Nasdaq, Inc. (NDAQ): Business Model Canvas [Dec-2025 Updated]

You're looking at this exchange giant's structure and wondering if it's still just about ringing the opening bell. Honestly, after a decade watching these players, I can tell you the engine has defintely shifted. Forget the old trading-fee model; the real story is the tech solutions business, which saw Q3 2025 revenue top $1.0 billion and now boasts an Annual Recurring Revenue base of $3.0 billion as of Q3 2025. To see exactly how this transformation-fueled by big moves like the Adenza integration-is mapped across its nine building blocks, check out the full Business Model Canvas below.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Nasdaq, Inc.'s (NDAQ) technology and market infrastructure moat, which is heavily reliant on strategic alliances. These aren't just handshake deals; they represent massive technology deployments and significant revenue streams.

Amazon Web Services (AWS) for Cloud-Based Trading Platforms

The partnership with Amazon Web Services (AWS) is central to modernizing capital markets infrastructure, focusing on the Nasdaq Eqlipse suite of cloud-ready solutions. This collaboration gives market operators flexible deployment options for cloud infrastructure, software, and data management, all while maintaining data sovereignty. The initial phase of this blueprint, announced in April 2025, includes Nasdaq's own Nordic markets, the Johannesburg Stock Exchange (JSE), and Mexico's Grupo BMV as early adopters. Furthermore, the expanded partnership now offers financial institutions the option to deploy Nasdaq Calypso on AWS as a fully managed service, aiming to modernize end-to-end infrastructure. Nasdaq's CEO stated that the move to the cloud, enabled by AWS, enhanced the instant scalability of market infrastructure, including its matching engines, leading to enhanced resiliency and efficiency as of the first quarter results call on April 24, 2025.

Global Financial Institutions for Adenza's Risk/Compliance Software

The acquisition of Adenza, which brought in significant risk and regulatory technology, solidifies a partnership structure with global financial institutions. Adenza's software, which includes Calypso and AxiomSL, is used by large banks to manage post-crisis regulations. As of the 2023 acquisition announcement, Nasdaq noted that since the Dodd-Frank rules implementation, banks increased compliance costs by more than $50 billion per year. The integration was expected to boost Nasdaq's Solutions Businesses revenue share from 71% to 77% by 2023 and enhance the adjusted EBITDA margin to 57%. The deal itself was valued at $10.5 billion.

Stock Exchange of Thailand (SET) for Market Technology and Surveillance

Nasdaq's technology is deeply embedded with the Stock Exchange of Thailand (SET), evidenced by their expanded strategic technology partnership announced in May 2025. SET is promoting the adoption of Nasdaq's risk and surveillance platforms across its member community to drive consistent infrastructure. This builds upon SET's existing deployment of Nasdaq's advanced surveillance and risk technology. Globally, Nasdaq's technology footprint is substantial, serving half of the world's top 25 stock exchanges, 35 central banks and regulatory authorities, and 97% of global systematically important banks (G-SIBs).

Thoma Bravo, a Major Shareholder Post-Adenza Acquisition

Thoma Bravo's involvement stemmed from the $10.5 billion acquisition of Adenza. Initially, Thoma Bravo was set to receive $5.75 billion in cash and 85.6 million Nasdaq shares, representing approximately a 14.9% stake in Nasdaq. However, Thoma Bravo has since fully exited this position. Through a structured multi-phase divestment completed in late 2025, Thoma Bravo realized a total of $3.4 billion from the liquidation of its Nasdaq equity stake. This included a secondary offering in July 2024 that raised $2.72 billion and a final sale of 25.5 million shares to JPMorgan at $80.68 per share. Following this exit, Borse Dubai remains the largest single shareholder with a 10.8% stake.

