Nasdaq's Q1 2025 Earnings Call: Full Transcript Revealed

Nasdaq, Inc. (NASDAQ: NDAQ Q1 2025 Earnings Call Transcript from April 24, 2025

Nasdaq, Inc. exceeds profit forecasts with an EPS of $0.79 compared to anticipated $0.77.

Operator: Currently, all attendees are in listen-only mode. Following the presentations by the speakers, we will have a question-and-answer period. If you wish to ask a question during this segment, press *11 on your phone. An automatic announcement will confirm that your query has been noted. Should you want to retract your question later, simply press *11 once more. We also wanted to inform you that today’s call is being recorded for future reference. Now, let me introduce our first presenter, Mr. Ato Garrett, who serves as the Senior Vice President and Head of Investor Relations. Over to you, Ato.

Ato Garrett: Good morning, everybody, and thanks for being with us today to go over Nasdaq’s financial outcomes from the first quarter of 2025. Joining us are Adena Friedman, who serves as both our CEO and chairman, along with Sarah Youngwood, our CFO, plus additional key figures from our leadership group. Following some initial comments, we’ll move into a question-and-answer session. You can find the corresponding press release and earnings slides posted on our IR site online. Please remember that during this conference call, we may make projections about future events which come with certain inherent risks; details regarding those potential pitfalls have been outlined within our recent press statement and further elaborated upon in last year’s Form 10-K filing. For clarity purposes, when discussing our fiscal health metrics, references made shall exclude currency fluctuation effects and also omit the extraordinary income recognized earlier this past April related to an adjustment event recorded back in early 2024. Additionally, all reported numbers pertaining to revenues derived under previous contractual agreements concerning Acxiom SL will reflect adjustments based on ratable recognition principles rather than their original terms.

The definitions and reconciliations from US GAAP to non-GAAPS along with necessary adjustments can be reviewed in our earnings presentation as well as in a document available within the financial section of our investor relations website at ir.nasdaq.com. Now, let me hand things over to Adena.

Adena Friedman: Thank you, Ato, and good morning to all of you. We appreciate your participation today. To begin, I’ll go over Nasdaq’s financial and operational highlights from this quarter. Following my overview, I'll discuss how recent changes have affected our view of the present economic climate prior to passing it along to Sarah who will delve deeper into the detailed financial outcomes. At the beginning of the year, positive trends were observed across various sectors due to strong worldwide economic growth. Yet, as time went on during the quarter, uncertainties rose significantly because of shifting international trade regulations and escalating political conflicts around the globe. Starting off robustly positioned at the outset of the period under discussion, Nasdaq stayed committed to serving our clientele effectively even amidst these fluctuating circumstances.

The confidence we’ve established with our clients, combined with the critical importance of our offerings and the variety within our operations, has proven invaluable during this era of increased unpredictability and instability. Consequently, we’ve managed to strengthen our market stance, implement our strategic plans effectively, and generate added benefit for both our clientele and stakeholders. Across all three sectors, we achieved more than ten percent expansion, accumulating total net earnings of $1.2 billion—a twelve-point-five percentage point hike compared to last year’s equivalent timeframe. Revenues derived from our solution services amounted to $947 million, marking an eleven percent rise against the previous year. Additionally, Annual Recurring Revenue climbed to $2.8 billion, indicating a nine percent uptick versus the same time frame previously. In the first fiscal quarter, operational profits surged seventeen percent higher, whereas Earnings Per Share advanced twenty-four percent greater. This success stems from robust sales figures alongside stringent cost control measures, even as we persistently channel resources into enhancing our product range and competencies aimed at sustaining service excellence long-term.

In the division focused on Capital Access Platforms, we saw a 5% increase in Annual Recurring Revenue (ARR) and an 11% rise in overall revenues. This success stemmed from strong performance in terms of attracting new customers as well as launching innovative products within our indexing segment. For Financial Technology, revenues climbed by 10%, with ARR increasing by 12%. Within this sector, Financial Crime Management Technologies showed particularly robust growth at 21%, followed by Regulatory Technologies contributing 11%, and Capital Markets technologies adding another 9%. Market Services experienced a significant uptick in net revenues by 19%, fueled by exceptional performances in U.S.-based cash equities and derivative trading activities along with expanding volume levels across European equity derivatives. Beyond these impressive financial outcomes, we've also made substantial strides towards realizing key strategic goals. Having surpassed our initial objective of securing $80 million through cost savings related to the Edenta deal, we have now set a revised aim of reaching $140 million under an enhanced operational effectiveness initiative that encompasses all previous targets.

