Core Insights - More than half of North Americans have lost trust in companies that provide poor experiences or unclear communication, with 71% of consumers indicating a need for improvement in customer experience, a significant increase from 2019 [1][3] Group 1: Customer Experience and Trust - Customer communications are essential for enhancing the customer experience, with companies that prioritize clear and engaging communication likely to gain trust and loyalty [2][3] - 59% of respondents have lost trust in companies due to poor experiences or unclear communication [3] Group 2: Customer Personas - The study identifies two key customer personas: Engaged Explorers and Practical Optimizers, each with distinct preferences for communication and experience [3][4] - Engaged Explorers prefer interactive emails (84%) and want bills and statements consolidated digitally (87%), but only 15% feel they receive a quality experience [3] - Practical Optimizers value efficiency and clear communication, with 44% prioritizing transparency in their interactions, and 41% feel companies meet their experience expectations [4] Group 3: AI and Consumer Expectations - While AI adoption is growing, only 37% of consumers believe it has improved their overall experience, with a notable difference in perception between the two personas [7][14] - 62% of consumers are more likely to engage with companies that have advanced security measures, and 52% are willing to share personal data for better experiences [7] Group 4: Communication Preferences - Key functions companies should prioritize include honoring preferred communication channels (39%), providing simple engagement methods across channels (38%), and simplifying business interactions (33%) [6] - Despite digital advances, 55% of consumers still receive paper communications, with nearly half willing to switch to digital if options are more intuitive and secure [9]

Core Points - Broadridge Financial Solutions, Inc. has declared a quarterly cash dividend of $0.975 per share, payable on January 5, 2026, to stockholders of record as of December 12, 2025 [1] Company Overview - Broadridge Financial Solutions is a global technology leader in the financial services industry, providing transformative technology and expertise to help clients operate, innovate, and grow [2] - The company processes and generates over 7 billion communications annually and supports daily average trading of over $15 trillion in various securities globally [2] - Broadridge is part of the S&P 500 Index and employs over 15,000 associates across 21 countries [2]

Financial Data and Key Metrics Changes - Recurring revenue grew by 7% to $4.5 billion in constant currency for fiscal year 2025, while total revenues increased by 6% to $6.9 billion [15] - Adjusted EPS rose by 11% to $8.55, with free cash flow conversion at 104% [16] - An 11% increase in the annual dividend to $3.90 per share was approved, marking the 19th consecutive year of dividend increases [16] Business Line Data and Key Metrics Changes - The first quarter of fiscal year 2026 reported an 8% growth in recurring revenue and a 51% increase in adjusted EPS [17] - Closed sales for the first quarter amounted to $33 million, indicating strong execution of the company's growth strategy [17] Market Data and Key Metrics Changes - The company facilitated over $300 billion per day in tokenized trades in September, positioning itself as a leader in supporting technology for tokenized assets [28] Company Strategy and Development Direction - The company is focused on democratizing investing, simplifying trading, and modernizing wealth management, with a strong emphasis on digital assets and tokenization as key growth areas [17][18] - The management highlighted a pro-innovation regulatory backdrop and accelerating technology changes as significant opportunities for growth in financial services [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of the recurring revenue growth guidance of 5%-7% due to strong indicators such as client retention and growth in new activities like tokenization [25] - The company is optimistic about the future, emphasizing that digitization, AI, and tokenization will increasingly become core to its business [28] Other Important Information - The company conducted its 17th virtual-only annual meeting, enabling greater shareholder participation [15] - The board of directors and executive compensation received strong approval from shareholders, with over 94% and 91% votes in favor, respectively [19] Q&A Session Summary Question: Is democracy good for business? - Management affirmed that democracy is beneficial for Broadridge, supporting the stability and predictability of capital markets [23] Question: Given current macroeconomic headwinds, what gives confidence in achieving the lower end of the guidance range? - Management cited strong Q&A results and continued momentum across various indicators as reasons for confidence in achieving growth [25] Question: What specific examples can be provided regarding growth from digitization, AI, and tokenization? - Management highlighted a 25 percentage point increase in digitization over the past decade and emphasized AI's integration into all products, along with tokenization being a new mega-trend [26][28] Question: Why are shareholders not able to see questions asked by other owners at virtual meetings? - Management explained that screening of questions is part of the design to prevent inappropriate inquiries, but all questions are responded to on the investor relations website [30] Question: What can be done to streamline the ability for competitors to host virtual meetings? - Management mentioned that an API is available for competitors to host virtual meetings, allowing direct integration with their infrastructure [32]

