Nasdaq Index Revenue Accelerates as ETP Assets Top $1 Trillion
Net revenue rose 15% year-over-year to $1.5 billion in the second quarter.
Nasdaq (NDAQ), the exchange and financial technology provider, saw its top line accelerate in the second quarter as growth in its index business surged. Net revenue grew 15% year-over-year to $1.5 billion, up from a 14% increase in the first quarter.
Index revenue drove the quarter's momentum, growing 38% year-over-year to $271 million. This marked a significant acceleration from the 14% growth reported in the first quarter and 23% in the fourth quarter of 2024. The growth coincided with a milestone for the company's index ETP assets under management, which surpassed $1 trillion for the first time to reach $1.114 trillion at period-end.
The company's broader technology push also gained pace. Solutions revenue grew 17% year-over-year. This trend followed a period of slower growth, with the segment posting 14% growth in the first quarter and 13% in the fourth quarter of 2024.
Annualized Recurring Revenue (ARR) reached $3.3 billion in the second quarter. The figure represented an 11% year-over-year increase, or 12% on an organic basis. This followed a 13% increase in the first quarter and a 10% increase in the fourth quarter of 2024.
Operating efficiency improved as the company managed its cost base. Non-GAAP operating margin expanded to 57%, compared to 55% in the second quarter of 2024. GAAP operating expenses rose 7% year-over-year, a deceleration from the 9% increase seen in the first quarter.
Capital returns remained active though volatile in scale. Nasdaq spent $356 million on share repurchases during the quarter. While this was a decrease from the $548 million returned in the first quarter, it exceeded the $286 million spent in the fourth quarter of 2024.
Non-GAAP diluted EPS grew 25% year-over-year to $1.07. The growth rate remained relatively stable compared to the 22% growth in the first quarter and 27% in the fourth quarter of 2024.