We are on target to reach this milestone by year-end, having already processed more than $100 million as of the conclusion of Q1. The robust free cash flow totaling $674 million during the initial quarter facilitated ongoing debt reduction and stock buybacks aimed at counteracting dilution caused by employee equity vesting. Additionally, we anticipate exceeding an annualized revenue figure of $100 million through cross-selling activities by the close of 2027, following the completion of 19 such transactions post-Addenda acquisition, among which were two in Q1 alone. Moving now to our key operational achievements: regarding Capital Access Platforms, we persistently capitalize on expanding opportunities before us. By developing innovative offerings designed to assist clients amidst complex markets, these solutions become even more crucial when faced with uncertainties and fluctuating financial conditions.

Our analytics platform delivers actionable portfolio and fund-level insights designed to assist institutional investment clients in managing their investment strategies within volatile markets. Furthermore, our IR and governance solutions enable market-oriented corporate clients to better engage with their boards and investors as they navigate a rapidly evolving business landscape. Shifting focus to the Capital Access Platform segments, we begin with data and listings from Q1. During this period, Nasdaq welcomed 45 operating companies, generating around $5 billion in total proceeds. Throughout these efforts, Nasdaq maintained an impressive 82% success rate among eligible operating companies, including three out of the five biggest IPOs: CoreWeave, SailPoint, and Smithfield Foods.

Apart from initial public offerings, we've maintained strong momentum with listing transfers in the first quarter, featuring notable shifts such as those of Shopify, Thomson Reuters, and Domino’s Pizza. Having marked our five-hundredth transfer last year, this quarter saw us surpass the $3 trillion mark in total market value for all listing transfers processed through Nasdaq since launching our switch program back in February 2005. This significant achievement underscores our status as a leading platform for listings within the United States. Expanding upon our leadership in listings, we initiated a fresh research initiative aimed at engaging the newly elected U.S. administration with specific policy suggestions designed to foster capital growth, improve the structure of publicly traded companies, and fortify the standing of U.S. capital markets overall.

In our Data business, we benefited from new sales upgrades and higher usage across the business as well as strong traction across our new product and geographies. The Index business delivered another outstanding quarter as we achieved 26% revenue growth and a record in average ETP AUM for the quarter. Net inflows remained robust, and we continued to see strong increases in derivatives volumes, including a record quarter. Nasdaq's index franchise has multiple vectors for growth, and index's performance reflects the ongoing execution of our growth strategy of new product innovation, international diversification, and institutional client expansion. In fact, the new products that we've launched since 2020 have accounted for 33% of net inflows over the last five years.

In the initial quarter, we capitalized on previous successes by launching 30 new indexed products, with 10 introduced internationally beyond the U.S., along with seven insurance annuity options. Workflow and Insights saw robust expansion within the investor group due to the deep integration of our analytical tools into their processes and apps. Under Corporate Solutions, we remain dedicated to enhancing our services via product improvements such as incorporating AI functionalities, even amidst prolonged sales periods for key accounts. Our Financial Technology sector welcomed 40 fresh customers, achieved 92 upgrades, and facilitated two additional purchases from current patrons. Amidst today’s dynamic and intricate markets, financial entities and trading platforms encounter numerous hurdles which Nasdaq is well-equipped to address effectively.

Our trade lifecycle solutions are crafted to assist our market operations clientele globally when they experience substantial spikes in trading activities, ensuring their systems remain highly resilient. Additionally, we offer essential trading and regulatory reporting frameworks for banking institutions and brokerages internationally, aiding them in handling increased trading and capital-related risks. In collaboration with banks against financial crimes, changes in broader economic trends and international politics often drive up illicit behaviors. Our focus remains steadfast on progressing toward Nasdaq’s objective: becoming the backbone of the global finance network. Today, we unveiled an improved alliance with AWS aimed at enhancing capabilities across our market offerings and fintech segments.

In our various markets, Nasdaq’s shift to the cloud has improved our capacity to effectively manage the present conditions because of the heightened and immediate scalability offered by our market infrastructure—including our matching engines—leading to better resilience and operational efficiency throughout our platforms. With an extended collaboration with AWS, we aim to utilize the insights and knowledge acquired during this transformation process as we work towards updating the worldwide financial system. In the upcoming years, both AWS and Nasdaq plan to advance incrementally to cater to all segments of our financial service customers. This initiative will initially concentrate on serving our market operating clients via comprehensive public cloud and hybrid cloud infrastructure solutions and services, building upon Nasdaq’s successful upgrade of its options market.