Global Index Providers and ETF Issuers for Licensing

The Index segment remains a high-growth partnership area, evidenced by strong 2025 financial performance. For the third quarter of 2025, Index revenue reached $206 million, a 13% increase year-over-year. In the second quarter of 2025, Index revenue was $196 million, marking a 17% growth, with $20 billion in net inflows during that quarter alone. The total Exchange Traded Product (ETP) Assets Under Management (AUM) tracking Nasdaq indexes hit a record $745 billion at the end of Q2 2025. Nasdaq launched 33 new Index products in Q2 2025, including 21 international products and 7 products in the institutional insurance annuity space. A key long-term licensing agreement is the extension with CME Group through 2039 for futures and options on the Nasdaq-100 and other indexes.

Here's a look at the scale of these key relationships:

Partnership Focus	Key Metric/Value	Date/Period	Source of Data
Adenza Acquisition Price	$10.5 billion	2023
Thoma Bravo Initial Equity Stake	14.9%	Post-Acquisition
Thoma Bravo Total Exit Realization	$3.4 billion	2024-2025
AWS Cloud Blueprint Adopters (Initial)	3 (Nordic, JSE, BMV)	Q2 2025
SET Technology Adoption	Risk and Surveillance Platforms	May 2025 Expansion
Nasdaq Tech Clients (G-SIBs)	97%	2025 Data
Index Revenue (Q3 2025)	$206 million	Q3 2025
ETP AUM Tracking Nasdaq Indexes	$745 billion	End of Q2 2025

The Index business is clearly a major driver of recurring revenue quality. For context, the Annualized Recurring Revenue (ARR) for Nasdaq overall was $3.0 billion in Q3 2025, up 10% year-over-year.

• Nasdaq launched 33 new Index products in Q2 2025.
• The CME Group license extension runs through 2039.
• The Adenza deal was expected to add around $300 million in annual unlevered pre-tax cash flow.
• Thoma Bravo sold 25.5 million shares at $80.68 per share in the final exit tranche.
• Nasdaq's Financial Technology revenue was $457 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Key Activities

You're looking at the core engine driving Nasdaq, Inc.'s performance through late 2025. The key activities center on running the markets, selling the tech that powers them, and monetizing the data generated. Honestly, the numbers show a clear pivot toward recurring, high-margin technology solutions.

Operating and maintaining global equity and options exchanges remains foundational, even as the Solutions business grows faster. The Market Services segment pulled in net revenue of $303 million in the third quarter of 2025, which was up 14% versus the prior year period, or up 13% on an organic basis. You can see the sheer volume they handle, for example, during the Russell reconstitution in the second quarter of 2025, Nasdaq's Closing Cross successfully executed 2.5 billion shares representing a record notional value of $102.5 billion. The options market activity is also strong; U.S. equity options volume increased 18.6% year-over-year to 1 billion contracts in the second quarter of 2025.

The activity of running the exchanges is supported by continuous infrastructure upgrades. For instance, Market Services migrated Nasdaq International Securities Exchange to its next-generation derivatives platform, Fusion, which offers enhanced performance.

Developing and integrating mission-critical financial technology (FinTech) is a massive activity, evidenced by the growth in the Financial Technology segment. In the third quarter of 2025, Financial Technology revenue hit $457 million, a jump of 23% over the third quarter of 2024, or 13% organically. A key part of this is the Financial Crime Management Technology, which saw its revenue grow 21% in the first quarter of 2025. This technology is seeing real-world application success, like the launch of Nasdaq Verafin's Agentic AI workforce in Q2 2025, where its Digital Sanctions Analyst automates screening processes, reducing human intervention alert review workload by more than 80%.

Generating and licensing proprietary market data and indexes provides a stable, high-margin revenue stream. Index revenue in the third quarter of 2025 was $206 million, growing 13%. This revenue is backed by significant client flows; the trailing twelve months saw net inflows of $91 billion into index products, with $17 billion of that coming in the third quarter of 2025 alone. The total assets under management for index exchange-traded products (ETPs) reached a record $745 billion at the end of the second quarter of 2025.

