Planning isn’t sexy. It doesn’t trend. No one’s going viral for updating their content calendar or plotting campaign touchpoints.

But here’s the hard truth most marketers won’t admit out loud: the teams that win are the ones who plan. Period.

As CEO of The Go! Agency, I’ve worked with growth-stage startups, international brands and Fortune 500s. And the difference between consistent growth and quarterly chaos always comes down to this — the presence or absence of a plan that actually works.

Yet every August, the same cycle begins. Q4 shows up like a freight train, and suddenly everyone’s scrambling:

• Campaigns are rushed
• Budgets are misaligned
• Messages are muddled
• Leadership is confused
• Teams are exhausted

And all of it could have been avoided with one thing: a strategic, forward-looking, execution-ready plan.

Related: Why Your Old Marketing Tactics Are Killing Your Growth in 2025

Why most marketing plans fail before they even start

Let’s stop pretending a planning session is a slide deck with buzzwords or a half-hearted brainstorm led by someone who still thinks “go viral” is a tactic.

Planning is not about checking a box. It’s about building a structure that connects real objectives to measurable actions across every channel. But most teams aren’t doing that.

They’re treating planning as an afterthought — if they’re doing it at all. And when your plan is a vague Notion doc, a disjointed task list or worse, a whiteboard of “cool ideas,” don’t be surprised when your campaigns flop.

The planning process has become a casualty of hustle culture. We’ve been trained to equate movement with progress. But in marketing, unplanned execution is just expensive guessing.

The fall framework that delivers results

At The Go! Agency, we’ve built and tested a framework that cuts through the noise. It’s what we used to help a premium pet nutrition brand drive over $47,000 in email campaign revenue and increase TikTok video views by nearly 500% in a single quarter.

It’s also what helped an international beverage equipment company exceed ROAS goals by 135% — scaling from 9.4 to 14.78 in just four months.

And no, it didn’t require 10 tools or a 92-slide deck.

Here’s how it works:

1. Set goals that actually mean something
“We want more engagement” is not a goal, but “We want a 30% increase in demo bookings from LinkedIn in Q4” is.

Start with your business objectives, not just marketing KPIs. Growth only happens when your marketing activities ladder up to tangible business outcomes.

2. Audit your current channels
You’re probably doing more than you think: emails, blogs, paid ads, social, events, PR. But how much of it is working — and how much is noise?

Take stock. Know what’s performing and why. Then cut what’s not moving the needle.

3. Lock in messaging that doesn’t suck
Your message is your fuel. If it’s generic, recycled or vague, your audience is already tuned out.

You don’t need “clever.” You need clear, compelling positioning that reflects your unique POV and actually speaks to real pain points.

And no — ChatGPT can’t do this for you. AI is a multiplier, not a mind reader. Garbage in, garbage out.

4. Match the message to the market
Segment smarter. The same campaign can’t serve every audience. Tailor your messaging per segment and then match it to the right platform.

LinkedIn for B2B thought leadership? Absolutely — it’s still the best platform for building trust and credibility with a professional audience. TikTok for brand storytelling? If your audience lives there, it’s a powerful way to connect through authentic, culture-driven content. Email for conversion? Still king — when it’s targeted, relevant and backed by a strong message.

5. Build around a calendar
Themes drive cohesion. A roadmap aligns execution. You need to know what’s happening when — and how your campaigns, content, sales pushes and partnerships sync up.

Planning gives you rhythm. That rhythm gives your team momentum.

Stop glorifying the grind

Let’s kill the myth that planning is rigid. The right plan is a launchpad — not a cage.

It’s what lets you pivot without panic when a new initiative lands in your lap. It’s what helps you say “no” to shiny distractions. And it’s what allows you to build campaigns that scale, not scramble.

You don’t need more meetings. You need direction. You don’t need a productivity tool with 30 integrations. You need strategic clarity.

The ROI no one talks about

Think planning is overhead? Here’s what it really unlocks:

• Smarter content with a clear purpose
• Faster execution with less firefighting
• Scalable campaign architecture
• Higher ROI with fewer wasted hours
• Cleaner data to prove your impact

And let’s not ignore the internal wins: clearer expectations, tighter collaboration and less burnout.

The brands that scale aren’t guessing. They’re mapping.

Related: 3 Marketing Trends You Need to Capitalize on Now Before Your Competition Beats You to It

Final word: be the marketer who’s ready

You can’t be bulletproof without a blueprint. And planning is your blueprint.

This fall, don’t wait to react. Build your roadmap now. Align your team. Ground your efforts in strategy, not spaghetti.

Because the truth is, in a landscape filled with marketers who are busy, the ones who are intentional will always win.

Quanex Building Products (NX -15.02%), a supplier of window, door, and building supplies, announced its earnings for the third quarter of fiscal 2025 on Sept. 4, 2025. The results revealed a significant jump in net sales, up 77% year over year for Q3, propelled mainly by the acquisition of Tyman. However, a one-time non-cash goodwill impairment charge resulted in a sharp net loss of $276 million for Q3, and adjusted earnings per share fell short of last year’s results.

The company’s financial performance exceeded prior revenue expectations but disappointed on profitability, as management reduced full-year adjusted EBITDA guidance for FY2025 to $235 million, down from $270 million–$280 million previously, citing recent demand trends and an updated cost synergy realization model. The period reflected strong progress in integration but highlighted ongoing operational hurdles.

Source: Quanex Building Products. Note: Fiscal 2025’s third quarter ended July 31, 2025. Fiscal 2024’s Q3 ended July 31, 2024.

Business Overview and Key Focus Areas

Quanex Building Products is a supplier of engineered materials and components used mainly in residential windows, doors, and related building applications. Its product lines include window and door hardware, window profiles, seals and gaskets, spacers, solar and cabinetry components, and building access systems. Through its acquisition of Tyman plc, Quanex broadened its footprint to include additional markets in North America and Europe, as well as an expanded portfolio of hardware and custom mixing products.

Extracting value from strategic acquisitions, achieving cost synergies from Tyman, successfully integrating new business segments, and maintaining strong product quality and service are critical to future results. Environmental and regulatory compliance also remains a steady focus, though recent filings did not note any material issues.

