sarah: Our first half performance reflects our ability to grow with recycle and underpins our confidence to achieve our 2025 objectives.

Sarah: Okay.

Sarah: As we continue to execute against our compelling organic growth strategy will remain focused on organic investments in the business.

Sarah: As well as well as Denny versus sustainable growth and long term shareholder value as we drive forward in the second half.

Sarah: Dividend program and opportunistic debt and share repurchases.

Sarah: In closing.

Sarah: For the year and beyond.

Sarah: NASDAQ delivered excellent results amid a dynamic operating environment exemplified by a second consecutive quarter of double digit net revenue growth and was up 9%.

Sarah: With that let's open the line for Q&A.

Sarah: Thank you.

Sarah: As a reminder to ask a question you will need to press star one one on your telephone.

Sarah: To withdraw your question. Please press star one again.

Sarah: We continued to demonstrate strong operating leverage and make meaningful progress on our capital strategy.

Sarah: We ask that you. Please limit your questions to no more than one but feel free to go back into the queue and if time permits we will be happy to take your follow up questions at that time.

Sarah: Our first half performance reflects our ability to grow with recycle and underpins our confidence to achieve our 2025 objectives.

Sarah: Please standby, while we compile the Q&A roster.

Sarah: As well as well as deliver sustainable growth and long term shareholder value as we drive forward in the second half.

Sarah: Okay.

Speaker Change: Our first question is from Michael Cyprus with Morgan Stanley. Please proceed with your question.

Michael Cyprus: Hey, good morning, Thanks for taking the question here just wanted to ask about Gen take AI I was hoping maybe you could elaborate a bit on the opportunity set that you see I know you flagged one in particular I was just hoping maybe you could elaborate more broadly how you're experimenting with that across the firm.

Sarah: The year and beyond.

Sarah: With that let's open the line for Q&A.

Sarah: Thank you.

Sarah: As a reminder to ask a question you will need to press star one on your telephone.

Sarah: To withdraw your question. Please press star one again.

Sarah: We ask that you. Please limit your questions to no more than one but feel free to go back into the queue and if time permits we will be happy to take your follow up questions at that time.

Speaker Change: I know you mentioned the example on marathon, but just more broadly how do you think about the opportunity across NASDAQ what areas can make the most sense next how meaningful in terms of efficiency gains do you think you might be able to extract from us.

Sarah: Please standby, while we compile the Q&A roster.

Michael Cyprus: Just curious any color you might be able to share. Thank you great. Thanks, Michael.

Sarah: Okay.

Speaker Change: Our first question is from Michael Cyprus with Morgan Stanley. Please proceed with your question.

Michael Cyprus: We internally we have programs that focus on AI and the product and then AI on the business and we do have those as distinct programs because in the product. We've integrated how can we use AI within each of the product development.

Michael Cyprus: Pipelines. So we kind of look at what is the pipeline of opportunities and the future of each product and how does AI play a role so in the products, we have and we've introduced Gen AI and algorithmic AI to support Calypso for instance, in terms of efficiency and risk management, and more accuracy and risk management calculations and our Gov.

Michael Cyprus: I know you mentioned the example on verifying, but just more broadly how do you think about the opportunity across NASDAQ what areas can make the most sense next how meaningful in terms of efficiency gains do you think you might be able to extract from us.

Speaker Change: Just curious any color you might be able to share. Thank you great. Thanks, Michael.

Michael Cyprus: Furnace platform in terms of forest Summarization, and we are continuing to work with they are users of governance to see where else. We can use that kind of summarization tool to make the preparation for board meetings and our process for managing board meetings more efficient we use it also to drive new intelligence around something called sustainable.

Speaker Change: We internally we have programs that focus on AI and the product and then AI on the business and we do have the distinct programs because in the product we've integrated how can we use AI within each of the product development.

Speaker Change: Pipeline. So we kind of look at what is the pipeline of opportunities and the future of each product and how does AI play a role in the products, we have and we've introduced Gen AI and algorithmic AI to support Calypso for instance, in terms of efficiency and risk management, and more accuracy and refractory calculations and our Gov.

Michael Cyprus: <unk> that helps.

Michael Cyprus: Companies understand.

Michael Cyprus: The competitive dynamics around sustainability programs and then we also inside our Fintech division have used debt to support and we are using it to support these efficiencies for our clients. So as we talked about with the new agenda Guy that's being rolled out within.

Speaker Change: <unk> platform in terms of for Summarization, and we are continuing to work with they are users of governance to see where else. We can use that kind of summarization tool to make the preparation for board meetings and our process for managing board meetings more efficient we use it also to drive new intelligence around something called sustainable.

Michael Cyprus: The financial crime management, it will reduce the time that analysts have to spend on some of that road work that in terms of investigative work reporting work that but thats also applicable across <unk> and surveillance, which are also.

Michael Cyprus: Have a lot of a lot of that type of regulatory reporting obligations are tied to them. So all of those things are really.

Speaker Change: <unk> that helps.

Speaker Change: Companies understand.

Michael Cyprus: Applicable across in the products and our product roadmaps reflect those.

Speaker Change: The competitive dynamics around sustainability programs and then we also inside our Fintech division have used debt to support and we are using it to support these efficiencies for our clients. So as we talked about with the new agenda Guy that's being rolled out within.

Michael Cyprus: The business is where we are applying AI into the company to make us more efficient and our two focus areas that we've really started to scale up our in the product development lifecycle, because theres. So many more agenda tools that can be integrated together to create more automation and product development and product delivery.

Speaker Change: Financial crime management, it will reduce the time that analysts have to spend on some of that road work that in terms of investigative work reporting work that but thats also applicable across actually myself and surveillance, which are also.

Michael Cyprus: In addition to the client success areas in terms of having.

Michael Cyprus: Information at the fingertips of our clients' success agents to support their work with clients and helping them understand issues are.

Speaker Change: Have a lot of a lot of that type of regulatory reporting obligations are tied to them. So all of those things are really.

Michael Cyprus: Shoot issues. So I think that it is a holistic approach to bringing AI into the business. Our efficiency program in 2025 does reflect as early progress in that in terms of bringing some efficiencies in but we do expect that to scale. Even further in 2026, and we will provide you more disclosure on that as we get into 2020.

Speaker Change: Applicable across in the products and our product Roadmaps reflect those on the business is where we are applying AI into the company to make us more efficient and our two focus areas that we've really started to scale up our in the product development lifecycle, because theres. So many more agenda tools that can be integrated together to create more <unk>.

Michael Cyprus: Six.

Speaker Change: Automation and product development and product delivery. In addition to the client success areas in terms of having <unk>.

Speaker Change: Our next question comes from Alexandra <unk> with Goldman Sachs.

Alexandra: Thank you good morning, Thanks for taking the question I wanted to go back to your comments around.

Speaker Change: Information at the fingertips of our client success agents to support their work with clients and helping them understand issues are.

Speaker Change: Slight improvement I guess, you guys are seeing in the pipelines and accelerating sales momentum towards the backend of the year.

Speaker Change: Troubleshoot issues. So I think that it is a holistic approach to bringing AI into the business. Our efficiency program. In 2025 does reflect just early progress in that in terms of bringing some efficiencies in but we do expect that to scale. Even further in 2026, and we will provide you more disclosures on that as we get into 2000.

Speaker Change: You made a couple of specific points I think both on the on Prem dynamics for Q4 as.

Speaker Change: As well as on boarding within financial crime I guess in the fourth quarter as well, maybe just put a little more granularity of what that means for revenues from these businesses towards the end of the year and more importantly, how we should be thinking about the momentum in fintech entering into 26.

Speaker Change: 26.

Speaker Change: Yes. Thank you and yes, you are you captured the common as well.

Speaker Change: Our next question comes from Alexandra <unk> with Goldman Sachs.

Speaker Change: We do have a very healthy pipeline across our fintech businesses and one of the things. We also look at it as the maturity of our pipeline and I think that the mature our pipeline continues to have to mature. So that we feel have increasing confidence in our ability to bring these clients on board or or upsell to clients appropriately. So it feels it feels very <unk>.

Speaker Change: Okay.

Speaker Change: Thank you good morning, Thanks for taking the question I wanted to go back to your comments around.

Speaker Change: Slight improvement I guess, you guys are seeing in the pipelines and accelerating sales momentum towards the backend of the year you.

Speaker Change: You made a couple of specific points I think both on the on Prem dynamics for Q4.

Speaker Change: Right now the demand that we have across the world and it is very much across the world for <unk>.

Speaker Change: Well as Onboarding within financial crime, I guess in the fourth quarter as well, maybe just put a little more granularity of what that means for revenues from these businesses towards the end of the year and more importantly, how we should be thinking about the momentum in fintech entering into 26.

Speaker Change: Peru trade infrastructure risk management regulatory reporting and tracking crime I mean, its really holistic too it's not it's not really geared towards one particular product, it's really across our franchise and then specifically with financial crime management, we are talking and what we've talked about the enterprise segment. Those are the tier one tier two banks and as Sarah mentioned, we have already signed.

Speaker Change: Sure Yes. Thank you and yes, you are you captured the comment as well.

Speaker Change: So we do have a very healthy pipeline across our fintech businesses and one of the things. We also look at it as maturity of our pipeline and I think that the Mr. Our pipeline continues to have to mature so that we feel have increasing confidence in our ability to bring these clients on board or or upsell our clients appropriately. So it feels it feels very.

Speaker Change: Twice as many deals in that space as we signed all of last year and it but it takes time to implement them same as it does with <unk> and kalypso. So the revenue starts to ramp up and come online as we get those clients implemented and Thats why as she mentioned without CMT that we should start to see more contribution of revenue from the tier one tier two.

Speaker Change: Healthy right now the demand that we have across the world and it is very much across the world for improved trade infrastructure risk management regulatory reporting and second primary minutes really holistic too it's not it's not really geared towards one particular product, it's really across our franchise and then specifically with financial crime management, we are <unk>.

Speaker Change: Do clients getting into Q4 and into 2006, so we do feel like there's momentum coming through the second half of the year and hopefully it will also accrue to the benefit of <unk> 26 as well.

Speaker Change: And what we've talked about the enterprise segment those are the tier one and tier two banks and as Sarah mentioned, we have already signed twice as many deals in that space as we signed all of last year and it but it takes time to implement them same as it does with <unk> and calypso. So the revenue starts to ramp up and come online as we get those clients implement.

Speaker Change: Our next question comes from Patrick <unk> with Piper Sandler.

Patrick: Yes. Good morning, Thanks for taking the question, maybe just sticking with that.

Patrick: Some of the sales cycle commentary I was hoping you could just talk a little bit more about how your conversations with customers in fintech trended in the second quarter, what impacted some of the tariff driven volatility. We saw in April have on have almost conversations just trying to get a better sense for some of the timing of big wins in the second quarter.

Speaker Change: And Thats why as you mentioned with FMT that we should start to see more contribution of revenue from the tier one tier two clients getting into Q4 and into 2006. So.

Speaker Change: We do feel like there's momentum coming through the second half of the year and hopefully it will also accrue to the benefit of <unk> 26 as well.

Speaker Change: Sure Yeah. So I think two things we talked about on our first quarter call. We talked about two two trends that we were we are monitoring one was in particularly with calypso in the U S. We were seeing some conversations with our clients back in March and April kind of elongate a bit clients are saying, what we need to we need to spend.

Patrick: Our next question comes from Patrick <unk> with Piper Sandler.

Patrick: Yes. Good morning, Thanks for taking the question, maybe just sticking with that.

Speaker Change: Some of the sales cycle commentary I was hoping you could just talk a little bit more about how your conversations with customers in fintech trended in the second quarter, what impacted some of the tariff driven volatility we saw in <unk>.

Speaker Change: Little time understand the environment before we make final commitments, but as we got into May and June those conversations normalized and clients were ready to move forward, but that did give us a little bit of a kind of a few weeks of a little bit of a pause in the sales cycles.

Speaker Change: We'll have one have on those conversations just trying to get a better sense for some of the timing of big wins in the second quarter. Thanks.

Speaker Change: And so I think Thats one thing we mentioned and the other is with the regulatory uncertainty in terms of what will is particularly in United States. There are changes in the oversight and governance of regulation United States I think some of the implementations with <unk>, we're starting to get elongated because they weren't sure what the timelines, we're going to be actually looking for in the U S and all.

Speaker Change: So in Europe, and certain regulations and I think some of that starting to show up I did mentioned SLR. Some regulatory guidance is starting to come out that's giving clients and understanding of what their obligations are going to be and so that those conversations with our clients are becoming more certain but thats that is helping to show up the pipeline implementations are still.