The joint capabilities of AWS and Nasdaq empower market participants to upgrade their systems efficiently without compromising costs or increasing transformation risks. This partnership ensures they maintain control over their data, all while sustaining top-tier standards for performance, security, and durability. Shifting focus, let’s delve into an overview of our FinTech segments starting with Financial Crime Management Technology. During the initial three months, Nasdaq Berifen experienced strong interest and secured another deal with a second-tier bank through cross-selling efforts. Additionally, this period saw us onboard 35 new small-to-medium-sized business (SMB) customers—a notable rise of 25% compared to the same timeframe last year. The continuous expansion of Nasdaq Berifen’s clientele base contributes significantly to boosting its data consortium, encompassing entities managing upwards of $10 trillion in aggregate assets.

The company has advanced its land-and-expand strategy by securing an expansion agreement with an existing Tier Two NASDAQ Berifen customer. This upsell was finalized within half a year, representing roughly a 50% decrease in the typical sales process duration from the initial pact. On a larger scale, we're continuing to enhance the functionalities of products within our Financial Crime suite. The AI-driven entity research co-pilot offered through NASDAQ Berifen has experienced a 20% rise in user engagement since Q4, highlighting the benefits and operational efficiency provided by this solution to our clientele. At present, over 1,200 customers utilize the Co-Pilot tool to accelerate review processes for alerts. Leveraging these achievements, we intend to introduce a fresh feature into our case management component soon.

This feature, presently in beta testing with our clients, aims to streamline and quicken the process of investigating cases and documenting them. As we look ahead to the remainder of 2025, we anticipate introducing advanced features powered by AgenTik AI that extend beyond mere task automation. These enhancements will allow financial institutions such as banks to fully automate their workflow processes, leading to notable improvements in operational efficiencies within areas like regulatory compliance, customer due diligence, and sanctions screenings. Moving on to discuss advancements in RegTech: Acxiom SL successfully onboarded a major digital banking entity as a new client and secured an additional 22 upgrades across various service tiers. Among these achievements was a substantial contract with a prominent Tier One American financial organization. This key client has broadened its utilization of Acxiom SL’s offerings by integrating a broker-dealer solution into its current array of regional reporting tools covering the US, Europe, and Asia.

During the quarter, Surveillance secured four new clients from varied sectors: a European regulatory body, a cryptocurrency exchange platform, an energy trader, and a brokerage-firm. This range reflects the broad spectrum of organizations benefiting from their services. Demand remains robust as companies aim to simplify operations amidst heightened market dynamics. In the Capital Markets Technology division, specifically within Market Technology, efforts focused on advancing global strategies. They successfully expanded into several emerging economies through 17 upgrades. Notably, Nasdaq achieved an upgrade agreement with an Asian stock exchange and executed a cross-sale partnership with Nuum—the entity consolidating exchanges in Peru, Chile, and Colombia. The collaboration with NuOM underscores their role as dependable partners; they've provided further solutions to this client who initially joined them earlier in 2023.

During the initial quarter, Calypso achieved 25 upsells, indicating widespread strength within our customer group, particularly notable among European clients. Shifting focus now to our Market Services segment—the fluctuating market scenarios throughout this period highlighted the robustness and excellence of our marketplace offerings. Nasdaq stands as the premier solution across both American and European exchanges where we experienced yet another term marked by two-figure growth alongside unprecedented net revenue and volume figures. Within America specifically, we attained peak net income levels from U.S. Options trading activities such as those involving indices along with trades in U.S. equity shares; additionally, we saw an uptick in our on-market participation rate concerning American cash stocks during Q1. This success underscores the outstanding capabilities of our infrastructure, bolstered consistently through long-term investment commitments.

Our robust closing cross mechanism, excellent liquidity position, and the solid reputation we’ve cultivated among our clientele have been key factors. Across Europe, we observed impressive outcomes for both cash equities and equity derivatives. Specifically within equity derivatives, we noted an annual growth in trade volume along with increased market capture rates. Early into Q2, we encountered record-breaking levels of messaging activity and transaction volumes. Meanwhile, the U.S. Cash Equities sector witnessed five out of the top six busiest trading sessions known to date. Similarly, the U.S. Options markets recorded four such high-activity days during this timeframe. Throughout these challenging periods, Nasdaq’s platforms excelled remarkably, handling massive inflows and outflows of data effectively. This included their peak performance day on April 7th when they processed over 550 billion messages.

