Free cash flow generation has strengthened, with margins reaching 29.4% in 2026Q1, reflecting improved cash conversion efficiency despite the inherent volatility of working capital.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Cash from Operations | 2.28B | 2.25B | 1.94B | 1.7B | 1.71B | 1.08B | 1.25B | 963M | 1.03B | 909M | 722M | 685M | 687M | 574M | 594M | 669M | 440M | 582M | 407.73M | 173.24M | 201.07M | 120.9M | 117.03M | 105.27M | 157.15M | 65.03M | 255.55M |
| Operating CF Margin % | - | 27.44% | 26.2% | 27.97% | 27.4% | 18.4% | 22.26% | 22.62% | 24.04% | 23.02% | 19.49% | 20.13% | 19.63% | 17.88% | 19.04% | 19.46% | 13.79% | 17.06% | 11.17% | 7.11% | 12.13% | 13.74% | 21.65% | 17.85% | 19.96% | 7.59% | 30.69% |
| Operating CF Growth % | 45.32% | 16.3% | 14.33% | -0.59% | 57.53% | -13.5% | 30.01% | -6.32% | 13.09% | 25.9% | 5.4% | -0.29% | 19.69% | -3.37% | -11.21% | 52.05% | -24.4% | 42.74% | 135.36% | -13.85% | 66.31% | 3.31% | 11.17% | -33.01% | 141.65% | -74.55% | - |
| Net Income | 1.91B | 1.79B | 1.11B | 1.06B | 1.12B | 1.19B | 933M | 774M | 458M | 734M | 108M | 427M | 413M | 384M | 349M | 383M | 389M | 263M | 319.88M | 518.4M | 127.89M | 61.69M | 1.8M | -105.45M | 43.13M | 40.46M | 23.31M |
| Depreciation & Amortization | 641M | 632M | 613M | 323M | 258M | 278M | 202M | 190M | 210M | 188M | 170M | 138M | 137M | 122M | 104M | 109M | 103M | 104M | 92.58M | 38.89M | 70.92M | 68.34M | 76.88M | 89.93M | 101.07M | 100.28M | 65.64M |
| Stock-Based Compensation | 168M | 165M | 141M | 122M | 106M | 90M | 87M | 79M | 69M | 70M | 86M | 68M | 62M | 47M | 46M | 36M | 33M | 35M | 25.68M | 16.75M | 9.87M | 0 | 0 | -50K | 3.15M | 6.88M | 0 |
| Deferred Taxes | 54M | 48M | -67M | 68M | 38M | 94M | 41M | 35M | 342M | 10M | -136M | -14M | -6M | 28M | 16M | 4M | -35M | -10M | -103.14M | -15.58M | 13.4M | 3.47M | 26.97M | 2.1M | 13.66M | -23.18M | -67.06M |
| Other Non-Cash Items | -300M | -142M | 91M | 87M | 13M | -97M | -2M | -67M | -154M | 2M | 466M | 81M | 82M | -20M | 85M | 57M | 71M | 142M | 76.47M | -447.74M | -44.79M | 12.93M | 16.6M | 67.27M | 24.67M | 23.65M | 114.85M |
| Working Capital Changes | -193M | -235M | 46M | 39M | 168M | -469M | -9M | -48M | 103M | -103M | -45M | -15M | -1M | 13M | -6M | 80M | -121M | 48M | -3.74M | 62.52M | 23.78M | -25.53M | -14.24M | 51.46M | -28.53M | -83.07M | 118.81M |
| Change in Receivables | -129M | 91M | -193M | 3M | -101M | -6M | -167M | -42M | -35M | 11M | 73M | 55M | -16M | -55M | -30M | -11M | 5M | 33M | 0 | 0 | 9.52M | 0 | 0 | 0 | 0 | 0 | -66.52M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -22M | -6M | -60M | 149M | 19M | -17M | 5M | -49M | 33M | -12M | 5M | -38M | -40M | 51M | 1M | 0 | 4M | -125M | 19.77M | -31.25M | 42.15M | 27.03M | -2.13M | -31.67M | -28.68M | -11.61M | 0 |
| Cash from Investing | -95M | -1.1B | -953M | -5.99B | 49M | -2.65B | -231M | -240M | 196M | -890M | -1.66B | -441M | -155M | -1.19B | -128M | -146M | -118M | -53M | -3.15B | 1.86B | -1.27B | -953.38M | -201.31M | -231K | -102.53M | -109.2M | -292.24M |
| Capital Expenditures | -277M | -266M | -207M | -158M | -152M | -163M | -188M | -127M | -111M | -144M | -134M | -133M | -140M | -115M | -87M | -88M | -42M | -59M | -54.72M | -18.49M | -21.04M | -25.4M | -26.03M | -31.59M | -85.4M | -122.56M | -195.9M |
