Q3 2025 Nasdaq Inc Earnings Call

October 21, 2025

I think there'll be a question and answer session.

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

I'd now like to hand, the conference over to your first Speaker Otto Garrett Senior Vice President and Investor Relations. Please go ahead.

Good morning, everyone and thank you for joining us today to discuss Nasdaq's third quarter 2020 financial results on the line are Adena 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 at <unk>.

This call can be found on our Investor Relations website.

I would like to remind you that we will be making forward looking statements in this call that involve risks.

A summary of these risks is contained in our press release and a more complete description on our annual report on Form 10-K.

We will discuss our financial performance on a non-GAAP basis, excluding the impact of the divestiture and the impact of changes in FX.

Adjusted organic year over year changes reflect the $32 million revenue adjustment in the third quarter of 2024 for the change to the accounting treatment of revenues associated with axiom Marcel on premises subscription contracts, which are included in the financial technology segment definitions and reconciliations of us GAAP to non-GAAP plus adjustments can be found in our earnings presentation.

Nation as well as in our file located in the financial section of our Investor Relations website at IR, NASDAQ Dot com and with that I will now turn the call over to Adena.

Speaker #1: Good day, and thank you for standing by. Welcome to Nasdaq's third quarter 2025 results conference call. At this time, all participants are in a listen-only mode.

Thank you Ken and good morning, everyone I will start with Nasdaq's third 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 #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone; you will then hear an automated message advising that your hand is raised.

I am pleased with Nasdaq's excellent overall financial performance in the quarter, we delivered $1 $3 billion in net revenue a year over year increase of 11% solutions quarterly revenues were over $1 billion for the first time in our history, a milestone truly reflective of our transformation to a leading technology platform, representing 10% year over year.

Speaker #1: To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Ato Garrett, Senior Vice President and Investor Relations.

Speaker #1: Please go ahead.

Growth, our overall annualized recurring revenue or <unk>.

Speaker #2: Good morning, everyone, and thank you for joining us today to discuss NASDAQ's third quarter 2025 financial results. 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.

It grew 9% to $3 billion.

Expenses were $583 million up 5% year over year operating income was $732 million up 16% and we delivered 19% diluted EPS growth.

Speaker #2: After preparatory remarks, we will open the line for Q&A. The press release and earnings presentation accompanying this call can be found on our Investor Relations website.

This quarter's results reflect the strength of our diversified platform and our ability to partner effectively with our clients on their evolving priorities.

Speaker #2: I would like to remind you that we will be making forward-looking statements in this call that involve risks. A summary of these risks is contained in our press release, and a more complete description is in our annual report on Form 10-K.

We're showing the value of being the trusted fabric of the financial system by empowering clients to leverage technology data and advanced analytics to help to capture opportunities navigate risk and strengthen resilience.

Speaker #2: We will discuss our financial performance on a non-GAAP basis, excluding the impact of a divestiture and the impact of changes in ethics. Adjusted and organic year-over-year changes reflect the $32 million revenue adjustment in the third quarter of 2024 for the change to the accounting treatment of revenues associated with Axiom SL on-premises subscription contracts, which are included in the financial technology segment.

Reinforcing our leadership across the capital markets deepening our competitive advantage as we drive innovation across the financial industry.

As we look to the wider macro economic environment. The U S economy remains resilient supported by solid fundamentals.

Speaker #2: Definitions and reconciliations of U.S. GAAP to non-GAAP plus adjustments can be found in our earnings presentation, as well as in a file located in the Financials section of our Investor Relations website at ir.nasdaq.com.

But economic signals are mixed while some consumers have faced headwinds overall consumer spending has picked up in recent months. Additionally, the services industry remains an expansion in corporate investment in technology, and AI continued contributing to persistent economic growth.

Speaker #2: And with that, I will now turn the call over to Adena.

Speaker #3: Thank you, Ato. And good morning, everyone. I will start with NASDAQ's third 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.

In Europe, although growth remains subdued expectations for a recovery in demand and renewed investments point to a gradual improved outlook.

Speaker #3: I'm pleased with NASDAQ's excellent overall financial performance in the quarter. We delivered $1.3 billion in net revenue, a year-over-year increase of 11%. Solutions quarterly revenues were over $1 billion for the first time in our history, a milestone truly reflective of our transformation to a leading technology platform.

We continue to see durable demand for technology that supports the modernization of the financial system and are increasingly supporting clients with AI enabled solutions.

As our investments in AI continue we are deepening our competitive position and providing value to our clients through a combination of sophisticated solutions embedded with decades of expertise are highly differentiated proprietary data and the powerful network effects of our platforms across our clientele.

Speaker #3: Representing 10% year-over-year growth, our overall annualized recurring revenue, or ARR, grew 9% to $3 billion. Expenses were $583 million, up 5% year-over-year. Operating income was $732 million, up 16%, and we delivered 19% diluted EPS growth.

Turning to our high level financial performance within the divisions.

<unk> access platforms generated 8% revenue growth and 6% <unk> growth.

Financial technology delivered 13% revenue growth and 12% IRR growth.

Speaker #3: This quarter's results reflect the strength of our diversified platform and our ability to partner effectively with our clients on their evolving priorities. We're showing the value of being the trusted fabric of the financial system by empowering clients to leverage technology, data, and advanced analytics to help capture opportunities, navigate risk, and strengthen resilience.

In market services delivered 13% net revenue growth.

I'll now cover our business and operational highlights beginning with capital access platforms, while I'll start with data and listings.

We delivered a strong quarter and data and listings supported by our continued market leadership in our U S. Listings franchise, we welcomed operating companies that raised $6 billion in proceeds in the quarter with over $14 billion raised year to date.

Speaker #3: We're reinforcing our leadership across the capital markets, deepening our competitive advantage as we drive innovation across the financial industry. As we look to the wider macroeconomic environment, the U.S.

The European listings business also delivered a solid third quarter and we are pleased to welcome <unk> to the Stockholm market in October the largest European IPO since 2022.

Speaker #3: The economy remains resilient, supported by solid fundamentals. However, economic signals are mixed. While some consumers have faced headwinds, overall consumer spending has picked up in recent months.

Increasing IPO activity signals promising develops developments in the public markets, we see meaningful momentum, particularly among companies with strong fundamentals and compelling growth stories from a macroeconomic perspective continued global uncertainty is impacting certain sectors, resulting in some delays in ipos. However, this dynamic is bad.

Speaker #3: Additionally, the services industry remains in expansion, and corporate investment in technology and AI continued, contributing to persistent economic growth. In Europe, although growth remains subdued, expectations for a recovery in demand and reinvestment point to a gradual outlook.

<unk> by several trends, giving investors more confidence to invest in new issuances, including an expectation of lower cost of capital the resilience of the U S economy, and the Deregulatory agenda in Washington.

Speaker #3: We continue to see durable demand for technology that supports the modernization of the financial system, and we are increasingly supporting clients with AI-enabled solutions. As our investments in AI continue, we are deepening our competitive position and providing value to our clients through a combination of sophisticated solutions embedded with decades of expertise, our highly differentiated proprietary data, and the powerful network effects of our platforms across our clientele.

Our IPO pipeline is robust and we continue to expect a meaningful pick up in IPO activity in the quarters ahead.

While we are experiencing some short term delays from the government shutdown a strengthening foundation is in place and the market is showing signs of durable reengagement.

We are also encouraged by recent announcements from the SEC aimed at improving the public company experience.

Speaker #3: Turning to our high-level financial performance within the divisions, Capital Access Platforms generated 8% revenue growth and 6% ARR growth. Financial Technology delivered 13% revenue growth and 12% ARR growth.

There has been meaningful progress on our policy priorities, we outlined at our March white paper, particularly across scaled disclosure relief smart regulation and efforts to modernize the proxy process. We're pleased that the SEC recently approved the ability to file IPO documentation with mandatory arbitration as a condition and we're encouraged by that.

Speaker #3: In market services, we delivered 13% net revenue growth. I'll now cover our business and operational highlights, beginning with capital access platforms. While I'll start with data and listings.

Administration interest in reducing the frequency of FCC mandated disclosures.

Speaker #3: We delivered a strong quarter in data and listings, supported by our continued market leadership. In our U.S. listings franchise, we welcomed operating companies that raised $6 billion in proceeds in the quarter, with over $14 billion raised year to date.

Moving to our data business, we delivered strong growth underpinned by robust sales of our net retention as well as active retail engagement in the markets, which continues to drive usage.

This quarter, we signed five enterprise license agreements, including a leading U S financial advisory firm showcasing our continued momentum in this business.

Speaker #3: The European listings business also delivered a solid third quarter, and we are pleased to welcome Verisure to the Stockholm market in October, the largest European IPO since 2022.

And our index franchise to continue to deliver strong growth, we had a record $91 billion in net inflows over the last 12 months and $17 billion of net inflows in the quarter.

Speaker #3: Increasing IPO activity signals promising developments in the public markets. We see meaningful momentum, particularly among companies with strong fundamentals and compelling growth stories. From a macroeconomic perspective, continued global uncertainty is impacting certain sectors, resulting in some delays in IPOs.

We exited the quarter with ETP AUM up $829 billion, an all time high.

We also continued to deliver on our three growth pillars of product innovation international expansion and institutional adoption.

Speaker #3: However, this dynamic is balanced by several trends, giving investors more confidence to invest in new issuances, including an expectation of lower cost of capital and the resilience of the U.S.

Launched 30, New index products in the quarter, including 18 international products and 13 in institutional insurance annuity space.

Speaker #3: economy and the deregulatory agenda in Washington. Our IPO pipeline is robust, and we continue to expect a meaningful pickup in IPO activity in the quarters ahead.

Within workflow and insights our corporate solutions and analytics businesses benefited from new product innovations that are expanding the ways, we add value to our clients.

Speaker #3: While we are experiencing some short-term delays from the government shutdown, a strengthening foundation is in place, and the market is showing signs of durable re-engagement.

In corporate solutions, while the corporate buying environment and the business remains muted our targeted investments in our product capabilities and client engagement are building on our foundation and resulting in improving gross and net retention.

Speaker #3: We are also encouraged by recent announcements from the SEC aimed at improving the public company experience. There has been meaningful progress on the policy priorities we outlined in our March whitepaper, particularly across scaled disclosure relief, smart regulation, and efforts to modernize the proxy process.

In analytics, we're focusing our efforts on enhancing investments capabilities and expanding our role across the broader investment management workflows through through partnerships setting the stage for meaningful and sustained growth.

In Q3, we were pleased to sign an agreement with Juniper Square a fund operations partner to more than 2000 private market GPS to distributed investment data through Juniper squares fund raising platform.

Speaker #3: We're pleased that the SEC recently approved the ability to file IPO documentation with mandatory arbitration as a condition, and we're encouraged by the administration's interest in reducing the frequency of SEC-mandated disclosures.

We're expanding the scale and reach of our unique data assets to meet the evolving needs of our clients and to enhance the value that we bring to asset owners and asset managers, including in the private market space.

Speaker #3: Moving to our data business, we delivered strong growth underpinned by robust sales and net retention, as well as active retail engagement in the markets, which continues to drive usage.

Speaker #3: This quarter, we signed five enterprise license agreements, including a leading U.S. financial advisory firm, showcasing our continued momentum in this business. In our index franchise, we continue to deliver strong growth.

Since the beginning of 2025, we have nearly doubled the number of private funds covered within investment to 60000 funds supporting growth and new sales and Upsells.

Earlier this month, we completed the sale of NASDAQ <unk> insight partners.

Speaker #3: We had a record $91 billion in net inflows over the last 12 months, and $17 billion in net inflows in the quarter. We exited the quarter with ETP/AUM of $829 billion, an all-time high.

<unk> has a valuable portfolio management capabilities to asset owners.

Determined that its offerings, we're not a strategic fit within our portfolio and provided limited integrated value to the investment analytics platform. We believe <unk> will be better positioned to grow and thrive under new ownership that is more closely aligned with its long term direction.

Turning next to financial technology would delivered strong growth across all subdivisions. This was driven by sustained global demand for our mission critical technologies and successful execution by our teams.

Our sales execution remained robust as we signed 65, new clients for cross sells and 97 upsells during the quarter.

Turning now to a review of the subdivisions starting with financial crime management technology, <unk> had another solid quarter of execution across its client base, which now totals more than 2700 financial institutions, representing more than a 11 trillion and collective assets.

During the quarter, we signed Goldman Sachs as the new NASDAQ paraffin client.

This cross sell for our consortium based payments fraud solution.

Spanned NASDAQ expansion Asics relationship with the bank demonstrating the strength of our one nasdaq's strategy.

And regulatory technology, we continue to see strong momentum with six new clients to cross sells and 31, Upsells and surveillance in 'twenty two upsells for Oxy micelle.

In the quarter, we are pleased to partner with the commodity futures trading commission or the CFT see to enhance its market surveillance and fraud detection capabilities by signing with us to deploy nasdaq's industry, leading suite of surveillance technology.

Additionally earlier early in the fourth quarter, we signed an axiom upsell cross sell to a global tier one bank for an enterprise cloud deployment, demonstrating how we are using both the scale of our solutions and the trust we have established across multiple products to reinforce our leading market position.

Capital markets Technology also delivered a solid quarter with strong sales momentum.

<unk> robust client engagement in the third quarter and saw persistent demand for our technology solutions.

Market technology secured five Upsells and Calypso signed four new clients in 39 of cells.

Now turning to market services. The division continues to deliver double digit organic net revenue growth.

Reflecting broad based strength across our U S and European markets.

Growth resulted from elevated volumes in U S options and U S equities as well as excellent growth in index options trading.

Turning now to a review of the subdivisions starting with financial crime management technology now I think paraffin had another solid quarter of execution across its client base, which now totals more than 2700 financial institutions, representing more than a 11 trillion and collective assets.

We generated record revenues and volumes in the U S options in the third quarter was indexed the industry experiencing six of the top 10 volume days in history measured by options contracts traded with a subsequent record established in October.

During the quarter, we signed Goldman Sachs is a new NASDAQ Paragon client.

Within our U S options business NASDAQ index options volumes also hit record level levels in the third quarter with a subsequent record established in October.