Echoing the trends observed in U.S. markets, European Cash Equities experienced extraordinary levels of trading activity during the initial fortnight of April, resulting in the recording of the top seven busiest messaging days ever documented. It brings me great satisfaction to share that our team adeptly managed this surge in demand with remarkable smoothness and continues to stand ready amid conditions characterized by increased market volatility. Now, let’s turn our attention to the prevailing macroeconomic climate. Policy alterations coupled with continuous discussions regarding possible tariff implementations have instigated notable near-term fluctuations. This ambiguity has consequently dampened projections concerning worldwide GDP expansion. As we progress into Q2, these factors are slightly altering the pace of business decisions; however, they haven’t substantially affected aggregate consumer demands. Throughout various phases of our economic cycle—indeed, across every phase—our clientele entrusts Nasdaq as their dependable ally.

Our international market platforms facilitate capital creation and offer investors consistent transaction outcomes. They grant corporations vital access to financing, simultaneously equipping financial institutions, dealers, and investors with clear and effective tools to refine their approaches and thoroughly handle risks. The recent fluctuations in US trading underscored the essential role of our markets along with the robustness of their foundational systems. As a worldwide enterprise, Nasdaq maintains offices globally which enables us to cater to client needs locally and regionally. This proximity helps us grasp the distinct challenges faced by our clientele, ensuring that Nasdaq can adaptively address these issues as they arise. In light of such conditions, the strength of the Nasdaq platform coupled with our varied operations places us well for sustainable expansion, exemplified by our impressive Q1 results.

I will now hand the call over to Sarah to offer more specifics regarding our financial outcomes.

Sarah Youngwood: Thank you, Adena, and good morning, everyone. In the first quarter of 2025, Nasdaq delivered one of our strongest quarters on record, with 24% EPS growth and record free cash flow. Starting with quarterly results on Slide 11. We reported net revenue of $1.2 billion up 12.5%. With solutions revenue of $947 million up 11%. Operating expense was $555 million up 7%. Leading to an operating margin of 55% and EBITDA margin of 58% both up two percentage points. This resulted in net income of $456 million and diluted EPS of $0.79 up 24%. Slide 12 shows the drivers of our 12.5% net revenue growth for the quarter. We generated 9.5 percentage points of alpha. Driven by new and existing clients product innovation, as well as excellent market services execution in this volatile market.

In the meantime, beta factors accounted for three percentage points of growth this quarter, largely because of an increase in valuations within the NASDAQ indexes and greater overall trading volumes in both index derivatives and market services. Referring to Slide 13, our annual recurring revenue (ARR) grew by 9%, surpassing every previous quarter from last year where growth rates ranged between 7%-8%. The current quarter’s 9% includes a robust 12% ARR growth in FinTech alongside a strong 14% rise in SaaS revenues. Additionally, SaaS now constitutes 37% of total ARR, marking a two-percentage-point uptick since Q1 2024. Moving forward, let us examine the performance across divisions beginning with Slide 14. Within Capital Access Platforms, we achieved a revenue figure of $515 million—a notable 11% improvement—alongside an ARR growth rate of 5%. Notably, data and listing service revenues rose by 4%, accompanied by a corresponding 6% bump in related ARR; these gains can be attributed mainly to enhanced data offerings fueled by recent successful sales efforts, heightened customer utilization levels, and favorable price adjustments.

In theListing segment, the advantages brought by fresh listings and revised prices were counterbalanced by removals from the list and reduced amortization of earlier-period initial listing charges. The impact on revenues caused by these removals and decreased amortization of initial listing fees in Q1 aligns with what we previously discussed. Revenue for the index rose by 26% this quarter, primarily because of an all-time high average ETT assets under management (AUM) totaling $662 billion. This significant increase can largely be attributed to robust net inflows; over fifty percent of the revenue growth came from alpha factors. During the past year, ETP AUM incorporated $86 billion worth of net additions, including $27 billion added just in Q1—a clear sign of substantial acknowledgment and resilience. It’s important to consider this against the backdrop of the Nasdaq-100 experiencing a downturn of 8% throughout the first three months of the year.

