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]

Financial Data and Key Metrics Changes - Broadridge reported strong third quarter results with 8% recurring revenue growth and 9% adjusted EPS growth [9][25] - 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 [10][43] - Recurring revenues grew 8% to $1,200 million, driven by new sales and higher trade volumes [29][30] Business Line Data and Key Metrics Changes - Governance recurring revenues rose 6%, with equity position growth strengthening to 15% in the quarter [11][30] - Capital Markets reported 10% recurring revenue growth, benefiting from higher trading volumes and strong demand for global post-trade solutions [14][32] - Wealth and Investment Management revenues grew 13%, driven by the acquisition of SIS [16][32] Market Data and Key Metrics Changes - Market trading volumes have been unusually high, positively impacting Broadridge's performance [6][7] - The company has a $450 million revenue backlog, providing strong visibility into growth over the next 12 to 18 months [7][10] - Equity position growth is expected to remain strong, with mid-teens growth anticipated for the fourth quarter [30][34] Company Strategy and Development Direction - Broadridge is focused on digitizing and democratizing investing, simplifying trading, and modernizing wealth management [9][21] - The company aims to leverage its technology to help clients reduce costs and drive innovation amid market uncertainty [7][23] - Broadridge is well-positioned for long-term growth, with a capital-light model and investment-grade balance sheet [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong fiscal year results despite market volatility and uncertainty [9][10] - The company noted that periods of uncertainty have historically strengthened its market position [22][23] - Management highlighted ongoing demand for digital solutions and the importance of innovation in navigating economic challenges [52][80] Other Important Information - Broadridge's recurring revenue model provides insulation from market swings, allowing for ongoing growth investments [23][24] - The company is taking a disciplined approach to managing expenses, including a $5 million restructuring charge from closing a print operation [28][39] - Free cash flow for Q3 was $337 million, significantly higher than the previous year, with expectations of 95% to 105% free cash flow conversion for fiscal 2025 [41][43] 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 explained that while equity position growth is strong, smaller positions do not immediately translate into revenue but may grow 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 [60][61] Question: License activity and subscription model transition - Management discussed ongoing efforts to transition clients from a license model to a subscription model, particularly in newly acquired businesses [73][74] Question: Regulatory environment and opportunities - Management expressed optimism about the regulatory environment, highlighting opportunities in digital assets and shareholder engagement [79][80] Question: M&A pipeline attractiveness - Management acknowledged uncertainty in the M&A market but noted potential proprietary deal opportunities [102][103]

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]