Notable Highlights and Developments in the Quarter

The period delivered dramatic top-line growth as net sales reached $495.3 million, up 77% from the prior year. This expansion was almost entirely due to the Tyman acquisition, with organic sales (excluding Tyman) growing only 1.4%. The underlying drivers were higher prices and pass-throughs on tariffs, which helped offset declining volumes as construction demand in core markets remained muted. Management described the industry backdrop as showing “macroeconomic uncertainty and low consumer confidence,” while acknowledging that the usual seasonal building uptick “didn’t continue to materialize” as hoped.

Profitability presented a mixed story. Gross profit nearly doubled year over year to $138 million, and the gross margin percentage improved to 27.9% from 25.3%. However, Adjusted EBITDA—a non-GAAP measure of operational cash earnings—rose 67.5% year over year for the third quarter of 2025, but the adjusted EBITDA margin percentage dipped slightly to 14.2%. The company reported a staggering net loss, a result of a $302.3 million non-cash goodwill impairment. This charge was related to a re-segmentation of the business post-acquisition, not a reflection of ongoing business weakness.

Quanex’s operating structure now reflects three primary segments: Hardware Solutions (including window and door hardware and screens), Extruded Solutions (such as window profiles, seals and gaskets, spacers, solar, and flashing tape), and Custom Solutions (covering wood products, access systems, and custom mixing). Hardware Solutions recorded the largest dollar increase, with sales jumping by 201.0%, thanks to Tyman’s hardware business. Extruded Solutions saw a 29.6% rise and Custom Solutions rose 40.7% in net sales, both benefiting from the enlarged business mix. Gross margin improved across all segments compared to Q3 FY2024, but adjusted EBITDA margins remained mixed—pointing to some remaining cost and integration challenges, particularly in the Mexico-based window and door hardware units inherited from Tyman.

Supply chain management continues to pose challenges. The company noted that procurement-related cost savings were running “lower than expected,” and the realization of original synergy estimates was pushed out into future quarters. Nonetheless, Quanex still expects to capture about $45 million in cost synergies from the Tyman deal over time, an increase from the earlier $30 million target. Additional share repurchase activity was modest—100,000 shares reacquired at a value of $2.1 million—while the cash position at quarter-end declined to $66.3 million amid continued capital allocation for integration and debt reduction. Free cash flow rose 15.2% year over year for the three months ended July 31, 2025, supporting ongoing liquidity as total liquidity stood at $337.7 million at quarter end.

Dividend payments continued at $0.08 per share, flat with the same quarter last year. Capital expenditures rose to $14.5 million.

Looking Ahead: Guidance and What to Watch

Management has shifted to a more cautious tone for the remainder of fiscal 2025. Quanex now expects net sales of about $1.82 billion for FY2025, down from its prior estimate of $1.84 billion–$1.86 billion, and adjusted EBITDA of $235 million for FY2025, versus a previous $270 million–$280 million. The main reasons cited are softer construction demand and a delay in achieving the full synergy savings from the Tyman integration. The company expects operational issues in the legacy Tyman Mexico window and door hardware business to persist in the near term. No specific timeline for resolution of these challenges was provided.

For investors tracking the business, focus will likely remain on organic growth outside acquisitions, success in capturing merger synergies, supply chain execution, and stabilization of Mexico operations. As building markets remain sluggish, incremental improvements in cash flow, margin expansion, and any signs of growing demand in residential construction or remodeling will be closely watched in future quarters.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Braze (BRZE 2.56%), a leader in customer engagement software, released its results for Q2 FY2026 on September 4, 2025. The company reported GAAP revenue of $180.1 million, surpassing both its own financial guidance of $171.0–$172.0 million and consensus analyst estimates, with non-GAAP earnings per share also outperformed expectations. Revenue grew to $180.1 million, a 23.8% increase from the prior year, outpacing management’s guidance of $171.0–$172.0 million. Non-GAAP EPS reached $0.15, compared to management’s non-GAAP forecast of $0.02–$0.03. These results marked a notable outperformance. Management raised its full-year outlook for both revenue and non-GAAP earnings following strong subscription growth and new customer wins, though some key retention and margin metrics showed signs of pressure. Overall, the quarter reflected continued top-line momentum alongside emerging operating challenges.

Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2026 earnings report.

About Braze and Business Focus

Braze provides a cloud-based software platform designed to help brands manage customer engagement across digital channels like email, push notifications, in-app messaging, and SMS. The company powers tailored marketing experiences for hundreds of brands globally, serving as a critical technology partner for both digital-first and traditional enterprises.

The company has focused recent strategy around broadening its artificial intelligence (AI) and machine learning capabilities, accelerating real-time data processing, and enabling brands to reach customers with cross-channel communications. Success in these areas depends on platform scalability, rapid integration of new AI-driven tools, customer expansion, and maintaining strong retention rates among large enterprise clients.

Quarterly Highlights and Performance Drivers

The quarter saw revenue climb 23.8 % year over year, significantly outpacing management’s outlook and consensus analyst forecasts on a non-GAAP basis. Subscription revenue rose 22.8% year-over-year, reaching $171.8 million, while professional services and other revenue jumped 50.9% year-over-year. New customer signings and upselling existing accounts drove this growth. Total customers reached 2,422, a 12.0% increase year-over-year, and customers with annual recurring revenue above $500,000 expanded 27% year-over-year to 282.

Non-GAAP operating income reached $6.0 million, much higher than management’s non-GAAP guidance of $0.5–$1.5 million, and reflected a margin of 3.4 %. Non-GAAP earnings per share finished five times above the top of management’s outlook at $0.15. These beats came even as non-GAAP gross margin declined to 69.3%. On a GAAP basis, the operating loss widened due to elevated stock-based compensation, totaling $39.5 million.

The company reported non-GAAP free cash flow of $3.5 million, down from the $7.2 million achieved in the prior year and trailing the $23 million result from the prior quarter. Cash, equivalents, and marketable securities stood at $368.3 million as of July 31, 2025, notably lower from earlier in the year due to the $181.2 million paid for OfferFit.

Braze’s dollar-based net retention rate, a key metric indicating additional revenue growth from existing customers, slipped to 108 %, down from 114 % the year prior. Among large enterprise customers with recurring contracts above $500,000, dollar-based net retention was 111%. Dollar-based net retention for all customers declined to 108% from 114% year-over-year, and for customers with annual recurring revenue of $500,000 or more declined to 111% from 117% year-over-year, which management attributed in part to renewal timing. Meanwhile, remaining performance obligations—a measure of contracted business yet to be recognized as revenue—rose to $862.2 million, indicating strong future demand.

