Nasdaq, Inc. stock research
FY2025 Q3
Nasdaq (NDAQ) Gross Margin — Quarter Ended Sep 30, 2025
Revenue decreased compared to the prior quarter, while gross profit remained stable, resulting in an improved gross margin. Cost of revenue declined more than revenue, driving the margin expansion.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue decreased compared to the prior quarter, while gross profit remained stable, resulting in an improved gross margin. Cost of revenue declined more than revenue, driving the margin expansion.
- The reduction in cost of revenue relative to revenue was the primary driver of gross margin improvement.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased while gross profit held steady. Versus the same quarter last year, gross margin also strengthened, supported by higher revenue and gross profit alongside a lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.2%
Gross profit
$1.3B
Revenue
$2.0B
Cost of revenue
$643.0M
Quarter-over-quarter change
+4.7 pts
Year-over-year change
+6.9 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $2.0B | $1.2B | $803.0M | 60.4% |
| Mar 31, 2025 | $2.1B | $1.2B | $859.0M | 59.0% |
| Jun 30, 2025 | $2.1B | $1.3B | $784.0M | 62.5% |
| Sep 30, 2025 | $2.0B | $1.3B | $643.0M | 67.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+4.7 pts
Year-over-year change
Sep 30, 2024
+6.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue relative to revenue was the primary driver of gross margin improvement.
Compared to the prior quarter, gross margin improved as cost of revenue decreased while gross profit held steady. Versus the same quarter last year, gross margin also strengthened, supported by higher revenue and gross profit alongside a lower cost of revenue.
Monitor the trajectory of cost of revenue, as its decline was the key factor in margin improvement.