Here's a quick look at the Solutions segment performance, which bundles FinTech and Index activities:

Metric	Q3 2025 Value	YoY Growth (Reported)	Notes
Solutions Revenue	$1.0 billion	15%	Reflecting strong Index and FinTech growth
Annualized Recurring Revenue (ARR)	$3.0 billion	10%	ARR growth driven by FinTech at 12%
Annualized SaaS Revenue	Represents 38% of ARR	Up 12% YoY	SaaS is a growing component of recurring revenue

Executing the $10.5 billion Adenza integration and cross-selling is a major ongoing activity following the November 2023 acquisition. The goal is to integrate the risk management and regulatory software capabilities. Nasdaq is executing on its One Nasdaq strategy to deepen client partnerships. The company remains on track to exceed $100 million in cross-sell revenue by the end of 2027. The integration is showing early wins; for instance, in Q3 2025, Nasdaq Verafin signed a new enterprise Tier 1 bank client as a cross-sell. By the end of Q3 2025, Verafin had secured 6 new enterprise client signings in the first three quarters, which is three times the number signed in all of 2024.

Investing in AI and tokenization for future market infrastructure is embedded in the technology development. Beyond the Verafin AI tools, the Calypso platform announced an AI-based solution for X-Value Adjustments (XVA) that offers up to 100 times faster processing speeds for risk calculations. The company is also focused on modernizing its core exchange technology, with four of its U.S. markets and one European equity derivatives market already operating on the next-generation derivatives platform, Fusion. Furthermore, Nasdaq expanded its cloud partnership with Amazon Web Services (AWS) in May 2025, launching Nasdaq Eqlipse Trading.

• Nasdaq Verafin added 55 new small-and-medium bank clients in Q3 2025.
• The Adenza acquisition cost was $10.5 billion in cash and stock.
• Nasdaq expects to realize $80 million of annual run-rate net expense synergies from Adenza by the end of the second year post-acquisition.
• In Q1 2025, Financial Crime Management Technology revenue grew 21%.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Key Resources

You're looking at the core assets that power Nasdaq, Inc. as of late 2025. These aren't just line items on a balance sheet; they are the engines driving the firm's valuation shift toward a software-as-a-service model.

The Annual Recurring Revenue (ARR) base is a huge marker of this stability. As of Q3 2025, Nasdaq announced that ARR reached $3.0 billion for the first time. That figure represents a 10% year-over-year increase, or 9% organically. Honestly, that recurring stream is what investors are really focused on now.

Within that ARR, the Annualized SaaS revenue component grew 12% and made up 38% of the total ARR base.

The firm's technology stack is a critical resource, especially with the launch of the fourth generation marketplace technology platform, Nasdaq Eqlipse, in July 2025. This platform is designed to run 24/7 and support cloud deployment. A key component is Nasdaq Eqlipse Intelligence, a cloud-based platform for data, analytics, and reporting. Nasdaq is the trusted technology partner to over 135 financial market infrastructure (FMI) organizations globally, operating 18 exchanges itself.

Then you have the anti-financial crime technology from Nasdaq Verafin. Their consortium model is powerful, using collective intelligence from a network of over 2500 financial institutions. This network analyzes insights across 650 million counterparties. A new tool, the Digital Sanctions Analyst within the Agentic AI Workforce, is projected to reduce alert review workload requiring human intervention by more than 80%.

Here's a quick look at how the revenue segments stack up, reflecting the strength of these technology and data assets in Q3 2025:

Business Segment/Metric	Q3 2025 Reported Value	Year-over-Year Growth (Reported)
Net Revenue (Total)	$1.3 billion	15%
Solutions Revenue (Includes FinTech/Index)	$1.0 billion	15%
Financial Technology Revenue	$457 million	23%
Market Services Net Revenue	$303 million	14%

The globally recognized Nasdaq brand and listing franchise remain foundational. The Index business, which benefits directly from the brand's reach, saw Index revenue grow 13% in Q3 2025. Exchange Traded Product (ETP) Assets Under Management (AUM) linked to Nasdaq indexes hit an all-time high of $829 billion at quarter-end. Capital Access Platforms, which includes the listing franchise, generated adjusted revenue of $546 million in the third quarter.

