Broadridge Financial Solutions (BR 6.79%), a leading provider of investor communications and financial technology services, reported its earnings for the fourth quarter of fiscal 2025 on August 5, 2025. Broadridge delivered higher-than-expected non-GAAP earnings per share (EPS) of $3.55 in Q4 FY2025. Non-GAAP earnings per share (EPS) reached $8.55, exceeding analyst expectations of $3.50 for FY2025. GAAP revenue was $2.07 billion in Q4 FY2025, ahead of estimates at $2.06 billion. This marked a healthy perio ...

Core Insights - Broadridge Financial Solutions, Inc. (BR) reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][7] - Adjusted earnings per share (EPS) were $3.55, surpassing the consensus by 1.14% and increasing 1.43% year-over-year [1][7] - Total revenues reached $2.07 billion, exceeding the consensus by 0.6% and growing 6.2% year-over-year [1][7] Revenue Breakdown - Recurring revenues amounted to $1.42 billion, reflecting a 7% year-over-year increase on both reported and constant-currency bases [2] - The Investor Communication Solutions segment generated revenues of $1.6 billion, up 5% from the previous year, exceeding estimates [4] - The Global Technology and Operations segment reported revenues of $465 million, a 12% year-over-year increase, also beating estimates [4] Profitability Metrics - Adjusted operating income was $558 million, remaining flat year-over-year, with an adjusted operating income margin of 27%, up 180 basis points year-over-year [5] - The company ended the quarter with cash and cash equivalents of $561.5 million, an increase from $304.4 million in the previous quarter [5] Cash Flow and Capital Expenditures - Broadridge generated $1.2 million in cash from operating activities, with capital expenditures (capex) of $43.8 million during the quarter [6] - The company paid out $402.3 million in dividends [6] Future Guidance - For fiscal 2025, Broadridge expects recurring revenue growth of 5-7% and adjusted EPS growth of 8-12% [8] - The adjusted operating income margin is projected to be around 20%-21% [8]

PART I [Business](index=6&type=section&id=ITEM%201.%20Business) Broadridge is a global financial technology company operating in two segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO) - Broadridge operates through two main business segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO)[15](index=15&type=chunk) Segment Revenue Contribution (Fiscal Years 2025 & 2024) | Segment | FY 2025 Revenue % | FY 2024 Revenue % | | :--- | :--- | :--- | | Investor Communication Solutions (ICS) | ~74% | ~75% | | Global Technology and Operations (GTO) | ~26% | ~25% | - The company's growth strategy is centered on three key themes: driving democratization and digitization in governance, simplifying and innovating trading in capital markets, and modernizing wealth and investment management[48](index=48&type=chunk) - As of June 30, 2025, Broadridge had approximately **15,000 full-time associates** across 21 countries[84](index=84&type=chunk) [Investor Communication Solutions](index=6&type=section&id=Investor%20Communication%20Solutions) The Investor Communication Solutions (ICS) segment provides comprehensive services including regulatory, data-driven fund, corporate issuer, and customer communications solutions - ICS provides Regulatory Solutions, handling the entire proxy materials distribution and voting process for banks, broker-dealers, and corporate issuers[17](index=17&type=chunk) - The company offers Data-Driven Fund Solutions to help asset management clients optimize product distribution and maintain compliance using data, analytics, and predictive modeling[27](index=27&type=chunk) - Corporate Issuer Solutions provide a single source for shareholder communications, including proxy services, virtual shareholder meetings, SEC filings, and stock transfer agency services[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Customer Communications Solutions support various industries with omni-channel management of transactional, marketing, and regulatory communications through the Broadridge Communications Cloud platform[33](index=33&type=chunk)[34](index=34&type=chunk) [Global Technology and Operations](index=9&type=section&id=Global%20Technology%20and%20Operations) The Global Technology and Operations (GTO) segment offers mission-critical SaaS-based infrastructure automating the front-to-back transaction lifecycle for global financial markets - The GTO segment provides a SaaS platform that automates the front-to-back transaction lifecycle for equities, fixed income, mutual funds, and derivatives, covering order capture, clearing, settlement, and regulatory reporting[36](index=36&type=chunk) - Capital Markets Solutions offer global, multi-asset-class technology for trade processing, securities financing, and collateral management, processing trades in over **90 markets**[39](index=39&type=chunk) - Wealth and Investment Management Solutions deliver a modern, open-architecture platform to improve advisor productivity and investor experience, covering digital onboarding, account management, and data-driven digital marketing[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Human Capital