Revenue growth was significantly bolstered by volume-based licensing fees, reflecting considerable fluctuation. This growth included an impressive 28% surge in derivatives contracts. We exceeded our predefined revenue sharing benchmark with our collaborator CME earlier in the fiscal period compared to previous years' timelines. In workflows and insights, both quarterly revenues and annual recurring revenue (ARR) saw a 4% uptick. This enhancement was largely fueled by advancements in analytics, particularly through investments in data linkage technologies. There has been sustained interest from various financial entities such as hedge funds, asset management firms, institutional investors, and advisory services. Additionally, focusing on distinctive datasets aligns well with client needs seeking higher value-added service offerings (ARPA). Corporate solutions experienced moderate expansion attributed to enhanced pricing strategies coupled with better gross retention rates. For this particular segment, the operational profit margins stood at 60%, marking a rise of two percentage points over prior periods.

In looking ahead to the complete year 2025, we anticipate that capital access platforms will generate revenues aligning with their mid-term forecasted growth rate of 5% to 8%, which remains unchanged from previous statements made earlier this year. Transitioning now to Financial Technology presented on slide number 15: Revenues stood at $432 million, marking an increase of 10%; meanwhile, Annual Recurring Revenue (ARR) grew by 12%. The disparity observed between quarterly revenue expansion and ARR progression within both FinTech and Capital Markets segments can primarily be attributed to reduced income from Calypso on-site subscriptions caused by a high comparison base following substantial 23% revenue escalation recorded during Q1 of 2024. Nonetheless, ARR continued to exhibit robust development throughout all divisions, bolstered notably by fresh client acquisitions totaling ninety-two along with successful upsells and cross-sell initiatives executed over the period under review.

Although we sealed two cross-selling deals this quarter, cross-sales still account for more than [percentage] of the Financial Technology segment’s pipeline. The robust performance spans all three divisions: Financial Crime Management Technology saw revenues and annual recurring revenue (ARR) rise by 21% each during the period. This includes securing 35 small-to-medium enterprise (SME) customers along with one major deal from a Tier Two client and an additional upgrade with another Tier Two customer. Net revenue retention stood at 13%, indicative of high levels of client satisfaction. Notably, the ongoing uptake of our Gen AI entity research co-pilot alongside focused typology analytics has contributed significantly to these achievements. In regulatory technology, quarterly income climbed by 10%, coupled with a 11% uptick in ARR. These gains were bolstered by welcoming five fresh clients plus completing 49 upgrades within the same timeframe. Capital Markets Technology posted a 7% boost in earnings year-over-year, supported by a corresponding increase of 9% in ARR.

In the recent quarter, there were 42 upsells and one cross-sell recorded. The financial technology segment maintained an operating margin at 46%, unchanged compared to the previous year’s quarter. For our outlook towards 2025 revenue projections within this sector, uncertainties surrounding the global economic climate and regulations are leading to postponements in significant decision-making processes and client preparedness. Consequently, these delays may influence both revenue and accounts receivable growth during Q2. It should also be noted that Calisto experienced favorable effects due to a strategic refreshment in the second quarter of 2024, setting challenging benchmarks for future quarters. Despite these factors, robust demand persists for fintech offerings, reflected through a healthy 2025 sales pipeline. Our clients remain actively engaged, highlighting the critical importance of our services and affirming our position as the preferred collaborator when competing against others.

Hence, we maintain our confidence in achieving the projected revenue growth for the full year 2025 within the outlined mid-term forecast for both the division and sub-division. The financial crime management technology and capital markets technology fall towards the lower ends of their respective ranges, while RecTech remains comfortably within its predicted range. Concluding with the segments covered on Slide 16, we reported an unprecedented net revenue of $281 million, marking a rise of 19% over previous figures. Notably, this period saw peak quarterly net earnings in U.S. options, including those tied to indices, along with robust performance in U.S. Cash equities. This expansion can be attributed mainly to heightened activity levels across various asset types, leading to increased overall volume. Additionally, gains were bolstered by improved capturing rates in both U.S. cash equities and European equity derivatives, greater participation from clients in exchange-based trades within U.S. Cash equities, and elevated income generated through U.S. stock plans.

