Nasdaq, Inc.

Good day and thank you for standing by. Welcome to NASDAQ's second quarter 2026 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To rejure your question, please press star 1-1 again. In the interest of time, we ask that you please limit yourselves to one question and one follow-up. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Ato 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 2026 financial results. On the line are Adena Friedman, our Chair and Chief Executive Officer, Sarah Youngwood, our Chief Financial Officer, and other members of the management team. After our 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 these risks is contained in our press release and a more complete description in our annual report on Form 10-K. We will discuss our financial performance on a non-GAAP basis, including the impact of acquisitions and divestitures, the impact of changes in FX, and a $6 million one-time benefit to index revenue related to a contract modification. Definition and reconciliations of U.S. GAAP to non-GAAP plus adjustments can be found in our earnings presentation as well as in a file located in the financial sections of our investor relations website at ir.nasdaq.com. And with that, I'll now turn the call over to Adena.

Thank you, Ato, and good morning, everyone. Today, I will start with a review of our second quarter financial results, and we'll then review the operating performance across our divisions. I will then hand the call over to Sarah to walk through the financial results in more detail. In the second quarter, NASDAQ delivered outstanding growth across each of our divisions, underpinned by our leadership in driving the transformation of the financial system and fueled by the continued demand for leading market infrastructure and mission critical technology. Our leadership translated into a series of historic milestones this quarter. In our index business, assets under management surpassed $1 trillion for the first time in our history, and we had our largest quarterly net inflows ever. Nasdaq Verifan crossed $13 trillion in combined assets across more than 2,800 financial institutions that rely on our platform to fight financial crime. We set new records in notional value traded during both the June triple witch expiration and the Russell reconstitution. We welcome SpaceX, the largest IPO in history and are proud to have become the largest exchange in the world by market capitalization of our listed companies. We continue to operate in a constructive US economic environment supported by resilient corporate earnings, ongoing investment in AI and digital infrastructure, and healthy consumer spending. Within the capital markets industry, we're working constructively with regulators who are seeking to encourage innovation, including always-on markets and tokenization of assets. These emerging innovations have the potential to become durable market advancements that meaningfully expand investor access across the globe when paired with appropriate investor protections, as well as with structures that drive institutional investor demand alongside that of retail investors. We look forward to continuing our efforts to engage regulators and legislators to define the future of markets. Now I'd like to turn to our results. In the second quarter, we delivered $1.5 billion in net revenue up 15% and solutions revenue $1.2 billion up 17%. Our overall annualized recurring revenue, or ARR, grew 12% year-over-year to $3.3 billion. Expenses were $641 million, up 10%, and we delivered 25% diluted EPS growth, driven by 19% growth in operating income and strong capital returns. Within our divisions, capital access platforms generated 18% revenue growth and 8% ARR growth. Financial Technology delivered 15% revenue growth and 16% ARR growth. And Market Services delivered 11% net revenue growth. These results reflect our expand, evolve, and transform framework in action. Throughout the quarter, we deepened our client relationships through our one Nasdaq strategy, launched innovative products while enhancing existing solutions, and invested in strategic opportunities that will drive our next phase of growth. Now turning to the divisional results, I will start with capital access platforms where I will first discuss data and listings. Our U.S. listings franchise delivered the strongest first half in U.S. exchange history with $111 billion in operating company proceeds raised. Our performance was underpinned by the historic IPO SpaceX on June 12th, raising $86 billion, marking the largest IPO in history. We were also proud to dual-list SpaceX on NASEC Texas, the region's premier listing venue. Other landmark listings in the second quarter included Cerebrus, the largest semiconductor IPO of all time, Continuum, the largest pure-play quantum IPO of all time, and Parabolus Medicines, the largest biotech IPO of all time. In total for the quarter, we welcomed 26 new operating companies, raising $106 billion in proceeds, including seven of the top 10 IPOs. Earlier this month, we also welcomed SK Hynix, which raised $27 billion, the largest ADR listing in U.S. capital markets history. The IPO environment is robust, and we're in a strong position to capitalize as new companies look to join the public markets in the second half of the year. NASDAQ powers the innovation economy, connecting leaders from around the world with capital that turns their ambitions into reality. The breadth and significance of the companies that list with us this quarter is a