Nasdaq, Inc.

you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Atto Garrett, Senior Vice President and Investor Relations Officer. Please go ahead.

Good morning, everyone, and thank you for joining us today to discuss NASDAQ's second quarter 2025 financial results. On the line are Adina 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 on this call that involve risks. A summary of those risks is contained in our press release with 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 divestitures and the impact of FX. Organic and adjusted growth rates are equivalent this quarter, as they include the same period-over-period adjustments. 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 in the financial section of our investor relations website at ir.nasdaq.com. Also, we have included a page in the appendix regarding the sale of our Nordic Powers futures business to Euronext. And with that, I will turn the call over to Adina.

Thank you, Otto, and good morning, everyone. I will start with NASDAQ's second 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. 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 12%. Solutions revenues were $991 million, representing 10% year-over-year growth. And our overall annualized recurring revenue, or ARR, grew 9% to $2.9 billion. Expenses were up just under 8% year-over-year, driven primarily by the timing of our annual compensation cycle as we communicated on last quarter's call. Operating income of $721 million grew 16%, and we delivered 24% EPS growth. Our results continue to demonstrate the strength of our diversified platform and our ability to capture growth through cycles. particularly given the heightened volatility that the markets and our broader clientele faced early in the quarter. More broadly, although macroeconomic uncertainty persists, the U.S. economy continues to demonstrate solid fundamentals as the labor market and consumer spending remain resilient. While GDP growth across Europe has still been muted, expectations for a recovery in consumer demand and a rebound of investment into the region support an improving outlook. Across the business environment, Investment in technology transformation continues as companies focus on achieving benefits from AI. This is driving momentum across infrastructure modernization, accelerated cloud readiness, and enhanced data management. These dynamics are evident across the banking and capital market sectors where clients are focused on technology investments to modernize their infrastructure, improve their risk management and regulatory compliance, and fight financial crime. Although uncertainty remains as to the longer-term impact of trade and economic policies, this resilience is translated into a robust sales pipeline across our financial technology solutions, as well as active markets, index inflows, and an improving IPO landscape. Turning to our high-level financial performance within our divisions, capital access platforms generated 9% revenue growth and 6% ARR growth. Financial technology delivered 10% revenue growth and 11% ARR growth. including 19% in financial crime management technology, 10% in regulatory technology, and 9% in capital markets technology. And market services delivered 21% net revenue growth. I'll now cover our business and operational highlights, beginning with the capital access platforms, where I'll start with data and listings. In our listings franchise, the strong momentum in our switch program continued. Year-to-date, $271 billion in market capitalization, including Shopify and Kimberly-Clark, have switched to NASDAQ. This represents the best first-half performance since the official launch of our switch program 20 years ago. Turning to IPOs, in the second quarter, we welcomed 38 new operating companies to NASDAQ, representing a 79% win rate, raising a total of $3.6 billion and extending NASDAQ's listings leadership to 46 consecutive quarters. Year to date, we saw the highest level of new issuances since the first half of 2021, attracting 83 operating companies, including three of the top five largest IPOs, with an overall 81% win rate. Importantly, the strong performance of recent listings, especially of large-cap companies, has raised optimism on the IPO outlook for the remainder of this year and into 2026. Our European listings business also delivered a great second quarter with six new listings. Year to date, NASDAQ exchanges in Europe welcomed 10 new listings, which similarly included three of the five largest IPOs in Europe. Combined, these IPOs raised 2 billion euros, 53% of all IPO capital raised in Europe, and a five-fold increase in capital raised compared to the first half of 2024. We're particularly excited to see our Stockholm Exchange continue to lead as Europe's premier destination for new listings, underpinned by the relative valuation of its market and the strength of the local ecosystem. Our data business performance reflects strong and sustained demand for our comprehensive and innovative data products, with growth in new sales, upsells, and usage across our client segments and geographies. Our industry-leading index franchise continues to drive solid growth. We managed through heightened volatility as market value declines at the beginning of the quarter were offset by higher derivatives volumes, followed by a fast recovery in market values. Throughout the quarter, inflows were strong at $20 billion. Over the last 12 months, we achieved a new record for net inflows of $88 billion. As volatility stabilized, we exited the quarter with a new record ETP AUM at $745 billion. We remain focused on product innovation, with 33 new products launched during the quarter, over half of which were international. Additionally, we continue to focus on growing our exposure to institutional clients with the launch of seven products within the insurance annuity space. Earlier this week, we were pleased to announce that NASDAQ and CME Group signed an extension through 2039 of CME Group's exclusive contract to offer futures and options on futures based on the NASDAQ 100 and other NASDAQ indices, reflecting the company's shared commitment to delivering value through trusted benchmark products. I also want to provide a brief comment on the proposed reclassification of the Invesco QQQ Trust. NASDAQ was engaged with Invesco as Invesco explored these proposals. Importantly, the proposed change does not alter the terms of NASDAQ's licensing arrangements with Invesco, nor the administration of the NASDAQ 100 index. We remain committed to our strategic partnership with Invesco and to delivering the trusted benchmark on which investors rely. Within workflow and insights, corporate solutions delivered modest growth, benefiting from our product and technology investments, which have enhanced our competitive position. We drove several notable wins, including a NASDAQ 4 advantage sale to a large international bank, which is also a significant fintech client. In analytics, we continue to see strong demand for our data link and investment solutions across the investment management community, as well as improved gross retention rates. Lastly, across CAP, we are focused on meeting the growing demand for private market solutions. In June, we announced a partnership to be the exclusive distributor of NASDAQ Private Markets TAPE-D API, bringing enhanced transparency and valuation visibility of private companies. Since launch, we have already signed two clients, and the pipeline is building. For asset managers and asset owners, our investment platform provides a wealth of private markets