Product and Strategic Developments

During the quarter, the company advanced its AI-powered customer engagement platform. Notably, it launched the Model Context Protocol (MCP) Server, a product designed to connect large language models (LLMs) with Braze’s data for more advanced real-time engagement.

OfferFit is part of Braze’s expanding AI product family and aims to enhance targeting and automation for marketing campaigns. Management described these innovations as strengthening Braze’s market position against traditional marketing software competitors.

The customer list added breadth, as new wins included brands like DocMorris, Fogo de Chão, Gopuff, Kleinanzeigen, Laundryheap, Little Caesars, Metcash, Saily, Sweetgreen, and Wix. These additions demonstrate continued global reach and cross-industry appeal. Remaining performance obligations—a forward-looking pipeline metric—continued to grow, supporting projections for sustained demand and business expansion in upcoming periods.

Braze underscored its core focus areas: real-time data processing for customer engagement, cross-channel outreach spanning email, mobile, and web, robust machine learning capabilities for automation and personalization, and technology integration across business systems. The ability to scale was demonstrated by the customer gains and growing enterprise account base.

Outlook and Guidance

Management raised its financial outlook for both the next quarter and the full fiscal year on a non-GAAP basis. For the third quarter, revenue is projected to be $183.5–$184.5 million, with non-GAAP EPS targeted at $0.06–$0.07. Non-GAAP net income is expected between $6.5 million and $7.5 million. For the full fiscal year ending January 31, 2026, management now forecasts revenue of $717.0–$720.0 million, non-GAAP operating income of $24.5–$25.5 million, and non-GAAP earnings per share of $0.41–$0.42—substantial increases over the prior guidance following recent outperformance and the assimilation of OfferFit into core operations.

Looking forward, the cash balance remains robust, but dilution from ongoing stock-based compensation is something to monitor. With new wins and an expanding product suite, Braze remains focused on scaling its global platform.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Asana (ASAN 2.23%), the work management software company known for its cloud-based platform that helps teams organize and track projects, reported its second quarter fiscal 2026 results on Sept. 3, 2025. The most important news was that revenue (GAAP) totaled $196.9 million, up 9.9% from the same period last year, beating analyst estimates. Adjusted earnings per share were $0.06, a swing from a $(0.05) loss in the same period last year, while adjusted operating margin improved notably to 7.1%.

The company also raised its full-year guidance, signaling greater confidence in Asana’s ability to drive long-term, durable growth and sustained profitability. The quarter showed strong cost discipline, higher profitability, and ongoing innovation.

Source: Asana. Note: Fiscal 2026’s second quarter ended July 31, 2025. Fiscal 2025’s Q2 ended July 31, 2024.

Business Overview and Recent Focus

Asana delivers a cloud-based work management platform that enables organizations to plan, track, and manage tasks and projects across teams. The platform helps streamline workflows, break down complex initiatives, and improve team collaboration in businesses of all sizes. Its core functionality unites task management with progress tracking, goal setting, and automation — all delivered through a user-friendly interface.

Recently, Asana has prioritized expanding its AI-driven feature set, deepening security certifications, and scaling its platform for large enterprises. The company has focused on integrating artificial intelligence to automate tasks, provide predictive insights, and improve workflow adaptability, aiming to attract larger customer cohorts and address complex business needs. Key success factors include driving customer retention, accelerating adoption of AI-powered offerings, and maintaining security and compliance as more highly regulated industries become customers.

Key Achievements and Developments in the Quarter

Revenue grew 9.9% over the prior year period, slightly outpacing the high end of the company’s own guidance. Asana also achieved its highest-ever non-GAAP operating margin of 7.1%, marking a sharp improvement from a negative 8.7 % a year earlier. The company posted non-GAAP net income of $15.1 million, or $0.06 per diluted share, turning around from an $11.1 million non-GAAP net loss in the prior year and $(0.05) per share in the prior year. Adjusted free cash flow reached $35.4 million, compared to $12.8 million in the prior year period.

Expenses as a percentage of sales fell across core functions: research and development dropped to 24.2% of revenue from 31.5% last year (non-GAAP), and sales and marketing dropped to 44.8% from 50.9% (non-GAAP). This tighter cost control helped produce both margin expansion and a $27.3 million reduction in operating loss on a GAAP basis.

Product innovation remained central. During the quarter, Asana launched the Smart Workflow Gallery, a suite of prebuilt, AI-powered workflows aimed at making it easier for customers to embed artificial intelligence in their daily work routines. Further, management referenced upcoming releases such as “Teammates” and expanded partnerships, including Asana’s presence in the Amazon Web Services Marketplace. AI Studio, Asana’s tool for embedding workflow automation and insights, continued to gain traction, especially among larger enterprise clients.

On the customer side, large enterprise customer momentum persisted. The number of customers spending $100,000 or more annually rose 19% year over year to 770, with 42 net additions since the prior quarter. Core customers, defined as those spending $5,000 or more annually, grew 9% year over year to 25,006, and revenue from this group rose 12% compared to the prior year period. Despite these gains, management noted that net retention rates — a measure of customer renewal and expansion — have plateaued at 96%.

Security and compliance advanced as differentiators. Asana achieved “FedRAMP In Process” designation, signaling its intent to serve more public sector and regulated industry clients. Ongoing certifications such as ISO compliance and annual SOC 2 Type II reporting were cited as ways the company maintains trust with larger organizations. Management also called out the integration of Asana’s platform in environments demanding strict security requirements as a foundation for future enterprise expansion.

Looking Ahead: Guidance and Strategic Considerations

Management forecast revenue of $197.5 million to $199.5 million, implying year-over-year growth of 7.4% to 8.5%. Full-year revenue guidance increased slightly to a range of $780.0 million to $790.0 million. The full-year non-GAAP operating margin target was raised to 6%. However, top-line growth is slowing: management anticipates revenue growth slipping to high single digits (7% to 9%). Non-GAAP operating income is expected in the $12 million to $14 million range, with non-GAAP earnings per share of $0.06 to $0.07.