Management](index=16&type=section&id=Human%20Capital%20Management) Broadridge's human capital strategy focuses on employee engagement, talent development, and competitive benefits for its approximately 15,000 associates - The company's human capital strategy is centered on the "Service-Profit Chain," which connects engaged associates with client satisfaction and long-term stockholder value[85](index=85&type=chunk) - In fiscal year 2025, Broadridge received an **81% overall favorable rating** in the annual Great Place to Work survey, with **83% of associates** stating it is a "great place to work"[87](index=87&type=chunk) - Broadridge invests in employee development through various initiatives, including Broadridge University, leadership programs, tuition reimbursement, and a specialized AI Academy to build foundational AI skills[88](index=88&type=chunk) [Risk Factors](index=19&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces significant risks from regulatory changes, client concentration, cybersecurity threats, market activity declines, and acquisition integration challenges - Changes in laws and regulations, particularly from the SEC or stock exchanges, could alter client communication requirements and negatively impact the company's services and profitability[98](index=98&type=chunk) - Broadridge derives a large percentage of its revenues from a small number of clients; its largest client accounted for approximately **7% of consolidated revenues** in fiscal year 2025[101](index=101&type=chunk) - Security breaches or cybersecurity incidents represent a significant risk, as the company processes and transfers sensitive personal, confidential, and proprietary data for its clients[102](index=102&type=chunk)[106](index=106&type=chunk) - The company's revenues are susceptible to declines in securities market participation and activity, which can reduce demand for proxy communications, event-driven services, and trade processing[112](index=112&type=chunk) - Acquisitions and the integration of acquired businesses present risks, including valuation challenges, complex integration processes, and potential unforeseen liabilities that could adversely affect operating results[137](index=137&type=chunk) [Unresolved Staff Comments](index=29&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[143](index=143&type=chunk) [Cybersecurity](index=30&type=section&id=ITEM%201C.%20Cybersecurity) Broadridge's cybersecurity program, overseen by the Audit Committee and CISO, integrates into enterprise risk management, adhering to NIST and ISO 27001 standards - The cybersecurity risk management program is part of the overall enterprise risk management (ERM) process, overseen by a management Risk Committee and the Board's Audit Committee[146](index=146&type=chunk)[150](index=150&type=chunk) - The company's information security program is managed by a Chief Information Security Officer (CISO) who reports to the Chief Technology Officer and provides quarterly updates to the Audit Committee[149](index=149&type=chunk)[150](index=150&type=chunk) - Broadridge aligns its program with industry standards, including the NIST Framework and ISO 27001 certification, and employs various technical controls like encryption, monitoring, and penetration testing to protect against threats[145](index=145&type=chunk)[148](index=148&type=chunk) [Properties](index=31&type=section&id=ITEM%202.%20Properties) Broadridge operates from 43 facilities, primarily leased, with key production sites for ICS totaling 2.3 million square feet across multiple locations - The company operates from **43 facilities**, with **10 leased production-related sites** totaling **2.3 million square feet** for its ICS business[151](index=151&type=chunk) [Legal Proceedings](index=31&type=section&id=ITEM%203.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond routine litigation incidental to its business operations - There are no material pending legal proceedings outside of ordinary routine litigation[152](index=152&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[153](index=153&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=ITEM%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Broadridge's common stock trades on the NYSE, with the Board approving a quarterly dividend increase and the company repurchasing shares under its program - On August 4, 2025, the Board approved a quarterly cash dividend increase to **$0.975 per share**, raising the expected annual dividend from **$3.52 to $3.90 per share**[156](index=156&type=chunk) Issuer Purchases of Equity Securities (Q4 FY2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authority (Shares) | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 123,939 | $244.72 | — | 7,251,347 | | May 2025 | 389,483 | $236.24 | 388,140 | 6,863,207 | | June 2025 | 33,993 | $244.66 | 33,990 | 6,829,217 | | **Total Q4** | **547,415** | **$238.68** | **422,130** | **6,829,217** | [Reserved](index=34&type=section&id=ITEM%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=ITEM%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Broadridge reported 6% revenue growth to $6.9 billion in FY2025, with operating income up 17% and diluted EPS up 21%, driven by recurring