Financial Data and Key Metrics Changes - Broadridge reported strong third quarter results with 8% recurring revenue growth and 9% adjusted EPS growth [7][23] - The company reaffirmed guidance for 6% to 8% recurring revenue growth in constant currency and expects adjusted EPS growth in the middle of the 8% to 12% range [8][42] - Recurring revenues grew 8% to $1,200 million, driven by new sales and higher trade volumes [27][36] Business Line Data and Key Metrics Changes - Governance recurring revenues rose 6%, with equity position growth strengthening to 15% [10][28] - Capital Markets reported 10% recurring revenue growth, benefiting from higher trading volumes and strong demand for global post-trade solutions [13][30] - Wealth and Investment Management revenues grew 13%, driven by the acquisition of SIS [15][30] Market Data and Key Metrics Changes - Market trading volumes have been unusually high, positively impacting Broadridge's technology performance [5][6] - The company has a $450 million revenue backlog, providing strong visibility into growth over the next 12 to 18 months [6][20] - Equity position growth is expected to remain in the mid-teens for the full year, with mutual fund and ETF position growth at 6% [31][95] Company Strategy and Development Direction - Broadridge is focused on digitizing and democratizing investing, simplifying trading, and modernizing wealth management [7][19] - The company aims to help clients reduce costs and drive innovation amid market uncertainty [6][21] - Investments in digital solutions and customer communications are expected to drive future growth [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong fiscal year results despite market volatility [7][20] - The company noted that periods of uncertainty have historically strengthened its market position [21][43] - Management highlighted the importance of being a trusted partner for clients navigating regulatory changes and market dynamics [22][80] Other Important Information - Broadridge's recurring revenue model provides insulation from market swings, allowing for ongoing growth investments [21][43] - The company is committed to maintaining expense discipline while funding reinvestment in the business [38][40] - Free cash flow for Q3 was $337 million, significantly higher than the previous year [40][41] Q&A Session Summary Question: Demand environment and investment willingness - Management noted a cautious approach from clients regarding new investments, focusing on cost reduction and operational simplification [49][50] Question: Equity position growth and revenue impact - Management highlighted robust growth in revenue positions and smaller positions, which are expected to grow into larger revenue-generating accounts over time [54][56] Question: Sales cycle elongation - Management indicated that elongation in sales cycles is being monitored but has not been linked to specific product lines or geographies [61][62] Question: Margin expansion and planned investments - Management confirmed that they are investing in the business while maintaining margin expansion, with a focus on full-year performance [63][64] Question: Regulatory environment and opportunities - Management expressed optimism about the evolving regulatory landscape and its potential benefits for Broadridge's offerings [80][82] Question: M&A pipeline attractiveness - Management acknowledged uncertainty in the M&A market but indicated that proprietary deals may still present opportunities [103][104]