meaningful testament to that pillar of our strategy. Turning to our data business, we delivered strong growth driven by new bookings and increased usage. This includes a 34% year-over-year increase in the number of enterprise licenses across multiple geographies. The growing adoption of AI and rising demand from digital asset platforms continues to accelerate interest in our data solutions. Looking ahead, we're excited to support the transition to always-on trading with the launch of unique integrated data sets that will expand usage of NASDAQ's proprietary data among investors worldwide. Our index franchise set new inflow records with $51 billion in net inflows of the quarter and $109 billion in net inflows over the last 12 months. Our quarter end and average EPP AUM reached new milestones and exceeded $1 trillion for the first time ever. Product innovation remains a key driver of growth in our index business, with 38% of the trailing 12-month net inflows driven by products launched over the last five years and 22% driven by products launched over the last three years. We launched 34 new products in the quarter, including 11 insurance products, demonstrating the breadth of our innovation pipeline. We also continue to expand our global reach. 50% of all new products introduced this quarter were launched outside the United States. We're pleased to introduce expanded access to the NASDAQ 100 with the recent launches of BlackRock's IQQ and State Street's QNDX ETFs in the United States. We also continue to grow our long-standing relationship with Invesco, expanding global investor access to QQQ ETFs, which we cross-listed in Japan in the second quarter. Turning to workflow and insights, revenue grew 5% with continued momentum in analytics. In Corporate Solutions, we continue to operate in a challenging environment. However, clients remain highly engaged with our AI-enabled capabilities, with 65% of board vantage users and 79% of higher insights clients leveraging our AI tools. Within analytics, we deliver double-digit revenue growth from bookings and a higher retention rate in both investment and data link. Growth in investment has been driven in part by AI adoption. More than a quarter of new bookings are associated with AI use cases. We also continue to expand the reach of investments data assets, which now include almost 91,000 private funds. Within DataLink, we see sustained demand for our unique data assets. This quarter, we are pleased to introduce the DataLink Model Context Protocol, or MCP, which will deliver frictionless client connectivity to power agentic workflows. This capability makes it easier for clients to integrate NASDAQ's trusted data, including our market data, directly into AI-driven applications, enhancing the value and reach of our data assets across the AI ecosystem. Turning to financial technology, we achieved an outstanding quarter, delivering revenue growth of 15%. The performance was underpinned by strong engagement across our clients for solutions that address market modernization, the transition to always-on trading, and the evolving regulatory landscape. Our sales cycles, our contract term lengths and our bookings mix between existing and new clients have remained consistent, reflecting the durable nature of our mission-critical solutions. In the quarter, we signed 58 new clients, seven cross-sells and 107 upsells, driving 16% ARR growth. In financial crime management technology, Nasdaq Verifin delivered 22% revenue growth driven by significant expansions across key client segments. Our product suite now serves more than 2,800 clients, representing over $13 trillion in collective assets. During the quarter, we signed 47 new S&B clients and continue to see strong momentum in the enterprise clientele with two expansions, two renewals, and two cross-sells. Early in the third quarter, we signed an additional enterprise expansion and a cross-sell, totaling 11 enterprise signings so far in 2026, which already exceeds the total number of signings we had in all of 2025. Nasdaq Verifin continues to accelerate AI innovation in its business and across its platform. Our genetic AI workforce is now used by 750 clients. In the second quarter, we announced an expansion of the workforce, including two new agentic workers, which we've moved into beta, one for AML structuring alerts and the second for ACH fraud alert triage. The new role-based workers enable end-to-end automation of financial crime workflows from fraud and AML alert reviews to investigations and reporting. We also plan to introduce new auto-dispositioning capabilities in Q3 and flexible deployment options, that extend our AI solutions across third-party systems by the end of the year. Verifence's agentic AI workforce expansion reflects our broader AI-first development approach, which is transforming every stage of the product development lifecycle from design and development to testing and deployment. This enables us to increase innovation velocity, expand our product roadmap, and bring new capabilities to clients faster than ever before. Regulatory technology delivered sustained growth driven by significant expansions to always-on markets and infrastructure modernization. Overall, we signed nine new clients, including two cross-sells and 63 upsells. In Axiom SL, we deepened relationships with existing clients while expanding our global footprint with continued strength in our cloud bookings. During the quarter, a U.S. bank expanded its footprint with Axiom SL as the client grew through acquisition