and event-driven revenues and strategic acquisitions Fiscal Year 2025 vs. 2024 Financial Highlights | Metric | FY 2025 | FY 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $6,889.1M | $6,506.8M | $382.3M | 6% | | **Operating Income** | $1,188.6M | $1,017.1M | $171.4M | 17% | | **Net Earnings** | $839.5M | $698.1M | $141.4M | 20% | | **Diluted EPS** | $7.10 | $5.86 | $1.24 | 21% | - Recent acquisition activity includes the purchase of SIS (wealth management solutions in Canada) and CompSci (SEC filing software) in fiscal 2025 for an aggregate price of **$193.5 million**[169](index=169&type=chunk)[170](index=170&type=chunk) - Key performance indicators showed strong operational growth, with equity positions up **16%** and internal trade growth at **13%** for fiscal year 2025[188](index=188&type=chunk) Cash Flow Summary (FY 2025 vs. 2024) | Cash Flow Activity | FY 2025 ($M) | FY 2024 ($M) | | :--- | :--- | :--- | | Net cash from operating activities | 1,171.3 | 1,056.2 | | Net cash from investing activities | (316.2) | (148.0) | | Net cash from financing activities | (600.8) | (855.5) | | **Free cash flow (Non-GAAP)** | **1,056.4** | **943.2** | [Analysis of Consolidated Statements of Earnings](index=40&type=section&id=ANALYSIS%20OF%20CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) Total revenues increased 6% to $6.9 billion in FY2025, driven by recurring and event-driven growth, leading to a 17% rise in operating income and expanded operating margin Revenue Breakdown and Growth Drivers (FY 2025) | Revenue Type | FY 2025 ($M) | Growth vs. FY 2024 (%) | | :--- | :--- | :--- | | Recurring | 4,507.9 | 7% | | Event-driven | 319.3 | 12% | | Distribution | 2,062.0 | 3% | | **Total** | **6,889.1** | **6%** | **Recurring Revenue Growth Drivers:** - Net New Business: 3 pts - Internal Growth: 2 pts - Acquisitions: 2 pts - Operating expenses increased by **$210.9 million (4%)**, primarily due to costs from the SIS acquisition, a **$58 million** impact from higher postage and distribution costs, and expenses related to higher revenues[205](index=205&type=chunk)[211](index=211&type=chunk) - Net interest expense decreased by **$15.4 million (11%)** to **$122.7 million**, mainly due to lower average borrowing rates[205](index=205&type=chunk) [Analysis of Reportable Segments](index=41&type=section&id=ANALYSIS%20OF%20REPORTABLE%20SEGMENTS) In FY2025, ICS revenue grew 5% and GTO revenue grew 8%, both segments showing increased earnings before income taxes, while Corporate and Other segment loss decreased Segment Revenues (FY 2025 vs. 2024) | Segment | FY 2025 ($M) | FY 2024 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | Investor Communication Solutions | 5,113.0 | 4,857.9 | 5% | | Global Technology and Operations | 1,776.1 | 1,648.9 | 8% | | **Total** | **6,889.1** | **6,506.8** | **6%** | Segment Earnings Before Income Taxes (FY 2025 vs. 2024) | Segment | FY 2025 ($M) | FY 2024 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | Investor Communication Solutions | 1,054.0 | 950.4 | 11% | | Global Technology and Operations | 201.4 | 173.3 | 16% | | Corporate and Other | (196.7) | (246.3) | (20)% | | **Total** | **1,058.7** | **877.4** | **21%** | - ICS recurring revenue growth of **6%** was driven by Net New Business (**5 pts**) and Internal Growth (**1 pt**)[214](index=214&type=chunk) - GTO recurring revenue growth of **8%** was driven by organic growth (**4 pts**) and the acquisition of SIS (**4 pts**)[216](index=216&type=chunk)[218](index=218&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=48&type=section&id=FINANCIAL%20CONDITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of June 30, 2025, Broadridge maintained strong liquidity with $561.5 million in cash and $1.37 billion available credit, supporting its $3.25 billion total debt and future obligations Key Balance Sheet Items (as of June 30) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 561.5 | 304.4 | | Total Assets | 8,545.0 | 8,242.4 | | Total Debt (Carrying Value) | 3,252.3 | 3,355.1 | | Total Stockholders' Equity | 2,655.1 | 2,168.2 | - As of June 30, 2025, the company had **$1,366.5 million** in remaining borrowing capacity under its revolving credit facility[243](index=243&type=chunk) Contractual Obligations as of June 30, 2025 | Obligation | Total ($M) | Less than 1 Year ($M) | 1-3 Years ($M) | 4-5 Years ($M) | After 5 Years ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt | 3,263.5 | 500.0 | 880.0 | 883.5 | 1,000.0 | | Interest and facility fee on debt | 352.6 | 121.9 | 115.2 | 93.8 | 21.7 | | Facility and equipment operating leases | 232.7 | 42.7 | 81.1 | 49.7 | 59.3 | | Purchase obligations | 633.7 | 240.7 | 306.8 | 84.5 | 1.7 | | **Total** | **4,482.6** | **905.3** | **1,383.1** | **1,111.4** | **1,082.7** | [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Broadridge faces market risks from interest rate fluctuations and foreign currency exposure, with hedging strategies in place for Euro-based net investments - As of June 30, 2025, **$1,012.6 million (31%)** of the company's total debt is based on floating interest rates; a hypothetical **100 basis point** rate increase would have reduced FY2025 pre-tax earnings by about **$13.8 