Speaker Change: Environment before we make final commitment, but as we got into May and June those conversations normalized and clients were ready to move forward, but that does give us a little bit of a kind of a few weeks of a little bit of a pause in the sales cycles.

Speaker Change: So I think Thats, one thing, we mentioned and the other is with the regulatory uncertainty in terms of what will it particularly in the United States. There are changes in the oversight and governance of regulation United States I think some of the implementations with <unk>, we're starting to get elongated because they weren't sure what the timelines, we're going to be actually I prefer in the U S and also.

Speaker Change: Working their way through and I think that did mentioned that that is driving low low single digit growth in the professional services and in a particular impact on axiom itself. So thats why we mentioned that both in the first quarter and that she she discussed that in the second quarter as well.

Speaker Change: Please go ahead, Sir yes, I would also add if you look at what we put in our usual page eight of the presentation, and which we mentioned, but I do not.

Speaker Change: In Europe, and certain regulations, and I think some of that starting to shore up I did mention the SLR. Some regulatory guidance is starting to come out that's giving clients and understanding of what their obligations are going to be and so that those conversations with our clients are becoming more certain but thats that is helping to show up the pipeline implementations are still <unk>.

Speaker Change: The wealth of signings in Fintech in this quarter was I think really important and has really contributed to that momentum and with the strong pipeline that Adena has also mentioned.

Speaker Change: Yes, we were just extremely proud of the team because they work so closely with their with their clients throughout the quarter to help you.

Speaker Change: Working their way through and I think that there. It did mentioned that that is driving low low single digit growth in the professional services and a particular impact on axiom itself. So thats why we mentioned that both in the first quarter and that she she discussed that in the second quarter as well.

Speaker Change: Do you want to be both patient and pleasantly persistent [laughter].

Speaker Change: And I would say that our sales team just did an excellent job of staying close to the clients throughout the quarter in order to get them across the finish line wherever possible.

Speaker Change: Go ahead, Sir Yes, I would also add if you look at what we put in our usual page eight of the presentation and which we mentioned both hygiene ini the wealth of signings in Fintech. In this quarter was I think really important and is really a contributor to that momentum and with the strong.

Bill Katz: Our next question comes from Bill Katz with TD Cowen.

Bill Katz: Great. Thank you for taking the question. This morning, maybe switching gears, a little bit I'm sort of curious to get your latest thinking on the ability to leverage the digital ecosystem August saw the momentum building both from a use case as well as the regulatory backdrop around stable coin in <unk> and maybe even just crypto I just wonder if you could talk us through where you see the greatest.

Speaker Change: Pipeline.

Adena: Adena has also mentioned.

Adena: Yes, we were just extremely proud of the team because they work so closely with their with their clients throughout the quarter to help.

Adena: You want to be both patient and pleasantly persistent.

Bill Katz: <unk>, both from a volume perspective.

Bill Katz: Caps, even from an efficiency perspective for the platform as well thank you Greg.

Adena: Yeah.

Adena: And I would say that our sales team just did an excellent job of staying close to the clients throughout the quarter in order to get them across the finish line wherever possible.

Bill Katz: Hey, Bill.

Bill Katz: So with regard to digital assets I think you are right that there is there is some regulatory wins coming that are favorable towards the institutionalization of digital assets, both in traditional and obviously traditional asset classes as well as in the crypto space.

Speaker Change: Our next question comes from Bill Katz with TD Cowen.

Bill Katz: Great. Thank you very much for taking the question. This morning, maybe switching gears, a little bit I'm sort of curious to get your latest thinking on the ability to leverage through the <unk>.

Bill Katz: The first one of course being with stable coin and there is what that does is it creates a lot of efficiency of payment rails and the ability to move money much more efficiently and so we're not a payments company, but we do care a lot about how capital markets operating efficiencies as capital markets and the ability to move collateral more efficiently.

Bill Katz: Ecosystem August saw the momentum building both from a use case as well as the regulatory backdrop around stable coin in <unk>, maybe even just kryptos, what if you could talk us through where you see the greatest opportunities both from a volume perspective, and perhaps even from an efficiency perspective for the platform as well. Thank you.

Bill Katz: Across different markets and asset classes, the ability to manage risk and a more dynamic way as well as the digitization of less less liquid assets that maybe create more efficiency in the trading of those assets around the world. So as a technology provider, we provide technology to traditional market.

Bill Katz: Great Hey, Bill.

Bill Katz: And helping them digitize assets all the way from trading all the way through to settlement and depository, but we also provide collateral management capabilities and calypso and as I mentioned with the proof of concept, but we're trying to show is that we can use on <unk> capabilities to move collateral a lot more dynamically, which will free up a lot of liquidity. There is a lot of excess liquidity.

Bill Katz: What that does is it creates a lot of efficiency of payment rails and the ability to move money much more efficiently and so we're not a payments company, but we do care a lot about how capital markets operating efficiencies as capital markets and the ability to move collateral more efficient.

Bill Katz: <unk> trapped inside clearing brokers and clearing houses. So the question is cannot cannot move in a more dynamic way, so thats and stable coin I think with regard to market structure in the crypto space and just the digitizing of traditional assets.

Bill Katz: Structure is still yet to come and we're heavily engaged with regulators and legislators to two.

Bill Katz: All the way from trading all the way through to settlement and depository, but we also provide collateral management capabilities and calypso and as I mentioned with the proof of concept, but we're trying to show is that we can use on <unk> capabilities to move collateral a lot more dynamically, which will free up a lot of liquidity there is a lot of.

Bill Katz: To engage with them, we look forward to seeing how regulation can evolve because it is a great technology and it's a it's an interesting asset class. It's evolving the one thing we always focus on in every conversation. We have is what is going to benefit investors. So what market structure will be investor first investor.

Bill Katz: Friendly how can we also participate in those in those asset classes in a way that.

Bill Katz: Serves investors really successfully looking at things like allowing securities exchanges to own Ats's, which we cannot do today also allowing us to have a single platform that can trade securities and on securities and things like that are going to be part of the dialogue on market structure that open up opportunities, but in general.

Bill Katz: We feel like the institutionalization of crypto as well as the ability to bring digital assets to drive efficiency is a positive for the industry. So we're very excited about the direction of travel here.

Bill Katz: Yeah.

Speaker Change: Our next question comes from Simon clinch with Rothschild <unk> Company Redburn.

Simon Clinch: Hi, Thanks for taking my question.

Simon Clinch: Was wondering if we just pivot to the index business. Please.

Simon Clinch: Maybe just give us a little bit more color about the dynamics, you're seeing in that business, particularly strong flows that you saw again this quarter.

Simon Clinch: And I was just wondering if you could maybe give some color around the durability of that or how to think about the structural bottlenecks.

Simon Clinch: Well first I think first Sarah and her team do a really nice job working with the business to show Alpha versus beta and that's demonstrated in the presentation. So while we focus on is obviously alpha while we can control we control new product creation and we created for 33 new products. We also have a very defined strategy.

Simon Clinch: Around our expansion around institutional adoption international expansion and new products. So we have 33 new products.

Simon Clinch: One of which are in the institutional space and many of them are also international in nature. So we are really executing quite well in that kind of favorite three pillar approach to growing and expanding the business. We then also of course work very closely with our investment management partners on driving adoption of our indexes and we had 88 billion of inflows 'twenty.

Simon Clinch: $1 billion in a quarter, we can't necessarily control input is all the time, but what we focus on is how do we make sure that investors understand both the track record, but also the potential of these indexes to drive value for them. How do we create indexes that are really leaning towards the future of the economy, which of course is symbiotic with our brands.

Simon Clinch: And then how do we also think about specific investor strategy. So sometimes it can be more of like a dividend oriented strategy or a buyback oriented strategy or things that.

Simon Clinch: They want to be focused on and we work closely with our investment manager clients to create indexes in those areas. So in all of those fronts. I think we are doing a really great job.

Simon Clinch: And I think we have we are very strong partner, we'd take a partnership approach to every new index, we create with our clients.

Simon Clinch: Okay.

Speaker Change: Our next question comes from Alex Kramm with UBS.

Speaker Change: Yes, Hey, good morning, everyone just wanted to come back to the strength in Fintech and in particular on the <unk>.

Capital markets side.

Speaker Change: If you could talk to some of this already but if I look at <unk> and if my numbers are right and I think that typically are I think you added 39 million quarter over quarter in <unk>.

Speaker Change: So I think thats the largest sequential increase that we've seen and obviously you only have a couple of years of data here, but.

Speaker Change: Just wondering.

Speaker Change: And what's specifically really drove such a chunky number I mean is it is it is it a lot of deals I know you gave some numbers into some really chunky things that happened just the pipeline just had to execute against.

Speaker Change: And then more importantly is there anything that maybe came a little earlier than you expected and could this take away a little bit from there from the IRR for the remainder of the year. Thank you.

Operator: Listen only mode. After the speaker's presentation, there will be a question and answer session.

<unk> already but if I look at <unk>.

And if my numbers are right and I think they typically are I think you're at 39 million quarter over quarter in our in the way. Our so I think that's the largest sequential increase that we've seen and obviously you only have a couple of years of data here, but the <unk>.

Operator: To ask a question during this session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.

Speaker Change: So just to unpack capital markets. There are three areas of that business you have calypso you have mark attack and then you have the connectivity services business and so starting I'll go back to front on that one so starting with connectivity services. The volumes that we experienced in our markets definitely drove more demand for connectivity.

Operator: Please be advised that today's conference is being recorded.

Just wondering.

Ato Garrett: I would now like to hand the conference over to Ato Garrett, Senior Vice President and Investor Relations Officer. Please go ahead.

What what specifically really drove such a chunky number I mean is it is it is it a lot of deals I know you gave some numbers is this some really chunky things that I happened just the pipeline just had to had to execute against them and then more importantly is it anything that maybe came a little earlier than you expected and could this take away a little bit from.

Adena Friedman: Good morning, everyone, and thank you for joining us today to discuss Nasdaq's second quarter 2025 financial results.

Speaker Change: <unk> among our clientele and as just as a reminder, we have doubled the size of our data centers. So that gives us more capacity to be able to serve that demand and the second is in.

Adena Friedman: On the line are Adena Friedman, our chair and chief executive officer, Sarah Youngwood, our chief financial officer, and other members of the management team.

Speaker Change: I think I mentioned Calypso second so calypso.

From the <unk> for the remainder of the year. Thank you.

Adena Friedman: After prepared remarks, we'll open the line for Q&A.

Alex Kramm: And we had a 34% growth quarter last year and so the fact, we had 3% growth on top of 34% growth. Just says that we did a really nice job of finding new opportunities and working with our clients to close those opportunities I would say it was pretty broad based Alex it wasn't like one single thing, but there are some great. Some larger clients that were part of the quarter.

Ato Garrett: The press release and earnings presentation accompanying this call can be found on our investor relations website.

So just to unpack capital markets. There are three areas of that business you have calypso you have mark attack and then you have the kinds of things.

Adena Friedman: I'd like to remind you that we'll be making forward-looking statements on this call that involve risks. A summary of those risks is contained in our press release with a more complete description in our annual report on Form 10-K.

And instead of starting I'll go back to punt on that one so starting with connectivity services. The volumes that we experienced in our market definitely drove more demand for connectivity services on among our clientele and as just as a reminder, we have doubled the size of our data centers. So that gives us more capacity to serve that demand and the second is in.

Adena Friedman: We will discuss the financial performance on a non-GAAP basis, excluding the impact of divestitures and the impact of FX. Organic and adjusted growth rates are equivalent this quarter as they include the same period-over-period adjustments.

Speaker Change: With a lot of Upsells.

Speaker Change: And then in market Tech I think thats, where the three.

Speaker Change: Clubs trading clients that had mentioned those are significant deals because we're not just providing the software we're managing the software and those tend to be <unk>.

Adena Friedman: Definitions and reconciliations of U.S.

Adena Friedman: GAAP to non-GAAP plus adjustments can be found in our earnings presentation, as well as in a file in the financial section of our investor relations website at ir.nasdaq.com.

Speaker Change: I think I mentioned could set a second so callisto and we and we had a 34% growth quarter last year and the fact, we had 3% growth on top of 34% growth. Just says that you know we did a really nice job.

Speaker Change: Larger contract opportunities for us because it took managed service. So I think all of those things ultimately contributed to the strength in the Aero growth.