The quality of contributory, high-quality, moted market data is embedded in the Financial Technology segment, which saw its ARR grow 12%. Furthermore, the talent supporting this is undergoing a strategic shift, particularly in compliance. The 2025 Nasdaq Global Compliance Survey indicated that 72% of compliance leaders rank data quality as their highest monitoring priority. This reflects the need for highly specialized software engineering and compliance talent to manage the data and regulatory landscape. Also, reporting lines show deeper integration, with 33% of compliance professionals now reporting to the Chief Risk Officer, up from 18% in 2024.

• Index net inflows for the trailing twelve months were $91 billion.
• Index net inflows in Q3 2025 were $17 billion.
• 70% of firms plan to invest in Artificial Intelligence for compliance over the next 12 months.
• The Financial Technology segment's ARR growth was 12% on a reported and organic basis.

Finance: draft the Q4 2025 capital allocation plan based on the $1.4 billion remaining under the share repurchase program as of September 30, 2025, by next Tuesday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Value Propositions

You're looking at the core value Nasdaq, Inc. (NDAQ) delivers across the financial ecosystem, moving well beyond just the exchange floor. The numbers from the third quarter of 2025 show this strategy is working, with Solutions revenue hitting $1.0 billion for the quarter, up 15% year-over-year.

Providing mission-critical risk management and regulatory compliance software is a key pillar. This is where the technology backbone supports trust. For instance, the Agentic Enhanced Due Diligence (EDD) Analyst, currently in beta, slashed review times for high-risk customers from three to eight hours down to just 30-60 minutes for participating institutions.

Offering a trusted, liquid venue for capital access and listings remains central. As of February 2025, the Nasdaq Stock Market hosted 3,890 total listings. The commitment to being a primary listing venue for innovators is clear, even as the technology side scales up.

Delivering high-quality, transparent market data and index products drives predictable income. Index revenue specifically grew 13% year-over-year in Q3 2025, reaching $206 million. That quarter alone saw $17 billion in net inflows into their indices.

Accelerating client modernization with cloud-based trading technology is a major focus. Nasdaq has been migrating its platforms, and the move of Nasdaq MRX to Amazon Web Services (AWS) previously showed a 10% improvement in latency performance. The company's Annual Recurring Revenue (ARR) reached $3.0 billion in Q3 2025, with Annualized SaaS revenue representing 37% of that ARR in Q2 2025, showing a clear shift to subscription-based delivery.

Enhancing market integrity with Anti-Financial Crime AI solutions is a growing area of value. The 2025 Nasdaq Global Compliance Survey indicated that 36% of financial firms are already using Artificial Intelligence in compliance, and a significant 70% of those surveyed plan to invest more in AI compliance tools over the next 12 months. This signals strong client demand for these embedded capabilities.

Here's a quick look at how the Solutions segment, which houses much of this technology and data value, performed in the latest reported quarter, so you can see the scale:

Metric	Q3 2025 Value	Year-over-Year Change
Total Solutions Revenue	$1.0 billion	15% increase
Index Revenue	$206 million	13% growth
Financial Technology Revenue	$457 million (Q3 2025 reported)	23% growth (Reported)
Annualized Recurring Revenue (ARR)	$3.0 billion	10% increase

The technology offerings are broad, supporting more than just trading venues. For example, Nasdaq's marketplace technology solutions are used by over 135 market infrastructure providers globally for multi-asset trading, clearing, and surveillance.

The value proposition is also supported by internal efficiency metrics that translate to better client service:

• Compliance teams using Nasdaq Verafin's AI saw investigator efficiency improve with up to 90% reduction in alert review time.
• The company repaid $400 million of senior unsecured notes in Q2 2025, showing operational strength.
• Non-GAAP diluted Earnings Per Share (EPS) for Q3 2025 grew 19% year-over-year to $0.88.
• As of September 30, 2025, $1.4 billion remained authorized for share repurchases.
• For the trailing twelve months ending September 30, 2025, Total TTM Revenue was $8.170 billion, a 16.46% increase year-over-year.