million**[257](index=257&type=chunk) - Approximately **14%** of fiscal year 2025 revenues were generated outside the U.S., exposing the company to foreign currency risk; a hypothetical **10% decrease** in key foreign currencies against the U.S. dollar would have lowered FY2025 pre-tax earnings by approximately **$23.9 million**[258](index=258&type=chunk)[260](index=260&type=chunk) - The company utilizes cross-currency swap derivative contracts with a notional amount of **€880 million** to hedge a portion of its net investment in Euro-based subsidiaries[259](index=259&type=chunk) [Financial Statements and Supplementary Data](index=53&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2023-2025, including statements of earnings, balance sheets, and cash flows, along with the independent auditor's unqualified opinion Consolidated Statements of Earnings (Years ended June 30) | (In millions, except per share) | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Revenues | $6,889.1 | $6,506.8 | $6,060.9 | | Operating income | $1,188.6 | $1,017.1 | $936.4 | | Net earnings | $839.5 | $698.1 | $630.6 | | Diluted earnings per share | $7.10 | $5.86 | $5.30 | Consolidated Balance Sheets (As of June 30) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total current assets | $1,817.1 | $1,540.9 | | Total assets | $8,545.0 | $8,242.4 | | Total current liabilities | $1,861.2 | $1,421.8 | | Total liabilities | $5,889.9 | $6,074.2 | | Total stockholders' equity | $2,655.1 | $2,168.2 | Consolidated Statements of Cash Flows (Years ended June 30) | (In millions) | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Net cash flows from operating activities | $1,171.3 | $1,056.2 | $823.3 | | Net cash flows from investing activities | $(316.2) | $(148.0) | $(80.4) | | Net cash flows from financing activities | $(600.8) | $(855.5) | $(714.7) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=99&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting and financial disclosure - None[464](index=464&type=chunk) [Controls and Procedures](index=99&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 30, 2025, with no material changes reported - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[466](index=466&type=chunk) - Based on an assessment using the COSO framework, management determined that the company's internal control over financial reporting was effective as of June 30, 2025[470](index=470&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[473](index=473&type=chunk) [Other Information](index=100&type=section&id=ITEM%209B.%20Other%20Information) CEO Timothy C. Gokey adopted a Rule 10b5-1 trading plan on May 14, 2025, for the sale of company securities, set to expire in February 2026 - CEO Timothy C. Gokey adopted a Rule 10b5-1 trading plan on May 14, 2025, for the sale of company securities, which will expire in February 2026[474](index=474&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=100&type=section&id=ITEM%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[476](index=476&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=101&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming definitive proxy statement - Information for this item is incorporated by reference from the forthcoming Proxy Statement[479](index=479&type=chunk) [Executive Compensation](index=101&type=section&id=ITEM%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the forthcoming definitive proxy statement - Information for this item is incorporated by reference from the forthcoming Proxy Statement[480](index=480&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=101&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the forthcoming definitive proxy statement - Information for this item is incorporated by reference from the forthcoming Proxy Statement[481](index=481&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=101&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the forthcoming definitive proxy statement - Information for this item is incorporated by reference from the forthcoming Proxy Statement[482](index=482&type=chunk) [Principal Accounting Fees and Services](index=101&type=section&id=ITEM%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the forthcoming definitive proxy statement - Information for this item is incorporated by reference from the forthcoming Proxy Statement[483](index=483&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=102&type=section&id=ITEM%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Annual Report on Form 10-K - This item lists the financial statements, financial statement schedules, and exhibits filed with the Form 10-K[485](index=485&type=chunk) [Form 10-K Summary](index=102&type=section&id=ITEM%2016.%20Form%2010-K%20Summary) This item is not applicable - Not Applicable[486](index=486&type=chunk)

For the quarter ended June 2025, Broadridge Financial Solutions (BR) reported revenue of $2.07 billion, up 6.2% over the same period last year. EPS came in at $3.55, compared to $3.50 in the year-ago quarter. Here is how Broadridge Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Broadridge Financial here>>> Shares of Broadridge Financial have returned +3.3% over the past month versus the Za ...

