Investment Thesis
NASDAQ demonstrates robust fundamental strength with double-digit revenue growth (11.6% YoY), exceptional profitability margins (63.5% gross, 28.2% operating, 21.6% net), and strong free cash flow generation ($2.0B, 24.1% margin). The company maintains solid financial health with moderate leverage (0.7x debt/equity), excellent interest coverage (21.6x), and generates substantial operating cash flow relative to capital requirements.
NDAQ Strengths
- Strong revenue growth of 11.6% YoY with $8.3B total revenue demonstrates market expansion
- Exceptional profitability margins across all levels (gross 63.5%, operating 28.2%, net 21.6%) indicating pricing power and operational efficiency
- Robust free cash flow generation of $2.0B with 24.1% FCF margin provides financial flexibility
- Conservative leverage with 0.7x debt/equity ratio and strong 21.6x interest coverage ratio
- Solid ROE of 14.6% and ROA of 5.8% indicate efficient capital deployment
NDAQ Risks
- Thin liquidity position with current ratio of 1.01x leaves minimal cushion for operational disruptions or unexpected obligations
- Net income growth of only 0.1% YoY despite 11.6% revenue growth suggests margin compression or increased operating costs offsetting revenue gains
- Significant long-term debt of $8.6B represents substantial financial obligations requiring consistent cash flow servicing
- Operating in cyclical financial services sector sensitive to market volatility, interest rates, and trading volumes
Key Metrics to Watch
- Operating cash flow sustainability and working capital trends given tight liquidity ratios
- Net margin trajectory and operating leverage improvement relative to revenue growth
- Debt reduction progress and debt/equity ratio management
- EPS dilution trends despite 60.1% YoY growth given only 0.1% net income growth
NDAQ Financial Metrics
NDAQ Profitability Ratios
NDAQ Balance Sheet & Liquidity
NDAQ 5-Year Financial Trend
5-Year Trend Summary: NASDAQ, INC.'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.08 reflects profitable operations.
NDAQ Growth Metrics (YoY)
NDAQ Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.9B | $306.0M | $0.53 |
| Q2 2025 | $1.8B | $222.0M | $0.38 |
| Q1 2025 | $1.7B | $234.0M | $0.40 |
| Q3 2024 | $1.5B | $294.0M | $0.53 |
| Q2 2024 | $1.4B | $222.0M | $0.38 |
| Q1 2024 | $1.5B | $234.0M | $0.40 |
| Q3 2023 | $1.5B | $294.0M | $0.59 |
| Q2 2023 | $1.4B | $267.0M | $0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NDAQ Capital Allocation
NDAQ SEC Filings
Access official SEC EDGAR filings for NASDAQ, INC. (CIK: 0001120193)