This cross sell for our consortium based payments fraud solution expand NASDAQ expanse nasdaq's relationship with the bank demonstrating the strength of our one nasdaq's strategy.

And U S equities industry volumes remained robust during the summer months and have persisted into the fall.

And regulatory technology, we continue to see strong momentum with six new clients to cross sells and 31, Upsells and surveillance in 'twenty two upsells for Oxy myself.

NASDAQ listed Securities currently represent 53% of total industry volume up from 49% a year ago, which demonstrates the strength of our platform as well as the trusted source to attract issuers and capital into the most liquid and transparent market in the world.

In September Nasdaq's closing cross set a daily notional record value record.

In summary, our strong third quarter performance reflects solid momentum across all three divisions.

Driven by disciplined execution of our teams across our diversified businesses, including and continued progress on our strategic priorities of integrate innovate and accelerate.

Capital markets Technology also delivered a solid quarter with strong sales momentum we maintained robust client engagement in the third quarter and saw persistent demand for our technology solutions market technology secured five upsells and Calypso signed four new clients in 39 Upsells.

Within our integrate priority we're extremely pleased that we surpassed our expanded net expense efficiency target with over $150 million action as of the end of the quarter.

We achieved a gross leverage ratio of three one times at quarter end.

In addition, S&P recognized our deleveraging progress with an upgrade of the company's senior unsecured debt rating from Triple B to Triple B plus on August 12.

Now turning to market services. The division continues to deliver double digit organic net revenue growth, reflecting broad based strength across our U S and European markets.

Which results in both rating agencies, having upgraded us back to our pre <unk> acquisition levels.

Growth resulted from elevated volumes in U S options and U S equities as well as excellent growth in index options trading.

Within our innovate priority, we're pioneering the use of new technologies across the financial system and forming innovative partnerships to support our growth.

This quarter, we submitted a filing to the U S Securities and exchange Commission to leverage our existing resilient trading infrastructure that if approved will enable equity securities and exchange traded funds to be traded on the NASDAQ stock market in traditional and took a nice form <unk>.

Within our U S options business NASDAQ index options volumes also hit record level levels in the third quarter with a subsequent record established in October.

Our proposal is for the underlying security itself to be token is preserving investors' rights and benefits of share ownership.

In U S equities industry volumes remained robust during the summer months and have persisted into the fall.

Turning to AI implementation and our solutions Inc.

NASDAQ listed Securities currently represent 53% of total industry volume up from 49% a year ago, which demonstrates the strength of our platform as a as a trusted source to attract issuers and capital into the most liquid and transparent market in the world.

In corporate solutions over 800 clients have opted into our AI powered board summarization tools within <unk> advantage.

Our AI features with IR insight drive efficiency, and IR officer, workflows, particularly related to deriving insights and connecting successfully with investors.

In September Nasdaq's closing cross set a daily notional record value of record.

In financial crime management technology, we're experiencing enthusiastic engagement with our clients and our rollout of <unk> at Gentex AI workforce that we announced in Q3.

In summary, our strong third quarter performance reflects solid momentum across all three divisions.

Driven by disciplined execution of our teams across our diversified businesses.

The suite of digital workers as a new solution, which we're offering to our existing client base to help address the resource intensive pinpoints in daily compliance workflows to.

Including and continued progress on our strategic priorities of integrate innovate and accelerate.

Within our integrate priority we're extremely pleased that we surpassed our expanded net expense efficiency target with over $150 million actions as of the end of the quarter.

First digital worker is our digital sanctions analysts, which we launched this month into production. Our next digital worker a digital enhanced due diligence analyst is on track for release by the end of the year.

We achieved a gross leverage ratio of three one times at quarter end.

This quarter NASDAQ Paraffin also announced a strategic partnership with Biocatalyst, a leader in behavioral and device intelligence and phase one of our partnership where we've integrated biocatalyst alerts into the workflow of <unk> anti financial crime solution.

In addition, S&P recognized our deleveraging progress with an upgrade of the company's senior unsecured debt rating from Triple B to Triple B plus on August 12.

Which results in both rating agencies, having upgraded us back to our pre <unk> acquisition levels.

And launched a joint go to market campaign with <unk> F&B segment, which is generating strong early engagement.

Within our innovate priority, we're pioneering the use of new technologies across the financial system and forming innovative partnerships to support our growth.

Looking ahead, we plan to work with <unk> to accelerate our expansion into enterprise banks and international markets.

Lastly, within our accelerate priority are one nasdaq's strategy continues to deliver driving for cross sell wins across financial technology in the quarter for a total of 30 cross sell of <unk> acquisition closed.

At the end of the quarter cross sells accounted for over 15% of financial technology sales pipeline.

Our proposal is for the underlying security itself to be token is preserving investors' rights and benefits of share ownership.

We remain on track to surpass $100 million in run rate revenue from cross sell by the end of 2027.

Turning to AI implementation in our solutions.

We're also proud to see the impact of our transformation reinforced externally NASDAQ made its first ever parents on Interbrand best Global brands and annual ranking of the top 100, most valuable brands, reflecting the critical role we play across the world economies.

Over 800 clients have opted into our AI powered board summarization tools within <unk> advantage.

Our AI features with <unk>.

Insight drive efficiency, and IR officer, workflows, particularly related to deriving insights and connecting successfully with investors.

Looking ahead to the remainder of 2025, NASDAQ remains well positioned to continue to deliver for our clients and shareholders as we head into the final months of the year with strong momentum across our platform with that I'll now turn the call over to Sarah to provide more details on our financial results.

In financial crime management technology, we're experiencing enthusiastic engagement with our clients and our rollout of NASDAQ <unk> at Gentex AI workforce that we announced in Q3.

The suite of digital workers as a new solution, which we're offering to our existing client base to help address the resource intensive pinpoints in daily compliance workflows to.

Thank you Ed and good morning, everyone.

In the third quarter of 2025, NASDAQ delivered another strong quarter with 19% EPS growth, we surpassed the EPS accretion milestone provided when we acquired at Enzo achieving all go six months ahead of plan.

Let's start with quarterly results on slide 11.

We reported net revenue of $1 3 billion of <unk>.

7% with solutions revenue up 10%.

And launched a joint go to market campaign with bare fence F&B segment, which is generating strong early engagement.

Exceeding $1 billion for the first time.

Operating expense was $583 million.

Looking ahead, we plan to work with Io cash to accelerate our expansion into enterprise banks and international markets.

Up 5%, leading to an operating margin of 56% and EBITDA margin of 15, 8% both up two percentage points over the prior year quarter.

This resulted in net income of $511 million and diluted EPS of <unk> 88.

At the end of the quarter cross sells accounted for over 15% of financial technology sales pipeline.

Slide 12 shows the drivers of about 11% net revenue growth for the quarter.

We remain on track to surpass $100 million and run rate revenue from cross sell by the end of 2027.

We generated eight percentage points of alpha.

Driven by new and existing clients.

Innovation.

Factors.

We added three percentage points of growth this quarter.

Even buy and then they did volumes in market services and higher valuation in NASDAQ indices.

As shown on slide 13, we achieved a third consecutive quarter of 9% AOR growth, including 12% in Fintech.

Our surpassed $3 billion.

For the first time.

Total SaaS revenue grew 12% for a second consecutive quarter, including 17% softwood and Fintech.

Thank you Ed and good morning, everyone.

In the third quarter of 2025, NASDAQ delivered another strong quarter with 19% EPS growth, we surpassed the EPS question milestone provided when we acquired at Enzo achieving all go six months ahead of plan.

<unk> as a percentage will they all include.

One percentage points versus the prior year quarter to 38%.

Let's review Division results starting on slide 14.

Let's start with quarterly results on slide 11.

In technical platforms, we delivered revenue of $546 million up 8% with ADR growth of 6%.

We reported net revenue of $1 3 billion up 11% with solutions revenue up 10%.

Baker and listings revenue was up 6% with <unk> up 7%.

Ceding $1 billion for the first time.

Operating expense was $583 million up 5%.

Data revenue growth was driven by new sales up sales and usage. We also had mid teens revenue growth due to the increase in IPO activity.

Going to an operating margin of 56%.

And EBITDA margin of 58%.

Both up two percentage points over the prior year quarter.

Growth from units thing and pricing was partially offset by unit.

This resulted in net income of $511 million and then you could EPS of <unk> 88.

And lower amortization of prior period initial listing fee.

This is consistent with our previous comments and our previously stated expectations of these impacts in the fourth quarter remained unchanged.

Slide 12 shows the drivers of about 11% net revenue growth for the quarter.

We generated eight percentage points of alpha.

Index revenue was up 13% in the quarter with nine percentage points from our Clos doctors.

Even by new and existing clients and product innovation.

Beta factors contributed three percentage points of growth this quarter driven by <unk>.

Revenue growth was driven by a 35% increase in average AUM.

Did volumes in market services.

AUM, which reached a record $777 billion.

Hi evaluation in NASDAQ indices.

As shown on slide 13, we achieved a third consecutive quarter of 9% AOR growth.

This growth was partially offset by a year over year decline in daily we get contract volumes.

Including 12% in Fintech and <unk> are surpassed $3 billion for the for Sun.

Mix shifts in asset based products and there was Vegas.

As well as a decline in revenue from discontinued advertising on NASDAQ Dot com.

Total cloud revenue grew 12% for a second consecutive quarter, including 17% softwood and Fintech.

Net inflows over the last 12 months reached a record 19 $1 billion, including 17 billion in the third quarter.

<unk> as a percentage of they all include increased one percentage points versus the prior year quarter to 38%.

In wealth funding side revenue was up 5% with <unk> growth of 4%.

Let's review Division results starting on slide 14.

The revenue increase was driven primarily by analytics, mainly investment in data link with continued demand from hedge funds asset managers asset owners and consultants, who value our differentiated data and continued product enhancements.

In capital that's a platform, we delivered revenue of $546 million up 8% with ADR growth of 6%.

They've got and listings revenue was up 6% with <unk> up 7%.

Corporate solutions revenue was essentially flat, but we saw improving new sales.

Data revenue growth was driven by new sales Upsells and usage. We also had input mid teens revenue growth due to the increase in IPO activity.

That's a gross and net retention trends.

Quarterly operating margin for the division was 60% up two percentage points versus the prior year quarter.

Growth from units thing and pricing was partially offset by unit thing.

Before we wrap up on top the impact of the October 16th Solar this sale will be approximately $7 million to $8 million in quarterly revenue with approximately $6 million in direct quote any costs.

And lower amortization of prior period initial listing fees.

This is consistent with our previous comments and our previously stated expectations of this impact in the fourth quarter remain unchanged.

Moving to financial technology on Slide 15.

Index revenue was up 13% in the quarter with nine percentage points from our path back to us.

Revenue was $457 million up 13% with a growth of 12%.

Revenue growth was driven by a 35% increase in average ETF, AUM, which reached a record $777 billion.

Our business continues to experience strong demand across all fintech subdivisions and high levels of client engagement.

This program.

The division signed.

AUM was partially offset by a year over year decline in daily we get contract volume.

65, new clients 97, Upsells and cross sells in the quarter.

Mixed shifts in asset based products and there was very good.

Cross sell continues to represent over 15% of the financial Technology Division pipeline.

As well as a decline in revenue from discontinued advertising on NASDAQ Dot com.

<unk> funds.

All three subdivisions.

Net inflows over the last 12 months reached a record 19 $1 billion, including $17 billion in the third quarter.

Financial crime management technology revenue grew 22% with <unk> growth of 18%.

We signed 55, new SMB clients in the third quarter net.

In workflow insights, whether he was up 5% with <unk> growth of 4%.

Net revenue retention was 111%, reflecting strong client engagement supported by the increasing adoption of the Gen II entity research copilot and targeted typology analytics.

We also had continued momentum with enterprise clients, including the cross sell to Goldman Sachs, which <unk> mentioned earlier.

Solutions revenue was essentially flat, but we saw improving new sales.

With that we're at six new enterprise client signings. So far this year, which is more than triple the number of enterprise signings in 2024 and more than double the ATB.

Well as better gross and net retention trends.

Quarterly operating margin for the division was 60% up two percentage points versus the prior year quarter.

As the business continues to make strong progress in moving up market, we want to reiterate that sales cycle and plan to value for tier one and tier two deals can take time to flow into subscription revenue run rate.

Before we wrap up on top the impact of the October 16th Solar this sale will be approximately $7 million to $8 million in quarterly revenue with approximately $6 million in direct quote any cost.

We continue to expect our recent enterprise signings to translate into stronger revenue growth starting in the fourth quarter consistent with our comments last quarter.

Moving to financial technology on Slide 15.

Revenue was $457 million up.

13% with ADR growth of 12%.

We're going to generate technology revenue grew 9%, where they are up 11% for the quarter with.

Our business continues to experience strong demand across all fintech subdivisions and high levels of client engagement.

Reflecting a decline in professional services revenue versus the prior year period, which we expected.

The division signed.

65, new clients 97 up sells and cross sells in the quarter.

Communicated on the second quarter call.

The subdivision signed six new clients 53, Upsells and three cross sales.

Core sales continue to represent over 15% of the financial technology divisions pipeline.

Revenue growth reflects solid performance and we continue to expect professional services revenue to start to improve in the fourth quarter and early 2026.

<unk> funds across all three subdivisions.

Financial crime management technology revenue grew 22% with growth of 18%.

Capital markets technology revenue grew 12% benefiting from strong performance in trade management services.

We signed 55, new SME clients in this quarter.

Revenue retention what <unk>.

<unk> and 11%, reflecting strong client engagement.

And no contribution from call it two upfront revenue.

<unk> was up 10% for the quarter.

Courted by the increasing adoption of the Gen AI entity, we surgical pilot and targeted typology analytics.

The subdivision signed four new clients and 40 for up sells.

Financial technology operating margin was 45% up one five percentage points versus the prior year quarter.

We also had continued momentum with enterprise clients, including the cross sell to Goldman Sachs, which <unk> mentioned earlier.

As we wrap up our solutions division.

With that we're at six and you want to place client signings so far this year.

We continue to expect full year 2025 revenue growth within the medium term outlook for both capital access platform and financial technology with.

