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]