Core Insights - Broadridge Financial Solutions has announced a strategic partnership with BMLL Technologies to enhance pre-trade analytics capabilities within its sell-side Order Management System (OMS) and buy-side Execution Management System (EMS) in Japan [1][2] - The integration aims to provide traders with actionable insights and advanced analytics at the point of order entry, improving trading performance and risk management [2][5] Company Overview - Broadridge is a global technology leader in financial services, facilitating daily trading of over $10 trillion in various securities [8] - The company employs over 14,000 associates across 21 countries and is part of the S&P 500 Index [8] Partnership Details - The collaboration with BMLL allows Broadridge to offer sophisticated analytics, including execution time predictions, market impact assessments, and risk exposure evaluations [2][3] - BMLL's high-quality historical data and analytics are integrated into Broadridge's platforms, enabling traders to optimize their trading decisions in real-time [4][6] Technological Enhancements - The integrated systems provide a suite of insights such as average daily volumes, real-time trading metrics, and automated order routing to adapt to changing market conditions [3][5] - BMLL's ISO27k-certified infrastructure ensures that Broadridge clients receive reliable analytics without the need to maintain their own data environments [6] Market Context - The partnership addresses the increasing complexity of modern markets, characterized by multiple trading venues and rapidly changing trading patterns [5] - By leveraging advanced analytics, Broadridge and BMLL aim to help traders anticipate volatility and minimize market impact [5]

Core Insights - Broadridge Financial Solutions has announced a strategic partnership and minority investment in Uptiq, an AI platform for financial services, aimed at modernizing wealth management and enhancing securities-based lending workflows [1][2][3] Company Overview - Broadridge Financial Solutions is a global technology leader in the financial services industry, providing transformative technology to help clients operate, innovate, and grow [4] - The company processes over 7 billion communications annually and supports daily trading of more than $15 trillion in equities and fixed income [5] Partnership Details - The integration of Uptiq's AI technology into Broadridge's Wealth Lending Network (WLN) will provide financial advisors and banks with automated solutions for securities-based lending, improving efficiency and client outcomes [1][2] - The partnership aims to address the increasing demand for AI in financial services and to create a more efficient, compliant, and personalized wealth lending process [2] Technology and Innovation - Uptiq's AI-driven platform simplifies the lending process by surfacing relevant loan options and guiding advisors, allowing them to focus on client service rather than process complexities [3] - The collaboration is expected to enhance financial advisors' access to credit solutions, improve client service, and strengthen compliance within the wealth lending ecosystem [2][3]

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]