Adena Friedman: Also, we have included a page in the appendix regarding the sale of our Nordic Powers futures business to Euronext.

Michael Cho: Our next question comes from Michael Cho with Jpmorgan.

Adena Friedman: And with that, I will turn the call over to Adina. Thank you, Otto, and good morning, everyone.

Speaker Change: Many new opportunities and working with our clients to close those opportunities I would say it was pretty broad based Alex it wasn't like one single thing, but there are some great.

Adena Friedman: I will start with NASDAQ's second-quarter results and will then review the performance across our divisions before handing the call over to Sarah for a more detailed discussion of our finances. I'm pleased with Nasdaq's excellent overall financial performance in the quarter. We delivered one point three billion dollars in net revenue, a year over year increase of 12 percent. Solutions revenues were $991 million, representing 10% year-over-year growth, and our overall annualized recurring revenue, or ARR, grew 9% to $2.9 billion. Expenses were up just under 8% year over year, driven primarily by the timing of our annual compensation cycle as we communicated on last quarter's call.

Michael Cho: Hi, good morning. Thanks for thanks for taking my question here I just wanted to touch on the data and listings business, which saw some nice revenue growth acceleration in <unk> you called out the contribution from data.

Speaker Change: Some larger clients that were part of the quarter, there's a lot of upsells.

Speaker Change: And then in market Tech I think that's where the three.

Speaker Change: It's trading clients have had mentioned those are significant deals because we're not just providing the software we're managing the software and those tend to be larger contract opportunities for us because it's a managed service. So I think all of those things ultimately contributed to the strength in the air growth.

Alex Kramm: Driving some of the results, yes, Alex I think you called out low single digit growth for 2025.

Speaker Change: Maybe you could just remind us of the mix of the business here and then when we think about kind of revenue growth acceleration stagnate.

Speaker Change: I was thinking about the impact from the data business continues to chug, along pretty well versus the improvement.

Michael Cho: Our next question comes from Michael Cho with Jpmorgan.

Speaker Change: Yeah.

Speaker Change: You are seeing in the listings business okay great.

Speaker Change: Hi, good morning. Thanks for thanks for taking my question here I just wanted to touch on the data and listings business, which saw some nice revenue growth acceleration in <unk> you called out the contribution from data.

Speaker Change: Great. Thanks.

Adena Friedman: Operating income of $721 million, grew 16%, and we delivered 24% EPS growth. Our results continue to demonstrate the strength of our diversified platform and our ability to capture growth through cycles, particularly given the heightened volatility that the markets and our broader client health faced early in the quarter. More broadly, although macroeconomic uncertainty persists, the US economy continues to demonstrate solid fundamentals as the labor market and consumer spending remain resilient. While GDP growth across Europe has still been muted, expectations for a recovery in consumer demand and a rebound of investment into the region support an improving outlook.

Speaker Change: We're very pleased with the progress in the data business and what we really focused on is continuing to expand our relationship with certain clients, especially retail brokerage platforms around the world, where they might take a deeper set of data from us.

Speaker Change: Driving some of the results, yes, I also think you've called out both single digit growth for 2025, and so hoping maybe you could just remind us.

Speaker Change: And expand what they're offering to their clients around the world and then we also are continued our global expansion. There is so much interest in the U S markets and having retail access to the U S market that we and our products. We think are obviously the best in the world, providing transparency of the market to them.

Speaker Change: Nick.

Speaker Change: Business here and then when we think about kind of revenue growth acceleration in the segment you know how you're thinking about the impact from the data business continued to trend along pretty well versus the improvement you saw.

Speaker Change: Seeing in the listings business.

Speaker Change: So we've continued to find really strong demand. There were also usage of our data because we do have certain data products that are usage based and there is a lot of retail involvement in the markets and volumes in the markets and not retail demand is driving usage across the data as well.

Speaker Change: Great. Thanks.

Speaker Change: We're very pleased with the progress in the data business and what we really focused on is continuing to expand our relationship with certain clients like especially retail brokerage platforms around the world, where they might take a deeper set of data from us.

Adena Friedman: Across the business environment, investment in technology transformation continues as companies try to focus on achieving benefits from AI. This is driving momentum across infrastructure modernization, accelerated cloud readiness, and enhanced data management. These dynamics are evidence across the banking and capital market sectors where clients are focused on technology investments to modernize their infrastructure, improve their risk management and regulatory compliance, and fight financial crime. Although uncertainty remains as to the longer-term impact of trade and economic policies, this resilience is translated into a robust sales pipeline across our financial technology solutions, as well as active markets, index inflows, and an improving ITO landscape.

Speaker Change: From our point of view, we would see that that is trending. So that's a trend that we were looking at pretty pretty good trends going into the second half of the year as well and then in listings.

Speaker Change: And expand what they are offering to their clients around the world and then we also are continued that global expansion. There's so much interest in the U S market and having retail access to the U S market that we and our products.

Speaker Change: It is an improving story as we mentioned we are seeing more new issuances. This year, we do have a really healthy pipeline and we do hope to have even more large cap companies come out in the second half of the year it will be market dependent and as you. All know that also kind of tend to have a little bit of a lag because we don't recognize all of the initial listing fees upfront we have that.

Speaker Change: Obviously, the best in the world, providing transparency of the market to them.

Speaker Change: So we continue to find really strong demand. There were also usage of our data because they do have certain data products that are usage based.

Speaker Change: And there is a lot of retail involvement in the markets and volumes in the markets and that retail demand is driving usage across the data as well.

Speaker Change: Thats amortized over multiple years, so it will take a while for that to kind of show up as real momentum in the growth. There. So we are trending a little above our medium term outlook. There I think we have good opportunities to continue that trend, but we also is an uncertain environment around us.

Adena Friedman: Turning to our high-level financial performance within our division. Capital Access Platforms generated 9% revenue growth and 6% ARR growth. Financial Technology delivered 10% revenue growth and 11% ARR growth, including 19% in Financial Crime Management Technology, 10% in Regulatory Technology, and 9% in Capital Markets Technology.

Speaker Change: From our point of view, we would see that that is trending. So that's a trend that we would we're looking at pretty pretty good trends going into the second half of the year as well and then in listings.

Speaker Change: Our next question comes from Kyle Voigt with K B W.

Adena Friedman: and Market Services delivered 21% net revenue growth.

Kyle Voigt: Hi, good morning, Thanks for taking my question.

Adena Friedman: I'll now cover our business and operational highlights, beginning with the Capital Access Platform, where I'll start with data and listings. In our listings franchise, the strong momentum in our switch program continued. year to date $271 billion in market capitalization, including Shopify and Kimberly Clark have switched to NASDAQ. This represents the best first half performance since the official launch of our switch program 20 years ago. turning to IPOs in the second quarter, we welcomed 38 new operating companies to Nasdaq, representing a 79% win rate, raising a total of $3.6 billion and extending Nasdaq's listing listings leadership to 46 consecutive quarters.

Kyle Voigt: So earlier this week, the FCC announced a round table for September to discuss the trade through rule or rule 611, and cheer Atkins took a view in that press release at 611 has not served investors or broker dealer as well.

Speaker Change: That's amortized over multiple years, so it will take a while for that to kind of show up as real momentum in the growth. There. So we are trending a little above our medium term outlook. There I think we have good opportunities to continue that trend, but we also is an uncertain environment around us.

Speaker Change: Obviously expecting more details to come at the round table date, but just curious to hear how you roll you view rule 611 and potential implications for NASDAQ in a world where rule 611 could be repealed or significantly modified.

Kyle Voigt: Our next question comes from Kyle Voigt with K B W.

Kyle Voigt: So for.

Kyle Voigt: Yes. So 611 is the order protection rule and we are really looking forward to engaging the SEC through the round table and beyond on that topic as you all as Youll, probably know Reg NMS is put into place in 2000, 22000, and 5006 with order protection rule being the cornerstone of the rule, but not the only part of the rule. So.

Speaker Change: Hi, Good morning, Thanks, taking my question.

Speaker Change: So earlier this week, the FCC announced a round table.

Speaker Change: September to discuss the trade through rule or rule 611, and care Atkins took a view in that press release at 611 has not served investors or broker dealer as well.

Adena Friedman: Year to date, we saw the highest level of new issuances in the first half, since the first half of 2021, attracting 83 operating companies, including three of the top five largest IPOs. With an overall 81% win rate. Importantly, the strong performance of recent listings, especially of large cap companies, has raised optimism on the IPO outlook for the remainder of this year and into 2026. Our European listings business also delivered a great second quarter with six new Year to date, Nasdaq exchanges in Europe welcomed 10 new listings, which similarly included three of the five largest IPOs in Europe.

Speaker Change: Obviously expecting more details to come at the round table date, but just curious to hear how you roll you view rule 611 and potential implications for NASDAQ and our world.

Kyle Voigt: We are.

Kyle Voigt: Happy to have that engagement, we operate in markets outside the United States that don't have an order protection rule like in Europe, we operating markets.

Kyle Voigt: In Canada that have de Minimis standards around that rule, we operate very successfully in both of those geographies. So we do know how to compete successfully and operate successfully in environments with and without the rule.

Speaker Change: We're rule 611 could be repealed or significantly modified.

Speaker Change: So for.

Speaker Change: Yes. So 611 is the order protection rule and we are really looking forward to engaging the SEC through the round table and beyond on that topic as you all as Youll, probably know Reg NMS is put into place in 2020, I mean 2000 and 5006.

Kyle Voigt: It's going to be a healthy discussion and engagement one thing we do want to make sure. The SEC thinks about is just what other parts of <unk> need to be adjusted if they are going to consider eliminating a PR.

Adena Friedman: Combined, these IPOs raised 2 billion euros, 53% of all IPO capital raised in Europe, and a five-fold increase in capital raised compared to the first half of 2024. We're particularly excited to see our Stockholm Exchange continue to lead as Europe's premier destination for new listings, underpinned by the relative valuation of its market and the strength of the local ecosystem. Our data business performance reflects strong and sustained demand for our comprehensive and innovative data products, with growth in new sales, upsells, and usage across our client segments and geographies. Our industry-leading index franchise continues to drive solid growth.

Speaker Change: Order protection rule being the cornerstone of the rule, but not the only part of the rule. So we are.

Kyle Voigt: We feel very confident in our ability to be successful in any environment.

Speaker Change: Very happy to have that engagement, we operate in markets outside the United States that don't have an order protection rule like in Europe, We operating markets in Canada that have de Minimis standards around that rule, we operate very successfully in both of those geographies. So we do know how to compete successfully and operate successfully in environments with and without the rule.

Kyle Voigt: Okay.

Speaker Change: Our next question comes from Jeff Schmidt with William Blair.

Jeff Schmidt: Hi, good morning on <unk>.

Speaker Change: No most of that business is in the U S, but you're starting to make progress internationally there.

Speaker Change: Starting up the first European Bank and when we think about your medium term guide for that.

Speaker Change: Paul.

Speaker Change: It's going to be a healthy discussion and engagement one thing we do want to make sure. The SEC thinks about is just what other parts of <unk> need to be adjusted if they are going to consider eliminating a PR.

Speaker Change: Business of mid Twenty's revenue growth does that assume much international expansion or could there potentially be.

Speaker Change: Upside there if that momentum picks up.

Adena Friedman: We managed through heightened volatility as market value declines at the beginning of the quarter were offset by higher derivatives volumes, followed by a fast recovery in market values. Throughout the quarter, inflows were strong at $20 billion. Over the last 12 months, we achieved a new record for net inflows of $88 billion. As volatility stabilized, we exited the quarter with a new record ETP AUM at $745 billion. We remain focused on product innovation, with 33 new products launched during the quarter, over half of which were international. Additionally, we continue to focus on growing our exposure to institutional clients with the launch of seven products within the insurance annuity.

Speaker Change: But we feel very confident in our ability to be successful in any environment.

Speaker Change: So we've always thought talked about three pillars of our of the growth that will underpin that business to achieve the medium term outlook and one is of course the continued growth of the SMB sector and I think we continue to show real strength, there with 46 signings. This quarter. The second is the move up market in the U S to the tier one and tier two.

Speaker Change: Okay.

Jeff Schmidt: Our next question comes from Jeff Schmidt with William Blair.

Jeff Schmidt: Hi, good morning on verification.

Jeff Schmidt: No most of that business is in the U S, but you're starting to make progress internationally there.

Speaker Change: And we are starting to show some momentum and I think as we mentioned we have had more success. This year than last year in signing new clients, new clients and I think that should accrue to our benefit going into Q4 and beyond.