intelligence, which has become an increasingly powerful aspect to drive new sales and client retention. Turning next to financial technology, we deliver growth across products, client segments, and geographies. This is driven by sustained demand for our mission-critical technologies and terrific execution by our teams, especially considering the complexity of the landscape for financial institutions throughout the quarter. Our sales execution remains strong as we signed 57 new clients, seven cross-sells, and 130 upsells during the quarter. Turning to a review of the subdivisions, starting with financial crime management technology. Nasdaq Verifin had another solid quarter of execution across client segments and continued to lead the industry through product innovation. In the enterprise client segment, serving Tier 1 and Tier 2 banks, we successfully executed on our land and expand strategy with three new signings, including one cross-sell and two upsells. We are also pleased with the ongoing progress in our upsell conversion timeline, maintaining the 50% reduction in the sales cycle as compared to the original contract. We signed our first proof of concept with a European Tier 1 bank for our consortium-based payments fraud offering during the quarter, marking a significant milestone in our early efforts to expand into Europe. And demand among our small and medium-sized client segment also remained solid, with 46 new clients signed this quarter. Turning next to regulatory technology, where we signed seven new clients and four cross-sells collectively. Revenue and ARR growth in Axiom SL were driven by a combination of large prior year client bookings starting to go live, in addition to in-year bookings. The improving clarity around the regulatory environment in the US, for example, with the proposed changes to the supplementary leverage ratio, has further contributed to the strength and diversity of our pipeline. In surveillance, beyond the strong revenue and ARR growth, we were pleased to sign three cross-sells to existing market tech clients, which included two market operators and a large financial institution. Capital markets technology delivered a solid quarter where strong momentum was further amplified by the normalization of sales cycles. In market technology, we are pleased to see strong demand from traditional and emerging trade infrastructure clients for our technology infrastructure solutions, as well as our operational expertise. We signed three clients to Eclipse Trading, our fourth generation marketplace technology platform, including two fully managed services mandates, where we host and manage our clients' entire trading environment, and one AWS-hosted SaaS deployment. Calypso's performance reflected momentum and subscription revenues, including strong demand in Europe, where we delivered two new clients and one cross-sell, and we remain confident in the pipeline for the rest of the year. Turning now to market services, the division delivered record net revenues reflecting broad-based strength across our U.S. and European markets. We are proud to support our clients with a seamless trading experience as heightened volatility and rapidly evolving market conditions drove record industry volumes for U.S. cash equities and elevated volumes in U.S. equity options and European cash equities. We successfully executed the Russell rebalance with over 2.5 billion shares matched at a record notional value of $102 billion, further showcasing the strength and resiliency of our markets. In U.S. equities, we maintained our disciplined approach to pricing amid an exceptionally high volume, as we managed to capture and optimize the value of our franchise. In European equities, we delivered sequential improvements in share. Further, we continued to leverage our capabilities to capture off-exchange activity in Europe as well as in the U.S. Across the company overall, our excellent performance was driven by strong momentum across all three divisions, underpinned by execution on our strategic priorities. Within our integrate priority, we are on track to action our expanded $140 million net expense efficiency program by year-end, with approximately $130 million actioned as of the end of the second quarter. We achieved a gross leverage ratio of 3.2 times at quarter end, overachieving our milestone set at the closing of the addenda acquisition 16 months ahead of schedule. Within our innovate priority, we remain focused on delivering new innovations to enhance our value proposition with clients. This week, Nasdaq Verifin announced the launch of its Agentic AI Workforce, a suite of digital workers that will deliver a step change in compliance effectiveness and efficiency. Early results from the first two agents in Theta, the digital sanctions analyst and the digital enhanced due diligence analyst, demonstrate Agentic AI's potential to address the most resource-intensive compliance workflows. For example, when onboarded into a bank's alert triage workflow, our digital sanctions analyst automates the acknowledgement, screening, and documentation processes, reducing alert review workload by more than 80%. We also continue to expand the library of anti-money laundering targeted topology analytics. Our terrorist financing analytics launched in Q1 and is already being leveraged by 900 clients, nearly doubling adoption versus the end of the last quarter. Our drug trafficking analytics launched this quarter in early beta has already driven strong client engagement. In addition, we're continuing to invest in new partnerships to enhance product capabilities, including our partnership with FinCom, which supports advanced screening, sanction screening. Beyond AI, digital assets represents another key theme driving our innovation as we focus on that maturation of the ecosystem and supporting institutional adoption. For instance, NASA Calypso announced an innovative proof of concept, which will expand upon its industry-leading collateral management capabilities. The use case demonstrates our ability to integrate on-chain capabilities to allow us to help financial institutions manage collateral across asset classes and markets in a more dynamic and efficient manner. We continue to work with our partners and clients to finalize the product build and our targeting launch in early to mid-2026. Lastly, within our accelerate priority, Our one Nasdaq strategy drew up seven cross-sell wins across financial technology in the quarter for a total of 26 cross-sells since the Adanza acquisition. At the end of the quarter, cross-sells accounted for over 15% of financial technology sales pipeline, and we remain on track to surpass $100 million in run rate revenue from cross-sells by the end of 2027. Looking ahead to the remainder of 2025, Nasdaq is well-positioned to continue to deliver for our clients and shareholders. While we remain conscious of the impact of sustained uncertainty in the economic and market environment, we continue to demonstrate that our diversified business can deliver through different cycles. This is reflective of our role as a trusted strategic partner to our clients across the financial ecosystem and our ability to help them navigate across market environments, capture strategic opportunities, manage risk, and solidify their operational resilience. We enter the second half of the year with momentum across our platform, and will remain laser-focused on supporting and innovating for our clients as the environment evolves in the period ahead. With that, I will now turn the call over to Sarah to provide more details on our financial results.