The firm is defintely focused on embedding its tech across the entire lifecycle. Finance: draft 13-week cash view by Friday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Customer Relationships

You're looking at how Nasdaq, Inc. keeps its most important clients close, which is key since their growth is increasingly tied to technology subscriptions rather than just trading fees. The relationships are layered, moving from the largest global financial institutions down to the individual companies that choose to list on their markets.

Strategic, high-touch relationships with Tier 1 global banks (One Nasdaq)

The One Nasdaq go-to-market strategy is all about deepening partnerships across the financial system. This high-touch approach targets major financial players where integrated solutions are critical. For instance, in the first quarter of 2025, Nasdaq Verafin's Financial Crime Management Technology revenue grew 21%, showing momentum with enterprise clients, including a cross-sell to a Tier 2 AxiomSL client and a deal with a large Tier 1 U.S. financial institution in that same quarter.

The data consortium managed by Nasdaq Verafin is a strong example of this deep relationship, now including clients holding more than $10 trillion in total assets.

Dedicated relationship managers for listed companies

For companies choosing to list, the relationship starts with winning the listing and continues through ongoing services. Nasdaq maintained its market leadership in the U.S. listings market in the first half of 2025, recording an 86% win-rate for eligible listings, extending this leadership to 46 consecutive quarters. In that same period, Nasdaq welcomed 142 listings, which raised a total of $19.2 billion.

The sheer volume of clients served by the technology segments also implies a broad base requiring dedicated support:

Metric	Value (Q3 2025 or Latest)	Context
Total Solutions Revenue (Q3 2025)	$1.0 billion	Represents revenue from Data, Analytics, and Software solutions.
Total Solutions Revenue Growth (YoY Q3 2025)	15%	Reflects strong client adoption of integrated offerings.
Total Companies Listed (Feb 2025)	3,890	The total number of securities listed on the Nasdaq Stock Market.

Subscription-based models for Financial Technology and Data

The recurring revenue base is a core component of Nasdaq's customer relationship value, as it provides predictable cash flow. Annualized Recurring Revenue (ARR) is a key metric here. By the third quarter of 2025, ARR reached $3.0 billion, a 10% increase over the third quarter of 2024.

The subscription model is heavily weighted toward technology:

• Annualized SaaS revenue represented 38% of total ARR in Q3 2025.
• Annualized SaaS revenue increased 12% in Q3 2025.
• Financial Technology ARR grew 12% (reported and organic) in Q3 2025.

For the Index business, which is also subscription-driven, net inflows over the trailing twelve months ending Q3 2025 reached $91 billion, with $17 billion in the third quarter of 2025 alone.

Deep regulatory engagement (e.g., SEC filing for tokenization)

Nasdaq actively engages with regulators to shape future market infrastructure, which directly impacts its technology clients. The company is pursuing initiatives like tokenization, with partnerships mentioned that aim to standardize post-trade operations and enable blockchain-based settlements, involving filings or discussions with the SEC. Furthermore, Nasdaq is planning to expand U.S. market access to 24/5 trading during the second half of 2026, a major infrastructure change requiring deep regulatory alignment.

Proactive cross-selling of integrated solutions post-Adenza

The acquisition of Adenza was heavily predicated on unlocking cross-sell opportunities between the legacy Nasdaq technology stack and the newly acquired risk and regulatory software. The company announced a target of over $100 million in incremental cross-sell revenue across the Financial Technology division by year-end 2027. As of a late 2025 update, the execution was ahead of that pace, with the company already tracking $150 million in cross-sells by the quarter preceding the end of the program timeline. The cross-sell pipeline has been consistently maintained around the 15% mark.

Client acquisition and expansion within the Financial Technology segment in the first three quarters of 2025 included 65 new clients and 97 upsells, demonstrating success in expanding relationships beyond initial product sales.