Jeff Schmidt: Signing up the first European Bank and when we think about your medium term guide for that.

Speaker Change: The business of mid Twenty's revenue growth does that assume much international expansion or could there potentially be.

Speaker Change: And then the European expansion as kind of a longer lag to that expansion plan to achieve army and to maintain our medium term outlook. So Europe is not going to show up in the numbers in 2526, but as you get into 2007 and 28 it should start to be a contributor. If we're successful we have to we have to make sure we can land and expand.

Speaker Change: Upside there.

Speaker Change: <unk> picks up.

Speaker Change: So we've always talked about three pillars of our of the growth that will underpin that business to achieve the medium term outlook and one is of course the continued growth of the F&B sector and I think we continue to show real strength, there with 46 signings. This quarter. The second is the move up market in the U S to the tier one and tier two.

Adena Friedman: Earlier this week, we were pleased to announce that Nasdaq and CME Group signed an extension through 2039 of CME Group's exclusive contract to offer futures and options on futures based on the NASDAQ 100 and other NASDAQ indices, reflecting the company's shared commitment to delivering value through trusted benchmark products.

Speaker Change: But we have a lot of confidence in our ability to create value for our clients. There. So we're excited about the first milestone, but it's a long road there, but it is part of our medium term outlook.

Speaker Change: Our next question comes from Benjamin <unk> with Barclays.

Adena Friedman: I also want to provide a brief comment on the proposed reclassification of the Invesco QQQ Trust. Nasdaq was engaged with Invesco as Invesco explored these proposals. Importantly, the proposed change does not alter the terms of Nasdaq's licensing arrangements with Invesco, nor the administration of the NASDAQ 100 Index. We remain committed to our strategic partnership with Invesco and to delivering the trusted benchmark on which investors rely.

Benjamin: Hi, Good morning, and thank you for taking my question.

Speaker Change: And then the European expansion as kind of a longer lag to that expansion plan to achieve army and to maintain our medium term outlook. So Europe is not going to show up in the numbers in 2526, but as you get into 2017 yea. It should start to be a contributor. If we're successful we have to we have to make sure we can land and expand.

Speaker Change: Dana you mentioned in your prepared remarks, I think in several prior quarters had opportunity in the index business around annuities.

Speaker Change: Just curious if you could unpack that a little bit I think it's something investors here, a little bit less about but given demographic trends in the U S. Given some noise elsewhere about private markets entering the retirement space just curious what Todd nasdaq's exposure. It looks like there how big is that business today and what are your ambitions. There. Thank you.

Adena Friedman: Within Workflow & Insights, corporate solutions delivered modest growth benefiting from our product and technology investments, which have enhanced our competitive position.

Speaker Change: Yeah, we're pretty early in our expansion into the insurance annuity space. So I would not say, it's a huge contributor to our business, yet, but because we actually frankly hired a sales team and are really gone through into that space only in the last couple of years.

Speaker Change: Our next question comes from Benjamin Dudish with Barclays.

Adena Friedman: We drew several notable wins, including a Nasdaq Board Vantage sale to a large international bank, which is also a significant FinTech client. In analytics, we continue to see strong demand for our data link and investment solutions across the investment management community, as well as improved gross retention rates. Lastly, across CAP, we are focused on meeting the growing demand for private market solutions.

Benjamin Dudish: Hi, Good morning, and thank you for taking my question.

Speaker Change: You mentioned in your prepared remarks, I think in several prior quarters had opportunity in the index business around annuities.

Speaker Change: With like a real precise approach and strategy and so why why is that interesting because what we find interesting is now that the NASDAQ100 is one of the best indexes in the world and yet it really there's very little.

Speaker Change: Just curious if you could unpack that a little bit I think it's something investors here, a little bit less about but given demographic trends in the U S. Given some noise elsewhere about private markets entering the retirement space just curious what nasdaq's exposure looks like there how big is that business today and what are your ambitions. There. Thank you.

Speaker Change: Institutional exposure to it and in the insurance space at our long long long investment horizons. It can be a huge value opportunity for them. So we've been really starting to engage with them on creating specific insurance annuity vehicles are specific per client as we mentioned, we we launched seven of them this quarter that really allow them to have.

Adena Friedman: In June, we announced a partnership to be the exclusive distributor of Nasdaq Private Markets' Take-D API, bringing enhanced transparency and valuation visibility of private companies. Since launch, we have already signed two clients and the pipeline is building.

Speaker Change: Yeah, we're pretty early in our expansion into the insurance annuity space. So I would not say, it's a huge contributor to our business, yet, but because they actually frankly hired a sales team and have really gone through into that space only in the last couple of years.

Adena Friedman: For asset managers and asset owners, our investment platform provides a wealth of private markets intelligence, which has become an increasingly powerful aspect to drive new sales and client Turning next to financial technology, we deliver growth across products, client segments and geographies. This was driven by sustained demand for our mission-critical technologies and terrific execution by our team. especially considering the complexity of the landscape for financial institutions throughout the quarter. Our sales execution remains strong as we signed 57 new clients, seven cross-sells, and 130 upsells during the quarter.

Speaker Change: Exposure to the NASDAQ100.

Speaker Change: And bringing that into their portfolio and of course.

Sarah: With like a real precise approach and strategy and so why why is an interesting because what we find interesting is now that the NASDAQ100 is one of the best indexes in the world and yet it really there's very little.

Speaker Change: They have a very broad portfolio mandate, so having great exposure to innovative growth company as part of their mandate and we think the ASIC one hundreds a great vehicle for that.

Sarah: Institutional exposure to it and in the insurance space that are long long long investment horizon. It can be a huge value opportunity for them. So we've been really trying to engage with them on creating specific insurance annuity vehicles or specific per client as we mentioned, we we launched seven of them this quarter that really allow them to have.

Speaker Change: Our next question comes from Brian Bedell with Deutsche Bank.

Brian Bedell: Okay, great. Thanks, Thanks, good morning. Thanks.

Brian Bedell: Thanks for taking my question.

Brian Bedell: Just back onto capital markets I'm, just looking at the second half it sounds like the second quarter was pretty clean.

Brian Bedell: And given that I think your prior guidance is still sort of the low end of that high single to low double digit growth range, but does this imply you would be higher within that range given the strength in the second quarter and then just bigger picture on liquid <unk> ecosystem.

Sarah: Exposure to the NASDAQ100.

Adena Friedman: Thank you for a review of the subdivision starting with financial crime management. Nasdaq Verifin had another solid quarter of execution across client segments and continue to lead the industry through product innovation. In the enterprise client segment, serving tier one and tier two banks, we successfully executed on our land and expand strategy with three new signings, including one cross sell and two upsells. We are also pleased with the ongoing progress in our upsell conversion timeline, maintaining the 50% reduction in the sales cycle as compared to the original contract.

Sarah: And bringing that into their portfolio and of course.

Sarah: They have a very broad portfolio mandate, so having great exposure to innovative growth company as part of their mandate and we think the NASDAQ100 is a great vehicle for that.

Brian Bedell: I appreciate your comments on that earlier Dana.

Speaker Change: Our next question comes from Brian Bedell with Deutsche Bank.

Brian Bedell: Jeff.

Brian Bedell: Okay, great. Thanks, Thanks, good morning.

Jeff Schmidt: The ecosystem that we see today in digital marketing crypto make you feel better about longer term growth rate.

Speaker Change: Thanks for taking my question.

Sarah: Just back on to capital markets, just looking at the second half it sounds like the second quarter was pretty clean.

Jeff Schmidt: For the <unk> business relative to when you did the acquisition over 18 months ago.

Speaker Change: And given that I think your prior guidance is still sort of the low end of that high single to low double digit growth range, but does this imply you'd be higher within that range given the strength in the second quarter and then just.

Adena Friedman: We signed our first proof of concept with a European tier one bank for our consortium based payments fraud offering during the quarter, marking a significant milestone in our early efforts to expand into Europe. And demand among our small and medium sized client segment also remains solid with 46 new clients signed this quarter.

Jeff Schmidt: Great. Thank you.

Jeff Schmidt: With regard to capital markets technology as you mentioned given some of the positives we had some of the conversations that did elongate some of the sales cycles, which and that should that will ultimately kind of take a little bit of time to flow through so.

Sarah: Bigger picture on the crypto ecosystem just.

Jeff Schmidt: And also.

Sarah: I appreciate your comments on that earlier.

Adena Friedman: Turning next to regulatory technology where we signed seven new clients and four cross sells collectively. Revenue and ARR growth in Axiom SL were driven by a combination of large prior year client bookings starting to go live in addition to in-year bookings. The improving clarity around the regulatory environment in the U.S., for example, with the proposed changes to the supplementary leverage ratio, has further contributed to the strength and diversity of our pipeline. In surveillance, beyond the strong revenue and ARR growth, we were pleased to sign three cross-sells to existing MarketTech clients, which included two market operators and a large financial institution.

Jeff Schmidt: We think it's a little too early to tell whether or not this will have a meaningful impact on our full year. So we're as we said, we're maintaining and general consistency in the way that we're considering both subdivision on subdivision all growth rates for the year.

Sarah: Does the ecosystem that we see today in digital markets and crypto make you feel better about the longer term growth rate.

Sarah: For the <unk> business relative to when you did the acquisition over 18 months ago great.

Jeff Schmidt: In terms of the crypto and the ecosystem there and the fact that it is growing in a maturing there is regulation that's starting to come through and those are things. We did not actually anticipate in the agenda transaction itself, but as with the if if we are seeing a world where crypto and the crypto itself.

Sarah: Great. Thank you.

Sarah: With regard to capital markets technology as you mentioned given some of the positives we had some of the conversations that did elongate some of the sales cycles, which and that should that will ultimately kind of take a little bit of time to flow through so.

Jeff Schmidt: <unk> becomes more institutionally available that as an opportunity across our Fintech division because it's institutions adopters.

Sarah: And also.

Sarah: We think it's a little too early to tell whether or not this will have a meaningful impact on our full year. So we're as we said we're maintaining general consistency in the way that we're considering both the divisional and subdivision all growth rates for the year.

Adena Friedman: Capital markets technology delivered a solid quarter where strong momentum was further amplified by the normalization of sales cycles. In market technology, we are pleased to see strong demand from traditional and emerging trade infrastructure clients for our technology infrastructure solutions, as well as our operational expertise. We signed three clients to Eclipse Trading, our fourth generation marketplace technology platform, including two fully managed services mandates where we host and manage our clients entire trading environment, and one AWS hosted SaaS deployment. Calypso's performance reflected momentum and subscription revenues, including strong demand in Europe, where we delivered two new clients and one cross-sell, and we remain confident in the pipeline for the rest of the year.

Jeff Schmidt: In those asset classes, they're going to want to make sure that they have the right trade infrastructure, the right risk management, the right regulatory reporting and anti crime to support it.

Jeff Schmidt: Crypto digital assets like the technology of digital assets in terms of digitizing.

Sarah: In terms of the crypto and the ecosystem there and the fact that it is growing and maturing there is regulation, that's starting to come through and those are things. We did not actually anticipate in the agenda transaction itself, but as with the if we are seeing a world where crypto and the crypto itself.

Jeff Schmidt: Traditional securities we have been in that world for quite some time and we have been building our technology to support that for quite some time, so I think that there.

Jeff Schmidt: Those are all the things that we focus on if we can see that crypto becomes bankable that obviously becomes a very significant opportunity in terms of the ability for them to manage collateral move collateral and.

Sarah: <unk> becomes more institutionally available that as an opportunity across our Fintech division because it's institutions adopters.

Jeff Schmidt: And manage risks as they are participating in those markets.

Sarah: In those asset classes, they're going to want to make sure that they have the right trade infrastructure, the right risk management, the right regulatory reporting and anti gun crime to support it.

Jeff Schmidt: Our next question comes from Dan Fannon with Jefferies.

Adena Friedman: Turning now to market services, the division delivered record net revenues reflecting broad-based strength across our U.S. and European markets. We are proud to support our clients with a seamless trading experience as heightened volatility and rapidly evolving market conditions drove record industry volumes for U.S. cash equities and elevated volumes in U.S. equity options and European cash equities. We successfully executed the Russell rebalance with over 2.5 billion shares matched at a record notional value of $102 billion, further showcasing the strength and resiliency of our market. In U.S. equities, we maintained our disciplined approach to pricing amid an exceptionally high volume as we managed, capture, and optimize the value of our branches.

Sarah: Crypto digital assets like the technology of digital assets in terms of digitizing.