Company leadership highlighted that sustaining margin gains now relies on both continued cost discipline and improvements in net retention and expansion, as discussed in the context of non-GAAP results. The company’s net retention rate was 96%. Product innovation, especially in AI, will be crucial in driving increased usage and contract sizes with large enterprise customers. Investors should monitor adoption of AI Studio features, international expansion, customer cohort growth, and any material customer contract renewals or downgrades, as in the $100 million-plus renewal that occurred last quarter.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Asana. The Motley Fool has a disclosure policy.

authID (AUID -3.45%), the identity technology firm specializing in privacy-focused biometric authentication, reported its second quarter 2025 results on Aug. 14, 2025. The most significant news in the release was a sharp jump in GAAP revenue to $1.4 million, reflecting substantial customer and booking momentum, even as Operating expenses and net losses continued to climb. There were no analyst estimates with which to compare results. Management highlighted record growth across several metrics, but persistent losses and new credit provisions underlined continued financial challenges.

authID’s business model and strategic focus

authID provides identity authentication solutions, including its biometric platform called PrivacyKey. The platform transforms biometric data — like facial images — into cryptographic keys, which allows for quick and highly secure identity verification. Crucially, no actual biometric data is stored, aiding regulatory compliance and privacy.

The company’s business targets regulated sectors and high-risk transactions that require a high level of authentication assurance. Recent company focus areas include driving technological innovation, broadening its partnership network, and expanding recurring revenue. Key success factors are product leadership, strategic alliances, and effectiveness in converting pilots or trials into long-term contracts.

Quarterly review: Revenue growth, metrics, and execution

The period saw authID post record GAAP revenue, marking a notable year-over-year increase in GAAP revenue. AuthID also secured a live production trial with a Fortune Global 500 company in the UK, an agreement anticipated to transition into a full contract if successful. The company’s annual recurring revenue (ARR, non-GAAP) reached $5.8 million, up from $1.1 million of ARR (non-GAAP) as of Q2 2024 and $1.2 million of ARR (non-GAAP) as of Q1 2025.

Gross booked annual recurring revenue (bARR, non-GAAP) jumped to $2.2 million from $0.63 million in Q2 2024. Net bARR (non-GAAP), which subtracts the value from contracts delayed or lost, grew to $1.9 million. The company’s remaining performance obligation (RPO), which shows the contracted but not yet recognized revenue, was $13.8 million.—more than triple the figure from Q2 2024.

On the technology side, authID launched IDX, a new biometric authentication product developed in partnership with NEC, a provider of biometric hardware. Management claims this product enables ultra-fast and accurate authentication for regulated industries, while maintaining customer privacy. The period also featured enhancements to the PrivacyKey product, now capable of one-to-many search — meaning it can identify a person out of a large group quickly — without the need to store any biometric data.

Strategic partnerships played a role in the quarter’s results. Alongside NEC, management highlighted a new agreement with Prove, which operates a large-scale identity fraud platform. These partnerships are intended to enable faster market entry and broaden the user base, particularly by embedding authID’s solutions into third-party ecosystems. In addition, the company expanded its board with new members and advisors, aiming to support ongoing growth and value creation for stakeholders.

Operating expenses increased approximately 63.9% year-over-year, totaling $5.9 million, primarily reflecting investments in hiring, sales, and research and development. The company cited a $0.8 million provision for estimated credit losses, which reflects new assessments around credit risk for certain customer contracts. These expense increases, along with persistent net losses, highlight the pressure of scaling operations ahead of realized revenue. Notably, net loss (GAAP) widened to $4.4 million, compared to $3.3 million for Q2 2024. Net cash flows from operations (GAAP) showed an outflow of $8.4 million for the first half of 2025, with $8.3 million in cash on hand at the end of the quarter.

Share count increased, reaching 13.2 million on a diluted basis versus 9.5 million a year ago.

There were also challenges during the period. AuthID had to book new credit loss provisions, signaling some delays or potential issues with collecting revenue on certain customer contracts. Some signed deals faced slowdowns moving from contract to full go-live, impacting recognized bARR (non-GAAP) and creating challenges on the path toward more predictable recurring revenue.

Throughout the quarter, the company continued to emphasize its privacy-by-design approach. Compliance with privacy and biometric regulations is a key selling point, especially for large enterprises and public sector clients. There were no new regulatory hurdles cited for the period, but the continued assertion that the platform stores no biometric data is a core strategic differentiator.

Looking ahead: Outlook and potential risks

Management did not provide specific forward-looking financial guidance for revenue, margin, or profit for upcoming quarters or the full year. In public commentary earlier in the year, management referenced a bookings target of $18 million in gross bARR (a non-GAAP measure) for fiscal 2025. With half-year bARR (non-GAAP) totaling $2.2 million for the first six months of 2025, achieving this full-year goal would require a significant acceleration in booking large contracts and ramping deployments in the next two quarters.

For investors and stakeholders, areas to observe in coming quarters include the pace of contract conversions, expense management, success of partnership-driven sales, and resolution of credit risk exposures. Given the persistent high operating costs and net losses, the company’s ability to demonstrate path to sustained profitability and positive cash flow remains a critical watchpoint. AUID does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Ss Innovations International (SSII 9.41%), a surgical robotics company focusing on emerging markets, reported its Q2 2025 financial results on August 7, 2025. The standout news is revenue more than doubling year over year to $10.0 million (GAAP), compared to Q2 2024, driven by a spike in installations of its SSi Mantra 3 surgical robotic system. Gross margin (GAAP) leapt to 59.1%, up from 31.9% in Q2 2024. The company’s net loss shrank sharply to just $(0.00) per share (GAAP), versus $(0.02) per share (GAAP) in Q2 2024. There were no analyst estimates for the quarter, but the period saw material improvement across revenue, margins, and operational efficiency. This quarter signals meaningful traction for the company as it approaches regulatory milestones and expands its installed base, though achieving consistent profitability remains a key hurdle.

About Ss Innovations International: Business and Recent Focus

Ss Innovations International designs and manufactures surgical robotic systems, emphasizing solutions for underserved healthcare markets. Its flagship product is the SSi Mantra, a multi-arm surgical robot for minimally invasive procedures. The company’s model aims to provide accessible and affordable robotic surgery, especially in countries where such technology is rare.

Lately, the company has focused on rapid expansion in India and surrounding regions, increasing its installed base and driving up the number of robotic surgeries performed. To support this, securing regulatory approvals in major markets and building strategic partnerships with key hospitals are central to its growth. The main success factors include boosting system installations, growing recurring revenues from instruments and warranties, and reaching regulatory milestones in new markets.

