Nasdaq, Inc.
Nasdaq, Inc. operates as a technology company that serves capital markets and other industries in the United States and internationally. It operates through three segments: Capital Access Platforms, Financial Technology, and Market Services. The company distributes historical and real-time market data; develops and licenses Nasdaq-branded indices and financial products; provides investor relations intelligence, governance solutions, and sustainability solution products for public and private companies, and organizations, as well as insights and workflow solutions; and operates listing platforms. It also offers Verafin, a cloud-based platform to detect, investigate, and report money laundering and financial frauds; AxiomSL, a risk data management and regulatory reporting solution; cloud-enabled and on-premises surveillance solutions to assist in complying with market rules, regulations, and internal market surveillance policies; Calypso, a platform providing cross-asset, front-to-back trading, treasury, risk, and collateral management solutions; and trade management and colocation services, as well as handles assets comprising cash equities, equity derivatives, currencies, various interest-bearing securities, commodities, energy products, and digital currencies. In addition, the company provides equity derivative trading and clearing, cash equity trading and fixed income, currency and commodities trading, and fixed income trading and clearing services, as well as tape plan data services; operates various exchanges, including derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and offers clearing, settlement, and central depository services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.
What does it do?
Nasdaq is best known as the stock exchange where companies like Apple and Tesla are listed — but it's actually much more than just a place where stocks get bought and sold. Think of it like owning the infrastructure of finance: Nasdaq sells the technology that powers other exchanges and banks, sells the real-time price data that brokers like your trading app rely on, and charges companies fees to list their shares publicly. It also runs a fast-growing software business that helps financial firms manage risk, detect fraud, and stay compliant with regulations.
Nasdaq sits at the center of global capital markets, meaning almost every trade, IPO, or financial data request touches something Nasdaq built or operates. Investors care about it right now because the company is aggressively shifting from a traditional exchange into a high-margin software and technology business — a transition that, if successful, could make its earnings far more predictable and valuable. Its 2023 acquisition of Adenza for $10.5 billion also dramatically expanded its footprint in financial crime and risk management software, a market growing fast as regulators tighten the screws on banks worldwide.
How does it make money?
Nasdaq makes money through three main buckets. First, its Capital Access Platforms segment sells market data and index licenses — for example, if an ETF tracks the Nasdaq-100 index, Nasdaq earns a licensing fee every year. Second, its Financial Technology segment (boosted by the Adenza acquisition) sells software to banks and regulators for things like fraud detection and compliance — this is recurring subscription revenue, which is the most stable kind. Third, its Market Services segment earns transaction fees every time a stock or options contract is traded on its platforms. Total revenue hit $5.2 billion in the latest year, up from $4.7 billion the prior year, a roughly 11% increase.
Why do investors care?
The core growth story is Nasdaq's transformation from a cyclical exchange business — where revenue rises and falls with market activity — into a steady, software-driven company where customers pay recurring fees year after year. Investors love this because software businesses tend to trade at higher valuations (meaning investors pay more per dollar of profit). For this story to work, Nasdaq needs to successfully integrate Adenza, keep winning new bank and financial firm clients, and see global trading volumes stay healthy. If AI-driven trading and new financial products keep expanding the need for market infrastructure, Nasdaq is one of the clearest beneficiaries.
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