During this time of considerable market action, our trading operations performed admirably. Specifically, in North America, we processed over 430 billion messages in one day during the first quarter—a stark contrast to the approximately 200 billion messages mentioned at our Investor Day in early 2024. Clients continue to count on us particularly when markets experience exceptional turbulence, thereby granting us consistent dominance in market shares along with higher profit margins. Achieving this success hinges upon substantial upgrades and expansions to our trading systems. For adjusting our alpha-beta metrics amidst fluctuating U.S. equity option and cash-equity markets, we’re incorporating an element related to average daily transaction levels into our calculations; specifically, half of the income exceeding certain thresholds will be categorized under alpha.

These limits are established at 10% over the rolling three-year mean daily trading volume within the sector. As indicated on page 12, incorporating this fresh clause into our alpha-beta framework wouldn’t significantly alter any previous alpha-beta statuses throughout the reporting intervals. Regarding market service profitability, which stands at 62%, there has been an uptick of five percentage points, underscoring the robust operational efficiency of said segment. Turning now to expenditures detailed on slide number 17, total operating costs amounted to $555 million—an increase of 7%—primarily fueled by substantial outlays for technological advancements and workforce development aimed at boosting revenues and fostering innovative solutions alongside business expansion. These increments also encompass higher personnel-associated expenses along with additional charges mainly attributable to rising prices across the board. Consequently, this led to improvements in both operating margins and EBITDA ratios, each advancing by two percent to reach respective levels of 55%-58%.

We are refining our non-GAAP expense forecast for the year to fall between $2.265 billion and $3.0325 billion, down from the previous range of $2.245 billion to $2.325 billion. Foreign exchange had only a minor positive impact this quarter; however, considering present fluctuations and currency values, we're now viewing it as neutral compared to the projected figures within the updated range. As Adena mentioned earlier, more than $100 million worth of our efficiency initiatives were implemented by the close of the initial quarter. Our objective remains unchanged—to execute an additional $440 million worth of these measures before the conclusion of the year—resulting in a savings boost equivalent to two percentage points in overall expenses throughout 2025. Looking ahead to the second quarter, anticipated costs will be marginally greater owing to the schedule of our yearly remuneration adjustments. For 2025, we continue with our previously stated GAAP tax rate projection ranging from 22.5% to 24.5%.

On Slide 18, Nasdaq produced $674 million in free cash flow during the initial quarter. Such substantial cash flow allowed us to focus on reducing debt, maintaining dividends, and buying back shares. For the quarter, we distributed a dividend of $0.24 per share totaling $138 million, equating to an annualized payout rate of 32%. Today, we declared a 13% boost to our quarterly dividend up to $0.27 per share, set to be issued in June. Our ongoing dedication to lowering liabilities led to purchasing $279 million worth of debt with a net cash cost of $257 million, bringing down our gross leverage ratio to 3.4x as opposed to 3.6x at year-end 2024. Consequently, due to our strategic reduction efforts, Moody’s upgraded our credit score by one notch to Baa1 recently.

In light of the appealing purchasing chance presented by our stock, we bought back approximately 1.6 million shares worth about $115 million during the initial quarter. The employee-linked buybacks were subsequently finished in April. While executing our strong organic growth plan remains top priority, we're also concentrating on lowering our financial leverage and anticipate achieving a net leverage ratio of around 3.3 times by either Q2 or Q3, contingent upon currency exchange rates. For settling the outstanding $400 million from the June 2025 bond due date, we mainly aim to use available cash reserves. Furthermore, we'll stay open to further opportunities involving debt reduction or share repurchase as they arise. Since closing the Adenta deal, our capital allocation goals haven’t changed—we’re dedicated to fulfilling shareholder commitments through investments aimed at fostering internal expansion, decreasing liabilities, raising dividends, and conducting share purchases.

We have an incredible organic growth path in front of us and that is where we are focused. In closing, Nasdaq delivered a standout first quarter marked by double-digit revenue growth across all three divisions and our highest year-over-year ARR increased since February. We demonstrated strong operating leverage and made meaningful progress on our capital strategy. Including reinvesting in the business, reducing debt, and buying back shares. As we move into Q2, I echo Adena's comments on the dynamic macro environment and the critical role Nasdaq plays in sustaining market resilience. In times like this, financial institutions around the world rely on us for our mission-critical technology and actionable insights. Our central role in the global financial ecosystem and the trust our clients place in us reinforce our ability to continue delivering sustainable growth and long-term.

Shareholder value. Now, we'll open up the floor for questions and answers.

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