Finance: draft 13-week cash view by Friday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Channels

You're looking at how Nasdaq, Inc. gets its services and data into the hands of its customers as of late 2025. It's a mix of direct engagement, platform operation, and licensing agreements, all generating significant, measurable revenue.

The core channels for Nasdaq, Inc. are multifaceted, spanning direct client interaction for its technology solutions and the operation of its primary market venues. The Solutions business, which bundles Financial Technology and Index revenue, hit $1.0 billion in net revenue for the third quarter of 2025 alone. This recurring revenue stream is key, with Annualized Recurring Revenue (ARR) reaching $3.0 billion as of Q3 2025.

Here's a breakdown of the financial scale tied to these primary distribution channels for the third quarter of 2025:

Channel Component	Associated Financial Metric	Amount (Q3 2025)
Direct Sales (Financial Technology)	Revenue	$457 million
Direct Sales (Financial Technology)	Annualized Recurring Revenue (ARR) Growth	12%
Global Exchanges (Market Services)	Net Revenue	$303 million
Index Licensing (Index Revenue)	Revenue	$206 million
Index Licensing (Index Revenue)	Year-over-Year Growth	13%
Digital Platforms (SaaS Component of ARR)	Percentage of Total ARR	38%

The direct sales teams are the engine for the Financial Technology segment, which saw its revenue jump 23.2% year-over-year in Q3 2025. This channel delivers software for regulatory compliance and anti-financial crime, with Annualized SaaS revenue growing 12%.

The Nasdaq Stock Market and its global exchange operations are a critical channel, evidenced by the Market Services net revenue of $303 million in Q3 2025, up 14% versus the prior year period. This channel is supported by the sheer scale of its listings:

• The Nasdaq Stock Market had 4,139 listed companies as of the first quarter of 2025.
• Exchanges comprising Nasdaq Nordic and Nasdaq Baltic had 1,160 listed companies in Q1 2025.
• The Nasdaq Stock Market added 170 new operating company listings in Q1 2025.

Index licensing agreements are a major distribution route for Nasdaq's intellectual property, primarily through Exchange Traded Products (ETPs). The growth here is substantial:

• Net inflows for ETPs tracking Nasdaq indexes over the trailing twelve months (TTM) reached $91 billion as of Q3 2025.
• Net inflows for Q3 2025 alone were $17 billion.
• Exchange Traded Product Assets Under Management (AUM) tracking Nasdaq indexes hit a record $745 billion at the end of Q2 2025.

For cloud deployment, you see the strategic partnerships supporting the technology delivery. Nasdaq and Amazon Web Services (AWS) signed an enhanced agreement to amplify their [technology efforts] in 2025. This supports the delivery of solutions that are increasingly cloud-ready, as noted by the focus on infrastructure modernization.

Digital platforms for market data and analytics are embedded within the Solutions segment, contributing to the $3.0 billion in ARR. The shift to recurring revenue models, with SaaS revenue at 38% of ARR, shows the importance of these digital distribution methods. Finance: draft 13-week cash view by Friday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Customer Segments

You're looking at the core client base for Nasdaq, Inc. (NDAQ) as of late 2025. It's a diverse group, spanning from companies wanting to go public to the institutions that power global trading infrastructure. Honestly, the numbers show a clear focus on recurring revenue streams from technology and data licensing.

Here's a breakdown of the key customer groups and the metrics we can tie directly to them from the latest reports.