Quarter in Review: Key Highlights and Results

Revenue leapt by 121.8% year over year, reaching $10.0 million (GAAP) in Q2 2025, as SSi Mantra systems—surgical robots for multiple types of minimally invasive procedures—saw growing demand. The company installed 23 SSi Mantra systems in Q2 2025, a 130% increase from the same period last year. The cumulative installed base climbed to 105 systems spanning seven countries as of June 30, 2025, up from 37 one year ago. Revenue from accompanying surgical instruments and service items, which form a critical source of recurring income, grew even faster (GAAP), with instrument sales increasing by 393.7% and warranty sales by 571.5% year-over-year.

Gross margin (GAAP) widened to 59.1%, up from 31.9%, indicating much higher profitability on each sale. The margin increase resulted from lower production costs. As a result, gross profit (GAAP) more than tripled versus last year.

Expenses ticked up modestly to $5.8 million from $5.5 million (GAAP). However, showing early signs of improving operating leverage. Stock compensation charges (GAAP) decreased to $1.6 million. Net loss shrank substantially to near break-even at $(0.3) million, compared to a $4.1 million loss last year, both on a GAAP basis, with the year-ago period including higher stock issuance and compensation expenses.

The SSi Mantra platform enables surgeons to perform a range of complex operations, such as cardiac and gastrointestinal surgeries, either remotely or in person. Its technical features include robotic arms, advanced 3D imaging, and telesurgery capability, allowing real-time operations at a distance. The company completed several notable procedures during the quarter, including what it describes as “world first” telesurgeries in the Western Hemisphere and in Indian public sector hospitals. Cumulative surgical cases using the SSi Mantra reached 4,657 as of June 30, 2025, including 40 remotely performed operations and 273 cardiac procedures as of July 31, 2025, with no reported device-related adverse events as of July 31, 2025.

Progress toward regulatory milestones was another key point in the quarter. After fresh discussions with the U.S. Food and Drug Administration (FDA), the company plans to pursue a faster 510(k) pathway for clearance of the SSi Mantra 3, with a target of submitting its application by the end of September 2025. The European Union CE Marking process is also ongoing, with certification possible by late 2025. This shift, if achieved, will allow access to much larger and more stable healthcare markets, supplementing the company’s core base in India and emerging economies.

No new dividends were declared or adjusted during the quarter. SSII does not currently pay a dividend.

Looking Ahead: Guidance and What to Watch

Management expects to file for U.S. regulatory clearance of the SSi Mantra 3 by the end of September 2025 and continues pursuit of European certification. The leadership team forecasts strong organic growth for the rest of fiscal 2025, based on increased installations and surgical counts. However, no specific financial guidance for revenue, profit, or cash flow was provided for upcoming quarters or the full year.

Investors should track the trend in recurring revenue, such as instrument and service sales per system, as this reflects underlying business model quality. Watch for developments tied to regulatory approvals in the U.S. and Europe, which would expand addressable markets. Operating cash burn, inventory levels, and the company’s ability to sustain profitability improvements without further diluting shareholders remain important risks. SSII does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Flotek Industries (FTK 1.37%), a developer of specialty chemistry products and advanced data analytics for the energy sector, reported second quarter 2025 earnings on August 5, 2025. The company posted significant revenue growth and margin improvement, with total revenue (GAAP) increasing by 26% and gross profit margin rising to 25% from 20% in the prior-year period, outperforming analyst expectations, mainly due to contributions from its recent Data Analytics acquisition and continued strength in Chemistry Technologies. Revenue (GAAP) came in at $58.35 million compared to the $54.76 million analyst estimate, while adjusted earnings per share (EPS) reached $0.16, beating the $0.14 forecast. On a Non-GAAP basis, net income grew sharply, but reported net income declined 10% year-over-year, reflecting $4.2 million in acquisition costs. Overall, the period marked another step in Flotek’s transformation toward higher-margin offerings, despite temporary pressures on headline earnings.

Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2025 earnings report.

Company Overview and Strategic Focus

Flotek Industries operates in the upstream energy sector, supplying proprietary chemistry solutions and advanced data analytics services for oilfield operators. Its core business rests on two main divisions: Chemistry Technologies, which provides specialty chemicals, and Data Analytics, which offers real-time measurement and analytics solutions for energy infrastructure and emissions monitoring.

In recent years, Flotek has focused on shifting its revenue mix toward higher-margin, recurring-service lines. Strategic partnerships, such as its long-term supply agreement with ProFrac Services, support steady demand for chemistry products. Meanwhile, the company is investing in technology and regulatory-driven solutions to expand its Data Analytics offering, especially as customers seek compliance tools for the evolving emissions landscape.

Quarter in Review: Growth, Acquisitions, and Segment Performance

Flotek achieved double-digit growth in both revenue and gross profit (GAAP), outperforming analyst estimates and its own prior-year results on a non-GAAP basis. Revenue (GAAP) rose 26%, driven by strength in Chemistry Technologies and an outsized boost in Data Analytics following the acquisition of PWRtek, a rental-based mobile gas conditioning business. Gross profit (GAAP) advanced 57%, helping raise gross margin (GAAP) by five percentage points to 25%.

The Chemistry Technologies segment generated $52.4 million in GAAP revenue, up 19%. External sales saw especially strong momentum, improving 38%, while related party sales—principally via its ProFrac supply agreement—grew 8%. Management noted this performance came “despite a decline in North American frac fleets,” highlighting successful market share gains in a challenging domestic environment.

The Data Analytics segment reported $5.9 million in revenue, up 189% from the prior year. The newly acquired PWRtek business, which closed on April 28, 2025, contributed $3.2 million in high-margin rental income. Service revenues in the segment climbed 452%, while product revenues were up 39%. The acquired assets are forecast to generate approximately $15 million in rental revenue for 2025, 7% higher than previously expected, with gross profit margins near 90%. Management pointed to rapid adoption of its analytics systems for power generation applications, boosted by Environmental Protection Agency (EPA) approval for its near-infrared spectrometer used in flare monitoring compliance during Q2 2024.

Adjusted EBITDA, which measures operating profitability excluding non-cash and one-time items, more than doubled to $9.5 million. However, net income as reported under GAAP was $1.8 million, down from $2.0 million in Q2 2024, as the company absorbed $4.2 million in costs tied to the PWRtek acquisition. Adjusted net income, after removing these one-time costs, surged to $6.0 million. Selling, general, and administrative (SG&A) expenses rose modestly in dollar terms but improved as a percentage of sales, showing operating leverage gains.

