Nasdaq, Inc. stock research
FY2025 Q1
Nasdaq (NDAQ) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable versus the prior quarter and higher year over year. Cost of revenue rose at a faster pace than revenue, causing gross margin to weaken in both comparisons.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable versus the prior quarter and higher year over year. Cost of revenue rose at a faster pace than revenue, causing gross margin to weaken in both comparisons.
- The most observable driver of the margin change is the relationship between cost of revenue and revenue: cost of revenue increased more rapidly than revenue, compressing gross margin from the prior quarter and from a year ago.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was stable, cost of revenue was higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were both higher, but cost of revenue was substantially higher, resulting in a weaker gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.0%
Gross profit
$1.2B
Revenue
$2.1B
Cost of revenue
$859.0M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
-7.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.8B | $1.2B | $633.0M | 64.7% |
| Sep 30, 2024 | $1.9B | $1.1B | $756.0M | 60.3% |
| Dec 31, 2024 | $2.0B | $1.2B | $803.0M | 60.4% |
| Mar 31, 2025 | $2.1B | $1.2B | $859.0M | 59.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.4 pts
Year-over-year change
Mar 31, 2024
-7.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin change is the relationship between cost of revenue and revenue: cost of revenue increased more rapidly than revenue, compressing gross margin from the prior quarter and from a year ago.
Compared to the immediately preceding quarter, revenue was higher, gross profit was stable, cost of revenue was higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were both higher, but cost of revenue was substantially higher, resulting in a weaker gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind margin compression.