Which is more than triple the number of enterprise signings in 2024 and more than double the ATB.

With capital access platforms up was slightly above the high end of the range.

As the business continues to make strong progress in moving up market, we want to read too late that sales cycle and plan to value for tier one and tier two deals can take time to flow into subscription revenue run rate.

<unk> from continued strength in index growth and slightly better than expected performance in data and listings.

Within Fintech, we have great business momentum and financial crime management technology that based on the performance of the first three quarters of the year, we are expecting the business to <unk> just below the range.

We continue to expect the recent centralized timing to translate into stronger revenue growth starting in the fourth quarter consistent with our comments last quarter.

We're gonna Chief Technology revenue grew 9%.

Turning to market services on slide 16.

Were they all up 11% per quarter.

We had net revenue of $303 million, reflecting growth of 13%.

Reflecting a decline in professional services revenue versus the prior year period, which we expected.

Growth was primarily driven by elevated market wide equity volumes record U S option industry volumes.

Communicated on our second quarter call.

The subdivision signed six new clients 53, Upsells and cross sells.

Increased volumes and capture index options with index options revenue more than doubling versus the prior year period.

Revenue growth reflects solid performance and we continue to expect professional services revenue to start to improve in the fourth quarter and early 2026.

An elevated capture in European daily visits.

This was partially offset by lower shown in U S options.

Capital market technology revenues grew 12% benefiting from strong performance in trade management services.

Lower catcher in U S equities, which our team is managing actively and effectively in a competitive landscape.

And lower USA planned revenue versus the prior year quarter, which included a previously disclosed $3 million benefit, reflecting cumulative audit and other one time benefits.

And the contribution from <unk> revenue.

<unk> was up 10% for the quarter.

The subdivision signed four new clients and 40 for up sells.

Market services operating margin was 65% up five percentage points versus the prior year quarter due to higher revenue.

Financial technology operating margin was 45% up one and a half percentage point versus the prior year quarter.

Moving to expenses on slide 17.

As we wrap up our solutions division.

We had operating expense of $583 million up 5% driven.

We continue to expect full year 2025 revenue growth within the medium term outlook for both capital active platform and financial technology with.

Driven by employee compensation.

<unk> investments in technology and people to support revenue and drive innovation and growth and all of the increase is largely due to inflation.

With capital access platforms up was slightly above the high end of the range.

<unk> from continued strength in index growth and slightly better than expected performance in data and listings.

This resulted in an operating margin and EBITDA margin, both up two percentage points to 56 and 58% respectively.

Within <unk>, we have great business momentum and financial crime management technology.

We are they seeing organic expense expectations for the year to a range of $2 three or $5 billion.

Just on the performance of the first three quarters of the news we are expecting the business to and just below the range.

Two to 335 billion.

From the previous range of $2 295 billion to $2 three to <unk> 5 billion.

Turning to market services on slide 16.

We had net revenue of $303 million, reflecting growth of 13%.

This update reflects our strong revenue growth throughout the year continued investments in our technology and people and the sale of solar or is that just closed which was mostly offset by FX.

Growth was primarily driven by elevated market wide equities Williams record U S option industry volumes.

Increased volumes and capture and index options with index options revenue more than doubling versus the prior year period.

Lastly on expense.

We have to a path of expanding net expense efficiency program target of $140 million.

And elevated capture in European debated.

With over $150 million in cost reduction action.

This was partially offset by lower shown in U S options.

End of the third quarter.

Lower catcher in U S equities, which our team is managing activity unexpectedly in the competitive landscape.

On taxes.

While we believe our previous 2025 non-GAAP tax rate guidance of 25% to 24, 5% is an appropriate expected tax.

And Noah U S take one revenue versus the prior year quarter, which included a previously disclosed $3 million benefit, reflecting cumulative audit and other one time benefits.

We are lowering our full year tax guidance to 22, 5% to 23.5% due to some discrete items that lowered our tax rate in the third quarter.

Market services operating margin was 65% up five percentage points versus the prior year quarter due to higher revenue.

Turning to capital allocation on slide 18 now.

Now does that generate good free cash flow of $516 million in the third quarter.

Moving to expenses on slide 17.

We had operating expense of $583 million up 5% driven.

And $2 1 billion and free cash flow over the last 12 months at a strong conversion ratio of 110%.

Driven by employee compensation.

Investments in technology and people to support revenue and drive innovation and growth and all of the increase is largely due to inflation.

This strong level of cash flow supports our dividend.

Leveraging and share repurchases.

We paid a dividend of <unk> 27 per share or $155 million in the quarter, representing a 33% annualized payout ratio.

This resulted in an operating margin and EBITDA margin, both up two percentage points to 50, 658% respectively.

And our continued commitment towards deleveraging.

We are they seeing organic expense expectations for the year to a range of $2 three or $5 billion.

Repurchased $69 million of debt and reached our gross leverage ratio of three one times at the end of the quarter, which was an improvement of 0.1 point from the second quarter.

$2 billion to $335 billion.

From the previous range of $2 295 billion to two.

233 5 billion.

We expect to reach 3.0 by the end of the year, excluding the effects of FX.

This update reflects our strong revenue growth throughout the year continued investments in our technology and people and the sale of solar or is that just closed which was mostly offset by FX.

We also repurchased a total of $1 2 million shares of our common stock for $115 million in the third quarter.

Lastly on expense.

In closing.

We have to a path of expanding net expense efficiency program target of $140 million.

NASDAQ delivered excellent results in a dynamic operating environment, while demonstrating strong operating leverage.

With over $150 million in cost reduction action.

Third quarter financial results, particularly the new records in quarterly solutions revenue.

The end of the third quarter.

On taxes.

All reflect our transformation into a leading technology platform.

We believe our previous 2025 non-GAAP tax rate guidance of 25% to 24, 5% is an appropriate expected stacks.

We remain confident in our ability to achieve our strategy objectives.

Deliver sustainable growth.

When we are lowering our full year tax guidance to 22.5% to 23.5% due to some discrete items that lowered our tax rate in the third quarter.

And generate long term shareholder value.

With that let's open the lines of Q&A.

Thank you.

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

Turning to capital allocation on slide 18.

NASDAQ generated free cash flow of $516 million in the third quarter, and $2 1 billion and free cash flow over the last 12 months at a strong conversion ratio of 110%.

<unk>. Your question. Please press star one 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 will be happy to take your follow up questions at that time.

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

This strong level of cash flow supports our dividend deleveraging and share repurchases.

And I show. Our first question comes from the line of Michael Cho from Jpmorgan. Please go ahead.

We paid a dividend of 27 per share or $155 million in the quarter.

Hi, Good morning, Thanks for taking my question just wanted to touch on digital assets here from my question Dana you've talked about some wins in surveillance today as well as the ongoing organizational initiatives, but there seems to be a growing presence digital assets and crypto cross nasdaq's various businesses can you just talk through.

Representing a 33% annualized payout ratio.

And our continued commitment towards deleveraging.

We repurchased $69 million of debt and reached our gross leverage ratio of three one times at the end of the quarter, which was an improvement of one point from the second quarter.

Particular areas.

As a propensity to drive higher growth and is there a broader approach to frame the opportunity ahead for NASDAQ as the digital ecosystem continues to develop.

We expect to reach 3.0 by the end of the year, excluding the effects of FX.

We also repurchased a total of one 2 million shares of our common stock for $115 million in the third quarter.

Great. Thank you Michael Yeah, well, we've been involved with the digital asset ecosystem now for many years as a technology provider and we continue to grow and expand in that way. So we definitely see our fintech solutions being highly relevant.

In closing.

<unk> delivered excellent results in a dynamic operating environment, while demonstrating strong operating leverage.

As the digital asset ecosystem grows and expands and more institutional interest in digital assets becomes more mainstream. So we're very excited about what we do in terms of supporting markets around the world with trading technology surveillance technology. We now have trade surveillance technology that is specific to crypto assets.

Our third quarter financial results, particularly the new records in quarterly solutions revenue.

Ill reflect our transformation into a leading technology platform.

We remain confident in our ability to achieve our strategy objectives.

Deliver sustainable growth and generate long term shareholder value.

And then we also provide.

With that let's open the lines for Q&A.

We're working with a digital asset ecosystem on collateral management capabilities, we did a POC earlier this year with some digital asset players to help show that we can use blockchain based technology to manage collateral. So we're doing a lot to to support that trade infrastructure solutions as we think about institutional.

Thank you.

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

So regarding your question. Please press star one 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 will be happy to take your follow up questions at that time.

The adoption of digital assets, so very excited in the Fintech space and then in the index space, We have investable products index products that we've launched with crypto assets and we also of course are the listing exchange to IBD and other.

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

And I show. Our first question comes from the line of Michael Cho from Jpmorgan. Please go ahead.

Hi, Good morning, Thanks for taking my question just wanted to touch on digital aspects here from my question Dana you've talked about.

Crypto index Etfs, so we see ourselves as having kind of a broad based opportunity across frankly, our entire franchise and then as a market. Operator, we're encouraged by the fact that the SEC. The CTC are cooperating together and thinking about the regulatory landscape for the crypto markets.

The wins in surveillance today as well as the ongoing organizational initiatives, but there seems to be a growing presence there.

July 6th Crypto Cross Nasdaq's various businesses can you just talk through any particular areas.

And obviously as we understand what that regulatory landscape is going to look like and as we think about investor protection and the need for us to.

That has a propensity to drive higher growth and is there a broader approach to frame the opportunity ahead for NASDAQ as the digital ecosystem continues to develop.

The need for us to be able to provide a resilient infrastructure. We also think that there could be an opportunity for us to expand there, but we really want to make sure that we understand the regulatory landscape and see where thats going first.

Thank you.

And I show. Our next question in the queue comes from the line of Michael Cyprus from Morgan Stanley. Please go ahead.

As the digital asset ecosystem grows expands and more institutional interest in digital assets becomes more mainstream. So we're very excited about what we do in terms of wording markets around the world with trading technology surveillance technology. We now have trade surveillance technology that is specific to crypto assets.

Hey, good morning, Thanks for taking the question maybe just along the same themes just taking it a little bit on <unk>, if we could you've announced the proposal to allow for <unk> securities to trade on your exchange was hoping you could elaborate on how you envision that working what are some of the key issues and hurdles that need to be resolved and broadly how do you think about some of the use cases, what do you think is most compelling and who would be <unk>.

And then we also provide.

We're working with a digital asset ecosystem on collateral management capabilities, we did a POC earlier this year with some digital players to help show that we can use blockchain based technology to manage collateral. So we're doing a lot to support the trade infrastructure solutions as we think about institutional.

The token and how would that mechanically work. Thanks.

Well, that's probably requires a deeper conversation, but I'll give you a high level overview and as we think about our calculation filing the way that we envision it and how we've discussed it with the SEC and with our clients is that on an order by order basis in industrial will be able to flag in order to say that I want this this.

Adoption of digital assets, so very excited in the Fintech space and then in the index space, We have investable products index products that we've launched with crypto assets and we also of course are the listing exchange to IBD and other.

These shares that I'm buying to be settled in a token I form and put into a digital wallet, so that or that flag would flow through our systems and into the post trade systems, we're working collaboratively with DTC.

To understand exactly how they would then have two different settlement paths think about it that way that there's different settlement pass that they're developing which would either settle it normal way or settled into a digital wallet <unk> infrastructure. They have I think that they're working with.

With their clients al but they're looking at different a couple of different block chain to be able to launch with and then I think their hope would be to be able to offer more than one underlying blockchain technology that that investors will be able to choose to to them to settle in and then basically that path would then drive it into a digital wallet that digital.

Obviously as we understand what that regulatory landscape is going to look like and as we think about investor protection and the need for us to.

We'll then be available to those investors through their brokerage firm or through their investment management firm that that gives them access to do the securities in a way that might be.

Thank you.

And I show. Our next question in the queue comes from the line of micro Cyprus from Morgan Stanley. Please go ahead.

More fungible in more more usable within their overall investment portfolio that may include other digitized.

Hey, good morning, Thanks for taking the question maybe just along the same themes just taking it a little bit on <unk>. If we could you have announced the proposal to allow for Tucano securities to trade on your exchange just hoping you could elaborate on how you envision that working what are some of the key issues and hurdles that need to be resolved and broadly how do you think about some of the use cases, what do you think is most compelling and who would be.

Digitize financial asset so it's really it's a think of it this way our markets are the most liquid efficient affordable markets for investors to trade in and we're really proud of that it's an incredible creation that the U S markets have here in the us equities market. So.

Minting that token and how would that mechanically work.

Okay.

Well that probably requires a deeper conversation, but I'll give you a high level overview and as we think about our calculation filing the way that we envision it and how we've discussed it with the SEC and with our clients is that on an order by order basis in industrial would be able to flag in order to say that I want. This this these shares that I'm buying to be certain.

The first thing is let's make sure we don't do anything that changes the nature of our markets and providing all those benefits, but the next thing is let's offer investors more choice and the choice is that they want to have their securities available to them in digital in digital form or took a nice warm and we're doing that.

The underlying infrastructure providers, we're making it to the underlying equity itself is token is and it's not a derivative of the equity. It's the actual equity itself and we're also not changing we're not changing the overall settlement cycles as.

And as a token I form and put into a digital wallet, so that or that flag would flow through our systems and into the post trade systems, we're working collaboratively with DTC.

To understand exactly how they would then have two different settlement paths think about it that way is that there are two different settlement pass that they're developing which would either settle it normal way or settled into a digital wallet infrastructure. They have I think.

As we kind of walk into this I think that theres going to you've got to look at kind of a walk run type of program here in the overall timing of settlement will remain the same but when we think longer term as to like why is token is why would <unk> equities.

Okay.

With their clientele, but they're looking at different a couple of different blockchain to be able to launch with and then I think their hope would be to be able to offer more than one underlying blockchain technology that that investors were able to choose to to them to settle in and then b.

Who benefits from that and how does that become a benefit for the system. If you think about all assets, whether its token is equities or treasuries or others being in a token ice form it allows for the mobility of collateral. So it allows us to look at collateral as much more mobile obviously, our calypso platform helps with that.