Product, Technology, and Operational Insights

Flotek’s Chemistry Technologies portfolio centers on specialty chemicals and chemistry solutions that help customers improve operational efficiency and environmental outcomes, with research and development spending at $0.455 million.

In Data Analytics, flagship product lines include advanced gas analyzers, notably the near-infrared spectrometer, which was approved by the EPA for use in flare monitoring during Q2 2024—critical for companies needing to comply with new U.S. emissions regulations. The PWRtek business, focused on mobile gas conditioning equipment rentals, expanded Flotek’s footprint in the power generation market. The segment’s growth was both organic—via increased adoption of analytics solutions for measurement and custody transfer—and inorganic, through the recent acquisition.

International expansion persisted, with management highlighting growth and pilot wins in the Middle East and Argentina, while domestic operations contend with completion activity cycles. Supply chain strategies, such as local sourcing and multiple supplier relationships in international markets, helped offset disruptions and tariff effects.

Notably, the company’s capital structure changed with the assumption of $39.5 million in debt as of June 30, 2025 to finance the PWRtek acquisition, raising interest expense and leverage. The diluted share count increased by 18% year-over-year as new shares and warrants were issued for the deal. Cash flow from operations improved over the six months ended June 30, 2025, while cash and equivalents (GAAP) rose modestly to $5.0 million as of June 30, 2025. Total stockholders’ equity declined, reflecting the transaction’s accounting and financing effects.

Outlook, Guidance, and What to Watch Next

Flotek’s management reaffirmed its full-year FY2025 guidance: revenue of $200–220 million and adjusted EBITDA of $34–39 million, reflecting confidence in the higher-margined Data Analytics expansion. The company expects the recent asset acquisition to contribute roughly $15 million in rental revenue for 2025, up 7% from prior guidance, with a full quarter’s impact expected in Q3 2025. Management also signaled optimism around continued adoption of its products in the power generation and emissions monitoring markets, as well as further international progress.

Investors should monitor the pace and sustainability of Data Analytics growth now that the acquisition has closed, as Data Analytics segment revenues increased 189% year-over-year, with service revenues including approximately $3.2 million attributable to the Asset Acquisition, which closed in late April 2025, as well as integration and ramp-up in new rental assets. There are also risks from increased leverage and dilution, especially if the Data Analytics segment’s revenue trajectory moderates. Headline net income could remain pressured by acquisition-related expenses and financing costs. FTK does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Netgear (NTGR -5.98%), the networking technology company known for its consumer and business connectivity solutions, reported its Q2 2025 earnings on July 30, 2025. The company announced GAAP net revenue of $170.5 million, exceeding consensus GAAP estimates of $162.06 million, and non-GAAP earnings per share (EPS) of $0.06, beating the estimated non-GAAP loss of $0.15 per share. The quarter showed strong progress in profitability and operational discipline, driven by innovation, sharp execution in the business networking segment, and a rebound in home networking. While the company set records in both GAAP and non-GAAP gross margins and narrowed its operating loss, profitability on a GAAP basis remained negative. Overall, the quarter delivered substantial improvement compared to both internal guidance and analyst expectations.

Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2025 earnings report.

About Netgear and Business Overview

Netgear sells networking products that power home WiFi, small business connectivity, and mobile internet solutions. Its product lineup ranges from WiFi routers and mesh systems for consumers to switches, access points, and security-optimized solutions for business customers. It operates globally across the Americas, EMEA (Europe, Middle East, Africa), and APAC (Asia-Pacific) regions, with sales through retail channels, value-added resellers, and direct distribution.

In recent years, Netgear has placed an emphasis on technological innovation—investing in new wireless standards like WiFi 7 and network security enhancement. Following a major restructuring at the start of fiscal 2025, Netgear now manages three core segments: NETGEAR for Business (NFB), Home Networking, and Mobile. This restructuring aims to sharpen operational focus and improve financial management. Key success factors include rolling out advanced solutions such as WiFi 7 mesh systems and business cloud management, alongside expanding distribution channels and maintaining cost discipline.

Quarter Highlights: Revenue Growth, Margin Expansion, and Segment Results

NFB revenue (GAAP) climbed to $82.6 million, an increase of 38.0% from the prior year. This segment includes ethernet switches, network management software, and ProAV (professional audio/video) solutions for small and medium-sized enterprises. Non-GAAP gross margin within NFB rose sharply to 46.7%, up 13.0 percentage points from the same quarter last year. Management pointed to ongoing demand for ProAV solutions, which saw double-digit sales growth across the Americas, EMEA, and APAC. Backlog remained significant due to component supply constraints, which are expected to persist into the following quarter.

Home Networking, which covers WiFi routers and mesh systems for residential customers, generated $67.5 million in GAAP sales—a 13.1% rise year over year. Non-GAAP gross margin in this segment improved by 18.0 percentage points to 29.5%, supported by a favorable product mix, inventory sell-through, and expanded launches of WiFi 7 mesh products. The company recently introduced the new Orbi 370, its lowest-priced WiFi 7 mesh offering. This product is part of Netgear’s “good-better-best” tiered strategy aimed at capturing a broader range of customers and price points.

Mobile, which consists of portable internet hotspots and 5G routers like the Nighthawk M3 mobile 5G router, reported GAAP revenue of $20.4 million. This figure was down 16.1% year over year, reflecting weaker demand from service providers. However, Netgear reported stronger-than-expected retail demand. The segment’s non-GAAP gross margin improved by 7.5 percentage points year over year to 29.1%, though operating profit remained low. Management attributes the decline to softer-than-expected service provider demand, but sees stabilization in retail performance as a positive signal for future periods.

Gross margins for the overall company reached new highs—GAAP margin stood at 37.5%, while non-GAAP reached 37.8%. Operating loss narrowed significantly on both a GAAP and non-GAAP basis, reflecting the impact of cost reductions and more efficient allocation of resources following the recent restructuring. Netgear ended Q2 2025 with $363.5 million in cash and short-term investments, a decrease of $28.5 million from the prior quarter, mostly due to the acquisition of Exium, a company focused on SASE (secure access service edge) security, and $7.5 million in stock repurchases. Inventory turns, an indicator of inventory management efficiency, increased to 2.7 from 2.4 a year ago.