Customer Segment	Associated Metric/Data Point (as of late 2025)	Specific Value/Amount
Corporate clients seeking public listings	Number of total listings	3,890 (February 2025)
Corporate clients seeking public listings	IPOs in the first half of 2025	142 listings, raising $19.2 billion
Global banks, brokers, and investment managers	Financial Technology (FinTech) Net Revenue (Q3 2025)	$457 million
Global banks, brokers, and investment managers	Annualized Recurring Revenue (ARR) (Q3 2025)	$3.0 billion
Exchange operators, central banks, and regulatory authorities	Marketplaces powered by Nasdaq technology	More than 90 marketplaces in 50 countries
Asset managers and passive investment vehicles (ETFs)	Index Net Revenue (Q3 2025)	$206 million
Asset managers and passive investment vehicles (ETFs)	Index Net Inflows (Trailing Twelve Months)	$91 billion
FinTech and data vendors licensing market information	Financial Technology ARR Growth (Q3 2025 vs Q3 2024)	12% (Reported)

You can see the technology component is massive. The Financial Technology revenue stream is clearly a major focus for Nasdaq, Inc.

For the corporate clients, the pipeline activity is also telling. In the first half of 2025, Nasdaq had an 86% win-rate for Nasdaq-eligible listings in the U.S. market, extending leadership to 46 consecutive quarters.

The client base for the technology division includes specific types of users:

• Technology sold to other exchanges.
• Risk management technology.
• Anti-financial crime solutions.
• Regulatory reporting tools.

The overall scale of the data business is reflected in the Index segment performance. For instance, the Index segment saw $17 billion in net inflows during the third quarter of 2025 alone.

Also, note the growth in the technology adoption by other market infrastructure players. In a prior quarter, Nasdaq signed 67 new technology clients and secured almost 100 upsells. That kind of traction shows where the institutional demand is focused.

Finance: draft 13-week cash view by Friday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Cost Structure

You're looking at the expense side of Nasdaq, Inc.'s operations as of late 2025, which is heavily weighted toward technology and specialized human capital. The cost structure reflects a business that is both a regulated market operator and a global technology provider, so the numbers are substantial.

The overall spending level is captured by the company's updated non-GAAP operating expense guidance for 2025, which was revised in July 2025 to a range of $2,295 million to $2,335 million. This reflects ongoing investment, though it is higher than the range initiated in January 2025 of $2,245 million to $2,325 million. For context on the run rate, second quarter 2025 non-GAAP operating expenses were $585 million, while GAAP operating expenses for that same quarter were $738 million.

Significant compensation and benefits for specialized staff form a major component. Nasdaq, Inc. structures its employee remuneration with a mix of fixed and variable pay to attract and retain talent. The three main components are annual base salary, annual performance-based cash incentive awards, and long-term incentives, like equity awards. The median total compensation reported for an employee at Nasdaq, Inc. is $101,927 per year, with high-skill roles like Software Engineering Manager reporting a median of $232,000. For governance costs, Non-Employee Directors receive an annual retainer valued at $260,000 in equity, though they can elect cash. The Chairman of the Board receives a total retainer value of $240,000.

The commitment to technology is evident in the high investment in technology, R&D, and cloud infrastructure, which drives organic expense growth. This investment is a key driver for the business, supporting the Financial Technology segment's growth. The company is also focused on realizing efficiencies from its major acquisition, with an expanded net expense efficiency program targeting $140 million, of which approximately $130 million was actioned as of the end of the second quarter of 2025. The initial Adenza integration targeted $80 million in net expense synergies, with about 70% actioned by the end of 2024.

Costs related to debt repayment and integration of Adenza are significant, reflecting the balance sheet management post-acquisition. Nasdaq, Inc. is aggressively managing leverage; it repaid $400 million of senior unsecured notes in the second quarter of 2025 alone. This follows an early repayment of $600 million of the term loan and a $257 million net purchase price for repurchasing senior unsecured notes in the first quarter of 2025. The goal is to have debt to EBITDA around 3.5x and Funds From Operations (FFO) to debt between 20%-23% by the end of 2025. Integration costs are typically captured within non-GAAP adjustments.

Data acquisition and intellectual property licensing costs are embedded in the operational expenses, particularly for the Market Services division. While total licensing costs aren't explicitly stated as a single figure, the pricing structure for market data feeds shows the scale of these recurring costs. For instance, the Nasdaq Depth Non-Display data feed for 250 or more subscribers costs $75,000.00 per firm monthly as of January 1, 2025. Furthermore, listing fees, a direct cost to Nasdaq, Inc.'s listed companies but indicative of the cost of maintaining the exchange infrastructure, were raised effective January 1, 2025, with annual fees for Global and Global Select Markets ranging from $56,000 - $193,000 based on shares outstanding.