Financial Data and Key Metrics Changes - Recurring revenue grew by 7% to $4.5 billion in fiscal year 2025, while total revenues increased by 6% to $6.9 billion [13] - Adjusted EPS rose by 11% to $8.55, with free cash flow conversion at 104% [14] - An 11% increase in the annual dividend to $3.90 per share was approved, marking the 19th consecutive year of dividend increases [14] Business Line Data and Key Metrics Changes - The first quarter of fiscal year 2026 reported an 8% growth in recurring revenue and a 51% increase in adjusted EPS [15] - Closed sales for the first quarter amounted to $33 million, indicating strong execution of the company's growth strategy [15] Market Data and Key Metrics Changes - The company facilitated over $300 billion per day in tokenized trades in September, positioning itself as a leader in supporting technology for tokenized assets [25] Company Strategy and Development Direction - The company is focused on democratizing investing, simplifying trading, and modernizing wealth management, with a strong emphasis on digital assets and tokenization as key growth areas [15][16] - The management highlighted a pro-innovation regulatory backdrop and accelerating technology changes as significant opportunities for growth in financial services [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of the recurring revenue growth guidance of 5%-7% due to strong indicators such as client retention and growth in new activities like tokenization [22][23] - The company is optimistic about the future, emphasizing that digitization, AI, and tokenization will increasingly become core to its business [26] Other Important Information - The company conducted its 17th virtual-only annual meeting, enabling increased shareholder participation [4][13] - The board of directors and executive compensation received strong approval from shareholders, with over 94% and 91% of votes in favor, respectively [18][19] Q&A Session Summary Question: Is democracy good for business? - Management affirmed that democracy is beneficial for Broadridge, supporting the stability and predictability of capital markets, which aids in wealth creation and job investment [21] Question: Given current macroeconomic headwinds, what gives confidence in achieving the lower end of the guidance range? - Management cited strong Q&A results and continued momentum across various indicators, leading to an expectation of recurring revenue growth at the higher end of the guidance range [22][23] Question: What concrete examples exist for growth from digitization, AI, and tokenization? - Management highlighted a 25 percentage point increase in digitization over the past decade, AI integration in all products, and a leadership position in tokenized trades as key growth drivers [24][25][26] Question: Why are shareholders unable to see questions asked by other owners during virtual meetings? - Management explained that this is part of the design to screen questions, ensuring appropriateness, but all questions are responded to on the investor relations website [27][28] Question: What can be done to streamline virtual meetings for competitors? - Management mentioned the availability of an API for competitors to host virtual meetings and integrate with their infrastructure [29][30]

Core Insights - Broadridge Financial Solutions has appointed Richard Street as Head of International Sales to enhance growth and collaboration in international markets [1][2] - Richard Street brings extensive experience in sales and relationship management across various regions and sectors, which will strengthen Broadridge's international capabilities [1][2] - The appointment reflects Broadridge's commitment to innovation and client-centric growth, aiming to deepen client relationships and expand global presence [2] Company Overview - Broadridge Financial Solutions is a global technology leader in the financial services industry, providing transformative technology and expertise to help clients operate, innovate, and grow [3] - The company processes over 7 billion communications annually and supports an average daily trading volume exceeding $15 trillion in various securities [4] - Broadridge is part of the S&P 500 Index and employs over 15,000 associates across 21 countries [4]

Core Insights - Broadridge Financial Solutions reported a significant increase in activity on its Distributed Ledger Repo (DLR) platform, processing an average of $385 billion in daily repo transactions in October 2025, marking a 492% year-over-year increase from $65 billion in 2024 [1] - The 2025 Broadridge Tokenization Survey indicates that tokenization is transforming capital markets by enhancing operational efficiency and transparency, with over 80% of early adopters recognizing its potential to improve client engagement [2] - Broadridge is positioned as a leader in tokenized trading, with its DLR solution being the largest institutional platform for the settlement of tokenized real assets, supporting the transition to a digital-first financial ecosystem [3] Company Overview - Broadridge Financial Solutions is a global technology leader that provides transformative technology and expertise to the financial services industry, facilitating operational resiliency and enhancing business performance [5] - The company processes over 7 billion communications annually and supports daily trading of over $15 trillion in various securities globally, employing over 15,000 associates across 21 countries [6]