Dan Fannon: Hi, Thanks, Good morning, I wanted to come back to the listings business understanding that it is.

Dan Fannon: Subject to market conditions, but the other ancillary revenues like corporate solutions that come off of that how would you characterize that environment. Today I think you highlighted aboard vantage wind but.

Sarah: Traditional securities we have been in that world for quite some time and we have been building our technology to support that for quite some time, so I think that.

Sarah: Those are all the things that we focused on if we can see that crypto becomes bankable that obviously becomes a very significant opportunity in terms of the ability for them to manage collateral move collateral.

Speaker Change: I'm, just curious about the kind of broader workflow and insights business and then also as we think about ipos coming back what's the lag effect with the associated revenues with some of these other businesses.

Sarah: And manage risks as they are participating in this market.

Speaker Change: Sure. So if we talk about where client assets in general as we've discussed it in a fair discuss it we have.

Sarah: Yeah.

Sarah: Our next question comes from Dan Fannon with Jefferies.

Speaker Change: Very pleased with how analytics and data link are continuing to grow investment and analytics had.

Dan Fannon: Hi, Thanks, Good morning, I wanted to come back to the listings business understanding that it is subject to the market conditions, but the other ancillary revenues like corporate solutions that come off of that how would you characterize that environment. Today I think you highlighted aboard vantage win but just.

Speaker Change: Approved gross retention and kind of just a general very healthy environment for growth there and we have some great capabilities in the private space that we're that we've been rolling out for quite some time and that's really helping to drive demand for investment in particular.

Adena Friedman: In European equities, we delivered sequential improvements in share. Further, we continue to leverage our capabilities to capture off-exchange activity in Europe as well as in the U.S.

Sarah: Just curious about the kind of broader workflow and insights business and then also as we think about ipos coming back what's the lag effect, which the associated revenues with some of these other businesses yeah sure. So if we talk about where client base in general as we've discussed it in a fair discuss it.

Adena Friedman: Across the company overall, our excellent performance was driven by strong momentum across all three divisions, underpinned by execution on our strategic priority. Within our Integrate priority, we are on track to action our expanded $140 million net expense efficiency program by year-end, with approximately $130 million actioned as of the end of the second quarter. We achieved a gross leverage ratio of 3.2 times at quarter end, overachieving our milestone set at the closing of the Adenza acquisition 16 months ahead of schedule.

Speaker Change: In terms of corporate solutions and the listing environment conversations has continue to have modest growth and I would say more challenges just in terms of the fact that the market for some time and the growth in the market value of the present market values and the markets were tended to be geared towards the top end of the market. That's been that's been <unk>.

Sarah: Right.

Sarah: We're pleased with how analytics and data link are continuing to grow investment analytics had.

Speaker Change: Handing across the markets more which helps the health of the corporate audience for our corporate solutions, but it continues to be I would say.

Sarah: <unk> gross retention and kind of just the general very healthy environment for growth there and we have some great capabilities in the private space that we're that we've been rolling out for quite some time and that's really helping to drive demand for investment in particular.

Speaker Change: Relatively modest growth environment, but not not a hyper growth environment at all in the listing space for corporate solutions in terms of the flow through of.

Adena Friedman: Within our innovate priority, we remain focused on delivering new innovations to enhance our value proposition with clients. This week, Nasdaq Fairfin announced the launch of its Agentic AI Workforce, a suite of digital workers that will deliver a step change in compliance, effectiveness, and efficiency. Early results from the first two agents in beta, the digital sanctions analyst and the digital enhanced due diligence analyst, demonstrate agentic AI's potential to address the most resource intensive compliance workflows. For example, when onboarded into a bank's alert triage workflow, our digital sanctions analyst automates the acknowledgment, screening, and documentation processes, reducing alert review workload by more than 80%.

Sarah: In terms of corporate solutions and the listing environment conversations has continue to have modest growth and I would say more challenges just in terms of the fact that the market for some time.

Speaker Change: An improved listing environment into corporate solutions. Just a reminder, we do give our corp are lifting clients a starter kit essentially of IR services governance is not included in that program, but IR is and that takes its a three year program. So it does create a delay in paid subscriptions for those services, but.

Sarah: <unk>.

Sarah: The market value of the resin market values and the markets were tended to be geared towards the top end of the market. That's been that's been expanding across the markets more which helps the health of the corporate audience for our court decisions, but it continues to be I would say.

We can up sell them on other things in that intervening period. So more ipos does open up the aperture and does increase the pipeline and so we are looking forward to having more companies coming in and tapping the public market.

Sarah: A relatively modest growth environment, but not not a hyper growth environment at all in the listing space for corporate solutions in terms of the flow through of.

Speaker Change: Our next question comes from Owen Lau with Oppenheimer.

Sarah: And improved listing environment into corporate solutions. Just a reminder, we do give our corp, our listing clients.

Adena Friedman: We also continue to expand the library of anti-money laundering targeted topology analytics. Our Tariff Financing Analytics launched in Q1, and is already being leveraged by 900 clients, nearly doubling adoption versus the end of the last quarter. Our drug trafficking analytics launched this quarter in early beta has already driven strong client engagement. In addition, we're continuing to invest in new partnerships to enhance product capabilities, including our partnership with FinCom, which supports advanced screening, sanction screening.

Owen Lau: Hi, Good morning. Thank you for taking my quick questions. So I want to go back to took a nice action on both public and private market.

Sarah: A starter kit essentially of IR services governance is not included in that program, but IR is and that takes the three year program. So it does create a delay in paid subscriptions for those services, but we can up sell them on other things in that intervening period. So more ipos does open up the aperture and does <unk>.

Owen Lau: Private market there are more platforms offering to Organise private company.

Owen Lau: These trends support.

Owen Lau: Intermediates.

Owen Lau: Private market longer term and similarly for public market equity side.

Speaker Change: No. Thanks for the launch 24, six trading next year, how do you see the dynamic company with a competitive dynamics there. Thanks.

Sarah: The pipeline and so we are looking forward to having more companies coming in and tapping the public market.

Speaker Change: Sure well on IV <unk> is this a technology. So <unk> is a technology that to use.

Adena Friedman: Beyond AI, digital assets represents another key theme driving our innovation as we focus on that maturation of the ecosystem and supporting institutional adoption. For instance, NASA CALIPSO announced an innovative proof of concept, which will expand upon its industry-leading collateral management capabilities. The use case demonstrates our ability to integrate on-chain capabilities to allow us to help financial institutions manage collateral across asset classes and markets in a more dynamic and efficient manner.

Owen Lau: Our next question comes from Owen Lau with Oppenheimer.

Owen Lau: Hi, Good morning. Thank you for taking my quick questions. So I want to go back to took a nice sanction on both public and private market.

Speaker Change: And in the case of both the <unk> of private securities as <unk> been talking about.

Sarah: Private market there are more platforms offering took a nice private company.

Speaker Change: That took innovation public securities I think at least what's come out. So far is this a new technology that really serves the same purpose as other things that already exists in the marketplace. So for instance in private company shares. There are these special purpose vehicles that are created.

Speaker Change: These trends support this intermediate NASDAQ private market longer term and similarly for public markets public equities I know, Matt. Thanks, when to launch 24, six trading next year, how do you see the dynamic company with a competitive dynamics there. Thanks.

Adena Friedman: We continue to work with our partners and clients to finalize the product build and our targeting launch in early to mid-2026.

Speaker Change: Then wealth channels can then use to aggregate demand from their wealth clients, but that the wealth channel itself is is the investor in that special purpose vehicles as one investor investing in the actual company shares that is essentially what they're doing with organization as well as just a different technology construct to achieve the same goal.

Sarah: Well I view took innovation of technology. So <unk> is a technology that you use.

Adena Friedman: Lastly, within our Accelerate priority, our One Nasdaq strategy drew seven cross-sell wins across financial technology in the quarter for a total of 26 cross-sells since the advent of acquisition.

Sarah: And in the case of both the <unk> of private securities as <unk> been talking about.

Adena Friedman: At the end of the quarter, CrossSells accounted for over 15% of financial technology sales pipeline, and we remain on track to surpass $100 million in run rate revenue from CrossSells by the end of 2027.

Speaker Change: And in that actually NASDAQ private market does.

Sarah: And it took renovation of Hog series I think at least what's come out. So far is it just that new technology that really serves the same purpose as other things that already exist in the marketplace. So for instance in private company shares. There are these special purpose vehicles that are created.

Speaker Change: Supply provide and support those types of special purpose vehicles, but in connection with the with the corporate <unk>.

Adena Friedman: Looking ahead to the remainder of 2025, Nasdaq is well positioned to continue to deliver for our clients and shareholders. While we remain conscious of the impact of sustained uncertainty in the economic and market environment, we continue to demonstrate that our diversified business can deliver through different cycles. This is reflective of our role as a trusted strategic partner to our clients across the financial ecosystem and our ability to help them navigate across market environments, capture strategic opportunities, manage risk, and solidify their operational resilience.

Speaker Change: Corporate clients are a key constituent of key clientele for NASDAQ private market. So they do everything with the corporates in mind, but.

Speaker Change: But then wealth channels can then use to aggregate demand from their wealth clients, but that the wealth channel itself is is the investor in that special purpose vehicles as one investor investing in the actual company shares that is essentially what they're doing with organization as well, it's just a different technology construct to achieve the same goal.

Speaker Change: But to the extent that there are transactions that are occurring that arent, just tenders or secondaries and blocks and other things and also the creation of Susquehanna vehicles NPM does facilitate that in a collaborative way and.

Speaker Change: In terms of organization general.

Speaker Change: In terms of.

Sarah: And in that actually NASDAQ private market does.

Speaker Change: Public and private periods one of the things we focus on is what is ultimately in the benefit to the benefit of investors.

Sarah: Help suppliers provide and support those types of special purpose vehicles, but in connection with the with the corporate the corporate clients are a key constituent of key clientele for NASDAQ private market. So they do everything with the corporates in mind.

Adena Friedman: We enter the second half of the year with momentum across our platform and will remain laser focused on supporting and innovating for our clients as the environment evolves in the period ahead.

Speaker Change: Make sure that you think about liquidity transparency and integrity no matter, what the asset classes and that's our that's our mantra and so what we will increase the liquidity. So we have obviously NASDAQ private market NASDAQ funds secondaries that can help drive liquidity in private assets.

Sarah Youngwood: With that, I will now turn the call over to Sarah to provide more details on our financial results. Thank you, Adena, and good morning, everyone. In the second quarter of 2025, Nasdaq delivered one of our strongest quarters on record with 24% EPS growth. Underscoring the durability of the model and the consistency of our Starting with quarterly results on slide 11, we reported net revenue of $1.3 billion, up 12%, with solutions revenue of $991 million, up 10%. Operating expense was $585 million, up just under 8%, leading to an operating margin of 55% and EBITDA margin of 58%, both up two percentage points.

Sarah: But to the extent that there are transactions that are occurring that arent, just tenders or secondaries and blocks and other things and also the accretion Susquehanna vehicles NPM does facilitate that in a collaborative way and.

Speaker Change: Have transparency and we have <unk> coming out of another private market now to create transparency of price discovery in the private company shares.

Sarah: In terms of organization in general.

Speaker Change: But that's still there's not a lot of transparency of the underlying companies themselves that underlying funds themselves. So that's something that probably needs to develop and then of course integrity to make sure you think about the regulatory framework to drive more accessibility of those assets is going to important regardless of the technology. That's used to do it and then on the public markets.

Sarah: In terms of.

Sarah: Public and private periods one of the things we focus on is what is ultimately in the benefit to the benefit of investors.

Sarah: Make sure that you think about liquidity transparency and integrity no matter, what the asset classes and that's our that's our mantra and so what we will increase the liquidity. So we have obviously NASDAQ private market NASDAQ on secondaries that can help drive liquidity in private assets.

Speaker Change: We are very focused on making the public company experience a better one for companies.

Speaker Change: Such an important part of our economy and as <unk> said on CNBC. The other day, let's make ipos create again, we're very excited about that and we're engaged heavily with the SEC on ideas around that and so we do think it's important to have a vibrant public market, while also supporting the private market.

Sarah: You have transparency and we have <unk> coming out of another private market now to create transparency of price discovery in the private company shares.