and faced more significant regulatory requirements. Additionally, a top four Australian bank expanded their relationship with us to leverage our cloud-enabled regulatory reporting solution, reinforcing the global demand for our platform. In surveillance, we delivered strong growth while experiencing significant demand from clients expanding into new markets, including energy and digital assets. This demand included significant renewal and expansion with a global broker dealer, as well as a renewal with a key global financial institution. We signed three upsells for our cross-product surveillance capability, which we launched earlier this year. The new solution enables our clients to detect complex market abuse tactics across multiple markets and asset classes, highlighting the power of our new signals-based detection. We also secured a Tier 1 client for our newest AI solutions, Calibration Copilot and GenAI News Copilot, in July, reflecting growing demand for AI-powered workflows and positioning us for broader adoption over time. Capital markets technology continued to deliver strong performance, highlighted by significant new clients and excellent revenue growth and trade management services. In the quarter, we signed seven new clients, including three cross-sells and 42 upsells. In market technology, we maintained momentum while advancing key infrastructure modernization initiatives. We made further progress in the rollout of our Eclipse product suite, with two existing clients committing to the migration of their market platforms to Eclipse. We also completed three modernization programs, including going live with clearing for BYMA, Argentina Stock Exchange, and with trading for Nuam, a regional market operator that integrates the Peru, Chile, and Colombia stock exchanges. In Calypso, we signed several new clients that expand the reach of our products to new countries, institutions, and asset classes, including our first US Treasury clearing deals with two large financial institutions. Additionally, earlier this week, we announced a deal with the Georgian Financial Markets Treasury Association to modernize the country's treasury and financial markets infrastructure. As part of this deal, five leading commercial banks in the country of Georgia will adopt the Klipso platform with opportunities to onboard more banks over time. With this deal, Klipso now operates in more than 70 countries. Additionally, we piloted tokenized collateral trades on the Canton network in July alongside two of the world's leading asset managers. Specifically, tokenized money market funds were successfully transmitted as collateral through Calypso, leveraging the Canton network. Now turning to market services, the division delivered 11% organic net revenue growth against a backdrop of record industry volumes in U.S. options and U.S. cash equities. We also achieved record volumes for index options, doubling year-over-year revenue for the fourth consecutive quarter. In European cash equities, we experienced higher industry volumes and delivered a three percentage point increase in lit market share, bringing us to 74%. On June 18th, we achieved a record triple which event, recording $296 billion, the largest ever in notional value traded. That date also marked a record date for U.S. equity industry volumes with 34.6 billion shares traded on the day. The Russell reconstitution on June 26 set new records across the board, achieving our highest-ever revenue, our highest-ever share volume in the cross at 4.6 billion shares, and a record notional value traded of $334 billion, more than triple the prior Russell rebalance record set last year. Looking ahead to near-term milestones, we remain on track for a projected launch of 23-5 trading on December 6, 2026. Additionally, we received SEC approval to lift event options and remain on track for launch in the fourth quarter. Overall, our results demonstrate the strength of a business increasingly driven by recurring revenue from deeply integrated platforms and long-term growth trends that are still in the early innings, such as AI adoption and market modernization, including tokenization and always-on markets. Markets are evolving rapidly as new technologies Asset classes, market structures, and resiliency requirements reshape the financial system. NASA continues to be a leader in this transformation by building the trusted resilient infrastructure that enables institutions and market operators to modernize responsibly to serve both institutional and retail investors. Our role is to help design a durable investor experience with the goal to increase investor access while also protecting investors and the broader financial system through the markets we operate, the technology we provide to other markets, our index and analytics products, and our risk management solutions. Our competitive position reflects decades of investment in a deep client community, gold standard data, mission critical technology platforms, and exceptional technical talent. Together, these advantages have created powerful network effects across our ecosystem. AI is enabling us to strengthen these advantages by enhancing the pace and scope of product capabilities that we can deliver to our clientele. Looking ahead, we're energized not only by the strength of our performance, but the breadth and depth of the dialogue we have with clients and the scale of the opportunity in front of us. With that, I'll turn the call over to Sarah to walk through the financial results in more detail.