Core Insights - Broadridge Financial Solutions, Inc. (BR) reported strong first-quarter fiscal 2026 results, with adjusted earnings of $1.51 per share exceeding the Zacks Consensus Estimate by 27% and increasing 51% year over year. Total revenues reached $1.59 billion, surpassing estimates by 3.56% and growing 11.7% year over year [1][9]. Financial Performance - Recurring revenues amounted to $977 million, reflecting a 9% year-over-year increase on a reported basis and 8% on a constant-currency basis [1]. - Revenues in the Investor Communication Solutions segment increased 11.3% year over year to $1.02 billion, although this was below the estimate of $1.07 billion. The Global Technology and Operations segment's revenues were $459.5 million, exceeding the estimate of $441.5 million and rising 12.8% year over year [3]. - Adjusted operating income rose 36% year over year to $251.2 million, with an adjusted operating income margin of 15.8%, up 280 basis points year over year [4]. Cash Flow and Capital Expenditures - The company generated $42.3 million in cash from operating activities, with capital expenditures of $15.2 million during the quarter. It also paid out $103.1 million in dividends [5]. Future Guidance - For fiscal 2025, Broadridge expects recurring revenue growth of 5-7% and adjusted EPS growth of 8-12%. The adjusted operating income margin is projected to be around 20-21% [6].

