Nasdaq Inc at JPMorgan Ultimate Services Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Sarah, thanks for joining us. Thanks for the time, as always. I will kick it off with an easy market question here. So I mean, equity markets and listings, I mean it's been a strong, I guess, growing tailwind heading into the shutdown. We've had the shutdown. We've emerged on the other side. So maybe you could talk through a little bit about pipeline and what you're seeing and what you're hearing now that we are on the other side of the shutdown?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Wonderful. Have you -- I guess, our issuers and kind of that pipeline, if you think about, we're pretty close to year end. So how are we thinking about maybe things getting done this year versus things getting pushed out? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 18, 2025 / 7:00PM, NDAQ.OQ - Nasdaq Inc at JPMorgan Ultimate Services Investor Conference

Question: Michael Cho - JPMorgan Chase & Co - Analyst : That's fair. If I could just squeeze one more shutdown question. Anything else in terms of outside of the listings business, right? I mean, Nasdaq operates a broad, diversified business in a lot of different areas. Anything else just to keep in mind when we think about shutdown and effects that anything pushouts, anything like that?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Fair enough. And then just staying on pipelines, maybe a different angle to it. I mean, ETFs and the dual share -- class of dual shares, it's been a growing topic in the mutual fund industry. Clearly, Nasdaq is a player in the ETF listings as well. Archives there as well. But just kind of curious, if we think about that pipeline, and I think maybe there's like close to 100 folks waiting and that could be hundreds of listings in the years ahead. Like when we think about economics and maybe the benefits that accrues to Nasdaq, I mean, how would we kind of frame that benefit as that comes to fruition?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Is this something to pay attention, maybe like a 2026 event or '27 and beyond? I mean, how would that --

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Okay. Maybe I'll just stay on Capital Access while we're -- we talked about listings. Maybe we'll talk about the other subsegment in data and listings. So maybe I'll just touch on data for a second. I mean data has been doing quite well recently and actually highlighted that it continues to trend well in terms of customer demand and outlook there as well, at least into year-end. Can you just help unpack what's really driving that data business and what's really happening underneath that's ultimately benefiting that segment?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : That's fair. Is there -- and I'm sure there is, but I would love to just touch on the data, some of the things you're talking about. You mentioned eToro and the partnership there. And some -- a lot of that is driven with retail interest and ongoing interest in that segment of the market. I mean, so how -- if we think about -- and maybe your answer from retail is here to stay. But if we think about the other side of that, if things slow down, I mean, is there a correlation when we think about trends in data that might go the other way as maybe things normalize more in that segment?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : If I could switch gears a little bit. I just want to talk about private markets in general. I really want to ask about eVestment and indices, but I'll save that for a second. Solovis, acquired a few years ago, announced the sale, not too long. Maybe just talk us through -- refresh out kind of the thoughts behind divesting that business and the gap that -- maybe there was no gap that left. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 18, 2025 / 7:00PM, NDAQ.OQ - Nasdaq Inc at JPMorgan Ultimate Services Investor Conference But if I think about private markets and the piece that Solovis kind of filled, again, maybe just talk through the logic around divesting that business.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : That's great. I mean, so for folks who are in the room in terms of eVestment, and again, private markets and private markets data, particularly is a -- has been and is continued to be a growing theme. And for folks in the room, when we think about eVestment, I mean, historically, I've always come to like public market funds, right? And you've got to be in the network, you got to get into the consultants, right? And so -- but when we talk about eVestment in the private market data sense, and I recognize there's private market data in there, but can you just help us understand what kind of part of the private market and kind of data sets that eVestment is providing today and then kind of the sourcing of that data to any extent you can explain.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Anything on index or indices along the same conversation. Some other players have announced partnerships and launching various kind of things. Anything on -- I mean, clearly, Nasdaq is a dominant player in index as well. So just kind of curious if there's anything for us to keep an eye on or maybe not.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Fair enough. Verafin, if I -- so continuing to sign Tier 1s and Tier 2s. I think you've highlighted implementations that are set to go right now. How does that kind of shape the look ahead in terms of the medium-term outlook for Verafin as you have these implementations that are happening as we speak, more Tier 1s coming online? It feels like there are some tailwinds there, not to speak of easier comps as well near term, right, into next year, but just kind of help us frame the outlook for Verafin as these are happening underneath?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : With the Tier 1s and 2s coming online, as you said, and you're kind of exiting some of these longer sales cycles, I understand that the upsell cycles are a little bit shorter than the initial. So can you kind of talk through what you're seeing in terms of the upsell conversations that you're with the Tier 1s and 2s? I think you've announced a couple or indicated a couple in the past in terms of upsells, but just kind of curious more broadly, how is that initiative going as well.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : We'll get to BioCatch in a second.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Thank you. Before we go there, I have one more. Most of the growth is still driven by the SMB market, right? And it's been a strong driver for Verafin for years now. If you think about all the newer modules that are coming out with AI and various tools, and I'm going to say things that maybe Nasdaq is better positioned to deploy and invest in than maybe your Verafin was 10 years ago, right? And so -- but the value add is there. If you think about SMB, I guess, two things: adoption and price. Like, are those things accelerating, decelerating? I'm just kind of curious how the -- if that core driver of growth is sustainable longer term.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Fair enough. I just want to pause here for a second, make sure I open up for questions. I'll keep going, but if you have questions, please raise your hand and wait for the mic.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : So Nasdaq recently announced a partnership with Verafin and BioCatch. Maybe one, can you just remind us what BioCatch is for those that are not as familiar? And what exactly this partnership entails?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : How would the go-to-market work with this partner? Meaning if you have a Verafin client in the US today in SMB, I guess, would it be an incremental -- like how would that go-to-market work?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : And when we think about -- I don't know if cross-sell is the right word, right?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : But yes, if we think about the international clients that BioCatch has. And I think --

Question: Michael Cho - JPMorgan Chase & Co - Analyst : And again, you just announced the partnership. The teams are just getting together. If we think about sales cycle, when we think of international banks that are clients of BioCatch that could potentially become Verafin clients over time. And how should we kind of think about sales cycles and kind of opportunity to expand in those areas given that you just announced the partnership?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Fair enough.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Next quarter. I have a capital allocation question later, but maybe I'll -- since we're talking about BioCatch. So I mean, it seems like there's a lot of compatibility in terms of the capability that they bring, the clientele that they bring versus what Verafin has already. So I mean, other than saving a few billion dollars, is there a benefit to having BioCatch as a third-party partner? Or is there something more incremental that Nasdaq can leverage if they were brought in-house theoretically over time?

Question: Michael Cho - JPMorgan Chase & Co - Analyst : Fair enough.

Question: Michael Cho - JPMorgan Chase & Co - Analyst : We have about a minute left. Any final -- I'll ask a final one on capital since we kind of touched on that topic. So I mean, Nasdaq generates about $2 billion of cash flow a year. The leverage profile has come down considerably. We could debate how further it's going to go or not, fine. But there's some modest amount earmarked for dividends. If we think about kind of allocation outside of those things and balancing organic versus inorganic investments, is there a framework we should have in mind as you kind of approach it given balance sheet is where it's at today versus all the other kind of businesses kind of working in concert, so organic and inorganic kind of balance.