| CapEx % of Revenue | 3.35% | 3.24% | 2.8% | 2.61% | 2.44% | 2.77% | 3.34% | 2.98% | 2.6% | 3.65% | 3.62% | 3.91% | 4% | 3.58% | 2.79% | 2.56% | 1.32% | 1.73% | 1.5% | 0.76% | 1.27% | 2.89% | 4.82% | 5.36% | 10.85% | 14.3% | 23.53% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 184M | 28M | 184M | 188M | 181M | 208M | 195M | 291M | 268M | 235M | 245M | 201M | 174M | 189M | 223M | 279M | 253M | 308M | 227M | 0 | 1.63B | 179.37M | 203.51M | 209.47M | 240.8M | 228.03M | 260.67M |
| Other Investing | 68M | -1.02B | -739M | -77M | 244M | -219M | -27M | -14M | 0 | -2M | -6M | -16M | -10M | 0 | 0 | 0 | 0 | 0 | 54.28M | 55.33M | 7.22M | 18.04M | 11.3M | -2.5M | -22.1M | 5.22M | 3.11M |
| Cash from Financing | -6.05B | -2.95B | -2.56B | 4.22B | 1.04B | 1.42B | 1.38B | -937M | -1.03B | -53M | 1B | -362M | -485M | 547M | -485M | -325M | -595M | -336M | 2.03B | -1.03B | 1.23B | 939.53M | -6.46M | -157.57M | -144.08M | 75.64M | 288.35M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -598M | -685M | -145M | -341M | -711M | -1B | -262M | -163M | -377M | -203M | -165M | -377M | -178M | -22M | -278M | -90M | -791M | 8M | 8M | 16.82M | 894.49M | 14.36M | 2.19M | 849K | -302.92M | -162.23M | 0 |
| Dividends Paid | -616M | -601M | -541M | -441M | -383M | -350M | -320M | -305M | -280M | -243M | -200M | -149M | -98M | -87M | -65M | 0 | 0 | 0 | 0 | 0 | -105.06M | -3.22M | -8.35M | -8.28M | 0 | 0 | 0 |
| Share Repurchases | -1.05B | -616M | -145M | -269M | -633M | -943M | -222M | -200M | -394M | -203M | -100M | -377M | -178M | -10M | -278M | -100M | -797M | 0 | 0 | 0 | -105.06M | -38.57M | -85K | -147K | -305.15M | -240M | 0 |
| Other Financing | -3.82B | -841M | -1.06B | 25M | 2.45B | 2.33B | 17M | -50M | -50M | -27M | 13M | 27M | 26M | 50M | 3M | 13M | 3M | -4M | 26.87M | 16.21M | 129.82M | -1.61M | -290K | -140K | 8.84M | -13.72M | 288.35M |
| Net Change in Cash | -3.6B | -1.07B | -2.11B | 124M | 1.5B | -483M | 2.42B | -224M | 187M | -19M | 61M | -126M | 29M | -72M | -9M | 191M | -279M | 220M | -759.55M | 1B | 156.76M | 107.05M | -90.74M | -52.53M | -89.46M | 31.47M | 251.66M |
| Free Cash Flow | 2B | 1.99B | 1.73B | 1.54B | 1.55B | 920M | 1.06B | 836M | 917M | 765M | 588M | 552M | 547M | 459M | 507M | 581M | 398M | 523M | 353.01M | 154.75M | 180.04M | 95.5M | 91M | 73.67M | 71.75M | -57.52M | 59.65M |
| FCF Margin % | 24.25% | 24.2% | 23.41% | 25.36% | 24.96% | 15.63% | 18.92% | 19.63% | 21.44% | 19.38% | 15.87% | 16.22% | 15.63% | 14.29% | 16.25% | 16.9% | 12.47% | 15.33% | 9.67% | 6.35% | 10.86% | 10.85% | 16.84% | 12.49% | 9.11% | -6.71% | 7.16% |
| FCF Growth % | 8.03% | 14.84% | 12.61% | -1.03% | 68.91% | -13.53% | 27.27% | -8.83% | 19.87% | 30.1% | 6.52% | 0.91% | 19.17% | -9.47% | -12.74% | 45.98% | -23.9% | 48.16% | 128.12% | -14.05% | 88.52% | 4.95% | 23.52% | 2.68% | 224.72% | -196.43% | - |
| FCF per Share | 3.51 | 3.45 | 2.99 | 3.03 | 3.12 | 1.82 | 2.12 | 1.67 | 1.82 | 1.50 | 1.16 | 1.07 | 1.05 | 0.89 | 0.98 | 1.08 | 0.64 | 0.81 | 0.58 | 0.34 | 0.47 | 0.33 | 0.33 | 0.31 | 0.29 | -0.16 | 0.18 |
| FCF Conversion (FCF/Net Income) | 1.05x | 1.26x | 1.74x | 1.60x | 1.52x | 0.91x | 1.34x | 1.24x | 2.24x | 1.24x | 6.69x | 1.60x | 1.66x | 1.49x | 1.69x | 1.73x | 1.11x | 2.19x | 1.27x | 0.33x | 1.57x | 1.96x | 10.30x | -1.00x | 3.64x | 1.61x | 10.97x |