Financial Performance - Revenues for the three months ended September 30, 2025, increased to $1,589.4 million, up 11.7% from $1,422.9 million in the same period of 2024[12] - Operating income rose to $188.8 million, representing a 40.4% increase compared to $134.4 million in the prior year[12] - Net earnings for the quarter were $165.4 million, a significant increase of 107.1% from $79.8 million in the same quarter of 2024[12] - Basic earnings per share increased to $1.41, up from $0.68, reflecting a growth of 107.4% year-over-year[12] - Total revenues for the three months ended September 30, 2025, were $1,589.4 million, an increase of 11.7% from $1,422.9 million in the same period of 2024[58] - Recurring revenues accounted for $977.5 million, up from $900.3 million, reflecting a growth of 8.6% year-over-year[58] - Event-driven revenues increased significantly to $113.8 million, compared to $63.0 million, marking an increase of 80.6%[58] - Distribution revenues rose to $498.1 million, up from $459.5 million, representing an increase of 8.5%[58] - The company reported a comprehensive income of $195.8 million for the quarter, compared to $109.0 million in the prior year[15] - The accumulated other comprehensive income improved from $(272.9) million at June 30, 2025, to $(242.5) million at September 30, 2025[127] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $290.7 million, down from $561.5 million at the beginning of the period[20] - Net cash flows from operating activities were $42.3 million, a recovery from a negative $125.5 million in the same quarter of 2024[20] - Free cash flow for the three months ended September 30, 2025, was $12.7 million, a significant improvement from a negative $157.6 million in 2024[204] - The company expects existing cash and cash flows to be sufficient to cover cash needs for working capital, capital expenditures, strategic acquisitions, dividends, and stock repurchases for at least the next 12 months[206] - The company experienced a net change in cash and cash equivalents of $(270.8) million for the three months ended September 30, 2025[210] Assets and Liabilities - Total assets decreased to $8,302.9 million from $8,545.0 million as of June 30, 2025[18] - Total stockholders' equity decreased to $2,635.1 million from $2,655.1 million as of June 30, 2025[18] - Contract assets decreased to $126.8 million from $137.5 million, while contract liabilities decreased to $654.9 million from $678.3 million[59] - As of September 30, 2025, total debt amounted to $3,294.1 million, with a carrying value of $3,281.3 million[101] - The company has a total long-term debt of $2,794.1 million, with a carrying value of $2,781.8 million[101] - The total payables and accrued expenses decreased to $840.7 million as of September 30, 2025, from $1,112.8 million as of June 30, 2025[88] - Deferred client conversion and start-up costs were $836.4 million as of September 30, 2025, down from $842.9 million as of June 30, 2025[82][83] Acquisitions and Investments - The company incurred $55.8 million in acquisitions during the quarter, compared to $8.0 million in the same period of 2024[20] - The acquisition of LDI-MAP, LLC ("iJoin") for a total purchase price of $43.9 million, including $31.9 million in cash, was completed in September 2025[65] - The acquisition of Signal Agency Limited for $26.6 million was finalized in August 2025, enhancing the company's capabilities in omni-channel communications[66] - The aggregate purchase price for the SIS acquisition was $185.5 million, which includes cash payments of $185.5 million, net tangible liabilities assumed of $(1.9) million, goodwill of $38.3 million, and intangible assets of $149.1 million[68][69] - Broadridge announced the proposed acquisition of Acolin Group Holdco Limited for approximately $70 million, expected to close in the first half of fiscal year 2026[138] Segment Performance - Broadridge operates in two reportable segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO) [30] - The ICS segment includes services such as proxy materials processing and regulatory communications, significantly impacting investor engagement [30] - Earnings before income taxes for the Investor Communication Solutions segment were $126.4 million, while the Global Technology and Operations segment reported $67.3 million, leading to a total of $193.8 million[131] - The Investor Communication Solutions segment reported revenues of $1,130.0 million, an increase of $114.3 million, or 11%[186] - Wealth and Investment Management recurring revenue rose by 22% and 22% in constant currency, driven by 17 points from the SIS acquisition and 5 points of organic growth[192] Financial Ratios and Metrics - Operating income grew by $54.3 million, or 40%, to $188.8 million, resulting in an operating margin of 11.9%[177] - The effective tax rate for the three months ended September 30, 2025, was 22.4%, up from 20.4% in 2024[181] - Earnings before income taxes increased by $112.8 million, or 112%, to $213.1 million[185] - Adjusted Operating Income for the three months ended September 30, 2025, was $251.2 million, compared to $184.8 million in 2024, reflecting a margin increase from 13.0% to 15.8%[202] Regulatory and Compliance - The company was in compliance with all covenants of the Fiscal 2025 Revolving Credit Facility as of September 30, 2025[93] - As of September 30, 2025, Matrix Trust Company was in compliance with its regulatory capital requirements[125] Accounting and Reporting - Broadridge adopted ASU No. 2023-08, requiring crypto assets to be measured at fair value, impacting the accounting for Canton Coins starting in fiscal year 2026 [40] - The company is assessing the impact of new accounting pronouncements, including ASU No. 2023-09 on income tax disclosures, effective in Q4 fiscal year 2026 [43] - The Company’s financial statements are prepared in accordance with GAAP, and interim results may not indicate full-year performance[149]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Data and Key Metrics Changes - Broadridge reported strong first-quarter results with 8% recurring revenue growth on a constant currency basis and a 51% increase in adjusted EPS [5][21] - Total revenue increased by 12% to $1.6 billion, driven by recurring revenue growth and higher event-driven revenue [27][28] - Adjusted operating income margin expanded by 280 basis points to 15.8% [28] Business Line Data and Key Metrics Changes - Governance business revenues rose by 5%, driven by sales and healthy position growth [6][21] - Capital markets revenues grew by 6%, supported by new sales and higher trading volumes, with a notable contribution from digital asset revenues [11][23] - Wealth and investment management revenues surged by 22%, bolstered by organic growth and the acquisition of SIS [15][21] Market Data and Key Metrics Changes - Total equity position growth was 12%, with managed accounts driving this increase [7][25] - Fund position growth was 2%, impacted by the timing of communications, but mid-single-digit growth is expected for the full year [6][25] - Trade volumes rose by 17% for the quarter, indicating strong market activity [26] Company Strategy and Development Direction - Broadridge is focused on democratizing and digitizing investing, simplifying trading, and modernizing wealth management [5][16] - The company is investing in new governance solutions, expanding tokenization capabilities, and pursuing value-added acquisitions [5][16] - Tokenization is viewed as a mega trend over the next decade, with potential benefits across various asset classes [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of the 5%-7% recurring revenue growth range and reaffirmed guidance for 8%-12% adjusted EPS growth [5][20] - The positive economic backdrop and healthy capital markets are expected to support continued growth [4][5] - Management highlighted the importance of innovation in driving long-term growth and position expansion [16][69] Other Important Information - Broadridge completed two tuck-in acquisitions in the first quarter for a total of $56 million and repurchased $150 million of its shares [19][30] - The company recognized $4 million in digital asset revenues and recorded a $46 million unrealized gain on its digital asset holdings [20][29] Q&A Session Summary Question: Recurring revenue outlook and EPS guidance - Management explained that the recurring revenue guidance increase is primarily driven by acquisitions, offsetting lower interest rates, and strong underlying business performance [36][38] Question: Impact of government shutdown on sales cycles - Management indicated that there has been no slowdown in client conversations or deal closures due to the government shutdown, maintaining a stable selling environment [50][52] Question: Role of digital assets and tokenization in the business - Management views digital assets and tokenization as a significant opportunity, with plans to drive tokenization across various asset classes [54][56] Question: Position growth trends - Management reported strong position growth, particularly in equity positions driven by managed accounts and direct indexing [67][69] Question: Canton Network and super validator status - Management clarified that the super validator role is separate from the distributed ledger repo platform and that payments for this role are commonly made in coins [72][74]