Revenue Growth - Recurring revenues increased by 7% to $1,204 million in Q3 FY2025, with constant currency growth at 8%[1] - The company reaffirmed FY2025 guidance of 6-8% Recurring revenue growth in constant currency and Adjusted EPS growth in the middle of the 8-12% range[2] - Total revenues for the nine months increased by 6% to $4,824 million, with Recurring revenues up 6% to $3,084 million[9] - Revenues for the three months ended March 31, 2025, were $1,811.7 million, an increase of 4.9% compared to $1,726.5 million for the same period in 2024[34] - Total revenues for the three months ended March 31, 2025, were $1,811.7 million, representing a 5% increase from $1,726.5 million in the same period of 2024[45] - Investor Communication Solutions revenue increased to $1,347.5 million, up 4% from $1,301.4 million year-over-year[45] - Global Technology and Operations revenue rose to $464.1 million, a 9% increase compared to $425.1 million in the prior year[45] - Recurring revenues for the three months ended March 31, 2025, were $1,203.9 million, a 7% increase from $1,126.2 million year-over-year[45] - Total ICS recurring revenues for the nine months ended March 31, 2025, were $1,773.0 million, reflecting a 7% increase from $1,663.2 million in the same period of 2024[45] - Recurring revenue growth for the three months ended March 31, 2025, was 7% (GAAP), with constant currency growth (Non-GAAP) at 8%[61] - Recurring revenue growth for the Data-Driven Fund segment was 6% (GAAP) and 7% (constant currency) for the nine months ended March 31, 2025[57] - The Wealth and Investment Management segment reported a recurring revenue growth of 7% (GAAP) and 7% (constant currency) for the same period[59] Earnings Performance - Diluted EPS rose 15% to $2.05, while Adjusted EPS grew 9% to $2.44[1] - Net earnings increased by 14% to $243 million, while Adjusted Net earnings rose by 8% to $289 million[6] - Basic earnings per share for the three months ended March 31, 2025, were $2.07, compared to $1.81 for the same period in 2024, reflecting a growth of 14.4%[34] - Adjusted earnings per share (EPS) for the three months ended March 31, 2025, was $2.44, up from $2.23 in the same period of 2024[51] - Diluted earnings per share (GAAP) is anticipated to grow by 20% to 25% for FY25, while adjusted earnings per share (Non-GAAP) growth is expected to be between 8% and 12%[61] Operating Income - Operating income increased by 14% to $345 million, with an operating income margin of 19.0%[6] - The company reported a total operating income of $344.9 million for the three months ended March 31, 2025, up from $302.9 million in the same period of 2024, representing a growth of 13.9%[34] - Adjusted operating income for the three months ended March 31, 2025, was $405.2 million, up from $369.5 million in the same period of 2024[51] Cash Flow and Liquidity - Free cash flow for the nine months ended March 31, 2025, was $471.6 million, indicating strong liquidity for potential dividends and strategic acquisitions[38] - Free cash flow for the nine months ended March 31, 2025, was $393.2 million, up from $258.6 million in the previous year, representing a 52% increase[54] - The company recorded a net cash flow from operating activities of $471.6 million for the nine months ended March 31, 2025, compared to $335.2 million in the previous year[54] - Cash and cash equivalents at the end of the period were $317.2 million, compared to $235.6 million at the end of March 31, 2024, showing an increase of 34.6%[38] Strategic Focus - The company’s strategy focuses on digitizing governance and modernizing wealth management, positioning for long-term growth[3] - The company anticipates continued revenue growth and has set financial guidance for fiscal year 2025, reflecting management's positive outlook despite market uncertainties[26] Tax and Debt - The effective tax rate for Q3 FY2025 was 21.8%, up from 19.8% in the prior year period[6] - Long-term debt increased to $3,433.6 million as of March 31, 2025, compared to $3,355.1 million in the previous year[36] - The company incurred acquisition costs of $193.5 million during the nine months ended March 31, 2025, indicating ongoing investment in growth[38]

Financial Performance - Broadridge reported strong Q3 2025 results, including 8% Recurring revenue growth constant currency and 9% Adjusted EPS growth[13] - Q3 2025 Recurring revenues reached $1.204 billion, a 7% increase year-over-year, with constant currency growth of 8%[19] - Adjusted Operating income for Q3 2025 was $405 million, a 10% increase, resulting in an Adjusted Operating income margin of 22.4%, a 100 bps increase[19] - Diluted earnings per share increased by 15% to $2.05, while Adjusted earnings per share grew by 9% to $2.44[19] - The company reaffirms FY'25 guidance of 6-8% Recurring revenue growth constant currency and Adjusted EPS growth in the middle of the 8-12% range[13] Segment Performance - Governance segment revenue reached $740 million, a 6% year-over-year increase[15] - Capital Markets segment revenue was $289 million, a 10% year-over-year increase[15] - Wealth & Investment Management segment revenue totaled $175 million, a 13% year-over-year increase[15] - Within ICS, Regulatory revenue grew by 6% to $365 million, Data-Driven Fund Solutions grew by 8% to $115 million, Issuer solutions grew by 2% to $60 million, and Customer Communications grew by 5% to $199 million[24] Key Growth Drivers - Equity position growth of 15% underscores broad growth across account sizes[17] - Organic growth contributed 6 percentage points to Recurring revenue growth[31] - Acquisitions contributed 2 percentage points to Recurring revenue growth[31] Future Outlook - Broadridge is on track to achieve its three-year financial objectives and drive long-term growth[18] - FY'25 Closed sales guidance was updated to $240 - $300 million[46]

