Nasdaq posted stronger profit as SpaceX IPO and volatile markets drove revenue higher

Net revenue for the quarter was $1.5 billion, up 15%. Most of this growth came from the capital access platforms segment, which includes listing services and market data for equities and options. This segment earned $621 million, a 19% increase.

Adjusted earnings came in at $1.07 per share. Analysts had expected 98 cents per share on average, according to Reuters.

SpaceX’s record-setting debut was a highlight this quarter, with over 500 million shares traded on its first day, according to Reuters. While IPO listing fees are relatively small, exchanges earn most of their income from the trading that follows in equities, options, and related products.

Market services net revenue rose 11% to $340 million, boosted by cash equities and equity options volumes. Revenue from the financial technology segment climbed 16% to $539 million.

Trading was unusually active during the quarter. News about the U.S.-Iran war and shifting opinions on the AI sector unsettled markets and led to more hedging, according to Reuters. Nasdaq has also focused on expanding its financial technology and software business to create steadier, subscription-style revenue that is less dependent on trading volumes.

Even with strong results, Nasdaq’s stock is down more than 6% this year. Investors are worried because the Commodity Futures Trading Commission has allowed Kalshi and Coinbase to offer perpetual futures for cryptocurrencies, which many see as a threat to traditional exchanges. Perpetual contracts do not expire, track the price of an asset, and let traders use significant leverage.

Nasdaq also announced a quarterly dividend of $0.31 per share, the company said.

CME $CME reported second-quarter earnings that came in ahead of analyst forecasts on Wednesday, according to Reuters. Intercontinental Exchange and Cboe are scheduled to report their results next week.