Nasdaq CEO said on Thursday the strong performance of recent large-cap IPOs has improved the outlook for new listings, riding high after beating second-quarter profit estimates that sent the exchange operator’s shares up 7%.
Initial public offerings on its eponymous exchange rebounded strongly in the first half of 2025, reaching their highest level since 2021, when listings had hit a global record.
Several high-profile companies chose the exchange for their market debut, while mergers with blank-check firms and listing transfers from rival exchanges – including Shopify SHOP.O and Kimberly Clark KMB.O – also contributed to the gains.
“Strong performance of recent listings, especially of large-cap companies, has raised optimism for the IPO outlook for the remainder of this year and into 2026,” Nasdaq CEO Adena Friedman said in a call with analysts.
Recent market debuts of companies such as neo-bank Chime CHYM.O and AI infrastructure firm CoreWeave CRWV.O, which chose Nasdaq, signal a tentative return of investor appetite for new offerings after a years-long dry spell.
Software firm Figma, targeting a $16.4 billion valuation, is expected to close its IPO and begin trading next week. Meanwhile, several crypto startups as well as buy‑now‑pay‑later lender Klarna and chipmaker Cerebras are reportedly set to list later this year.
Nasdaq posted a profit of 85 cents per share in the second quarter ended June 30. Analysts on average had expected 81 cents, according to data compiled by LSEG.
VOLATILE MARKETS LIFT TRADING
U.S. markets were roiled during the quarter due to President Donald Trump’s aggressive tariff announcements, renewed tensions in the Middle East and uncertainty over the Federal Reserve’s monetary policy.
The resulting volatility drove a spike in trading volumes, with Nasdaq recording a surge in U.S. equity options contracts, while U.S. cash equities volumes hit a record.
The company’s market services revenue, which houses trading operations, grew 21% to a quarterly record.
Derivatives exchange CME Group CME.O also beat Wall Street estimates for second-quarter profit, helped by market volatility, while NYSE-parent Intercontinental Exchange ICE.N is set to report earnings next week.
Nasdaq’s stock was up about 14% this year as of last close, outperforming the benchmark S&P 500 .SPX.
The company, under Friedman’s leadership, has expanded beyond trading and listings into financial technology and software to build more predictable, recurring revenue that is less exposed to market volatility.
Revenue from it financial technology unit, which includes anti-financial crime and capital markets infrastructure software, increased 10% to $464 million.
“Resilience (of the U.S. economy) has translated into a robust sales pipeline across our financial technology solutions as well as active markets, index inflows and an improving IPO landscape,” Friedman said.
Reuters