The period also saw continued investment in innovation and digital security. Netgear expanded its software development efforts, particularly by leveraging a new in-house team in Chennai, India, stemming from a prior acquisition. Headcount increased from 622 to 707 year over year. Geographic revenue mix remained stable, with the Americas accounting for 68%, EMEA 20%, and APAC 12%.

Management highlighted improvements in working capital management, reporting days sales outstanding (DSO)—a measure of how long it takes to collect revenue—at its lowest in about eight years, at 77 days, down from 93 days in Q2 2024.

Strategic Moves and One-Time Events

Several material developments shaped the quarter. In product offerings, Netgear launched new WiFi 7 mesh systems for the consumer segment and continued enhancements in its ProAV and managed switch portfolios for business users. The completion of the Exium acquisition expanded security offerings—by integrating this SASE technology, Netgear aims to offer more secure, cloud-managed network services to business clients. This tie-in is expected to increase the value proposition of its core NFB offerings.

The restructuring that began in the first quarter is showing visible results. Netgear’s segmentation now provides clearer accountability and more targeted operational strategies. The company is actively reinvesting cost savings into research, development, and direct go-to-market initiatives, notably through insourcing India-based software expertise. Non-GAAP contribution margins improved significantly across all segments. Most notably, Home Networking’s non-GAAP profitability (contribution margin) moved from negative to positive territory compared to the prior year.

These moves trimmed cash reserves but position the company to strengthen its competitive differentiation in security. Netgear also noted a persistent supply-constrained environment for components, which led to a significant backlog, particularly in the NFB segment. U.S. retail channel inventory levels increased to 12.0 weeks from 9.5 weeks a year ago

Looking Ahead: Guidance and Investor Focus

For Q3 2025, management provided GAAP revenue guidance of $165 million to $180 million, implying expectations for flat to modest growth compared with the current period. Operating margin is projected to remain negative—between (11.0)% and (8.0)% under GAAP, and (5.5)% to (2.5)% on a non-GAAP basis, reflecting continued investments in research and development and expansion of business networking capabilities. The company did not provide full-year revenue or earnings guidance.

Netgear expects demand for business solutions, especially ProAV switches and WiFi 7-enabled products, to remain strong. However, it foresees continued supply constraints and a flat outlook for Mobile until new products are launched. Investors should watch for sustained progress in gross and operating margins and monitor inventory trends in retail channels. The company’s strategic focus will remain on innovation, operational discipline, expansion of recurring service revenue, and further improvements in segment profitability.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Vertiv (VRT 1.03%), a global supplier of critical digital infrastructure and services for data centers and communication networks, released its second quarter results on July 30, 2025. The release detailed record GAAP revenue gains and a significant beat on non-GAAP earnings expectations. Revenue (GAAP) reached $2,638 million, compared to the analyst consensus of $2,353.9 million. Adjusted diluted earnings per share were $0.95, outpacing the $0.83 consensus. This performance was driven by surging demand for data center solutions, particularly in the Americas and Asia Pacific regions. Despite impressive sales and profit growth, higher supply chain and tariff-related costs pressured adjusted operating margins. Overall, the quarter showcased Vertiv’s strong market traction and its ability to capitalize on accelerating trends in the digital infrastructure space.

Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2025 earnings report.

About Vertiv: Business Model and Strategic Focus

Vertiv provides foundational technologies for digital infrastructure. Its portfolio includes power management products, thermal management systems, racks, enclosures, and remote monitoring solutions. These products are essential for data centers, communication networks, and key industrial applications where uptime and performance are critical.

The company’s recent strategic focus includes expanding its product innovation—especially in areas needed for artificial intelligence (AI) and cloud deployments—while investing in its global supply chain and manufacturing footprint. By strengthening relationships with large data center operators and technology leaders, Vertiv positions itself as a go-to partner for reliable infrastructure. Its ability to deliver on a growing backlog and execute on large-scale projects is considered central to its continued success.

Quarterly Highlights: Performance Drivers and Key Metrics

The period saw Vertiv exceed revenue and earnings expectations, reflecting exceptional demand for its digital infrastructure solutions. Organic orders expanded by roughly 15 % compared to the prior year, and the company’s backlog surged to a record $8.5 billion as of Q2 2025—supported by a book-to-bill ratio of approximately 1.2x. Backlog and order strength signal continued future revenue and underline growing industry reliance on Vertiv as the market for data centers rapidly evolves.

By region, the Americas segment led growth with net sales up 42.9% (GAAP), buoyed by robust North American data center investment. Adjusted operating profit in this region increased by 34.9% compared to Q2 2024. Services & spares in the Americas were up 22.9% year-over-year for the three months ended June 30, 2025. However, additional costs from tariffs and supply chain reconfiguration led to some margin compression—adjusted operating margin in the Americas fell by 1.4 percentage points compared to Q2 2024.

The Asia Pacific segment also posted substantial gains. Net sales increased 35.1% year-over-year. Adjusted operating profit in Asia Pacific jumped 83.3%, and adjusted operating margin improved by 2.7 percentage points year over year. While service revenue growth trailed that of product sales, both areas contributed positively.

In Europe, Middle East, and Africa (EMEA), net sales grew 12.5%. Management noted that EMEA pipelines remain robust and are growing.

Innovation, Operations, and Material Events

Product innovation remains a mainstay of Vertiv’s strategy, underlined by high R&D investment and recent collaboration announcements. The company continued to invest in engineering and research for its next-generation AI-optimized infrastructure. Its cooling systems, modular power solutions, and integrated white-space products are designed for demanding applications in hyperscale and AI-driven data centers. Vertiv also announced plans to acquire Great Lakes Data Racks & Cabinets, extending its portfolio in high-density racks and enclosures. This acquisition was not reflected in the current quarter’s guidance and results.

Though order momentum was strong, the quarter was not without headwinds. Tariff-related expenses and the cost of rapidly shifting the company’s manufacturing footprint to mitigate those tariffs weighed on margins. Management called these pressures temporary, and reiterated a plan including commercial pricing actions and supply chain reconfiguration. According to company leaders, these countermeasures should reduce the impact of tariffs toward the end of the year, but margin pressure persisted for the quarter.

On the cash flow front, adjusted free cash flow was $277 million—down 17.7% from the prior year quarter—largely due to working capital investments to support growth. Operating cash flow (GAAP) also declined versus a very strong prior year period. Still, on a year-to-date basis, adjusted free cash flow had increased 24%.

The company also did not repurchase shares, choosing instead to retain financial flexibility for future acquisitions and to maintain a conservative balance sheet.