| Interest Paid | 229M | 354M | 405M | 177M | 116M | 118M | 97M | 120M | 148M | 129M | 119M | 103M | 114M | 79M | 80M | 86M | 53M | 71M | 67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 328M | 373M | 358M | 254M | 274M | 501M | 290M | 205M | 221M | 154M | 191M | 202M | 190M | 157M | 177M | 129M | 148M | 153M | 266M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High leverage from acquisitions
As reported in financial statements, Nasdaq's OCF/NI ratio has fluctuated significantly, reaching 1.33 in 2026Q1, which suggests that while net income is growing, the underlying cash generation remains sensitive to non-cash adjustments and the timing of working capital movements inherent in a complex, multi-segment financial services business.
The divergence between net income and operating cash flow indicates that accounting earnings may be influenced by significant non-cash items, likely related to the amortization of intangibles from recent acquisitions. Investors should monitor whether this conversion ratio stabilizes as the integration of Adenza matures and the business model shifts further toward recurring software revenue.
Based on the provided quarterly data, Nasdaq's FCF margin has shown a positive trajectory, climbing to 29.4% in 2026Q1 from 22.8% in 2023Q4, which implies that the company is successfully scaling its high-margin software solutions while managing the capital intensity of its core exchange infrastructure.
The improvement in FCF margins suggests that the company's strategic pivot toward recurring revenue is beginning to yield tangible cash benefits. However, the volatility observed in previous quarters warrants caution, as the company remains susceptible to cyclical trading volumes that can temporarily depress cash flow generation.
According to recent SEC filings, Nasdaq experienced significant working capital swings, including a $255 million outflow in 2025Q3 followed by a $146 million inflow in 2025Q2, highlighting the inherent lumpiness of cash flows in a business model that combines transactional exchange fees with long-term software contract billing cycles.
These fluctuations appear to be driven by the timing of large-scale technology contract payments and the cyclical nature of exchange-related settlements. Analysts should interpret these movements as operational noise rather than a fundamental degradation in the company's ability to collect on its service obligations.
As indicated by the reported figures, Nasdaq has aggressively utilized cash for share repurchases, totaling $548 million in 2026Q1, while simultaneously managing the debt obligations incurred from the $10.5 billion Adenza acquisition, which suggests a management focus on returning capital despite a strained balance sheet.
The high level of share repurchases, when contrasted with the significant debt load, may indicate management's confidence in future cash flows. However, investors should monitor whether this capital allocation strategy limits the company's flexibility to pursue further inorganic growth or respond to potential regulatory capital requirements.
Quick answers to the most common questions about buying NDAQ stock.
Nasdaq, Inc. (NDAQ) generated $2.25B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nasdaq, Inc. (NDAQ) generated $1.99B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nasdaq, Inc. (NDAQ) spent $266.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Nasdaq, Inc. (NDAQ) returned $601.0M to shareholders via cash dividends and spent $616.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.