Here's a quick look at some of the key expense and debt-related figures for 2025:

Cost Category / Metric	Financial Figure (2025)	Reference Period/Context
Non-GAAP Operating Expense Guidance (Midpoint)	$2,315 million	Updated as of July 2025
Non-GAAP Operating Expenses	$585 million	Second Quarter 2025
GAAP Operating Expenses	$738 million	Second Quarter 2025
Senior Unsecured Notes Repaid	$400 million	Second Quarter 2025
Targeted Net Expense Synergies (Adenza)	$140 million	Total Program Size
Actioned Efficiency Program Costs	$130 million	As of Q2 2025
Forecasted Debt to EBITDA	3.5x	End of 2025 Forecast
Forecasted FFO to Debt	20%-23%	End of 2025 Forecast

The compensation structure for specialized staff involves significant equity grants, with vesting schedules often spread over four years, including 25.00% annually for the first year. The costs associated with data distribution are tiered; for example, the Nasdaq Basic-Enterprise License fee is $155,000 for unlimited internal Professional usage.

• Non-Employee Director Annual Retainer (Equity Value): $260,000 per annum.
• Lead Independent Director Additional Retainer: $75,000.
• Chairperson of the Management Compensation Committee Annual Chair Fee: $45,000.
• Non-Chair Member Audit Committee Annual Fee: $20,000.
• Non-Professional Subscriber Fee for Nasdaq Issues (Data): $0.50 each, effective January 1, 2025.

Finance: review the Q3 2025 non-GAAP expense forecast against the current guidance range by next Tuesday.

Nasdaq, Inc. (NDAQ) - Canvas Business Model: Revenue Streams

You're looking at the money coming in for Nasdaq, Inc. as of late 2025, and the story is clearly shifting toward technology. The big news from Q3 2025 is that Solutions revenue officially surpassed the $1.0 billion mark for the quarter, showing a solid 15% year-over-year growth. Also, that focus on software subscriptions paid off, with Annual Recurring Revenue (ARR) hitting $3.0 billion for the first time. That ARR figure is key; it tells you how much of their business is locked in and predictable, which investors definitely like to see.

Here's a quick look at the major revenue components reported for the third quarter of 2025, in millions of U.S. dollars:

Revenue Stream Component	Q3 2025 Amount (US$ millions)	Year-over-Year Growth (%)
Solutions Revenue	$1,003	15%
Market Services Net Revenue (Trading & Clearing Fees)	$303	14%
Index Revenue	$206	13%

The Index licensing revenue for the third quarter of 2025 was reported at $206 million, which included $17 billion in net inflows during that quarter alone. Then you have the core market operations; Trading and clearing fees from Market Services brought in $303 million for the same period, up 14% from the prior year. It's defintely clear that both the tech and market services sides are pulling their weight.

For corporate clients, the revenue stream from listing fees is governed by the all-inclusive annual fee structure that took effect on January 1, 2025. This structure means companies pay one fee to cover most ordinary listing costs, eliminating many transactional fees. The annual fee ranges depend on the market tier:

• Nasdaq Global Select and Global Markets (non-ADR issuers): $56,000 to $193,000.
• Nasdaq Capital Market (non-ADR issuers): $53,000 to $86,000.
• Annual fee for a SPAC on any tier: $85,000 (this was raised from $81,000).

The growth in the Solutions segment is being powered by specific areas within that division. You can see the strength in the recurring software subscriptions:

• Financial Technology ARR growth was 12% reported.
• Capital Access Platforms ARR growth was 7%.
• Annualized SaaS revenue increased by 12%.
• Annualized SaaS revenue represented 38% of the total $3.0 billion ARR.

Finance: draft 13-week cash view by Friday.