Financial Data and Key Metrics Changes - Broadridge reported a 7% increase in recurring revenue on a constant currency basis and an 11% growth in adjusted EPS for fiscal year 2025, aligning with long-term objectives [5][31] - The company generated $1.1 billion in free cash flow, representing 104% of adjusted net income, positioning it well for investments and shareholder returns [29][43] - Adjusted operating income margin expanded by 50 basis points to 20.5% for the full year [31][42] Business Line Data and Key Metrics Changes - Governance recurring revenues rose 6% to $2.7 billion, driven by a 16% increase in equity shareholder positions [7][31] - Capital Markets revenues grew 6% to $1.1 billion, supported by new sales and higher trade volumes [11][36] - Wealth and Investment Management revenues increased by 12%, with a notable 26% growth in Q4, driven by the acquisition of SIS [14][36] Market Data and Key Metrics Changes - Daily average trading volumes rose above $200 billion in June, significantly up from $100 billion earlier in the year [14] - Equity position growth was 18% in Q4, with a 12% growth in revenue-generating positions for the full year [38] - Fund position growth remained strong at 7%, reflecting ongoing demand for both equity and fixed income funds [8][38] Company Strategy and Development Direction - Broadridge is focused on democratizing and digitizing governance, simplifying capital markets, and modernizing wealth management [5][23] - The company aims to leverage its investments in technology to enhance its platform capabilities and drive innovation [24][25] - The acquisition of Aklan is expected to deepen Broadridge's role as an intermediary and enhance fund data quality [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment, noting a bounce back in capital markets activity and increased investor confidence [4][5] - The company anticipates 5% to 7% recurring revenue growth and 8% to 12% adjusted EPS growth for fiscal year 2026 [6][48] - Regulatory changes are seen as opportunities for growth, particularly in digital assets and shareholder engagement [19][27] Other Important Information - Broadridge's Board approved an 11% increase in the annual dividend to $3.9 per share, marking the 13th double-digit increase in the last 14 years [6][47] - The company has a recurring revenue backlog of $430 million, providing visibility into future growth [30][78] Q&A Session Summary Question: On the contemplated closed sales acceleration - Management acknowledged longer sales cycles but noted strong underlying demand in areas where investments have been made [56][58] Question: Qualitative color on Distributed Ledger Repo (DLR) - Management highlighted the growth in DLR and its significance in the tokenized securities market, noting strong client interest [60][63] Question: Opportunities on the ICS side of the business with tokenization - Management discussed the potential for digital assets and tokenization to enhance traditional capabilities and democratize investing [68][70] Question: Drivers for Capital Markets revenue outlook - Management indicated that the exit of a business would have a modest impact on growth, contributing to a lower revenue outlook [73] Question: Change in backlog duration due to digital solutions - Management clarified that backlog duration varies by product type, with some sales taking longer to convert [79] Question: Debt profile management going forward - Management expressed confidence in the current debt level and plans to roll forward upcoming debt maturities [98]

Financial Data and Key Metrics Changes - Broadridge reported a 7% increase in recurring revenue on a constant currency basis for fiscal year 2025, with adjusted EPS growing by 11% to $8.55 [5][32] - The company generated $1.1 billion in free cash flow, representing 104% of adjusted net income, and closed sales totaled $288 million for the year [30][44] - The adjusted operating income margin for the fourth quarter was 27%, a decline of 180 basis points year-over-year, while the full year margin was 20.5%, an increase of 50 basis points [43][32] Business Line Data and Key Metrics Changes - Governance recurring revenues rose 6% to $2.7 billion, driven by a 16% increase in equity shareholder positions [7][34] - Capital Markets revenues grew 6% to $1.1 billion, with a notable 4% growth in the fourth quarter, driven by new sales and higher trade volumes [12][36] - Wealth and Investment Management revenues increased by 26% in the fourth quarter, with 11% organic growth, and full year revenues rose 12% due to the acquisition of SIS [15][38] Market Data and Key Metrics Changes - The number of equity shareholder positions rose 16% in fiscal 2025, with revenue-generating positions growing by 12% [7][39] - Daily average trading volumes in June reached over $200 billion, significantly up from $100 billion earlier in the year [15][62] - Fund position growth was 7%, with strong demand for both equity and fixed income funds [8][39] Company Strategy and Development Direction - Broadridge is focused on democratizing and digitizing governance, simplifying capital markets, and modernizing wealth management [5][25] - The company aims to leverage its investments in technology to enhance its platform capabilities and drive innovation [26][28] - The acquisition of Aklan is expected to deepen Broadridge's role as an intermediary and enhance fund data quality [11][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment, noting a bounce back in capital markets activity and increased confidence from investors [4][5] - The outlook for fiscal 2026 includes expected recurring revenue growth of 5% to 7% and adjusted EPS growth of 8% to 12% [6][49] - Management highlighted the importance of regulatory changes and digital asset legislation as opportunities for growth [21][28] Other Important Information - Broadridge's Board approved an 11% increase in the annual dividend to $3.9 per share, marking the 13th double-digit increase in the last 14 years [6][48] - The company has a recurring revenue backlog of $430 million, providing visibility into future growth [31][80] Q&A Session Summary Question: Sales cycle elongation in GTO segment - Management acknowledged longer sales cycles compared to the previous year but emphasized strong underlying demand in key areas [56][58] Question: Impact of Distributed Ledger Repo on sales - Management noted that while the Distributed Ledger Repo product is not a major driver for overall sales, it has seen significant client interest and growth [60][64] Question: Backlog duration and conversion - Management indicated that backlog duration varies by product type, with some wealth sales taking longer to convert compared to ICS products [78][80] Question: Capital Markets revenue guidance - Management explained that the lower guidance for Capital Markets revenue is partly due to the exit of a business, which is expected to have a modest impact [72][74] Question: Debt profile management - Management expressed confidence in the current debt level and plans to roll forward upcoming debt maturities [99]

Broadridge Financial Solutions (BR) came out with quarterly earnings of $3.55 per share, beating the Zacks Consensus Estimate of $3.51 per share. This compares to earnings of $3.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.14%. A quarter ago, it was expected that this technology outsourcing company would post earnings of $2.39 per share when it actually produced earnings of $2.44, delivering a surprise of +2.09%. Over ...