Basically that path would then drive it into a digital wallet that digital wallet than it will be available to those investors through their brokerage firm or through their investment management firm that that gives them access to do the securities in a way that might be.

Non collateral mobility over time.

We also think that if you are able to change the settlement cycles over time. It does continue to reduce risk in the system and then also.

It can also create capital efficiencies if you have a more seamless payment.

More fungible in more more usable within their overall investment portfolio that may include other digitized.

The structure to support global payments. So we are a supporter of it. We are we do believe our markets are frankly, the best in the world and we want to make sure we maintain that while we bring this technology into them.

Digitize financial asset so it's really it is.

I think about it this way our markets are the most liquid efficient.

Staged process.

Portable market for investors to trade in and we're really proud of that it's an incredible creation that the U S markets have here in the us equities market. So the.

Yeah.

Thank you.

And I show. Our next question in the queue comes from the line of Benjamin British from Barclays. Please go ahead.

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

First thing is let's make sure we don't do anything that changes the nature of our markets and providing all those benefits, but the next thing is let's offer investors more choice and that choice is that they want to have their securities available to them in digital in digital form or took nice warm and we're doing that.

I know, it's a little maybe early to talk about your 2026 outlook, but just curious on the Opex side. It looks like your full year guidance implies much slower year over year growth in Q4.

In your prior medium term guidance you laid out the sort of three percentage point gap between your expected solutions growth.

With the underlying infrastructure providers, we're making it to the underlying equity itself is token is and it's not a derivative of the equity. It's the actual equity itself and we're also not changing we're not changing the overall settlement cycles.

And Opex growth.

Assuming that the Opex will sort of flex up and down with solutions, but create some operating leverage there theres a number of initiatives youre talking about talking to us equities, you've talked in the past about upgrading to.

To be able to operate extremely just 25, so just curious.

We kind of walk into this I think that theres going to you've got to look at kind of a walk run type of program here in the overall timing of settlement will remain the same but when we think longer term as to like why is token is why would <unk> equities.

Given the revenue momentum any early thoughts you can share.

What the pace of spend it looks like going into next year. Thank you.

Yes, I would describe our trajectory is consistent so what youre seeing is very much in line with that.

Who benefits from that and how does that become a benefit for the system. If you think about all assets, whether its token is equities or treasuries or others being in its organized form it allows for the mobility of collateral. So it allows us to look at collateral as much more mobile obviously, our calypso platform helps with that.

The medium term outlook that you just mentioned and we are experiencing as Johan.

Last.

Let me put it. This one included that we have very strong revenue very strong.

Solutions revenue as being double digit for both of those for the each of the three quarters and not surprisingly this is resulting in some volume related expenses and we are continuing to fuel the investments all of the things that I think I just mentioned, although unless funded.

Collateral mobility over time.

Also think that if you are able to change the settlement cycles over time. It does continue to reduce risk in the system and then also.

It can also create capital efficiencies if you have a more seamless payment infrastructure to support global payments. So we are a supporter of it. We are we do believe our markets are frankly, the best in the world and we want to make sure we maintain that while we bring this technology into them in a staged process.

In the guidance that we have given you for the full year.

As we think about ongoing investments, what we want to make sure as we we.

Believe that we are a provider of solutions that help the entire financial ecosystem modernize and those investments are embedded in what we provided you in our guidance for this year and as Sarah said, we kind of think of ourselves as consistent in how we sponsor investments in our platform, we have very robust product.

Thank you.

And I show. Our next question in the queue comes from the line of Benjamin British from Barclays. Please go ahead.

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

I know, it's a little maybe early to talk about your 2026 outlook, but just curious on the Opex side. It looks like your full year guidance implies much slower year over year growth in Q4.

Roadmaps across our solutions or technology solutions.

In your prior medium term guidance you laid out the sort of three percentage point gap between your expected solutions growth.

$24 five trading is embedded in kind of the outlook that we've provided to you and as we think about that investment and going into 'twenty. Six. So all of those things are incorporated into how we're thinking about the investment landscape within the business. While also taking that efficiency program and factoring that in as well to help US fund these kind of <unk> to <unk>.

Opex growth.

Assuming that the Opex will sort of flex up and down with solutions, but create some operating leverage there theres a number of initiatives youre talking about talking about equities, you've talked in the past about upgrading to be able to operate the extreme just 25. So just curious.

Call Horizon, one horizon two types of investments, we're trying to make sure we're driving as much efficiency into the core enterprise as we can.

Given the revenue momentum any early thoughts you can share.

On what the pace of spend it looks like going into next year. Thank you.

Yes, I would describe our trajectory is consistent so what youre seeing is very much in line with the.

Thank you.

And I'm sure. Our next question comes from the line of Alex Kramm from UBS. Please go ahead.

The medium term outlook that you just mentioned.

We are experiencing as you have seen.

Yes, hi, good morning, everyone.

Sounds like the same crime businesses may be the only business that is kind of lagging your expectations for the year a little bit I know you gave a lot of detail already what's going on there, but maybe you can kind of flush out a little bit more what exactly is driving the maybe slower than expected expectation.

The last three quarters. This one included that we have very strong revenue very strong.

Solutions revenues being in double digit for both of those for the each of the three quarters and not surprisingly this is resulting in some volume related expenses and we are continuing to fuel the investments all of the things that I think I just mentioned, although we match funded.

And what gives you confidence accelerates in the fourth quarter and maybe related to that I think last quarter, you talked about a proof of concept with a European bank any update on that one would be helpful. As well. Thank you.

In the guidance that we have given you for the full year.

Great. Thanks, Alex Yes, so as we think about the overall anti financial crime business with fur fan.

Yes, as we think about ongoing investments and what we want to make sure as we we.

As you know theres kind of three legs to our growth journey. One is in the SMB space the small to medium banks and we continue to see very robust sales very strong engagement, we have new opportunities to grow and expand in that in that space with the biocatalyst partnership and the kind of the way that we restructure that partnership to offer new capabilities to our clients.

Hell with integrated workflows to make it so it's a very seamless experience for them and then also the new <unk> AI capabilities will be a new module that we will offer and sell it to them. So we have ways to continue to expand the growth there.

Roadmaps across our solutions or technology solutions.

And that's kind of as you know that's kind of the core of the business. It has been across the business as we've gone into the enterprise space and we're going to see a little bit more variability quarter over quarter in <unk> growth and growth because we're first we're implementing those solutions. So that creates some implementation revenue that may not be completely consistent quarter over quarter secondly, as you've seen.

Call Horizon, one horizon two types of investments, we're trying to make sure we're driving as much efficiency into the core enterprise as we can.

We signed three times more enterprise clients. This year than we did last year. So so far and so we definitely want to make sure that.

Thank you.

And I show. Our next question comes from the line of Alex Kramm from UBS. Please go ahead.

We're in the midst of implementing them and they should come online in and helped drive more AOR growth in future quarters as they come online.

Yes, hi, good morning, everyone.

Sounds like the fin crime businesses may be the only business that is kind of lagging your expectations for the year a little bit I know you gave a lot of detail already what's going on there, but maybe you can kind of flush out a little bit more what exactly is driving the maybe slower than expected expectation.

And then we also then have our international expansion and we're extremely early there.

We are very encouraged by what we've seen from the proof of concept so far and we are engaging with.

Several clients across Europe, but it's going to take time for that pillar to come online because these sales cycles are not short we're trying to you know we're wanting to make sure we prove ourselves to a whole new set of clientele in a different region of the world.

And what gives you confidence to accelerate here in the fourth quarter and maybe related to that I think last quarter, you talked about a proof of concept with a European bank any update on that one would be helpful. As well. Thank you.

And we actually do think over time also the <unk> partnership will help and will help with that on that whole program because they are very global in their clientele and they can help introduce us just as we are introducing them to ours. So.

Great. Thanks, Alex Yes, so as we think about the overall anti financial crime business with <unk>. We have as you know theres kind of three legs to our growth journey. One is in the SMB space the small to medium banks and we continue to see very robust sales very strong engagement, we have new opportunities to grow and expand in that in that.

There's a lot of a lot of reasons why we see a lot of momentum in that business and we do think that it should show an improving trajectory as he said earlier as we go towards the end of the year and into next year.

Space with the Biocatalyst partnership and the kind of the way that we restructure that partnership to offer new capabilities to our clientele with integrated workflows to make it. So it's a very seamless experience for them and then also the new Gentex AI capabilities will be a new module that we will offer and sell it to them. So we have ways to continue to expand.

Thank you.

And I show. Our next question comes from the line of Dan Fannon from Jefferies. Please go ahead.

Great. Thanks, Good morning wanted to follow up on capital markets technology.

You talked about trade management services in the quarter as well as in data center growth. So just curious a little bit more detail around the momentum in that business as we think about the fourth quarter as well as into next year.

The growth there.

That's kind of as you know thats kind of the core of the business. It has been across the business as we've gone into the enterprise space and we're going to see a little bit more variability quarter over quarter in <unk> growth and growth because we're first were implementing those solutions. So that creates some implementation revenue that may not be completely consistent quarter over quarter secondly, as you've seen.

Sure well as you know.

Capital markets contains three key businesses, we have our market tech business, our calypso business and the trade management services business, which includes the connectivity services for our markets in the U S and Europe.

We've signed three times more enterprise clients. This year than we did last year. So so far and so we definitely want to make sure that.

And what we've been seeing is really strong demand for connectivity services in our markets as demand as you've seen in the market volumes be very robust I think that that supports the.

We're in the midst of implementing them and they should come online and help drive more AOR growth in future quarters as they come online.

The interest that our clients have in driving more connectivity capabilities and putting more and more technology in the data center to support that trading activity. We have increased the size of the data center, which has given us more room to support that growth and.

And then we also then have our international expansion and we're extremely early there.

We are very encouraged by what we've seen from the proof of concept so far and we are engaging with.

We have a lot of a lot of engagement with clients. There that's driven the growth. This year and then we also on within Calypso, we continue to see very robust demand for Calypso and we're very pleased to see that.

That the clients are looking at us as a core partner across collateral management Treasury management.

Trading response <unk> all of those solutions are being quite successful I think that.

There are certain areas of the world also that we've seen nice growth with our Calypso services, particularly in Latin America has been an area of real growth for US there and then in our market Tech business. Latin America again is an area that we've done a nice job of expanding our presence there and we have had some good.

There's a lot of a lot of reasons why we see a lot of momentum in that business and we do think that it should show an improving trajectory as we said earlier as we go towards the end of the year and into next year.

Thank you.

Good upsells to our clients this quarter and overall new sales for the year remains nicely very nice. So we see just generally speaking a healthy environment as we as we finish up the year and going into next year.

And I show. Our next question comes from the line of Dan Fannon from Jefferies. Please go ahead.

Great. Thanks, Good morning wanted to follow up on capital markets technology.

Thank you.

And I show. Our next question comes from the line of Alex <unk> from Goldman Sachs. Please go ahead.

Sure well as you know.

Hi, good morning, everybody.

Capital markets contain three key businesses, we have our market tech business, our calypso business and the trade management services business, which includes the connectivity services for our markets in the U S and Europe.

Slightly bigger picture question for you on AI broadly.

In the last couple of months or quarters, the market continue sort of contemplate various areas of potential disruption whether it's in business services are all the type of software businesses as well. So two part question here. So I guess, one curious how you sort of think about areas of risk when it comes to AI with respect to Nasdaq's revenue model and is it also potentially incremental.

And what we've been seeing is really strong demand for connectivity services in our markets as the as you've seen in the market volumes be very robust I think that that support.

Revenue opportunities as well as areas, where the expenses could also be sort of pivoted.

And where you guys could extrapolate some efficiencies relative to the sort of 5% to 8% expense growth that you have over time. Thanks.

Great. Thanks, Alex I think we feel very protected as a business in a way that kind of the core assets of our business very protected from the potential risks that might come from AI, but we actually see it very much as a as just a big opportunity. So.

And we have a lot of a lot of engagement with clients. There that's driven the growth. This year and then we also within Calypso, we continue to see very robust demand for Calypso and we're very pleased to see that.

That the clients are looking at us as a core partner across collateral management Treasury management.

One is we have two programs within NASDAQ1 is focused on AI and the products and the other is focused on AI on the business. So how are we changing our business operations to integrate this technology across key areas of workflow, we're focused first and foremost on product development.

Trading responding strength all of those solutions are being quite successful I think that.

Because it's such a big part of our business. It's a large part of our organization and what we're focused on there is how do we use as much automation as possible too.

Drive efficiency in what we call eight zero work like the core I keep the lights on type of <unk>.

Activities for our products because that's generally the most repetitive activity generally kind of small things we have to do it.

Thank you.

It's a very nice.

And I show. Our next question comes from the line of Alex <unk> from Goldman Sachs. Please go ahead.

Opportunity for for Us to drive automation across the product lifecycle and that then frees up capital for us and freeing up resources for us to focus on H, one horizon, one and horizon two opportunities in the products and support those robust product.

Hi, good morning, everybody.

Slightly bigger picture question for you on AI broadly.

In the last couple of months or quarters, the market continue sort of contemplate various areas of potential disruption whether it's in business services are all the type of software businesses as well. So two part question here. So I guess, one curious how you sort of think about areas of risk when it comes to <unk> with respect to Nasdaq's revenue model and is it also potentially incremental.

Roadmaps that I mentioned and that I think is a big opportunity for us and so we are really focused on that area. The second is on client experience and client implementations, where we're trying to drive as much automation in those areas as well because it just drives efficiency and how we serve our clients and improves the outcomes for our clients because our answers.

Revenue opportunities as well as areas, where the expenses could also be sort of pivoted.

Can be very consistent in how we how we interact with them can be very consistent.

Where you guys could extrapolate some efficiencies relative to the sort of 5% to 8% expense growth that you have over time. Thanks.

In addition to driving automation and client implementation. So those areas are where we're really focused on scaled implementation of AI on the business and then in the products. We have first of all product a product suite that requires an enormous amount of expertise. These are very custom tailored solutions to the needs of our clients that are very sophisticated.

Very complex and I think that first and foremost. This is an important element of differentiation. The second of course is we have highly differentiated data whether it's connect consortia data lake within investments within <unk>, obviously, the data that comes off our markets and as we have actually looked at other.

