Broadridge(US:BR)2026-02-03 17:16Financial Performance - Revenues for the three months ended December 31, 2025, increased to $1,713.9 million, up 7.8% from $1,589.2 million in the same period of 2024[13] - Net earnings for the six months ended December 31, 2025, reached $450.0 million, a significant increase of 102.5% compared to $222.2 million in the prior year[13] - Basic earnings per share for the three months ended December 31, 2025, was $2.44, representing a 100% increase from $1.22 in the same quarter of 2024[13] - Comprehensive income for the six months ended December 31, 2025, was reported at $523.9 million, compared to $328.1 million for the previous period, indicating a year-over-year increase of approximately 59.7%[27] - The company reported diluted earnings per share of $0.20 for the three months ended December 31, 2025, compared to $0.17 for the same period in 2024[69] - Net earnings for the three months ended December 31, 2025, were $284.6 million, an increase of $142.1 million, or 100%, compared to $142.4 million in 2024[191] - Operating income for the three months ended December 31, 2025, was $206.0 million, a decrease of $4.6 million, or 2%, from $210.7 million in 2024[191] - Operating income for the six months ended December 31, 2025, was $394.8 million, reflecting a 14% increase from $345.1 million in 2024[199] Revenue Breakdown - The Investor Communication Solutions segment generated total revenues of $1,233.3 million for the three months ended December 31, 2025, compared to $1,149.2 million in the same period of 2024, marking a 7.3% increase[66] - Revenues for the three months ended December 31, 2025, were $1,713.9 million, with Investor Communication Solutions contributing $1,233.3 million and Global Technology and Operations contributing $480.6 million[146] - For the six months ended December 31, 2025, total revenues reached $3,303.3 million, with Investor Communication Solutions at $2,363.2 million and Global Technology and Operations at $940.1 million[146] - Recurring revenues for the six months ended December 31, 2025, reached $2,047.6 million, up from $1,880 million in the prior year, reflecting a growth of 8.9%[66] - Distribution revenues increased by $107.3 million, or 11%, driven by a postage rate increase and higher event-driven mailings[205] Expenses and Costs - Total operating expenses for the three months ended December 31, 2025, were $1,507.9 million, an increase of 9.4% from $1,378.5 million in the prior year[13] - Cost of revenues increased by $186.3 million, or 8%, to $2,407.1 million, primarily due to higher expenses in the ICS segment[199] - Selling, general and administrative expenses rose by $55.3 million, or 12%, primarily due to higher technology investments and compensation-related expenses[199] - Interest expense decreased by $17.0 million, or 26%, to $48.0 million, attributed to lower average borrowings and borrowing costs[202] Cash Flow and Assets - Cash flows from operating activities for the six months ended December 31, 2025, amounted to $367.1 million, compared to $111.2 million in the same period of 2024[24] - Total assets as of December 31, 2025, were $8,639.5 million, an increase from $8,545.0 million as of June 30, 2025[20] - Cash and cash equivalents at the end of the period were $370.7 million, down from $561.5 million at the beginning of the period[24] - Total liabilities as of December 31, 2025, were $33.2 million, including $10.7 million in derivative liabilities and $22.5 million in contingent consideration obligations[81] Equity and Stockholder Information - As of December 31, 2025, total stockholders' equity increased to $2,879.2 million, up from $2,635.1 million on September 30, 2025, reflecting a growth of approximately 9.3%[27] - The company reported a retained earnings balance of $4,103.3 million as of December 31, 2025, an increase from $3,932.5 million on September 30, 2025[27] - Common stock dividends declared were $0.975 per share for the period ending December 31, 2025, totaling $113.8 million[27] Acquisitions and Investments - The company acquired LDI-MAP, LLC for a total purchase price of $43.9 million, which includes $31.9 million in cash and contingent consideration of $8.5 million[74] - The acquisition of Signal Agency Limited was completed for a total price of $26.6 million, net of cash acquired[75] - The company completed the acquisition of Acolin Group Holdco Limited for approximately $70.1 million on January 5, 2026, enhancing its cross-border fund distribution capabilities[148] - In September 2025, the company acquired LDI-MAP, LLC for $70.5 million, expanding its retirement plan technology offerings[153] Accounting and Compliance - The company adopted a new accounting standard (ASU 2023-08), which may impact future financial reporting and disclosures[27] - The Company’s financial statements are prepared in accordance with GAAP and include all normal and recurring adjustments necessary for fair presentation[45] - The company is currently assessing the impact of several recently issued accounting pronouncements on its Consolidated Financial Statements[51][52][53][54][55][56] Market and Operational Insights - The company operates in two segments: Investor Communication Solutions and Global Technology and Operations, focusing on delivering technology-driven solutions to financial markets[37] - Broadridge's technology solutions support over 90 markets globally, enhancing trade processing and compliance for capital markets firms[42] - The company emphasizes the importance of acquisitions to meet strategic needs and enhance operational efficiency[152] - The company’s Global Technology and Operations segment offers SaaS solutions that automate the front-to-back transaction lifecycle across various asset classes[160]