Looking Ahead: Guidance and Key Watch Areas

Vertiv raised its financial outlook for FY2025 across most major non-GAAP metrics. For the full year 2025, the company now expects net sales between $9.93 billion and $10.08 billion, organic growth of 23 % to 25 %, adjusted operating profit (non-GAAP) of $1.95 billion to $2.03 billion, and adjusted earnings per share of $3.75 to $3.85. Guidance for adjusted free cash flow (non-GAAP) is $1.375 billion to $1.425 billion. However, management revised its margin outlook downward, with adjusted operating margin (non-GAAP) now forecast between 19.7% and 20.3%, a decrease from earlier targets.

For Q3 2025, projections include net sales of $2,510 million to $2,590 million, 20 % to 24 % organic growth, and adjusted EPS between $0.94 and $1.00. Management cautioned that these expectations do not factor in any impacts from proposed tariffs that may take effect after July 28, 2025, as regulatory clarity on additional trade policies is still pending. Vertiv’s large backlog, ongoing tariff mitigation, and continued investment in manufacturing and product development will be central areas for investors to watch in the coming quarters.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Nasdaq (NDAQ 5.91%), a global technology company powering capital markets and financial services, reported its Q2 2025 results on July 24, 2025. The company delivered GAAP revenue of $1.31 billion and non-GAAP earnings per share (EPS) of $0.85, both surpassing consensus estimates of $1.28 billion and $0.81, respectively. Recurring revenue grew 9% and operating income (non-GAAP) grew at a double-digit rate, driven by strong client demand and innovations across both its Financial Technology and Capital Access Platforms. Overall, the quarter showed operational progress, though rising costs and lengthening sales cycles in regulatory technology signal areas to watch going forward.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Focus Areas

Nasdaq operates at the intersection of technology and finance. It is best known for running the Nasdaq Stock Market, but its reach extends to providing trading, data, software, and analytics to financial institutions and corporations worldwide. Nasdaq manages and provides its products and services through three business segments: Capital Access Platforms, Financial Technology, and Market Services.

The stack of offerings ranges from traditional exchange listing and trading to modern SaaS (software-as-a-service) platforms that help banks and corporates manage everything from regulatory compliance to market analytics and risk surveillance. Over the past few years, the company emphasized steady recurring revenue, cloud and AI innovation, and international expansion. Recent strategic focus includes deepening cloud integration, boosting cross-selling after its Adenza acquisition, and increasing the share of SaaS in its recurring revenue streams. Key drivers of success remain technology leadership, robust regulatory compliance capabilities, and the ability to attract new clients through innovation and trusted infrastructure.

Quarter Review: Results, Product Momentum, and Segment Detail

The second quarter saw Nasdaq achieve broad-based growth and notable outperformance across its main business lines.

Revenue and Profits: The revenue figure of $1.31 billion (GAAP) represented a 13% jump over the same period last year. Non-GAAP EPS came in at $0.85, up 24% over the prior year, while operating income grew by 16%. Non-GAAP operating margin also edged higher, from 53% to 55%. This indicates that the company achieved greater efficiency, even as it invested in new technology and talent.

Solutions Segment: Solutions revenue—which covers both Capital Access Platforms and Financial Technology—grew 10% year-over-year, with both core sub-segments making strong contributions.

Financial Technology: This segment includes cloud-based risk, compliance, and trading solutions. It recorded 10% growth in revenue, with annualized recurring revenue (ARR) for Financial Technology growing 12% year-over-year. Regulatory Technology made progress with a new large client and several upsells, but did note extended sales cycles due to shifting U.S. regulatory timelines.

Capital Access Platforms: This product line includes listing-related data, workflow, and index solutions. It posted 9% organic revenue growth, driven by a 17% rise in Index revenue. Net inflows into Nasdaq-linked exchange-traded products (ETPs) totaled $20 billion, and the number of ETPs tracking the company’s indices increased sharply.

Market Services: This unit, which comprises trading platforms and associated services, delivered a record $306 million in net revenue, an increase of 22%. Volumes across U.S. equities and derivatives hit all-time highs, and the company reported its 46th straight quarter of leadership in IPO listings, with 38 new operating company IPOs raising more than $3.5 billion. Market share for U.S.-listed securities, combining on- and off-exchange activity, hit 61.6%, up from 59.0% in Q2 2024.

Recurring Revenue and SaaS Growth: Annualized recurring revenue reached $2.93 billion, which is 10% above the prior year. Of this, 37% now comes from SaaS products.

Expenses and Margins: Operating expenses on a non-GAAP basis rose 9%, largely reflecting increased investments in technology and people. But with revenues advancing even faster in some segments, non-GAAP margins still improved.

Product and Innovation: Technological innovation was a central theme this quarter. Nasdaq Verafin’s “Agentic AI” digital workers, now in beta, promise to automate compliance reviews and lower client workload. The company also expanded its partnership with Amazon Web Services (AWS) for cloud-based market infrastructure. Recent technology wins include managed marketplace deployments and cloud-based platform launches for clients in Latin America.

Capital Strategy and Shareholder Returns: The company continued to emphasize a focus on organic growth and deleveraging after the large 2023 Adenza acquisition. During the quarter, it returned $155 million to shareholders via dividends and $100 million through stock buybacks, and repaid $400 million of debt. Management reaffirmed its goal of more than $100 million in annual run-rate cross-sell revenue by the end of 2027.

Dividend Update: The company raised its quarterly dividend by 13% to $0.27 per share, continuing its trend of regular increases.

Looking Ahead: Management Outlook and Watch Items

Management maintained non-GAAP operating expense guidance, now at $2.295–$2.335 billion for FY2025, reflecting minor foreign exchange effects but otherwise an unchanged outlook. Non-GAAP tax rate guidance for 2025 remains at 22.5%–24.5%. No change was announced to medium-term revenue growth targets in any segment for FY2025, with leaders expressing confidence in the current sales pipeline, especially for Financial Technology products. No explicit top-line or EPS guidance was shared for the full year.

Delays in regulatory technology sales cycles, driven by shifting U.S. regulatory timelines, present a risk to growth. Intensifying competition from both established exchanges and new entrants—like the Texas Stock Exchange—remains on the radar for listings market share. Overall, Nasdaq credited broad client engagement, cloud and AI innovation, and a stable recurring revenue base as tailwinds for future performance.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.