One is we have two programs at the NASDAQ1 is focused on AI and the products and the others focus on AI on the business. So how are we changing our business operations to integrate this technology across key areas of workflow, we're focused first and foremost on product development.

Because it's such a big part of our business. It's a large part of our organization and what we're focused on there is how do we use as much automation as possible too.

<unk> of our solutions that we've moved more of our solutions into cloud technology. It gives us a chance to have more data assets really aggregated to benefit and improve the products and provide differentiation in those products. So the data itself I think is a real differentiator.

Drive efficiency in what we call eight zero work like the core I keep the lights on type of.

And then the last thing is that we've been so focused on making sure that we modernize our solutions and offer them and bring AI into the products themselves. So that we can make it workflows a lot more efficient the agenda AI that we've launched in <unk> in some cases, we've seen situations, where it reduces the workflow time bye.

Activities for our products because that's generally the most repetitive activity generally kind of small things we have to do it's very it's a very nice.

<unk> by 80%. So it is going to deliver a very strong ROI to our clients and we think that that is a huge benefit in and we see those those opportunities across anti fin crime surveillance regulatory reporting and axiom and in Calypso. So we think that there is chances a chance for us to really propagate that across.

Platforms and deliver real value to our clients. So we're excited about what we can do for our clients and we are actively pursuing that as a core part of our strategy.

Can be very consistent in how we how we interact with them can be very consistent.

Thank you.

And I show. Our next question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead.

Great. Thanks. Thanks. Good morning, Thanks for taking my question maybe just.

Along those lines actually the last question.

On the digital AI workers as well you talked about earlier.

Very complex and I think that first and foremost. This is an important element of differentiation. The second of course is we have highly differentiated data whether it's connected source of data lake within investments within <unk>, obviously, the data that comes off our markets and as we have actually looked at other.

Maybe relaying that to the revenue synergy targets.

Exceeding $100 million before the end of 2027 do you see the emergence of your AI solutions, helping to advance that faster and then if you can just remind us where you are currently on that revenue synergy target as we go into 2026.

Yes.

As we've mentioned we've been we've been disclosing the number of clients that we've been able to achieve for our cross sells and that is that we're up to 30 30 cross sells.

And then the last thing is that we've been so focused on making sure that we modernize our solutions and offer them and bring AI into the products themselves. So that we can make it workflows a lot more efficient <unk> II that we've launched in <unk> in some cases, we've seen situations, where it reduces the workflow time bye.

So far since the closing of the agenda deal and so we do and we also provide you a consistent statistic that says how much of our pipeline is is underpinned by cross sells and that's about 15% of that is being been persistent which we think is a strong indication of demand. So even as we're signing those cross sells were replenishing that.

<unk> by 80%. So it is going to deliver a very strong ROI.

Pipeline with more cross sell opportunities and so that consistency I think is very encouraging.

Our clients and we think that that is a huge benefit in <unk>.

In terms of the AI and how that can help absolutely I mean, I think the more we can deliver those advanced solutions that really help clients change the way that they are doing their own workflows and we can bring capabilities into these solutions with a very robust.

See those cities opportunities across.

Anti fin crime island, a regulatory reporting and axiom and <unk>. So we think that there is Kansas a chance for us to really properties that across our platform and deliver real value to our clients. So we're excited about what we can do for our clients and we are actively pursuing that as a core part of our strategy.

From a cyber security perspective from from an expertise perspective, and they know that we're a trusted provider and a trusted partner, we're a critical infrastructure provider ourselves. So we know how important it is to do these things the right way I feel that our clients are really embracing us as provided to provide those solutions to them and I think.

Thank you.

And I sure next question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead.

Great. Thanks. Thanks. Good morning, Thanks for taking my question maybe just.

Along those lines actually the last question.

We'll of course continue to support our cross sell efforts.

On the digital AI workers as well you talked about earlier.

And give us.

And I think also we are seeing a lot of the upsells.

Maybe relaying that to the revenue synergy targets.

If the gin AI capabilities that we're offering in our solution. So it is definitely.

Exceeding 100 million before the end of 2027 do you see the.

It's definitely a catalyst, but it's all it's giving us increased confidence.

The emergence of your AI solutions, helping to advance that faster and then if you can just remind us where you were.

Thank you.

And I show. Our next question comes from the line of Eli Abboud from Bank of America. Please go ahead.

Currently on that revenue synergy target as we go into 2026.

Good morning, Thanks for taking the question to what extent is the bio catch announcements or one off partnership versus an adjustment in your strategy adverse I know the AML fraud space. There's a lot of startup activity I wonder if there are other firms in the ecosystem that would pay for access to the various in network maybe set a little.

Yes.

As we've mentioned we've been we've been disclosing that number of clients that we've been able to achieve for our cross sells and that is that we're up to 30 30 cross sells.

So far since the closing of the agenda deal and so we do and we also provide you a consistent statistic that says how much of our pipeline is underpinned by cross sells and that's about 15% of that's been persistent which we think is a strong indication of demand. So even as we're signing these cross sells were replenishing the pipeline.

Differently, but could you verify and become more of a platform provider than a vendor.

Yes, so actually we see varun already certainly architecturally <unk> as a platform like the way that it's architected the platform layer the ability to integrate through modern API is very much built for that to be a possibility. So that integration of <unk> alerts into our workflows is.

<unk> with more cross sell opportunities and so that consistency I think is very encouraging.

In terms of the AI and how that can help absolutely I mean, I think the more we can deliver those advanced solutions that really help clients changed the way that they are doing their own workflows and we can bring capabilities into these solutions with a very robust.

<unk> been quite seamless and it's an easy integration, but biotech itself actually has quite a scale business I have to say it.

Global business, it's not a USA business, but it's a very scaled business. It is growing very nicely and and it has a large client base outside the U S. So we are really pleased to have them as a partner. So just to give us just like one second on <unk> itself and then I'll think about how do we also see this.

That's a natural way to expand and extend what we do biotech focuses on pre transaction signals. So they integrate into bank applications. So that they can understand their behaviors within those applications and when they see the potential for lets at account takeover.

We'll of course continue to support our cross sell efforts.

And give us.

And I think also we are seeing a lot of the upsells are because of the capabilities that we're offering in our solution. So it is definitely.

They see the potential for a client of the bank to be instructed by someone that is not them or they see behavior in the in the actual app, it's different than normal behavior by the client then send an alert to the bank and the bank and then choose to stop that transaction before it occurs it's really elegant it's very advanced in it.

It's definitely a catalyst, but it's all it's giving us increased confidence.

Thank you.

And I show. Our next question comes from the line of Eli Abboud from Bank of America. Please go ahead.

Good morning, Thanks for taking the question to what extent is the bio catch announcements or one off partnership versus an adjustment in your strategy adverse.

Using the same kind of AI algorithmic AI that we use post transaction or at the transaction. After so by integrating their pre transaction analytics with our at an after transaction analytics.

I know the AML fraud space, there's a lot of startup activity I wonder if there are other firms in the ecosystem that would pay for access to the various in network, maybe said a little differently could you various and become more of a platform provider than a vendor.

It really does create a complete solution for our bank clients to really take down and potential.

For fraud to occur within their systems and so we're very excited to have that partnership because it's just a way for us to add even more value to the clients and then the workflows themselves by having their alerts in our workflow engine. It makes a small to medium banks have avis.

Limited clients a number of people who can support this so it makes it much easier for them to manage their workflows. So it's a really great way to show that we can expand our capabilities through partnerships and I would agree that this is the first but we do see other opportunities going forward.

Thank you.

And I show. Our next question comes from the line of Ashish <unk> from RBC capital markets. Please go ahead.

Thanks for taking my question I, just wanted to focus on that.

We continue to see good momentum, but just wanted to understand how the conversations with the bank on your customers in terms of on the Revolution Technology solutions and then just maybe a follow up on the <unk> partnership how should we think about the benefit of the partnership outside of <unk>.

Sure Yeah, it's really been great to see the momentum in both <unk> and surveillance.

So there are few things so on <unk>, we definitely had.

<unk> engagement by our clients as we've gone through the year or the regulatory environment, becoming a little bit more clear and so that is helping our clients make decisions and and and partner with us and what we always say deregulation is is actually overall a good thing for the industry. If we can do in a smart way. So smart deregulation is always support.

And so but at the same time regulatory changes and having there still is regulation across the world and there are so many different regulators and they're all kind of going in different directions that we actually myself remains just an incredibly valuable capability for our clients and as we mentioned in early October we signed another global tier one too.

Cloud our cloud delivered solutions for <unk> cel supporting them in new areas of regulatory reporting so very very excited about showing that expansion. In addition to all the upsells, we had in the quarter, so actually myself strong demand.

And then within surveillance that also has been a very persistent grower with with new sales and Upsells in CFT C is a great example, where if we can go in and we have more of our more regulators around the world using market surveillance then they kind of are the center if they're using it then it kind of catalyze.

Is the the member firms to that regulator to say Oh, well if they think this is the best technology than maybe I should look at it as the best technology and so it can drive sales conversations out into the trading firms that are that are tied to that regulator.

Seen that also in another example of that was in or up which was for asking myself at a similar idea where if you provide regulatory reporting to the central regulator and then they encourage the banks to use the same technology to drive their regulatory reporting into that regulator. It kind of creates that really nice network effect and we see that across <unk>.

So actually Michel and surveillance as a good way to to expand the business.

Thank you.

And I show. Our next question comes from the line of Owen Lau from clear Street. Please go ahead.

Hi, Good morning. Thank you for taking my question sorry, I was on another call. So I'm not sure whether you are interested took a nicely from question.

So NASDAQ filed with the Secretary took a nice equities could you. Please give us an updated view on using blockchain to trillium already very liquid market, how do you see the incremental opportunity here.

Is this something that you want to keep this in your back pocket at this point or you have already seen a good demand for trade took a nice equities with U S and non U S. Investors. Thanks a lot.

Thanks, So yes, we did actually cover that topic earlier, but the ear. The angle of your question is a little different so I think.

We started the conversation by saying the U S equities markets are the most liquid the most efficient effective and affordable markets. If you look at just trade overall trading costs.

Ato Garrett: Good day and thank you for standing by. Welcome to Nasdaq Third Quarter 2025 Results Conference Call. At this time all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To rejoin your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Ato Garrett, Senior Vice President and Investor Relations. Please go ahead. Good morning everyone and thank you for joining us today to discuss Nasdaq's third quarter 2025 financial results.

In the World I mean, there are just amazing amazing market. So the first thing we wanted to do is make sure we don't.

Do anything that disrupts the everything that we've created here, but what we do see is a natural extension and expansion of the market opportunity is to create.

The choice for investors to be able to hold their shares in a token I form or in a.

Traditional form and that just gives them more ability to have flexibility as to how they manage their overall investment portfolio and and we are there is certainly within an overall trend towards <unk> is it's a great technology that.

Create streamlined.

That creates a kind of a streamlined payments payment infrastructure and and the potential for more efficiency.

Efficiency in post trade processing, but the first stage of our program is to introduce organization at the core equity level security level, not as a derivative of the security, but add the security itself.

Keeping that all in the markets.

The trading within the market itself and then also over time working with core infrastructure providers like DTC and others to create more efficiency in post trade, but we are very well partnered with DCC as they're evaluating and implementing this as a as a first step.

Thank you.

And I sure.

Last question in the queue comes from the line of Jeff Schmidt from William Blair. Please go ahead.

Hi, good morning.

On the axiom to Calypso cross selling opportunities I know, Tom will probably never really kind of fully monetize that avenue, but are you doing anything different than they did and just are you seeing those opportunities pick up under your leadership.

Yeah, I mean, the first thing that actually they had done before.

Before we acquired the two businesses as data created a data connector between axiom and Calypso. So that if you are already a calypso client using this.

Using it for trade infrastructure, the data from Calypso could easily be sent over into axiom, ESL, which would help ease the implementation of axiom itself for the regulatory reporting off the back of that trade infrastructure. So that was something that they had implemented and we were very excited about that because we could I think we actually gave an example of that at our Investor day.

<unk> bank. So it was a really good way to kind of ease of implementation and create more natural and consistency and we continue to find ways to create those connectors across the solutions, but also as we think about engaging our clients the higher up in the clients you go the more holistic the conversation becomes if you have that.

COO of the bank or the Chief risk officer of a bank you're going to be looking holistically at how do I manage risk how do I imagine the regulators, how do I manage crime out of the systems out of the networks and so when we get to that level and we can have this holistic conversation. So I think NASDAQ has been very successful at doing probably beyond the capabilities of a Denver.

It really changes the dialogue with the clients. The best question I get from the clients are what are other banks, taking that im not taking from you.

I love that question because it creates a much more holistic conversation in terms of how we can support them holistically across the core risk management and trading the regulatory risk management that they have and then the bank's risk management across the transactions and then of course, we then can expand that conversation over into their wealth.

<unk> with the data and index capabilities that we offer and it just kind of over it just kind of flows across the bank in terms of how we support them and everything we do across cap and our markets and Fintech.

Yeah.

Thank you.

This concludes our Q&A at this time I would like to turn the call back to Athena Friedman, President and CEO for closing remarks.

Great. Thank you very much for joining the earnings call today and I look forward to speaking you all to all of you again in January thanks very much.

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

This concludes our Q&A at this time, I'd like to turn the call back to Edina Freedman. President and CEO for closing remarks.

Thank you, this concludes our Q&A at this time, I'd like to turn the call back to Edina Freedman. President and CEO for closing remarks.

Ato Garrett: 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. 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 Relations website. I would like to remind you that we will be making forward-looking statements in this call that involve risks. A summary of these risks is contained in our press release and 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 a divestiture and the impact of changes in FX.

And I look forward to speaking to all of you again in January. Thanks very much.

Thank you. This concludes today's conference call. Thank you for participating.

now, disconnect

Great, thank you very much for joining the earnings call today and I look forward to speaking to you all to all of you again in January. Thanks very much.

