Investments |
6 Months Ended | ||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
| Investments | INVESTMENTS The following table presents the details of our investments:
Financial Investments Financial investments are comprised of trading securities, primarily highly rated European government debt securities, of which $163 million as of June 30, 2026 and $18 million as of December 31, 2025, are assets primarily utilized to meet regulatory capital requirements, mainly for our clearing operations at Nasdaq Clearing. Capital held for regulatory purposes is invested to optimize returns while staying within approved risk tolerances. This active portfolio management can result in assets held as shorter term investments which meet the criteria to be classified as cash equivalents, and would then be included in restricted cash and cash equivalents or longer term investments, which would be classified as financial investments in the Condensed Consolidated Balance Sheets. Equity Method Investments We record our estimated pro-rata share of earnings or losses each reporting period and record any dividends as a reduction in the investment balance. As of June 30, 2026 and 2025, our equity method investments primarily included our 40.0% equity interest in OCC. The carrying amounts of our equity method investments are included in other non-current assets in the Condensed Consolidated Balance Sheets. No impairments were recorded for the three and six months ended June 30, 2026 and 2025. Net income recognized from our equity interest in the earnings and losses of these equity method investments was $21 million and $23 million for the three months ended June 30, 2026 and 2025, respectively, and $47 million and $50 million for the six months ended June 30, 2026 and 2025, respectively. Equity Securities The carrying amounts of our equity securities are included in other non-current assets in the Condensed Consolidated Balance Sheets, with gains and losses recognized in other income (losses) in the Condensed Consolidated Statements of Income. The majority of our equity securities as of June 30, 2026 do not have a readily determinable fair value and therefore we have elected the measurement alternative. We recognized a net gain from the change in the carrying value of these equity securities of $17 million for the three and six months ended June 30, 2026, primarily related to an upward adjustment due to the identification of an observable price change for a similar investment of an investee. No material adjustments were made to the carrying value of these equity securities for the three and six months ended June 30, 2025. We mark-to-market equity securities that have a readily determinable fair value. Gains and losses from the change in the fair value of these securities were immaterial for the three months ended June 30, 2026 and the three and six months ended June 30, 2025. Net loss from the change in the fair value of these securities was $15 million for the six months ended June 30, 2026. As of June 30, 2026 and December 31, 2025, our equity securities primarily represent various strategic minority investments made through our corporate venture program. Purchases and sales of equity securities are included in other investing activities in the Condensed Consolidated Statements of Cash Flows.
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