Core Viewpoint - Broadridge Financial Solutions (BR) is expected to report quarterly earnings of $2.39 per share, a 7.2% increase year-over-year, with revenues projected at $1.86 billion, reflecting a 7.6% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts' collective reevaluation of their initial estimates [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts forecast 'Revenues- Global Technology and Operations' at $468.76 million, a 10.3% increase from the prior-year quarter [5] - 'Investor Communication Solutions- Total ICS Recurring revenues' is expected to reach $751.64 million, indicating a 7.2% year-over-year change [5] - 'Investor Communication Solutions- ICS Event-driven revenues- Equity and other' is projected at $36.12 million, reflecting a -21.5% change year-over-year, while 'ICS Event-driven revenues- Mutual funds' is expected to be $29.16 million, a 38.2% increase [6] - 'Investor Communication Solutions- Total ICS Event-driven revenues' is estimated at $65.28 million, a -2.6% change from the year-ago quarter [7] - 'Revenues- Investor Communication Solutions' is projected to be $1.39 billion, a 6.8% increase from the prior-year quarter [8] - 'Investor Communication Solutions- ICS Recurring revenues- Data-driven fund solutions' is expected at $112.59 million, a 6% increase year-over-year [8] - 'Investor Communication Solutions- ICS Recurring revenues- Issuer' is forecasted at $63.67 million, a 6.8% increase, and 'ICS Recurring revenues- Customer communications' at $201.44 million, a 5.6% increase [9] - 'Global Technology and Operations- GTO Recurring revenues- Capital markets' is projected at $290.63 million, a 9.3% year-over-year increase, while 'GTO Recurring revenues- Wealth and investment management' is expected at $178.14 million, an 11.8% increase [10] Stock Performance - Broadridge Financial shares have decreased by 2.2% in the past month, compared to a -0.8% change in the Zacks S&P 500 composite, with a Zacks Rank 3 (Hold) indicating expected performance in line with the overall market [11]

NEW YORK, April 24, 2025 /PRNewswire/ -- As retirement planning grows more complex and advisory firms seek scalable, enterprise-wide solutions, OneDigital Financial Services has selected Broadridge Financial Solutions, Inc. (NYSE: BR) to enhance advisor efficiency and support its expanding retirement business. The partnership brings Broadridge's data aggregation, monitoring, reporting, and proprietary fund scoring capabilities to OneDigital's national platform. Through this implementation, OneDigital's advi ...

Core Viewpoint - Broadridge Financial Solutions, Inc. is set to announce its financial results for the third quarter of fiscal year 2025 on May 1, 2025, with a conference call scheduled for 8:30 a.m. ET on the same day [1]. Group 1: Financial Results Announcement - The financial results for the third quarter of fiscal year 2025 will be released on May 1, 2025 [1]. - A webcast and conference call will be held to discuss the results, featuring CEO Tim Gokey and CFO Ashima Ghei [1]. Group 2: Accessing the Event - Investors can access the live event and slide presentation on Broadridge's Investor Relations website [2]. - For those wishing to listen to the call, a dedicated phone line is available for U.S. callers and an international line for overseas participants [2]. Group 3: Replay Information - A replay of the webcast will be available on the Investor Relations website [3]. - The recording of the call can be accessed until May 8, 2025, using specific dial-in numbers and a passcode [3]. Group 4: Company Overview - Broadridge Financial Solutions is a global technology leader in the financial services industry, providing transformative technology and expertise [4]. - The company processes over 7 billion communications annually and supports daily trading of more than $10 trillion in securities globally [5]. - Broadridge is recognized as a Great Place to Work® and is part of the S&P 500® Index, employing over 14,000 associates across 21 countries [5].

