Nasdaq profit rises as listings and data revenue strengthen quarterly results

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Nasdaq profit rises quarterly

Highlights

Nasdaq reports second-quarter net revenue of $1.5 billion, up 15%, with the capital access platforms segment rising 19% to $621 million.
Net income climbs to $507 million, or 89 cents per share, from $452 million, or 78 cents per share, driven by marquee listings like SpaceX and heightened trading volumes.
Despite year-to-date share price decline of over 6%, Nasdaq outperforms CME and Intercontinental Exchange due to its diversified mix of software, data, and fraud prevention services.

Second-quarter revenue growth across core segments

As reported by Reuters, Nasdaq says second-quarter profit rises as high-profile listings on its exchange and strong demand for data services bolster performance. The quarter includes several marquee listings, including SpaceX's IPO, where first-day trading volume surpasses 500 million shares.

While listing fees themselves contribute little, exchanges benefit from heavier activity in equities, options and related market services. Nasdaq says net revenue reaches $1.5 billion in the quarter, up 15%, led largely by its capital access platforms segment.

That unit, which includes listing services and market data tied to products such as equities and options, brings in $621 million, a 19% increase. Revenue from Nasdaq's financial technology segment rises 16% to $539 million, while market services net revenue climbs 11% to $340 million on stronger cash equities and equity options volumes.

The company reports net income of $507 million, or 89 cents per share, for the three months ended June 30, compared with $452 million, or 78 cents per share, a year earlier. Trading businesses also benefit during the period as headlines about the U.S.-Iran war and changing sentiment around the AI trade add to market swings and increase demand for hedging.

Market pressure and diversification support outlook

Even with stronger volumes, exchange operators remain under pressure in the market this year. Investors react negatively after the Commodity Futures Trading Commission allows Kalshi and Coinbase to offer perpetual futures for cryptocurrencies, a move seen as potentially taking market share from established exchanges.

Nasdaq shares are down more than 6% this year, though they perform better than CME and Intercontinental Exchange, which post steeper declines. Analysts say Nasdaq's broader mix of software, data and services such as fraud prevention helps cushion the business as traditional trading volumes fluctuate.

Nasdaq's diversified model remains a key factor in its positioning against peers as the earnings season for exchange operators continues. CME beats Wall Street expectations for second-quarter profit on Wednesday, while ICE and Cboe are set to report results next week.

Our earlier article covered renewed speculation about a potential Tesla–SpaceX merger after Tesla’s earnings call, as Elon Musk pointed to expanding operational collaboration between the companies. We also noted that the debate intensified alongside SpaceX’s IPO process, while analysts flagged major governance and regulatory hurdles that could complicate any deal.

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