Thank you, this concludes today's conference call. Thank you for participating. Give me

Ato Garrett: Adjusted and organic year-over-year changes reflect the $32 million revenue adjustment in the third quarter of 2024 for the change to the accounting treatment of revenues associated with AxiomSL on-premises subscription contracts, which are included in the Financial Technology segment. Definitions and reconciliations of U.S. GAAP to non-GAAP adjustments can be found in our earnings presentation as well as in a file located in the Financial section of our Investor Relations website at ir.nasdaq.com. With that, I will now turn the call over to Adena.

Adena Friedman: Thank you, Ato, and good morning, everyone. I will start with Nasdaq's third quarter results and we'll then review the performance across our divisions before handing the call over to Sarah for a more detailed discussion of our financials. I'm pleased with Nasdaq's excellent overall financial performance in the quarter. We delivered $1.3 billion in net revenue, a year-over-year increase of 11%.

now, disconnect

Sarah Youngwood: Solutions.

Adena Friedman: Quarterly revenues were over $1 billion for the first time in our history, a milestone truly reflective of our transformation to a leading technology platform representing 10% year-over-year growth. Our overall annualized recurring revenue, or ARR, grew 9% to $3 billion. Expenses were $583 million, up 5% year-over-year. Operating income was $732 million, up 16%, and we delivered 19% diluted EPS growth. This quarter's results reflect the strength of our diversified platform and our ability to partner effectively with our clients on their evolving priorities. We're showing the value of being the trusted fabric of the financial system by empowering clients to leverage technology, data, and advanced analytics to help to capture opportunities, navigate risk, and strengthen resilience. We're reinforcing our leadership across the capital markets, deepening our competitive advantage as we drive innovation across the financial industry. As we look to the wider macroeconomic environment, the U.S.

Adena Friedman: economy remains resilient, supported by solid fundamentals, but economic signals are mixed. While some consumers have faced headwinds, overall consumer spending has picked up in recent months. Additionally, the services industry remains in expansion and corporate investment in technology and AI continued, contributing to persistent economic growth. In Europe, although growth remains subdued, expectations for a recovery in demand and renewed investments point to a gradually improved outlook. We continue to see durable demand for technology that supports the modernization of the financial system and are increasingly supporting clients with AI-enabled solutions. As our investments in AI continue, we are deepening our competitive position and providing value to our clients through a combination of sophisticated solutions embedded with decades of expertise, our highly differentiated proprietary data, and the powerful network effects of our platforms across our clientele.

Adena Friedman: Turning to our high-level financial performance within the divisions, Capital Access Platforms generated 8% revenue growth and 6% ARR growth, Financial Technology delivered 13% revenue growth and 12% ARR growth, and Market Services delivered 13% net revenue growth. I'll now cover our business and operational highlights, beginning with Capital Access Platforms, where I'll start with Data and Listing Services. We delivered a strong quarter in Data and Listing Services, supported by our continued market leadership in our U.S. Listings franchise. We welcomed operating companies that raised $6 billion in proceeds in the quarter, with over $14 billion raised year to date. The European listings business also delivered a solid third quarter, and we are pleased to welcome Vershure to the Stockholm market in October, the largest European IPO since 2022. Increasing IPO activity signals promising developments in the public markets.

Adena Friedman: We see meaningful momentum, particularly among companies with strong fundamentals and compelling growth stories. From a macroeconomic perspective, continued global uncertainty is impacting certain sectors, resulting in some delays in IPOs. However, this dynamic is balanced by several trends giving investors more confidence to invest in new issuances, including an expectation of lower cost of capital, the resilience of the U.S. economy, and the deregulatory agenda in Washington. Our IPO pipeline is robust, and we continue to expect a meaningful pickup in IPO activity in the quarters ahead. While we are experiencing some short-term delays from the government shutdown, a strengthening foundation is in place, and the market is showing signs of durable re-engagement. We are also encouraged by recent announcements from the SEC aimed at improving the public company experience.

Adena Friedman: There has been meaningful progress on the policy priorities we outlined in our March white paper, particularly across scaled disclosure relief, smart regulation, and efforts to modernize the proxy process. We're pleased that the SEC recently approved the ability to file IPO documentation with mandatory arbitration as a condition, and we're encouraged by the Administration's interest in reducing the frequency of SEC-mandated disclosures. Moving to our data business, we delivered strong growth underpinned by robust sales and net retention as well as active retail engagement in the markets, which continues to drive usage. This quarter, we signed five enterprise license agreements, including a leading U.S. financial advisory firm, showcasing our continued momentum in this business. In our index franchise, we continue to deliver strong growth. We had a record $91 billion in net inflows over the last 12 months and $17 billion in net inflows in the quarter.

Adena Friedman: We exited the quarter with ETP AUM of $829 billion, an all-time high. We also continue to deliver on our three growth pillars of product innovation, international expansion, and institutional adoption. We launched 30 new index products in the quarter, including 18 international products and 13 in the institutional insurance annuity space. Within Workflow & Insights, our corporate solutions and analytics businesses benefited from new product innovations that are expanding the ways we add value to our clients in corporate solutions. While the corporate buying environment in the business remains muted, our targeted investments in our product capabilities and client engagement are building on our foundation and resulting in improving gross and net retention in analytics. We're focusing our efforts on enhancing investments capabilities and expanding our role across the broader investment management workflows through partnerships, setting the stage for meaningful and sustained growth.

Adena Friedman: In Q3, we are pleased to sign an agreement with Juniper Square, a fund operations partner to more than 2,000 private market GPs, to distribute investment data through Juniper Square's fundraising platform. We're expanding the scale and reach of our unique data assets to meet the evolving needs of our clients and to enhance the value that we bring to asset owners and asset managers, including in the private market space. Since the beginning of 2023, we have nearly doubled the number of private funds covered with any investment to 60,000 funds, supporting growth in new sales and upsells. Earlier this month, we completed the sale of Nasdaq Solovis to Insight Partners. While Solovis has valuable portfolio management capabilities to asset owners, we determined that its offerings were not a strategic fit within our portfolio and provided limited integrated value to the investment analytics platform.

Adena Friedman: We believe Solovis will be better positioned to grow and thrive under new ownership that is more closely aligned with its long-term direction. Turning next to Financial Technology, we delivered strong growth across all subdivisions. This was driven by sustained global demand for our mission critical technologies and successful execution by our teams. Our sales execution remained robust as we signed 65 new clients, 4 cross-sells, and 97 upsells during the quarter. Turning now to a review of the subdivisions, starting with Financial Crime Management Technology. Nasdaq Verafin had another solid quarter of execution across its client base, which now totals more than 2,700 financial institutions representing more than $11 trillion in collective assets. During the quarter we signed Goldman Sachs as a new Nasdaq Verafin client.

Adena Friedman: This cross-sell for our consortium-based payments fraud solution expands Nasdaq's relationship with the bank, demonstrating the strength of our 1 Nasdaq strategy in Regulatory Technology. We continue to see strong momentum with six new clients, two cross-sells, and 31 upsells in surveillance and 22 upsells for AxiomSL in the quarter. We are pleased to partner with the Commodity Futures Trading Commission, or the CFTC, to enhance its market surveillance and fraud detection capabilities by signing with the U.S. to deploy Nasdaq's industry-leading suite of surveillance technology. Additionally, early in the fourth quarter we signed an AxiomSL cross-sell to a global tier one bank for an enterprise cloud deployment, demonstrating how we are using both the scale of our solutions and the trust we've established across multiple products to reinforce our leading market position. Capital Markets Technology also delivered a solid quarter with strong sales momentum.

Adena Friedman: We maintained robust client engagement in the third quarter and saw persistent demand for our technology solutions. Market Technology secured five upsells, and Calypso signed four new clients and 39 upsells. Now turning to Market Services, the division continues to deliver double-digit organic net revenue growth, reflecting broad-based strength across our U.S. and European markets. Growth resulted from elevated volumes in U.S. options and U.S. equities as well as excellent growth in index options trading. We generated record revenues and volumes in the U.S. options in the third quarter, with the industry experiencing six of the top 10 volume days in history measured by options contracts traded, with a subsequent record established in October within our U.S. options business. Nasdaq index options volumes also hit record levels in the third quarter, with a subsequent record established in October. In U.S.

Adena Friedman: equities, industry volumes remained robust during the summer months and have persisted into the fall. Nasdaq-listed securities currently represent 53% of total industry volume, up from 49% a year ago, which demonstrates the strength of our platform as a trusted source to attract issuers and capital into the most liquid and transparent market in the world. In September, Nasdaq's closing cross set a daily notional value record. In summary, our strong third quarter performance reflects solid momentum across all three divisions, driven by disciplined execution of our teams across our diversified businesses, including in continued progress on our strategic priorities of Integrate, Innovate, and Accelerate. Within our Integrate priority, we're extremely pleased that we surpassed our expanded net expense efficiency target with over $150 million actioned as of the end of the quarter. We achieved a gross leverage ratio of 3.1 times at quarter end.

Adena Friedman: In addition, S&P recognized our deleveraging progress with an upgrade of the company's senior unsecured debt rating from BBB to BBB+ on August 12, which results in both rating agencies having upgraded us back to our pre-Adenza acquisition levels. Within our Innovate priority, we're pioneering the use of new technologies across the financial system and forming innovative partnerships to support our growth. This quarter, we submitted a filing to the U.S. Securities and Exchange Commission to leverage our existing resilient trading infrastructure that, if appropriate, will enable equity securities and exchange-traded funds to be traded on the Nasdaq Stock Market in traditional and tokenized form. Our proposal is for the underlying security itself to be tokenized, preserving investors' rights and benefits of share ownership. Turning to AI implementation in our solutions, in Corporate Solutions, over 800 clients have opted into our AI-powered board summarization tools within BoardVantage.

Adena Friedman: Our AI features with IR Insight drive efficiency in IR officer workflows, particularly related to deriving insights and connecting successfully with investors. In Financial Crime Management Technology, we're experiencing enthusiastic engagement with our clients in our rollout of Nasdaq Verafin's Agentic AI workforce that we announced in Q3. The suite of digital workers is a new solution which we're offering to our existing client base to help address the resource-intensive pain points in daily compliance workflows. The first digital worker is our Digital Sanctions Analyst, which we launched this month into production. Our next digital worker, a Digital Enhanced Due Diligence Analyst, is on track for release by the end of the year. This quarter, Nasdaq Verafin also announced a strategic partnership with BioCatch, a leader in behavioral and device intelligence.

Adena Friedman: In phase one of our partnership, we've integrated BioCatch's alerts into the workflow of Verafin's Anti Financial Crime solution and launched a joint go to market campaign with Verafin's SMB segment, which is generating strong early engagement. Looking ahead, we plan to work with BioCatch to accelerate our expansion into enterprise banks and international markets. Lastly, within our accelerate priority, our One Nasdaq strategy continues to deliver, driving four cross-sell wins across Financial Technology.

Sarah Youngwood: The quarter for a total of 30.

Adena Friedman: Cross sells since the Adenza acquisition closed at the end of the quarter, cross sales accounted for over 15% of Financial Technology sales pipeline and we remain on track to surpass $100 million in run rate revenue from cross sales by the end of 2027. We're also proud to see the impact of our transformation reinforced externally. Nasdaq made its first ever appearance on Interbrand's Best Global Brands, an annual ranking of the top 100 most valuable brands reflecting the critical role we play across the world's economies. Looking ahead to the remainder of 2025, Nasdaq remains well positioned to continue to deliver for our clients and shareholders as we head into the final months of the year with strong momentum across our platform. With that, I'll now turn the call over to Sarah to provide more details on our financial results.

Sarah Youngwood: Thank you, Adena, and good morning, everyone. In the third quarter of 2025, Nasdaq delivered another strong quarter with 19% EPS growth. We surpassed the EPS accretion milestone provided when we acquired Adenza, achieving our goal six months ahead of plan. Let's start with quarterly results on Slide 11. We reported net revenue of $1.3 billion, up 11%, with Solutions revenue up 10%, exceeding $1 billion for the first time. Operating expense was $583 million, up 5%, leading to an operating margin of 56% and EBITDA margin of 58%, both up 2 percentage points over the prior year quarter. This resulted in net income of $511 million and diluted EPS of $0.88. Slide 12 shows the drivers of our 11% net revenue growth for the quarter.

Sarah Youngwood: We generated 8 percentage points of our cost driven by new and existing clients, and product innovation beta factors contributed 3 percentage points of growth this quarter, driven by elevated volumes in Market Services and higher valuation in Nasdaq indices. As shown on Slide 13, we achieved a third consecutive quarter of 9% ARR growth, including 12% in fintech, and ARR surpassed $3 billion for the first time. Total SaaS revenue grew 12% for the second consecutive quarter, including 17% SaaS growth in fintech. SaaS as a percentage of ARR increased 1 percentage point versus the prior year quarter to 38%. Let's review division results starting on Slide 14. In Capital Access Platforms, we delivered revenue of $546 million, up 8%, with ARR growth of 6%. Data and Listing Services revenue was up 6% with ARR up 7%. Data revenue growth was driven by new sales, upsales, and usage.

Sarah Youngwood: We also had improved Listings revenue growth due to the increase in IPO activity. Growth from new listing and pricing was partially offset by delisting and lower amortization of prior period initial listing fees. This is consistent with our previous comments, and our previously stated expectations of these impacts in the fourth quarter remain unchanged. Index revenue was up 13% in the quarter, with 9 percentage points from alpha factors. Revenue growth was driven by a 35% increase in average ETP AUM, which reached a record $777 billion. The strong growth of AUM was partially offset by a year-over-year decline in derivatives contract volumes, mix shift in asset-based products and derivatives, as well as a decline in revenue from discontinued advertising on Nasdaq.com. Net inflows over the last 12 months reached a record $91 billion, including $17 billion in the third.

Ato Garrett: Quarter.

Sarah Youngwood: In Workflow & Insights, revenue was up 5% with ARR growth of 4%. The revenue increase was driven primarily by analytics, mainly Investment and Datalink, with continued demand from hedge funds, asset managers, asset owners, and consultants who value our differentiated data and continued product enhancements. Corporate Solutions revenue was essentially flat, but we saw improving new sales as well as better growth and net retention trends. Quarterly operating margin for the division was 60%, up 2 percentage points versus the prior year quarter. Before we wrap up on CAP, the impact of the October 16th Solovis sale will be approximately $7 to $8 million in quarterly revenue with approximately $6 million in direct quarterly cost. Moving to Financial Technology on slide 15, revenue was $457 million, up 13% with ARR growth of 12%.