Sarah Youngwood: This resulted in net income of $492 million and diluted EPS of $85 million. up 24. Slide 12 shows the drivers of our 12% net revenue growth for the quarter. We generated eight and a half percentage points of alpha driven by new and existing clients and product innovation. Meanwhile, beta factors contributed three and a half percentage points of growth this quarter, driven by higher valuations in Nasdaq indices and higher overall volumes in market. As shown on slide 13, we realized a second consecutive quarter of AR worth of $9 billion. This quarter's 9% included 11% AR-15. and SAT Revenue Goals of 2012.

Sarah: But that's still there's not a lot of transparency of the underlying companies themselves that underlying funds themselves. So thats something that probably needs to develop and then of course integrity to make sure you think about the regulatory framework to drive more accessibility of those assets assuming important regardless of the technology. That's used to do it and then in the public markets.

Speaker Change: Yes.

Chris Allen: Our next question comes from Chris Allen with Citi.

Chris Allen: Good morning, everyone. Thanks for the question in the deck, you noted price increases across a number of segments right punished Crown capital mortgage Tech and data and listings just wondering how the price increases compared to prior historical price increases and what level is contractual.

Sarah: We are very focused on making the public company experience a better one for companies.

Sarah: Such an important part of our economy and as <unk> said on CNBC. The other day, let's make IP and create again, we're very excited about that and we're engaged heavily with the SEC on ideas around that and so we do think it's important to have a vibrant public market, while also supporting the private market.

Chris Allen: The price increases.

Chris Allen: Yes, so on price increases is definitely part of our growth pharma now and I would say that this quarter has been very much in line with what you would have experience is defense contract in.

Sarah: Yeah.

Chris Allen: The divisions.

Chris Allen: And some of the price increases for example in financial crime management represent also the value of the engagement with our clients.

Sarah: Our next question comes from Chris Allen with Citi.

Sarah: Good morning, everyone. Thanks for the question in the deck you noted price increases across a number of segments finished crying capital mortgage continued listings just wondering how the price increases compared to prior historical price increases.

Chris Allen: Represents the Upsells on so you don't have like one way to look into it.

Sarah Youngwood: SAS as a percentage of ARR increased one percentage point to 37% compared to the second quarter of 2020.

Chris Allen: That being said I would say it has been a nice contributor to our growth for that this quarter, but also in the past.

Sarah: What level is contractual.

Sarah Youngwood: Let's review division results starting on slide 14. In Capital Access Platforms, we delivered revenue of $527 million, up 9%, and with AR growth of 6%. Data and listings revenue was up 5% with ARR up 7%. Revenue growth was primarily driven by data. due to the positive impact of new sales, up sales, and new. Within listings, the benefits of new listings and pricing were partially offset by delisting and lower amortization of prior period initial listings.

Sarah: The price increases.

Speaker Change: Our next question comes from Ashish <unk> with RBC capital markets.

Sarah: Yes, so on price increases is definitely part of our growth pharma now and I would say that this quarter has been very much in line with what you would have expense is defense contract.

ashish: Question, just on capital allocation, you talked about the pace of deleveraging and buyback I was just curious about M&A pipeline anything that you see from what bucket perspective any color there would be helpful. Thanks.

Sarah: The divisions.

Sarah: And some of the pipe, which is for example in central claim management represent also the value of the engagement with our clients.

Speaker Change: Yes.

Speaker Change: So we continue to have a lot of free cash flow generation I just wanted to put the context of a billion line of last 12 months free cash flow. So with that we have lots of options and we can do more than one thing. So if you start with <unk>.

Sarah: The Upsells on so you don't have like one way to look into it.

Sarah: But that being said I would say it has been a nice contributor to our growth this quarter, but also in the past.

Speaker Change: Supporting the business reinvesting in the organic opportunities that we having a business that is.

Speaker Change: Our next question comes from Ashish <unk> with RBC capital markets.

Sarah Youngwood: This is consistent with our previous comments, and we expect that to be the case for the remaining quarters of the year. Index revenue was up 17% in the quarter, mainly driven by average ETP AUM of $663 billion, up 25%. This is due primarily to strong net inflows, with more than half of the quarterly revenue growth driven by alpha factors. ETPUM included a record $88 billion of net inflows in the 12th. including $20 billion in the second quarter. Volume based license revenue was also up modestly as derivative contract volume up 15.

Speaker Change: The number one priority and we're doing that very much. We are very focused on fewer fueling this revenue growth opportunity that you are seeing unfolding.

Sarah: Good question.

Speaker Change: Just on capital allocation, you talked about the pace of deleveraging in and buyback I was just curious about M&A pipeline anything that you see from what bucket perspective any color there would be helpful. Thanks.

Speaker Change: The second part is the dividend and we'll continue to have it be progressive and then beyond that it's really being opportunities between debt and share repurchases and a focus on inorganic growth trajectory for that.

Sarah: Yes.

Sarah: We continue to have a lot of free cash flow generation I just wanted to put the context of a billion line.

Speaker Change: Okay.

Sarah: Last 12 months free cash flow, so with US we have lots of options and we can do more than one thing. So if you start with.

Speaker Change: This concludes today's question and answer session I would like to turn the call back to Adena Friedman for closing remarks.

Sarah: Supporting the business reinvesting in the organic opportunities that we have in the business.

Speaker Change: Well. Thank you very much NASDAQ continues to demonstrate the resilience of our diversified business as well as the strength of our partnership and relationships with our clients and we look forward to continuing to keep you updated on our progress in the quarters ahead. So thank you very much.

Sarah: The number one priority and we're doing that very much.

Sarah: We're very focused on fewer fueling this revenue opportunity that you are seeing unfolding.

Sarah Youngwood: was mostly upset by a mixed shift towards micro-contracts in the quarter, which have lower... In Workflow and Insights, revenue and AR worth were both up 5% for the quarter. The inquest was driven primarily by analytics, mainly about mountain data links. With continued demand from hedge funds, asset managers, asset owners, and consultants who value our differentiated data.

Sarah: Second part is the dividend and we will continue to have it be progressive and then beyond that it's really being a potential between debt and share repurchases and a focus on inorganic growth trajectory for that.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Sarah: Yeah.

Sarah: This concludes today's question and answer session I'd like to turn the call back to Adena Friedman for closing remarks.

Adena Friedman: Well. Thank you very much NASDAQ continues to demonstrate the resilience of our diversified business as well as the strength of our partnership and relationships with our clients and we look forward to continuing to keep you updated on our progress in the quarters ahead. So thank you very much.

Sarah Youngwood: Corporate Solutions of the Group Model Key, Digital Pricing, and Key Clients. Quarterly operating margin for the division was 58%, up 1%.

Sarah Youngwood: Moving to financial technology on slide 15. Revenue was $464 million, up 10%, with ARL growth of 11%. We are extremely proud of this result in the context of a top qualifier. Our business was resilient amid the modest delays we described early in the quarter, which contributed to low single-digit professional services revenue. The division signed 57 new clients, 130 up-sales, and 7 cross-sales in the quarter. Even with these wins, cross-sales continue to represent over 15% of the financial technology division's pipeline.

Sarah: This concludes today's conference call.

Sarah: Thank you for participating you may now disconnect.

Sarah: Okay.

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Sarah Youngwood: with Trent across all three subdivisions. Financial Crime Management Technology Revenue Group 20. with A. R. Ward of 9. We signed 46 new SMB clients and three new enterprise deals, including one cross-sell and two upsells. Net revenue retention was 113%, reflecting strong client engagement, including the continued adoption of the GenAI Entity Research Copilot and targeted typology analysis. In addition to persistent execution in the SME segment, a consistent contributor to growth, an ongoing momentum in product innovation The business continues to make strong progress in moving up market, and it's showing early traction with our international expansion. As a reminder, the sales cycles and time to value for Tier 1 and Tier 2 deals can take longer to flow into the Subscription Revenue Runway.

Sarah: Okay.

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Speaker Change:

Michael Cyprus: [music].

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Michael Cyprus: Yes.

Sarah Youngwood: But the momentum in the business persisted, we more than doubled enterprise signings year-to-date versus all of 2020.

Sarah Youngwood: which will begin to translate into stronger awards from this client segment starting in the Regulatory Technology Revenue Group 11. with ARR up 10% for the course. The division signed seven new clients, 67 upsells, and four cross-sells. Revenue growth reflects solid performance despite modest client readiness delays driven by regulatory improvements. as we get clarity from regulators. Professional services revenue should start to improve in the 4th quarter and early 2020. Capital Markets Technology Revenue grew 8% with ARR up 9% for the quarter, and with four new clients, 61 up sales, and two cross Financial Technology Operating Margin was 47%, which was flat versus the prior year.

Sarah Youngwood: As we wrap up our solutions division, we expect our 2025 revenue growth outlook for the divisions and subdivisions to be generally consistent with our comments provided in the April earnings Turning to market services on slide 16. We had record net revenue of $306 million dollars, reflecting growth of 21%. This included a second consecutive record net revenue quarter in both U.S. options and U.S. cash equity. Both was primarily driven by the increase in market-wide volumes, but also included higher share and slightly higher capture in U.S. options, both in index options. Higher Capture in European Derivatives, and Higher U.S.

Speaker Change: [music].

Sarah Youngwood: State Plan Revenue.

Sarah Youngwood: Market Services Operating Margin was 63% up 5 percentage points, highlighting the strong operating leverage.

Sarah Youngwood: Moving to expense on slide 17. We have operating expense of $585 million, up just under 8%. Transcripts provided by Transcription Outsourcing, LLC. This resulted in an operating margin and a bidder margin both of 2 percentage points to 55 and 58%. We are maintaining the midpoint of our organic expense expectations for the year, which carries forward our trajectory of healthy operating leverage, accompanying our strong revenue. Now that we have started to experience a more consistent effects impact as the year has progressed.

Sarah Youngwood: We are dating of 2025 non-gap expense guidance. to reflect the impact of movement in effect rates and to narrow the overall range with six months left to the year. Our guidance is now a range of $2.295 billion to $2.335 billion. $20 million increase in the mid-price of our guidance is entirely due to with no change to the organic expense growth rate implied by the midpoint of order. Due to the offsetting positive effects impact on net revenue, we expect the change in effect to have no impact on our budget.

Sarah Youngwood: Lastly, on We have actioned approximately $130 million out of $140 million efficiency program as of the end of the second quarter, and our team is well-positioned to continue to deliver on the program.

Sarah Youngwood: We maintain our 2025 non-gap tax rate guidance of 22.5 to 24.5.

Sarah Youngwood: Turning to capital allocation on slide 18, Nasdaq generated free cash flow of $467 million in the second quarter. This strong level of cash flow enabled us to support de-leveraging our dividends and share repurchase. We paid a dividend of $0.27 per share, or $155 million in the quarter, representing a 34% annualized payout ratio. In our continued commitment towards deleveraging, we paid down the $400 million remaining on the June 2025 bonds at maturity using cash on hand. We reached a growth leverage ratio of 3.2x at the end of the quarter, overachieving our 3.3x milestone 16 months earlier.

Sarah Youngwood: The 3.2x ratio improved from 3.4x. This is a 0.1X headwind from USD weakness relative to USD. We also repurchased a total of 1.2 million shares of our common stock for roughly $100 million in the second quarter, which included the completion of our annual employee decision-related repurchases in April, as well as opportunistic repurchases beyond that coming quarter.

Sarah Youngwood: As we continue to execute against our compelling organic growth strategy, we'll remain focused on organic investments in the business, our dividend program, and opportunistic debt and share reform. Including.

Sarah Youngwood: Nasdaq delivered excellent results amid a dynamic operating environment, exemplified by a second consecutive quarter of double-digit net revenue growth and AR growth of 9%. We continue to demonstrate strong operating leverage and make meaningful progress on our capital. Our first half performance reflects our ability to grow, recycle, and underpins our confidence to achieve our 2025 objective as well as deliver sustainable growth and long-term shareholder value as we drive forward in the second half.

Operator: the year and With that, let's open the line. Thank you.

Operator: As a reminder, to ask a question, you'll need to press star 11 on your telephone. To withdraw your question, please press star 11 again. We ask that you please limit your questions to no more than one, but feel free to go back into the queue, and if time permits, we'll be happy to take your follow-up questions at that time.

Operator: Please stand by while we compile the Q&A roster.

Michael Cyprys: Our first question is from Michael Cyprys with Morgan Stanley. Please proceed with your question. Hey, good morning. Thanks for taking the question here. I just wanted to ask about agentic AI. I was hoping maybe you could elaborate a bit on the opportunity set that you see. I know you flagged one in particular. I was just hoping maybe you could elaborate more broadly, how you're experimenting with that across the firm. I know you mentioned the example on Verifint, but just more broadly, how do you think about the opportunity across Nasdaq? What areas can make the most sense next?