Financial Performance Highlights - Broadridge's FY25 recurring revenue grew by 7% in constant currency[14] - Adjusted EPS grew by 11% in FY25[14] - Closed sales reached $288 million in FY25[14] - Q4'25 Recurring revenues were $1424 million, a 7% increase[23] - Adjusted EPS for Q4'25 was $355, a 1% increase[23] Segment Performance (Recurring Revenue) - ICS (Investor Communication Solutions) recurring revenues for FY25 were $2732 million, up 6%[25] - GTO (Global Technology and Operations) recurring revenues for FY25 were $1776 million, up 8%[28] - Capital Markets recurring revenue grew by 6% to $1115 million in FY25[28] - Wealth & Investment Management recurring revenue grew by 12% to $661 million in FY25[28] Growth Drivers and Future Outlook - Equity position growth was 16% in FY25[31] - Internal Trade Growth was 13% in FY25[31] - Broadridge expects 5-7% recurring revenue growth in constant currency for FY26[14] - Broadridge projects 8-12% adjusted EPS growth for FY26[14]

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) This section provides an overview of Broadridge's strong fiscal year 2025 performance, outlines optimistic fiscal year 2026 guidance, and details its balanced capital allocation strategy [Fiscal Year 2025 Performance Summary](index=1&type=section&id=Fiscal%20Year%2025%20Performance%20Summary) Broadridge reported strong fiscal year 2025 results, characterized by 7% growth in recurring revenues on a constant currency basis and an 11% increase in Adjusted EPS. Despite a 16% decline in closed sales, the company demonstrated solid operational performance and growth across key financial metrics Fiscal Year 2025 Key Financial Results (vs. FY 2024) | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Recurring Revenues | $4,508M | $4,223M | +7% | | Total Revenues | $6,889M | $6,507M | +6% | | Operating Income | $1,189M | $1,017M | +17% | | Diluted EPS | $7.10 | $5.86 | +21% | | Adjusted EPS (Non-GAAP) | $8.55 | $7.73 | +11% | | Closed Sales | $288M | $342M | -16% | - The company is executing on its growth strategy focusing on the democratization of governance, innovation in capital markets, and modernization of wealth management[1](index=1&type=chunk) [Fiscal Year 2026 Guidance](index=1&type=section&id=Fiscal%20Year%2026%20Guidance) The company projects continued growth for fiscal year 2026, with recurring revenue expected to grow 5-7% on a constant currency basis and Adjusted EPS growth forecasted at 8-12%. Closed sales are anticipated to be in the range of $290 million to $330 million Fiscal Year 2026 Financial Guidance | Metric | Guidance | | :--- | :--- | | Recurring Revenue Growth (Constant Currency) | 5 - 7% | | Adjusted Operating Income Margin | 20 – 21% | | Adjusted EPS Growth | 8 - 12% | | Closed Sales | $290 - $330 million | - Broadridge states it is on track to deliver on its three-year top and bottom-line growth objectives[3](index=3&type=chunk) [Capital Allocation](index=1&type=section&id=Capital%20Allocation) Broadridge demonstrated a balanced capital allocation strategy in fiscal 2025, highlighted by an 11% increase in its annual dividend to $3.90 per share, marking the 19th consecutive annual increase. The company also invested in strategic M&A and repurchased $100 million of its shares - The Board of Directors approved an **11% increase** in the annual dividend to **$3.90 per share**, the **19th consecutive annual increase**[2](index=2&type=chunk)[19](index=19&type=chunk) - In fiscal year 2025, the company repurchased **$100 million** of its shares[2](index=2&type=chunk) - The company invested in strategic M&A to strengthen its wealth business in Canada[2](index=2&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of Broadridge's financial performance for the fourth quarter and full fiscal year 2025, detailing revenue and profitability across its key business segments [Fourth Quarter Fiscal Year 2025 Results](index=2&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Results) In the fourth quarter of fiscal 2025, total revenues grew 6% to $2,065 million, driven by a 7% increase in recurring revenues. Operating income rose 13% to $499 million, and Diluted EPS increased 16% to $3.16. However, Adjusted Operating income was flat compared to the prior year period Q4 2025 Financial Performance (vs. Q4 2024) | Metric | Q4 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,065M | $1,944M | +6% | | Recurring Revenues | $1,424M | $1,326M | +7% | | Operating Income | $499M | $441M | +13% | | Diluted EPS | $3.16 | $2.72 | +16% | | Adjusted EPS | $3.55 | $3.50 | +1% | [Segment Results (Q4 FY25)](index=2&type=section&id=Q4%20FY25%20Segment%20Results) In Q4, Investor Communication Solutions (ICS) revenues grew 5%, driven by 5% recurring revenue growth. Global Technology and Operations (GTO) revenues increased 12%, boosted by organic growth and the SIS acquisition. GTO's pre-tax margin declined significantly from 11.3% to 7.3% due to higher expenses and growth investments - **Investor Communication Solutions (ICS):** Total revenues increased **5%** to **$1,601 million**, with recurring revenues up **5%** driven by Net New Business and Internal Growth. Regulatory product line recurring revenue grew **8%**[7](index=7&type=chunk) - **Global Technology and Operations (GTO):** Recurring revenues grew **12%** to **$465 million**, with **6 percentage points** from organic growth and **5 percentage points** from the SIS acquisition. The Wealth and investment management product line saw a **25%** revenue increase[11](index=11&type=chunk) - **Corporate and Other:** Loss before income taxes decreased to **$53 million** from **$106 million** in the prior year, primarily due to **$54 million** of lower Restructuring and Other Related Costs[9](index=9&type=chunk) [Full Fiscal Year 2025 Results](index=3&type=section&id=Full%20Fiscal%20Year%202025%20Results) For the full fiscal year 2025, total revenues increased 6% to $6,889 million, and recurring revenues grew 7%. Operating income saw a significant 17% increase to $1,189 million, with operating margin expanding to 17.3% from 15.6%. Adjusted Operating income grew 8%, and Diluted EPS rose 21% to $7.10 Full Year 2025 Financial Performance (vs. FY 2024) | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $6,889M | $6,507M | +6% | | Recurring Revenues | $4,508M | $4,223M | +7% | | Operating Income | $1,189M | $1,017M | +17% | | Diluted EPS | $7.10 | $5.86 | +21% | | Adjusted EPS | $8.55 | $7.73 | +11% | [Segment Results (FY25)](index=4&type=section&id=FY25%20Segment%20Results) For the full fiscal year, ICS revenues grew 5%, with a 6% increase in recurring revenues and pre-tax margins expanding to 20.6%. GTO recurring revenues rose 8%, split evenly between organic growth and the SIS acquisition, with pre-tax margins improving to 11.3% - **Investor Communication Solutions (ICS):** Total revenues increased **5%** to **$5,113 million**. Recurring revenues grew **6%**, driven by Net New Business and Internal Growth. Pre-tax margins increased to **20.6%** from **19.6%**[16](index=16&type=chunk) - **Global Technology and Operations (GTO):** Recurring revenues grew **8%** to **$1,776 million**, driven by **4 percentage points** of organic growth and **4 percentage points** from the SIS acquisition. Pre-tax margins increased to **11.3%** from **10.5%**[16](index=16&type=chunk)[23](index=23&type=chunk) - **Corporate and Other:** Loss before income taxes decreased to **$197 million** from **$246 million**, due to lower restructuring costs, litigation expenses, and net interest expense[17](index=17&type=chunk) [Corporate Developments](index=5&type=section&id=Corporate%20Developments) This section highlights Broadridge's strategic corporate activities, specifically detailing the proposed acquisition of Acolin Group to expand its European fund distribution capabilities [Acolin Acquisition Announcement](index=5&type=section&id=Acolin%20Acquisition%20Announcement) On July 3, 2025, Broadridge announced the proposed acquisition of Acolin Group, a European provider of cross-border fund distribution and regulatory services. The acquisition, valued at approximately $70 million plus contingent consideration, is expected to close in the first half of fiscal 2026 and will enhance Broadridge's pan-European fund distribution network - Broadridge announced the proposed acquisition of Acolin Group Holdco Limited ("Acolin"), a leading European provider of cross-border fund distribution and regulatory services[18](index=18&type=chunk) - The total purchase price is approximately **$70 million** plus additional contingent consideration[18](index=18&type=chunk) - The acquisition is expected to close in the **first half of Broadridge's 2026 fiscal year** and will be included in the ICS reportable segment[18](index=18&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents Broadridge's core financial statements, including the consolidated statements of earnings, balance sheets, and cash flows, providing a comprehensive view of the company's financial position and performance [Condensed Consolidated Statements of Earnings](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) The statement shows a 6% increase in total revenues for fiscal year 2025, leading to a 17% rise in operating income and a 20% increase in net earnings compared to fiscal year 2024 Fiscal Year 2025 Statement of Earnings Highlights (in millions) | Account | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Revenues | $6,889.1 | $6,506.8 | | Operating income | $1,188.6 | $1,017.1 | | Earnings before income taxes | $1,058.7 | $877.4 | | Net earnings | $839.5 | $698.1 | | Diluted earnings per share | $7.10 | $5.86 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $8.55 billion from $8.24 billion a year prior. Total liabilities decreased to $5.89 billion from $6.07 billion, while total stockholders' equity grew significantly to $2.66 billion from $2.17 billion Balance Sheet Highlights (in millions, as of June 30) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total current assets | $1,817.1 | $1,540.9 | | Total assets | $8,545.0 | $8,242.4 | | Total current liabilities | $1,861.2 | $1,421.8 | | Long-term debt | $2,753.0 | $3,355.1 | | Total liabilities | $5,889.9 | $6,074.2 | | Total stockholders' equity | $2,655.1 | $2,168.2 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2025, net cash from operating activities was $1.17 billion, an increase from $1.06 billion in the prior year. The company used cash for investing activities ($316.2 million) and financing activities ($600.8 million), which included debt repayments, dividends, and share repurchases. The cash and cash equivalents balance increased by $257.1 million during the year Statement of Cash Flows Highlights (in millions, for Fiscal Year Ended June 30) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | $1,171.3 | $1,056.2 | | Net cash flows from investing activities | $(316.2) | $(148.0) | | Net cash flows from financing activities | $(600.8) | $(855.5) | | Net change in Cash and cash equivalents | $257.1 | $52.1 | | Cash and cash equivalents, end of year | $561.5 | $304.4 | [Supplemental Information](index=5&type=section&id=Supplemental%20Information) This section provides additional financial details, including segment and product line revenue breakdowns, key operating metrics, reconciliations of non-GAAP financial measures, and important disclosures regarding forward-looking statements and risk factors [Segment and Product Line Revenue Detail](index=12&type=section&id=Segment%20and%20Product%20Line%20Revenue%20Detail) This section provides a detailed breakdown of revenues by segment (ICS and GTO) and by product line for both the fourth quarter and the full fiscal year. For FY2025, ICS recurring revenues grew 6% to $2.73 billion, while GTO recurring revenues grew 8% to $1.78 billion FY 2025 Recurring Revenues by Product Line (in millions) | Segment / Product Line | FY 2025 Revenue | Change vs. FY24 | | :--- | :--- | :--- | | **ICS Recurring** | **$2,731.8** | **+6%** | | Regulatory | $1,280.6 | +7% | | Data-driven fund solutions | $459.2 | +6% | | Issuer | $273.2 | +5% | | Customer communications | $718.8 | +5% | | **GTO Recurring** | **$1,776.1** | **+8%** | | Capital markets | $1,115.3 | +6% | | Wealth and investment management | $660.8 | +10% | [Key Operating Metrics](index=15&type=section&id=Key%20Operating%20Metrics) Key operating metrics for fiscal year 2025 show a 16% decline in closed sales to $287.9 million. However, position growth was strong, with equity positions growing 16% and mutual fund/ETF positions growing 7%. Internal trade growth remained stable at 13% Select Operating Metrics (Fiscal Year Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Closed sales (in millions) | $287.9 | $341.8 | (16%) | | Equity positions growth | 16% | 6% | N/A | | Mutual fund/ETF positions growth | 7% | 3% | N/A | | Internal Trade Growth | 13% | 13% | N/A | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The report uses several Non-GAAP measures, such as Adjusted Operating Income, Adjusted EPS, and Free Cash Flow, to provide investors with insight into ongoing operating performance by excluding items like amortization of acquired intangibles, acquisition costs, and restructuring charges. Detailed reconciliations of these Non-GAAP measures to their nearest GAAP equivalents are provided - The company uses Non-GAAP measures including **Adjusted Operating income**, **Adjusted Net earnings**, **Adjusted EPS**, **Free cash flow**, and **Recurring revenue growth constant currency**[22](index=22&type=chunk) - Management believes these measures help investors understand business performance, provide consistency, and facilitate comparison by excluding items not reflective of underlying operations such as amortization of acquired intangibles, acquisition costs, and restructuring costs[23](index=23&type=chunk)[25](index=25&type=chunk)[28](index=28&type=chunk) FY 2025 Reconciliation of Operating Income to Adjusted Operating Income (in millions) | Line Item | Amount | | :--- | :--- | | Operating income (GAAP) | $1,188.6 | | Amortization of Acquired Intangibles | $196.6 | | Acquisition and Integration Costs | $18.3 | | Restructuring and Other Related Costs | $7.4 | | **Adjusted Operating income (Non-GAAP)** | **$1,410.9** | [Forward-Looking Statements and Risk Factors](index=7&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements, including the Fiscal Year 2026 Financial Guidance, which are based on current management expectations and are subject to various risks and uncertainties. Key risks include reliance on a small number of clients, potential cybersecurity attacks, market declines, and competition - The press release contains forward-looking statements, particularly in the "Fiscal Year 2026 Financial Guidance" section, which are subject to risks and uncertainties[35](index=35&type=chunk) - Key risks identified include: - Reliance on a relatively small number of clients - Material security breaches or cybersecurity attacks - Declines in securities market activity - Failure to keep pace with technological changes - Competitive conditions[38](index=38&type=chunk)

Fiscal Year 2025 Recurring revenues grew 7% on a reported and constant currency basis Diluted EPS was $7.10 and Adjusted EPS grew 11% to $8.55 Closed sales were $288 million Raising annual dividend 11% to $3.90 per share, 19th consecutive annual dividend increase Fiscal year 2026 guidance includes 5-7% Recurring revenue growth constant currency and 8-12% Adjusted EPS growth NEW YORK, Aug. 5, 2025 /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth q ...