Sarah Youngwood: Our business continues to experience strong demand across all FinTech subdivisions and high levels of client engagement. The division signed 65 new clients, 97 upsells, and four cross-sells in the quarter. Cross-sells continue to represent over 15% of the Financial Technology division's pipeline with strength across all three subdivisions. Financial Crime Management Technology revenue grew 22% with ARR growth of 18%. We signed 55 new SME clients in the third quarter. Net revenue retention was 111%, reflecting strong client engagement supported by the increasing adoption of the GenAI Entity, Research Copilot, and Targeted Typology Analytics. We also had continued momentum with enterprise clients, including the cross-sell to Goldman Sachs, which Adena mentioned earlier. With that, we are at six new enterprise client signings so far this year, which is more than triple the number of enterprise signings in 2023 and more than double the ACV.

Sarah Youngwood: As the business continues to make strong progress in moving up market, we want to reiterate that sales cycle and time to value for Tier 1 and Tier 2 deals can take time to flow into your subscription revenue run rate. We continue to expect the recent enterprise signings to translate into stronger revenue growth starting in the fourth quarter. Consistent with our comments last quarter, Regulatory Technology revenue grew 9% with ARR of 11% for the quarter, reflecting a declining professional services revenue versus the prior year period, which we expected and communicated on the second quarter call. The subdivision signed six new clients, 53 upsells, and three cross-sells. Revenue growth reflects solid performance and we continue to expect professional services revenue to start to improve in the fourth quarter and early 2026.

Sarah Youngwood: Capital Markets Technology revenue grew 12%, benefiting from strong performance in Trade Management Services and a contribution from Calypso. Upfront revenue ARR was up 10% for the quarter. The subdivision signed four new clients and 44 upsells. Financial Technology operating margin was 45%, up 1.5 percentage points versus the prior year quarter. As we wrap up our Solutions divisions, we continue to expect full year 2025 revenue growth within the medium-term outlook for both Capital Access Platforms and Financial Technology, with Capital Access Platforms at or slightly above the high end of the range, coming from continuous strength in index growth and slightly better than expected performance in Data and Listing Services within FinTech. We have great business momentum in Financial Crime Management Technology, but based on the performance of the first three quarters of the year, we are expecting the business to end the year just below the range.

Sarah Youngwood: Turning to Market Services on slide 16, we had net revenue of $303 million, reflecting growth of 13%. Growth was primarily driven by elevated market-wide equities volumes, record U.S. option industry volumes, increased volumes and capture in index options, with index options revenue more than doubling versus the prior year period and elevated capture in European derivatives. This was partially offset by lower share in U.S. options, lower capture in U.S. equities, which our team is managing actively and effectively in a competitive landscape, and lower U.S. state plan revenue versus the prior year quarter, which included a previously disclosed $3 million benefit reflecting cumulative audit and other one-time benefits. Market Services operating margin was 65%, up 5 percentage points versus the prior year quarter due to higher revenue.

Sarah Youngwood: Moving to expense on slide 17, we had operating expense of $583 million, up 5%, driven by employee compensation, strong investments in technology and people to support revenue and drive innovation and growth, and other increases largely due to Insatia. This resulted in an operating margin and EBITDA margin, both up 2 percentage points to 56% and 58% respectively. We are updating our organic expense expectations for the year to a range of $2.305 billion to $2.335 billion from the previous range of $2.295 billion to $2.335 billion. This update reflects our strong revenue growth throughout the year, continued investments in our technology and people, and the sale of Solovis just closed which was mostly offset by FX. Lastly, on expense, we have surpassed our extended Net Expense Efficiency program target of $140 million with over $150 million in cost reduction action as of the end of the third quarter.

Sarah Youngwood: On taxes, while we believe our previous 2025 non-GAAP tax rate guidance of 22.5% to 24.5% is an appropriate expected tax range, we are lowering our four-year tax guide to 22.5% to 23.5% due to some discrete items. That's a word of tax rate in the third quarter. Turning to capital allocation on Slide 18, Nasdaq generated free cash flow of $516 million in the third quarter and $2.1 billion in free cash flow over the last 12 months at a strong conversion ratio of 110%. This strong level of cash flow supports our dividend, deleveraging, and share repurchases. We paid a dividend of $0.27 per share or $155 million in the quarter, representing a 33% annualized payout ratio.

Sarah Youngwood: In our continued commitment towards deleveraging, we repurchased $69 million of debt and reached a gross leverage ratio of 3.1 times at the end of the quarter, which was an improvement of 0.1 times from the second quarter. We expect to reach 3.0 by the end of the year excluding the effects of FX. We also repurchased a total of 1.2 million shares of our common stock for $115 million in the third quarter. In closing, Nasdaq delivered excellent results in a dynamic operating environment while demonstrating strong operating leverage. Our third quarter financial results, particularly the new records in quarterly solutions, revenue, and ARR, reflect our transformation into a leading technology platform. We remain confident in our ability to achieve our strategic objectives, deliver sustainable growth, and generate long-term shareholder value. With that, let's open the line to Q&A.

Ato Garrett: Thank you. As a reminder, to ask a question, you 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 will be happy to take your follow-up questions at that time. Please stand by while we compile the Q and A roster. I show our first question comes from the line of Michael Cho from JP Morgan. Please go ahead. Hi, good morning. Thanks for taking my question. I just wanted to touch on digital assets here for my question. Adena, you talked about some wins in surveillance today as well as the ongoing tokenization initiative. There seems to be a growing presence of digital assets and crypto across Nasdaq's various businesses.

Ato Garrett: Can you just talk through any particular areas where you think Nasdaq has a propensity to drive higher growth, and is there a broader approach to frame the opportunity ahead for Nasdaq as the digital ecosystem continues to develop?

Adena Friedman: Great, thank you, Michael.

Sarah Youngwood: Yeah, we've been involved with the.

Adena Friedman: Digital assets ecosystem now for many years as a technology provider, and we continue to grow and expand in that way. We definitely see our fintech solutions being highly relevant as the digital asset ecosystem grows, expands, and more institutional interest in digital assets becomes more mainstream. We are very excited about what we do in terms of supporting markets around the world with trading technology and surveillance technology. We now have trade surveillance technology that is specific to crypto assets. We also provide, we're working with the digital asset ecosystem on collateral management. We did a POC earlier this year with some digital asset players to help show that we can use blockchain-based technology to manage collateral. We are doing a lot to support the trade infrastructure solutions as we think about the institutional adoption of digital assets. We are very excited in the fintech space.

Adena Friedman: In the index space, we have investable products, index products that we've launched with crypto assets. We also, of course, are the listing exchange to IBIT and other crypto index ETFs. We see ourselves as having kind of a broad-based opportunity across, frankly, our entire franchise. As a market operator, we're encouraged by the fact that the SEC and the CFTC are cooperating together in thinking about the regulatory landscape for the crypto markets, and that obviously as we understand what that regulatory landscape is going to look like and as we think about investor protection and the need for us to be able to provide resilient infrastructure, we also think that there could be an opportunity for us to expand there. We really want to make sure that we understand the regulatory landscape and see where that's going first.

Ato Garrett: Thank you. I show our next question in the queue comes from the line of Michael Cypress from Morgan Stanley. Please go ahead. Hey, good morning. Thanks for taking the question, maybe just along the same themes. Just digging in a little bit on tokenization, if we could. You've announced a proposal to allow for tokenized securities to trade on your exchanges. Hopefully you could elaborate on how you envision that working. What are some of the key issues and hurdles that need to be resolved? More broadly, how do you think about some of the use cases? What do you think is most compelling and who would be minting the token and how would that mechanically work? Thanks.

Adena Friedman: That probably requires a deeper conversation, but I'll give you a high level overview. As we think about our tokenization filing, the way that we envision it and how we've discussed it with the SEC and with our clients is that on an order by order basis, an investor will be able to flag an order to say that I want these shares that I'm buying to be settled in a tokenized form and put into a digital wallet. That flag would flow through our systems and into the post trade systems. We're working collaboratively with DTCC to understand exactly how they would then have two different settlement paths. Think about it that way, there are two different settlement paths that they're developing which would either settle it the normal way or settle it into a digital wallet infrastructure.

Adena Friedman: I think that they're working with their clientele, but they're looking at a couple of different blockchains to be able to launch with. I think their hope would be to be able to offer more than one underlying blockchain technology that investors will be able to choose to settle in. Basically, that path would then drive it into a digital wallet. That digital wallet would then be available to those investors through their brokerage firm or through their investment management firm that gives them access to the securities in a way that might be more fungible and more usable within their overall investment portfolio that may include other digitized financial assets. Really, think about it this way. Our markets are the most liquid, efficient, affordable markets for investors to trade in. We're really proud of that. It's an incredible creation that the U.S. markets have here in the U.S.

Adena Friedman: equities market. The first thing is let's make sure we don't do anything that changes the nature of our markets and providing all those benefits. The next thing is let's offer investors more choice. The choice is that they want to have their securities available to them in digital form or tokenized form. We're doing that with the underlying infrastructure providers. We're making it so that the underlying equity itself is tokenized and it's not a derivative of the equity, it's the actual equity itself. We're also not changing, we're not changing the overall settlement cycles. As we kind of walk into this, I think that there's going to, you got to look at kind of a walk run type of program here, and the overall timing of settlement will remain the same.

Adena Friedman: When we think longer term as to like why is tokenized, why would tokenized equities, who benefits from that and how does that become a benefit for the system? If you think about all assets, whether it's tokenized equities or treasuries or others being in a tokenized form, it allows for the mobility of collateral. It allows us to look at collateral as much more mobile. Obviously, our Calypso platform helps with that collateral mobility over time. We also think that if you are able to change the settlement cycles over time, it does continue to reduce risk in the system. It can also create capital efficiencies if you have a more seamless payment infrastructure to support global payments. We are a supporter of it.

Adena Friedman: We do believe our markets are frankly the best in the world, and we want to make sure we maintain that while we bring this technology into them in a staged process.

Ato Garrett: Thank you. Our next question in the queue comes from the line of Benjamin Buttish from Barclays. Please go ahead. Hi, good morning and thank you for taking the question. I know it's a little maybe early to talk about your 2026 outlook, but just curious on the OpEx side, it looks like your full year guidance implies much slower year-over-year growth in Q4. In your prior medium-term guidance you laid out this 3% gap between your expected solutions growth and OpEx growth. Assuming that the OpEx will sort of flex up and down with solutions but creating some operating leverage there. There's a number of initiatives, you're talking about tokenized equities. You've talked in the past about upgrading to be able to operate exchanges 24.5. Just curious, given the revenue momentum, any early thoughts you can share on what the pace of spend looks like going into next year?

Sarah Youngwood: I would describe our trajectory as consistent. What you are seeing is very much in line with the medium term outlook that you just mentioned. We are experiencing, as you have seen over the last three quarters, this one included, that we have very strong revenue, very strong solutions, revenues being in double digit for both of those for each of the three quarters, and not surprisingly this is resulting in some volume related expenses. We are continuing to fuel the investments. All of the things that Adena just mentioned are very much funded in the guidance that we have given you for the full year. Yeah.

Adena Friedman: As we think about ongoing investments, what we want to make sure is we believe that we are a provider of solutions that help the entire financial ecosystem modernize, and those investments are embedded in what we provided you in our guidance for this year. As Sarah said, we kind of think of ourselves as consistent in how we sponsor investments in our platform. We have very robust product roadmaps across our solutions, our technology solutions. The $24.5 million trading is embedded in kind of the outlook that we've provided to you. As we think about that investment and going into 2026, all of those things are incorporated into how we're thinking about the investment landscape within the business while also taking that efficiency program and factoring that in as well to help us fund these kind of H1, H2, what we call Horizon 1, Horizon 2 types of investments.

Adena Friedman: We're trying to make sure we're driving as much efficiency into the core enterprise as we can.

Ato Garrett: Thank you. Our next question comes from the line of Alex Cram from UBS. Please go ahead. Yes. Hey, good morning everyone. Sounds like the fincrime business is maybe the only business that's kind of lagging your expectations for the year a little bit. I know you gave a lot of detail already what's going on there, but maybe you can kind of flesh out a little bit more. What exactly is driving the maybe slower than expected expectation and what gives you confidence to accelerate here in the fourth quarter. Maybe related to that, I think last quarter you talked about a proof of concept with a European bank. Any update on that one would be helpful as well. Thank you.

Sarah Youngwood: Great.

Adena Friedman: Thanks, Alex. Yeah, as we think about the overall anti-financial crime business with Verafin, we have, as you know, three legs to our growth journey. One is in the SMB space, the small to medium banks. We continue to see very robust sales, very strong engagement. We have new opportunities to grow and expand in that space with the BioCatch partnership and the way that we have structured that partnership to offer new capabilities to our clientele with integrated workflows to make it a seamless experience for them. Also, the new agentic AI capabilities will be a new module that we will offer and sell to them. We have ways to continue to expand the growth there. That's kind of, as you know, the core of the business. It has been the core of the business.

Adena Friedman: As we've gone into the enterprise space, we're going to see a little bit more variability quarter over quarter in ARR growth because we're first implementing those solutions, so that creates some implementation revenue that may not be completely.

Sarah Youngwood: Consistent quarter over quarter.

Adena Friedman: Secondly, as you've seen, we've signed three times more enterprise clients this year than we did last year. So far, we definitely want to make sure that we're in the midst of implementing them and they should come online and help drive more ARR growth in future quarters. As we come online, we also have our international expansion and we're extremely early there. We are very encouraged by what we've seen from the proof of concept so far and we are engaging with several clients across Europe. It's going to take time for that pillar to come online because, you know, these sales cycles are not short. We're trying to make sure we prove ourselves to a whole new set of clientele in a different region of the world.

Adena Friedman: We actually do think over time also the BioCatch partnership will help with that whole program because they are very global in their clientele and they can help introduce us just as we're introducing them to ours. There's a lot of reasons why we see a lot of momentum in the business and we do think that it should show an improving trajectory as we said earlier, as we go towards the end of the year and into next year.

