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NDAQ · Forward model · Capital Markets Technology · Bear case

What has to happen in Capital Markets Technology

Model as of

This page changes Capital Markets Technology inside the complete NDAQ model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

NDAQ forward model
Horizon
Consolidated fair value $68.57 all other verticals held in this portfolio case
Final-quarter revenue $485M 25% of company revenue
Explicit segment contribution $2.67B EBITDA less segment capex, before corporate items

Both market-levered lines mean-revert at once and the software margin stops expanding. Index AUM stops appreciating and options volume drifts back toward its 2024 level while capture keeps compressing; the exit de-rates to 13x, roughly where a low-growth exchange trades, and the discount rate rises to 9.25%. What this case does NOT assume is a recession in Financial Technology: ARR keeps compounding, just at a lower monetisation rate.

Capital Markets Technology

Basis quarter$321M
Final quarter$485M
Implied CAGR+9%
Final revenue mix25%

Calypso capital-markets software, the Eqlipse marketplace platform sold to other exchanges, and Trade Management Services, the connectivity and data-centre services broker-dealers buy to reach the market. It is the largest Financial Technology line at $321M and the largest ARR base in the company at $1,083M. It is also the only line in this model with a defensible quarterly shape: revenue fell sequentially in the third quarter in both 2024 and 2025 and peaked in the fourth in both, because Calypso and Eqlipse revenue includes term licences and delivery milestones that land on a contract calendar rather than ratably.

Last four quarters
2025 Q3 $264M Reported
2025 Q4 $294M Reported
2026 Q1 $306M Reported
2026 Q2 $321M Reported
Calypso trading and risk platformEqlipse marketplace technologyTrade Management Services connectivity and co-locationMarket technology delivery and support
ARR base 1083 $M of ARR at the basis quarter $1,083M of Capital Markets Technology ARR at 30 June 2026, the largest recurring base in the company.
Net new ARR 38 $M of ARR/qtr changing +1.0% per quarter Just above the lumpy four-quarter mean of $36.25M; sustains ~14% ARR growth against 16.2% delivered.
Utilisation 100% share of a quarter of ending ARR that lands as revenue, gliding toward 100% 100%: the whole ARR base earns. The revenue-to-ARR ratio lives in the price leg.
Revenue per $M of ARR $284000/qtr drifting 0.0% per quarter DESEASONALISED: $321M over the 1.0436 Q2 factor is $307.6M of trend revenue, over $1,083M of ARR.
Capital Markets Technology

Latest: $485M (2031Q2E)

Period Value
2024Q1 $238M
2024Q2 $258M
2024Q3 $234M
2024Q4 $267M
2025Q1 $254M
2025Q2 $279M
2025Q3 $264M
2025Q4 $294M
2026Q1 $306M
2026Q2 $321M
2026Q3E $299M
2026Q4E $335M
2027Q1E $324M
2027Q2E $355M
2027Q3E $329M
2027Q4E $369M
2028Q1E $356M
2028Q2E $389M
2028Q3E $359M
2028Q4E $402M
2029Q1E $386M
2029Q2E $421M
2029Q3E $389M
2029Q4E $434M
2030Q1E $416M
2030Q2E $453M
2030Q3E $418M
2030Q4E $465M
2031Q1E $446M
2031Q2E $485M

Assumptions & reasoning

  • The seasonal factors are measured by ratio to a CENTRED four-quarter moving average, not to a year mean. The signal is 9.7% peak to trough against a worst window-to-window spread of 3.3%, and the raw sequential moves corroborate it: $258M to $234M in 2024 and $279M to $264M in 2025, with a fourth-quarter peak both years.
  • The Q1 and Q2 factors each rest on a single moving-average window, because only ten clean post-Adenza quarters exist. The Q3 trough and the Q4 peak each rest on two. The shape is recommended on that basis and should be re-tested after two more prints.
  • Because seasonality is present, the driver level is the DESEASONALISED trend. Revenue per dollar of ARR is set on $307.6M rather than on the $321M the second quarter printed, so the projected third quarter falls the way the last two third quarters did instead of extrapolating a peak.
  • Adenza closed on 1 November 2023, so quarters before 2024 Q1 mix two months of AxiomSL and Calypso with a Nasdaq-only base. They are excluded from every rate and seasonal calculation here, which is the second reason this history starts at 2024 Q1.
  • The margin is the Financial Technology divisional margin applied uniformly. Trade Management Services is not sized separately, so the share of this line that is connectivity rather than software is unknown.
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