Company Performance - Broadridge Financial Solutions (BR) has returned approximately 2.7% year-to-date, outperforming the average return of -3.9% for the Business Services sector [4] - The Zacks Consensus Estimate for BR's full-year earnings has increased by 0.1% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] Industry Comparison - Broadridge is part of the Outsourcing industry, which consists of 10 companies and currently ranks 217 in the Zacks Industry Rank, with an average loss of 1.4% this year [6] - In contrast, Fiserv (FI), another stock in the Business Services sector, has a year-to-date return of 2.4% and belongs to the Financial Transaction Services industry, which ranks 88 and has declined by 1.5% this year [5][6] Zacks Rank - Broadridge Financial Solutions holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] - Fiserv also has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 0.3% over the past three months [5]

Core Insights - Broadridge Financial Solutions and Fnality have successfully demonstrated interoperability between Broadridge's Distributed Ledger Repo (DLR) platform and Fnality's Payment System (FnPS), enhancing efficiency, liquidity, and risk reduction in financial markets [1][2][3] - The collaboration enables real-time delivery versus payment (DvP) settlement of intraday repo transactions, utilizing a digital representation of funds held at central banks [1][2] - This initiative is pivotal for the financial sector's growth and global competitiveness, supporting the transition towards real-time settlement [3] Company Overview - Broadridge Financial Solutions is a global fintech leader with over $6 billion in revenues, providing critical infrastructure for investing, corporate governance, and communications [4] - The company supports daily trading of more than $10 trillion in equities, fixed income, and other securities globally, employing over 14,000 associates in 21 countries [4] - Fnality is developing regulated DLT-based wholesale payment systems, with each system supervised by its respective central bank [6][7] Market Impact - The collaboration addresses the industry's demand for faster and more secure settlements, particularly in the U.S. and Europe [2][3] - The launch of Fnality Payment Systems (FnPS) will enable real-time cross-currency payments and secure atomic settlement of delivery versus payment transactions [7] - The Sterling FnPS, recognized as a systemically important payment system, commenced controlled live payments in December 2023, marking a significant milestone in regulated DLT-based wholesale payment systems [8][9]

Broadridge Financial Solutions (BR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...

Core Insights - Broadridge Financial Solutions has launched Broadridge Digital Assets Solutions to assist financial institutions in scaling their digital asset strategies while ensuring compliance with global regulations in the growing crypto and digital asset market [1][2][6] Company Overview - Broadridge is a global technology leader that provides transformative technology and expertise to help clients in the financial services industry operate, innovate, and grow [7] - The company processes over 7 billion communications annually and supports daily trading of more than $10 trillion in securities globally [8] Digital Asset Solutions - Broadridge Digital Asset Solutions aims to enhance investor education and choice by providing tools that allow better access, understanding, and monitoring of digital assets across various intermediaries and exchanges [2][3] - The solutions address the increasing demand for disclosure and governance in cryptocurrency and tokenized assets, helping financial institutions align with global regulatory standards [2][6] ClearFi Initiative - A key feature of Broadridge Digital Asset Solutions is ClearFi, launched in October 2024, which helps investors and advisers access and understand their digital asset investments more effectively [4] - ClearFi aggregates data from numerous trusted sources, providing standardized information that enhances transparency and investor education [5] Market Context - The global financial landscape is shifting towards digital assets, and Broadridge's solutions provide a framework for scaling operations and ensuring regulatory compliance, ultimately empowering investors [6]