Ato Garrett: Thank you. I share. Our next question comes from the line of Dan Fannin from Jefferies. Please go ahead. Great, thanks. Good morning. Wanted to follow up on Capital Markets Technology. You talked about Trade Management Services in the quarter as well as some data center growth. Just curious, a little bit more detail around the momentum in that business as we think about the fourth quarter as well as into next year.

Sarah Youngwood: Sure.

Adena Friedman: As you know, Capital Markets Technology contains three key businesses. We have our Market Technology business, our Calypso business, and the Trade Management Services business, which includes the connectivity services for our markets in the U.S. and Europe. What we've been seeing is really strong demand for connectivity services in our markets. As you've seen, the market volumes are very robust. I think that supports the interest that our clients have in driving more connectivity capabilities and putting more technology in the data center to support that trading activity. We have increased the size of the data center, which has given us more room to support that growth. We have a lot of engagement with clients there that's driven the growth this year.

Adena Friedman: Within Calypso, we continue to see very robust demand for Calypso, and we're very pleased to see that the clients are looking at us as a core partner across collateral management, treasury management, trading, and risk management. All of those solutions are being quite successful. I think that there are certain areas of the world also where we've seen nice growth with our Calypso services, particularly in Latin America, which has been an area of real growth for us. In our Market Technology business, Latin America again is an area where we've done a nice job of expanding our presence, and we have had some good upsells to our clients this quarter. Overall, new sales for the year have remained very nice. We see, generally speaking, a healthy environment as we finish up the year and go into next year.

Ato Garrett: Thank you. I share. Our next question comes from the line of Alex Blossein from Goldman Sachs. Please go ahead. Hi, good morning everybody. Slightly bigger picture question for you on AI. Broadly, in the last couple of months or quarters, the market continues to sort of contemplate various areas of potential disruption, whether it's in business services or other type of software businesses as well. Two part question here. I guess one, curious how you sort of think about areas of risk when it comes to AI with respect to Nasdaq's revenue model and as an offset potentially incremental revenue opportunities as well as areas where the expenses could also be sort of pivoted and where you guys could extrapolate some efficiencies relative to the sort of 5% to 8% expense growth that you have over time.

Adena Friedman: Great, thanks, Alex. I think we feel very protected as a business in the way that the core assets of our business are very protected from the potential risks that might come from AI. We actually see it very much as just a big opportunity. One is, we have two programs within Nasdaq. One is focused on AI in the products and the other is focused on AI on the business. How are we changing our business operations to integrate this technology across key areas of workflow? We're focused first and foremost on product development because it's such a big part of our business, it's a large part of our organization.

Adena Friedman: What we're focused on there is how do we use as much automation as possible to drive efficiency in what we call H0 work, like the core, like keep the lights on type of activities for our products, because that's generally the most repetitive activity. It's generally kind of the small things we have to do. It's a very nice opportunity for us to drive automation across the product development life cycle. That then frees up capital for us and frees up resources for us to focus on Horizon 1 and Horizon 2 opportunities in the products and support those robust product roadmaps that I mentioned. That I think is a big opportunity for us. We are really focused on that area.

Adena Friedman: The second is on client experience and client implementations, where we're trying to drive as much automation in those areas as well, because it just drives efficiency in how we serve our clients, improves the outcomes for our clients, because our answers can be very consistent and how we interact with them can be very consistent in addition to driving automation in client implementation. Those areas are where we're really focused on scaled implementation of AI on the business and then in the products. We have, first of all, a product suite that requires an enormous amount of expertise. These are very custom, tailored solutions to the needs of our clients that are very sophisticated, very complex. I think that first and foremost is an important element of differentiation.

Adena Friedman: The second, of course, is we have highly differentiated data, whether it's consortia, data lake within investment within Verafin, obviously the data that comes off our market. As we have actually looked at other of our solutions and we've moved more of our solutions into cloud technology, it gives us a chance to have more data assets really aggregated to benefit and improve the products and provide differentiation in those products. The data itself, I think, is a real differentiator. The last thing is that we've been so focused on making sure that we modernize our solutions and offer them and bring AI into the products themselves so that we can make it through workflows a lot more efficient. The Agentic AI that we've launched in Verafin, in some cases we've seen situations where it reduces the workflow time by 80%.

Adena Friedman: It is going to deliver a very strong ROI to our clients. We think that that is a huge benefit. We see those opportunities across anti-financial crime surveillance, regulatory reporting in AxiomSL and in Calypso. We think that there is a chance for us to really propagate that across our platforms and deliver real value to our clients. We're excited about what we can do for our clients and we are actively pursuing that as a core part of our strategy.

Ato Garrett: Thank you. I share. Our next question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead. Great, thanks. Good morning. Thanks for taking my question. Maybe just along those lines as a last question on the digital AI workers as well as you talked about earlier, Adena, just maybe relaying that to the revenue synergy targets of exceeding $100 million before the end of 2027. Do you see the emergence of your AI solutions helping to advance that faster? If you can just remind us where you are currently on that revenue synergy target as we go into 2026.

Sarah Youngwood: Yeah.

Adena Friedman: As we've mentioned, we've been disclosing the number of clients that we've been able to achieve through our cross sells. That is, we're up to 30 cross sells so far since the closing of the Adenza deal. We also provide you a consistent statistic that says how much of our pipeline is underpinned by cross sells, and that's about 15% and that's being persistent, which we think is a strong indication of demand. Even as we're signing those cross sells, we're replenishing the pipeline with more cross sell opportunities. That consistency I think is very encouraging. In terms of the AI and how that can help, absolutely.

Adena Friedman: I mean, I think the more we can deliver those advanced solutions that really help clients change the way that they are doing their own workflows and we can bring capabilities into these solutions with a robust, you know, from a cybersecurity perspective, from an expertise perspective, and they know that we're a trusted provider and a trusted partner, we're a critical infrastructure provider ourselves. We know how important it is to do these things the right way. I feel that our clients are really embracing us to provide those solutions to them and I think that will of course continue to support our cross sell efforts and give us, you know, and I think also, you know, we are seeing a lot of the upsells are because of the gen capabilities that we're offering in our solutions.

Adena Friedman: It is definitely a catalyst, but it's all, you know, it's giving us increased confidence.

Ato Garrett: Thank you. Our next question comes from the line of Eli Abboud from Bank of America. Please go ahead. Good morning. Thanks for taking the question. To what extent is the BioCatch announcement a one off partnership versus an adjustment in your strategy at Verafin? I know the AML fraud space has a lot of startup activity. I wonder if there are other firms in the ecosystem that would pay for access to the Verafin network. Maybe said a little differently, could Verafin become more of a platform provider than a vendor.

Adena Friedman: Yeah, so actually we see Verafin already. Certainly architecturally, Verafin is a platform like the way that it's architected, the platform layer, the ability to integrate through modern APIs, very much built for that to be a possibility. That integration of BioCatch's alerts into our workflows has been quite seamless and it's an easy integration. BioCatch itself actually is quite a scaled business, I have to say. It's a global business, it's not a U.S. based business, but it's a very scaled business. It's growing very nicely and it has a large client base outside the U.S. We are really pleased to have them as a partner. Just to give just like one second on BioCatch itself and then I'll think about how we also see this as a natural way to expand and extend what we do.

Adena Friedman: BioCatch focuses on pre-transaction signals, so they integrate into bank applications so that they can understand the behaviors within those applications. When they see the potential for, let's say, an account takeover or they see the potential for a client of the bank to be instructed by someone that is not them, or they see behavior in the actual app that's different than normal behavior by the client, they then send an alert to the bank and the bank can then choose to stop the transaction before it occurs. It's really elegant, it's very advanced and it's using the same kind of AI, algorithmic AI, that we use post-transaction or at the transaction after. By integrating their pre-transaction analytics with our at and after transaction analytics, it really does create a complete solution for our bank clients to really take down the potential for fraud to occur within their systems.

Adena Friedman: We are very excited to have that partnership because it's just a way for us to add even more value to the clients and then the workflows themselves. By having their alerts in our workflow engine, it makes those small to medium banks, they have a limited client number of people who can support this, so it makes it much easier for them to manage their workflows. It's a really great way to show that we can expand our capabilities for partnerships. I would agree that this is the first, but we do see other opportunities going forward.

Ato Garrett: Thank you. Our next question comes from the line of Ashish Sabajara from RBC Capital Markets. Please go ahead.

Sarah Youngwood: Thanks for taking my question.

Ato Garrett: I just wanted to focus on the.

Sarah Youngwood: Technology continues to see good momentum there.

Ato Garrett: I just wanted to understand how are.

Sarah Youngwood: The conversations with the bank or your customers in general on the Regulatory Technology.

Ato Garrett: Solutions and then just maybe a follow-up on the CFTC partnership.

Adena Friedman: How should we think about the benefit?

Ato Garrett: Of the partnership outside of CFTC? Thanks.

Adena Friedman: Sure.

Sarah Youngwood: Yeah.

Adena Friedman: You know it's really been great to see the momentum in both AxiomSL and surveillance. There are a few things. On AxiomSL we've definitely had more engagement by our clients as we've gone through the year. The regulatory environment is becoming a little bit more clear, and that's helping clients make decisions and partner with us. You know what we always say is deregulation is actually overall a good thing for the industry if we can do it a smart way. Smart deregulation is what we support, but at the same time regulatory changes and having there still is regulation across the world and there are so many different regulators and they're all kind of going in different directions that we, AxiomSL, remains just an incredibly valuable capability for our clients.

Adena Friedman: As you mentioned, in early October we signed another global tier one to our cloud-delivered solutions for AxiomSL, supporting them in new areas of regulatory reporting. Very, very excited about showing that expansion in addition to all the upsells we had in the quarter. AxiomSL strong demand, and then within surveillance that also has been a very persistent grower with new sales and upsells. CFTC is a great example where if we can go in and we have more of our more regulators around the world using market surveillance, then they kind of are the center. If they're using it then it kind of catalyzes the member firms to that regulator to say, oh well, if they think this is the best technology, then maybe I should look at it as the best technology. It can drive sales conversations out into the trading firms that are tied to that regulator.

Adena Friedman: We've seen that also in another example of that was in Europe, which was for AxiomSL, but a similar idea where if you provide regulatory reporting to the central regulator and then they encourage the banks to use the same technology to drive their regulatory reporting into that regulator, it kind of creates that really nice network effect. We see that across Calypso, AxiomSL, and surveillance as a good way to expand the business.

Ato Garrett: Thank you. I share. Our next question comes from the line of Owen Lau from Clear Street. Please go ahead. Hi, good morning. Thank you for taking my question. Sorry, I was on another call, so I'm not sure whether you have addressed the tokenization question. Nasdaq filed with the SEC to trade tokenized equities. Could you please give us an updated view on using blockchain to trade an already very liquid market? How do you see the incremental opportunity here? Is this something that you want to keep in your back pocket at this point, or have you already seen good demand to trade tokenized equities for U.S. and non-U.S. investors? Thanks a lot.

Adena Friedman: Thanks, Owen. Yeah, we did actually cover that topic earlier, but the angle of your question is a little different. I think we started the conversation by saying the U.S. equities markets are the most liquid, the most efficient, effective, and affordable markets. If you look at just overall trading costs in the world, I mean they're just amazing. They're amazing markets. The first thing we want to do is make sure we don't do anything that disrupts everything that we created here. What we do see as a natural extension and expansion of the market opportunity is to create the choice for investors to be able to hold their shares in a tokenized form or in a traditional form. That just gives them more ability to have flexibility as to how they manage their overall investment portfolio. There is certainly an overall trend towards tokenization.

Adena Friedman: It's just a great technology that creates streamlines, that creates kind of a streamlined payment infrastructure and the potential for more efficiency in post-trade processing. The first stage of our program is to introduce tokenization at the core equity level, security level, not as a derivative of the security, but at the security itself, keeping that all in the markets and the trading within the markets itself. Over time, we are also working with core infrastructure providers like DTCC and others to create more efficiency in post-trade. We are very well partnered with DTCC as they're evaluating and implementing this as a first step.

Ato Garrett: Thank you. I show last question in the queue comes from the line of Jeff Schmidt from William Blair. Please go ahead. Hi, good morning. On the AxiomSL to Calypso cross selling opportunities, I know some of Bravo never really kind of fully monetized that avenue, but are you doing anything different than they did, and are you seeing those opportunities pick up under your leadership?

Adena Friedman: Yeah, I mean, the first thing that actually they had done before we acquired the two businesses is they had created a data connector between AxiomSL and Calypso so that if you were already a Calypso client using it for trade infrastructure, the data from Calypso could easily be sent over into AxiomSL, which would help ease the implementation of AxiomSL for the regulatory reporting off the back of that trade infrastructure. That was something that they had implemented, and we were very excited about that because we could. I think we actually gave an example of that at our investor day with M&T Bank. It was a really good way to kind of ease implementation and create more natural consistency. We continue to find ways to create those connectors across the solutions.

Adena Friedman: Also, as we think about engaging our clients, the higher up in the clients you go, the more holistic the conversation becomes. If you're the COO of a bank or the Chief Risk Officer of a bank, you're going to be looking holistically at how do I manage risk, how do I manage the regulators, how do I manage crime out of the systems, out of the networks. When we get to that level and we can have these holistic conversations, I think Nasdaq has been very successful at doing probably beyond the capabilities of Adenza. It really changes the dialogue with the clients. The best question I get from the clients is what are other banks taking that I'm not taking from you?

Adena Friedman: I love that question because it creates a much more holistic conversation in terms of how we can support them holistically across the core risk management and trading, the regulatory risk management that they have, and then the bank risk management across the transactions. Of course, we then can expand that conversation over into their wealth side with the data and the index capabilities that we offer. It just kind of flows across the bank in terms of how we support them and everything we do across capital and our markets and fintech.

Ato Garrett: Thank you. This concludes our Q&A. At this time, I'd like to turn the call back to Adena Friedman, President and CEO, for closing remarks.

Adena Friedman: Great. Thank you very much for joining the earnings call today. I look forward to speaking to all of you again in January. Thanks very much.

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

Q3 2025 Nasdaq Inc Earnings Call

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