Michael Cyprys: How meaningful in terms of efficiency gains do you think you might be able to extract from this? Just curious, any color you might be able to share. Thank you.

Adena Friedman: Great. Thanks, Michael. Internally, we have programs that focus on AI in the product and then AI on the business. We do have those distinct programs because in the product, we've integrated how can we use AI within each of the product development pipelines. We use it also to drive new intelligence around something called sustainable lens that helps companies understand the competitive dynamics around sustainability programs. And then we also, inside our FinTech division, have used it to support, and we are using it to support these efficiencies for our clients. But that's also applicable across Axiom SL and surveillance, which are also, you know, have a lot of that type of regulatory reporting obligations tied to them.

Adena Friedman: So all of those things are really applicable across in the products and our product roadmaps reflect those.

Adena Friedman: In addition to in the client success areas in terms of having information at the fingertips of our client success agents to support their work with clients and helping them understand issues or troubleshoot issues. So I think that it is a holistic approach to bringing AI into the business. Our efficiency program in 2025 does reflect early progress in that in terms of bringing some efficiencies in.

Adena Friedman: But we do expect that to scale even further in 2026 and we'll provide you more disclosures on that as we get into 2026.

Alexander Blostein: Our next question comes from Alexander Blostein with Goldman Sachs. Thank you. Good morning. Thanks for taking the question.

Alexander Blostein: I wanted to go back to your comments around slight improvement, I guess you guys are seeing in the pipelines and accelerating sales momentum towards the back end of the year. You made a couple of specific points, I think, both on prem dynamics for Q4, as well as onboarding within financial crime, I guess, in the fourth quarter as well.

Adena Friedman: Maybe just put a little more granularity what that means for revenues in these businesses towards the end of the year, and more importantly, how we should be thinking about the momentum and fintech entering the 26th. Sure, yes, thank you. And yeah, you are you captured the comments well. So we do have a very healthy pipeline across our fintech businesses. And one of the things we also look at is maturity of our pipeline. And I think that the mature our pipeline continues to have to mature so that we feel you have increasing confidence in our ability to bring these clients on board or upsell the clients appropriately.

Adena Friedman: So it feels it feels very healthy right now, the demand that we have across the world, and it is very much across the world for, you know, improved trade infrastructure, risk management, regulatory reporting, anti-fin crime, I mean, it's really holistic, too. It's not, it's not really geared towards one particular product, it's really across our franchise. And then specifically with financial crime management, we are talking about we talked about the enterprise segment, those are the tier one tier two banks. And as Sarah mentioned, we have already signed twice as many deals in that space as we signed all of last year.

Adena Friedman: And it but it takes time to implement them same as it does with Axiom, Estelle, and Calypso. So the revenue starts to ramp up and come online as we get those those clients implemented. And that's why she mentioned with FCMT, that we should start to see more contribution of revenue from the tier one to two clients getting into 24 and into 26. So we do feel like there's momentum coming through the second half of the year. And hopefully, you know, it'll also accrue to the benefit of 26.

Patrick Moley: Our next question comes from Patrick Moley with Piper Sandler. Yes, good morning. Thanks for taking the question.

Patrick Moley: Maybe just sticking with the some of the sales cycle commentary, I was hoping you could just talk a little bit more about how your conversations with customers in fintech trended in the second quarter. What impacted some of the tariff driven volatility we saw in April have on have on those conversations, just trying to get a better sense for some of the timing of those wins in the second quarter. Thanks. Sure. Yeah, so I think two things. We talked on the first quarter call, we talked about two trends that we were monitoring. One was, particularly with Calypso in the US, we were seeing some conversations with our clients back in March and April, kind of elongate a bit.

Adena Friedman: You know, clients were saying, well, we need to spend a little time understanding the environment before we make final commitments. But as we got into May and June, those conversations normalized and clients were ready to move forward. But, you know, that did give us a little bit of a kind of few weeks of a little bit of a pause in the sales cycles. And so I think that's one thing we've mentioned. And the other is with the regulatory uncertainty in terms of what will, particularly in the United States, you know, there are changes and the oversight and governance of regulation in the United States, I think some of the implementations with Axiom SL were starting to get elongated because they weren't sure what the timelines were going to be actually, I think, for in the US and also in Europe and certain regulations.

Adena Friedman: And I think some of that's starting to shore up. I did mention SLR, you know, some regulatory guidance is starting to come out that's giving clients an understanding of what their obligations are going to be. And so that those conversations with our clients are becoming more certain, but that's, that's helping to shore up the pipeline, you know, implementations are still working their way through. And I think that Sarah did mention that that is driving, you know, low, low single digit growth in the professional services and a particular impact on Axiom SL. So that's why we mentioned that both in the first quarter.

Adena Friedman: And then she, she discussed that in the second quarter as well.

Adena Friedman: I would also add, if you look at what we put in our usual page 8 of the presentation, and which we mentioned, both Adena and I, the wealth of signings in FinTech in this quarter was, I think, really important and is really a contributor to that momentum and with a strong pipeline that Adena has also mentioned. Yeah, we were just extremely proud of the team because they work so closely with their with their clients throughout the quarter to help, you know, you want to be both patient and pleasantly persistent. And I would say that our sales team just did an excellent job of staying close to the clients throughout the quarter in order to get them across the finish line wherever possible.

Bill Katz: Our next question comes from Bill Katz with TD Cowen. Great, thank you very much for taking the question this morning. Maybe switching gears a little bit, I'm sort of curious to get your latest thinking on the ability to leverage through the digital ecosystem, obviously a lot of momentum building both from a use case as well as the regulatory backdrop around stablecoin and tokenization, and maybe even just crypto.

Bill Katz: I was just wondering if you could talk us through where you see the greatest opportunities both from a volume perspective and perhaps even from an efficiency perspective of the platform as well. Thank you.

Adena Friedman: Great. Hey, Bill. So with regard to digital assets, I think you're right that there's some regulatory winds coming that are favorable towards the institutionalization of digital assets, both in traditional and I would say traditional asset classes as well as in the crypto space. And the first one, of course, being with stablecoin. And there, what that does is it creates a lot of efficiency of payment rails and the ability to move money much more efficiently. And so we're not a payments company, but we do care a lot about how capital markets operate and the efficiency of those capital markets and the ability to move collateral more efficiently across different markets and asset classes, the ability to manage risk in a more dynamic way, as well as the digitization of less liquid assets that maybe create more efficiency in the trading of those assets around the world.

Adena Friedman: So as a technology provider, we provide technology to traditional markets in helping them digitize assets all the way from trading all the way through to settlement and depository. But we also provide collateral management capabilities in Calypso. And as I mentioned with the proof of concept, what we're trying to show is that we can use on-chain capabilities to move collateral a lot more dynamically, which will free up a lot of liquidity. There's a lot of excess liquidity trapped inside clearing burgers and clearing houses. So the question is, can that move in a more dynamic way?

Adena Friedman: So that's in stablecoin. I think with regard to market structure in the crypto space and just the digitizing of traditional assets, the market structure is still yet to come, and we're heavily engaged with regulators and legislators to engage with them. We look forward to seeing how regulation can evolve, because it is a great technology, and it's an interesting asset class that's evolving. The one thing we always focus on in every conversation we have is what is going to benefit investors. So what market structure will be investor-first, investor-friendly? How can we also participate in those asset classes in a way that serves investors really successfully?

Adena Friedman: Looking at things like allowing securities exchanges to own ATFs, which we cannot do today. Also allowing us to have a single platform that can trade securities and non-securities. Things like that are going to be part of the dialogue and market structure that open up opportunities. But in general, we feel like the institutionalization of crypto, as well as the ability to bring digital assets to drive efficiency, is a positive for the industry.

Adena Friedman: So we're very excited about the direction of travel here.

Simon Clinch: Our next question comes from Simon Clinch with Rothschild and Company. Hi, thanks for taking my question. I was wondering if we just pivot to the index business, please. And could you maybe just give us a little bit more color about the dynamics you're seeing in that business or particularly strong flows that you saw again this quarter?

Simon Clinch: And I was just wondering if you could maybe give some color around the durability of that or how to think about the structural dynamics? Thanks. Well, first, I think, first, Sarah and her team do a really nice job working with the business to show alpha versus beta, and that's demonstrated in the presentation. So, what we focus on is obviously alpha, what we can control. We control new product creation, and we created 33 new products. We also have a very defined strategy around our expansion, around institutional adoption, international expansion, and new products. So, we have 33 new products, seven of which are in the institutional space, and many of them are also international in nature.

Adena Friedman: So, we are really executing quite well in that kind of three-pillared approach to growing and expanding the business. We then also, of course, work very closely with our investment management partners on driving adoption of our indexes, and we had $88 billion of inflows, $20 billion in the quarter. We can't necessarily control inflows all the time, but what we focus on is how do we make sure that investors understand both the track record, but also the potential of these indexes to drive value for them? How do we create indexes that are really leaning towards the future of the economy, which, of course, is symbiotic with our brand?

Adena Friedman: And then how do we also think about specific investor strategies? So, sometimes it can be more of like a dividend-oriented strategy or a buyback-oriented strategy or things that they want to be focused on, and we work closely with our investment manager clients to create indexes in those areas. So, in all of those fronts, I think we're doing a really great job, and I think we are a very strong partner. We take a partnership approach to every new index we create with our clients.

Alexander Kramm: Our next question comes from Alex Kramm with UBS. Yes, good morning, everyone. Just wanted to come back to the strength and FinTech and in particular, on the capital markets side. And I think you talked to some of this already. But if I look at ARR, and if my numbers are right, and I think they typically are, I think you added 39 million quarter over quarter in new ARR. So I think that's the largest sequential increase that we've seen. And obviously, we only have a couple years of data here.

Alexander Kramm: But just wondering, what, what specifically really drove such a chunky number? I mean, is it is it is it a lot of deals? I know you gave some numbers. Is it some really chunky things that happened? Just the pipeline just had to had to execute against? And more importantly, is it anything that maybe came a little earlier than you expected? And could this take away a little bit from the from the ARR for the remainder of the year? Thank you.

Adena Friedman: So just to unpack capital markets, there are three areas of that business. You have Calypso, you have Market Tech, and then you have the connectivity services business.

Adena Friedman: And so starting, I'll go back to front on that one. So starting with connectivity services, the volumes that we experienced in our markets definitely drove more demand for connectivity services among our clientele. And just as a reminder, we have doubled the size of our data center, so that gives us more capacity to be able to serve that demand.

Adena Friedman: The second is in, I think I mentioned Calypso second. So Calypso, we had a 34% growth quarter last year. And so the fact we had 3% growth on top of 34% growth just says that we did a really nice job of finding new opportunities and working with our clients to close those opportunities. I would say it was pretty broad-based, Alex. It wasn't like one single thing, but there were some great, some larger clients that were part of the quarter with a lot of upsells.

Adena Friedman: And then in Market Tech, I think that's where, you know, those three Eclipse trading clients I did mention, those are significant deals because we're not just providing the software, we're managing the software. And those tend to be larger contract opportunities for us because it's of managed service. So I think all of those things ultimately contributed to the strength in the AR growth.

Michael Cho: Our next question comes from Michael Cho with J.P. Morgan. Hi, good morning. Thanks for taking my questionnaire. I just want to touch on the data and listings business, which saw some nice revenue growth acceleration in 2Q. You called out the contribution from data driving some of the results here. I also think you called out low single-digit growth for 2025.

Michael Cho: And so maybe you could just remind us of the mix of the business here. And then when we think about kind of revenue growth acceleration in this segment, you know, how do we think about the impact from the, you know, data business continuing to trend along pretty well versus the improvement you're seeing in the listings business? Great, thanks. Yeah, we're very pleased with the progress in the data business. And what we really focused on is continuing to expand our relationships with certain clients, like especially retail brokerage platforms around the world, where they might take a deeper set of data from us and expand what they're offering to their clients around the world.

Adena Friedman: And then we also are continuing that global expansion. There's so much interest in the US markets and having retail access to the US markets that we and our products, we think are obviously the best in the world and providing transparency of the market to them. And so we continue to find really strong demand there. We're also usage of our data, because we do have certain data products that are usage based. And there is a lot of retail involvement in the markets and volumes in the markets. And that retail demand is driving usage across the data as well.

Adena Friedman: You know, from our point of view, we would see, you know, that that is trending. So that's a trend that we would, you know, we're looking at pretty, pretty good trends going into the second half of the year as well.

Adena Friedman: And then in listings, it is an improving story. As we mentioned, we are seeing more new issuances this year, we do have a really healthy pipeline, and we do hope to have even more large cap companies come out in the second half of the year, it will be market dependent. And as you all know, that also kind of tends to have a little bit of a we have that that's amortized over multiple years. So it'll take a while for that to kind of show up as real momentum and the growth there. So, you know, we are trending a little above our medium from outlook there.

Adena Friedman: I think we have good, good opportunities to continue that trend. But we also is an uncertain environment around.

Kyle Voigt: Our next question comes from Kyle Voigt with KBW. Hi, good morning. Thanks for taking my question.

Kyle Voigt: So earlier this week, the SEC announced a roundtable for September to discuss the trade-through rule or Rule 611. And Chair Atkins took a view in that press release that 611 has not served investors or broker-dealers well. Obviously, expecting more details to come at the roundtable date, but just curious to hear how you view Rule 611 and potential implications for Nasdaq in a world where Rule 611 could be repealed or significantly modified. So for, yes, so 611 is the Order of Protection Rule, and we are really looking forward to engaging the FCC through the roundtable and beyond on that topic.

Adena Friedman: As you'll probably know, Reg NMS was put into place in 2005, 2006, with Order of Protection Rule being the cornerstone of the rule, but not the only part of the rule. So, we are very happy to have that engagement.

Adena Friedman: We operate in markets outside the United States that don't have an Order of Protection Rule, like in Europe. We operate in markets in Canada that have de minimis standards around that rule. We operate very successfully in both of those geographies. So we do know how to compete successfully and operate successfully in environments with and without the rule. So, you know, it's going to be a healthy discussion and engagement. One thing we do want to make sure the FCC thinks about is just what other parts of Reg NMS need to be adjusted if they are going to consider eliminating the OPR.

Adena Friedman: But we feel very confident in our ability to be successful in any environment.

Jeff Schmitt: Our next question comes from Jeff Schmitt with William Blair.

Jeff Schmitt: Hi, good morning. On Verifin, I know most of that business is in the US, but you're starting to make progress internationally there, signing up the first European bank. And when we think about your medium term guide for that business of mid 20s revenue growth, does that assume much international expansion? Or could there potentially be, you know, upside there if that momentum picks up?

Adena Friedman: www.verifin.com So we've always talked about three pillars of the growth that will underpin that business to achieve the medium term outlook. And one is, of course, the continued growth of the S&P sector. And I think we continue to show real strength there with 46 signings this quarter. The second is the move up market in the US to the tier one and tier twos. And we are starting to shift momentum. And I think, as we mentioned, we have had more success this year than last year in signing new clients. And I think that should accrue to our benefit going into Q4 and beyond.

Adena Friedman: And then the European expansion is kind of a longer leg to that expansion plan to achieve and to maintain our medium term outlook. So Europe is not going to show up in the numbers in 25 or 26. But as you get into 27, 28, it should start to be a contributor if we're successful. We have to you know, we have to make sure we can land and expand. But we have a lot of confidence in our ability to create value for our clients there. So we're excited about the first milestone, but it's a long road there.

Adena Friedman: But it is part of our medium term outlook.

Benjamin Budish: Our next question comes from Benjamin Budish with Barclays. Hi, good morning, and thank you for taking the question. Adena, you mentioned in your prepared remarks, and I think in several prior quarters, an opportunity in the index business around annuities. Just curious if you could unpack that a little bit. I think it's something investors hear a little bit less about, but given demographic trends in the U.S., given some noise elsewhere about private markets entering the retirement space, just curious what Nasdaq's exposure looks like there. How big is that business today, and what are your ambitions there?

Benjamin Budish: Thank you.

Adena Friedman: Yeah, we're pretty early in our expansion into the insurance annuity space. So I would not say it's a huge contributor to our business yet. But because we actually, frankly, hired a sales team and have really gone through into that space only in the last couple of years. And with like a real precise approach and strategy. And so why, you know, why is that interesting? Because it's what we find interesting is now the Nasdaq 100 is one of the best indexes in the world. And yet it really there's very little institutional exposure to it. And in the insurance space that are long, long, you know, long investment horizons, it can be a huge value opportunity for them.

Adena Friedman: So we've been really starting to engage with them on creating specific insurance annuity vehicles are specific per client, as we mentioned, we, we launched seven of them this quarter, that really allow them to have exposure to the Nasdaq 100. And bringing that into their portfolio. And of course, you know, as you know, they have a very broad portfolio mandate. So having great exposure to innovative growth companies is part of their mandate. And we think the Nasdaq 100 is a great vehicle for that.

Brian Bedell: Our next question comes from Brian Bedell with Deutsche Bank. Thanks for taking my question. Just back on to capital markets, just looking at the second half, it sounds like the second quarter was pretty clean, and given that I think your prior guidance was still sort of the low end of that high single to low double digit growth range, but does this imply you'd be higher within that range given the strength in the second quarter?

Brian Bedell: And then just bigger picture on the crypto ecosystem, just appreciate your comments on that earlier, Adena. Does the ecosystem that we see today in digital markets and crypto make you feel better about the longer term growth rate for the Adenza business relative to when you did the acquisition over 18 months ago?

Adena Friedman: Great, thank you. With regard to capital markets technology, as we mentioned, given some of the pauses we had in some of the conversations, that did elongate some of the sales cycles, which and that should, that will ultimately kind of take a little bit of time to flow through. So, you know, we're and also, we, we think it's a little too early to tell whether or not this will have a meaningful impact on the full year. So we're, as we said, we're maintaining general consistency in the way that we're considering both the divisional and subdivisional growth rates for the year.

Adena Friedman: In terms of the crypto and the ecosystem there, and the fact that it is growing and maturing, there is regulation that's starting to come through. Those are things we did not actually anticipate in the Adenza transaction itself. But as with the, if, if we are seeing a world where crypto and the crypto itself becomes more institutionally available, that is an opportunity across our fintech division, you know, because as institutions adopt those asset classes, they're going to want to make sure that they have the right trade infrastructure, the right risk management, the right regulatory reporting and anti-fintech crime to support it in crypto.

Adena Friedman: Digital assets, like the technology of digital assets in terms of digitizing traditional securities, we have been in that world for quite some time, and we have been building our technology to support that for quite some time. So I think that those are all the things that we focused on. If we can see that crypto becomes bankable, you know, that obviously becomes a very significant opportunity in terms of the ability for them to manage collateral, move collateral, and manage risk as they're participating in this market.

Dan Fannon: Our next question comes from Dan Fannon with Jeff. Thanks. Good morning.

Dan Fannon: I wanted to come back to the listings business understanding that it is subject to the market conditions, but the other ancillary revenues like corporate solutions that come off of that, how would you characterize that environment today? I think you highlighted a board vantage win, but I'm just curious about the kind of broader workflow and insights business. And then also, as we think about IPOs coming back, what's the lag effect with the associated revenues with some of these other businesses? Yeah, sure. So if we talk about workflow insights in general, as we discussed it, and as Sarah discussed it, we have, we were very pleased with how analytics and data link are continuing to grow investment.

Adena Friedman: And analytics had improved gross retention and kind of just a general very healthy environment for growth there. And we have some, you know, great capabilities in the private space that we're, that we've been rolling out for quite some time. And that's really helping to drive demand for investment in particular. In terms of corporate solutions in the listing environment, corporate solutions has continued to have modest growth. And I would say more challenges just in terms of the fact that, you know, the markets for some time, and the growth in the market value, the growth in market values in the markets were tended to be geared towards the top end of the market.

Adena Friedman: That's been, you know, that's been expanding across the markets more, which helps the health of the corporate audience for our corporate solutions.

Adena Friedman: But it continues to be, I would say, a relatively, you know, modest growth environment, but not not a hyper growth environment at all in the listing space for corporate solutions. In terms of the flow through of, you know, an improved listing program. So it does create a delay in paid subscriptions for those services. But we can upsell them on other things in that intervening period. So more IPOs does open up the aperture and does increase the pipeline.

Owen Lau: And so we are looking forward to having, you know, more companies coming in and tapping the public Our next question comes from Owen Lau with Oppenheimer. Hi, good morning. Thank you for taking my quick question. So I want to go back. Unknown Attendee, Alexander Kramm, Owen Lau, Patrick Moley, Ato Garrett, Michael Cho, Nasdaq Does this trend support? NasdaqPrivate. Nasdaq Squindle Lawns 24-6 trading. How do you see the... Sure.

Owen Lau: Well, Owen, I view tokenization as just a technology. So tokenizing is a technology that's used And in the case of both the tokenization of private securities, as we've been talking about, and the tokenization of public securities, I think at least what's come out so far is this is that new technology that really serves the same purpose as other things that already exist in the marketplace. So, for instance, in private company shares, there are these special purpose vehicles that are created that then wealth channels can then use to aggregate demand from their wealth clients, but that the wealth channel itself is the investor in that special purpose vehicle.

Adena Friedman: So it's one investor investing in the actual company shares. That is essentially what they're doing with tokenization as well. It's just a different technology construct to achieve the same goal. And in that, actually, Nasdaq private market does help, you know, supply, provide, and support those types of special purpose vehicles, but in connection with the corporate. You know, the corporate clients are a key constituent and key clientele for Nasdaq private market. So they do everything with the corporates in mind. But to the extent that there are transactions that are occurring that aren't just tenders or secondaries and blocks and other things, and also the creation of special purpose vehicles, NPM does facilitate that in a collaborative way.

Adena Friedman: In terms of tokenization in general, in terms of public and private securities, one of the things we focus on is what is ultimately in the benefit to the benefit of investors. make sure that you think about liquidity, transparency, and integrity, no matter what the asset class is. And that's our mantra. And so what will increase the liquidity? So we have, obviously, Nasdaq Private Market, Nasdaq Fund Secondaries that can help drive liquidity in private assets. You have transparency, and we have TAPE-D coming out of Nasdaq Private Market now to create transparency of price discovery in the private company shares.

Adena Friedman: But, you know, that's still, there's not a lot of transparency, though, of the underlying companies themselves, the underlying funds themselves. So that's something that probably needs to develop. And then, of course, integrity, to make sure you think about the regulatory framework to drive more accessibility of those assets. It's going to be important, regardless of the technology that's used to do it.

Adena Friedman: And then in the public markets, you know, we are very focused on making the public company experience a better one for companies. You know, it's such an important part of our economy. And as Chair Atkins said on CNBC the other day, let's make IPOs great again. We're very excited about that. We're engaged heavily with the SEC on ideas around that. And so we do think it's important to have a vibrant public market while also supporting the private market.

Chris Allen: Our next question comes from Chris Allen with Citi. Morning, everyone. Thanks for the question.

Chris Allen: In the deck, you noted price increases across a number of segments, reg tech, finance, crime, capital markets, tech and data listings. Just wondering how the price increases compared to prior historical price increases, and what level is contractual of the price Yeah, so price increases is definitely part of our growth formula. And I would say that this quarter has been very much in line with what you would have experienced.

Adena Friedman: It depends contractually in the division. And some of the price increases, for example, in financial client management, represent also the value of the engagement with our clients, which represents the upsells. So, you don't have one way to look into it. But that being said, I would say it has been a nice contributor to our growth formula this quarter, but also.

Ashish Sabadra: Our next question comes from Ashish Sabadra with RBC Capital Markets.

Ashish Sabadra: No question. Just on capital allocation, you talked about opportunistic deleveraging and, and buyback.

Adena Friedman: I was just curious about the M&A pipeline, anything that you see from a backend perspective, any color that will be helpful. Yeah, so we continue to have a lot of free cash flow generation. I just want to put the context of a billion and nine of last 12 months with cash flow. So with that, we have lots of options and we can do more than one thing. So if you start with supporting the business, reinvesting in the organic opportunities that we have in the business, that is the number one priority. And we're doing that very much.

Adena Friedman: We are very focused on fueling this revenue work opportunity that you are seeing.

Adena Friedman: The second part is the dividend, and we'll continue to have it be progressive. And then beyond that, it's really being a potential between debt and shareable purchases and a focus on inorganic water.

Adena Friedman: This concludes today's question and answer session.

Adena Friedman: I'd like to turn the call back to Adena Friedman for closing remarks. Well, thank you very much. Nasdaq continues to demonstrate the resilience of our diversified business, as well as the strength of our partnership and relationships with our clients. And we can we look forward to continue to keep you updated on our progress in the quarters ahead.

Adena Friedman: So thank you very much.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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