Financial Data and Key Metrics Changes - Broadridge reported an 8% growth in recurring revenue on a constant currency basis and a 51% increase in adjusted EPS [6][27] - Adjusted operating income margin expanded by 280 basis points to 15.8% [27][37] - Total revenue increased by 12% to $1.6 billion, driven by recurring revenue growth and higher event-driven revenue [35][27] Business Line Data and Key Metrics Changes - Governance revenues rose by 5%, driven by sales and healthy position growth [8][28] - Capital markets revenues grew by 6%, supported by new sales and higher trading volumes [14][30] - Wealth and Investment Management revenues surged by 22%, attributed to solid organic growth and the SIS acquisition [19][31] Market Data and Key Metrics Changes - Total equity position growth was 12%, with managed accounts driving this increase [9][32] - Fund position growth was 2%, impacted by the timing of communications, but mid-single-digit growth is expected for the full year [8][32] - Trade volumes rose by 17% for the quarter, indicating strong demand in both equity and fixed income markets [32][93] Company Strategy and Development Direction - Broadridge is focused on democratizing and digitizing investing, simplifying trading, and modernizing wealth management [6][22] - The company is investing in new governance solutions, expanding tokenization capabilities, and pursuing value-added acquisitions [5][6] - Tokenization is viewed as a megatrend that will drive long-term growth and democratization in financial services [17][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of the 5% to 7% recurring revenue growth range and reaffirmed guidance for 8% to 12% adjusted EPS growth [7][26] - The positive economic backdrop and healthy capital markets are benefiting financial services clients [4][5] - Management highlighted the importance of innovation in driving long-term position growth and adapting to market changes [78][66] Other Important Information - Broadridge repurchased $150 million of its shares and completed two tuck-in acquisitions totaling $56 million [25][40] - The company recorded a $46 million unrealized gain on digital asset holdings, which was excluded from adjusted EPS calculations [27][38] - The Canton network is expected to serve as an operating system for tokenized institutional markets, with Broadridge contributing to its development [18][66] Q&A Session Summary Question: Recurring revenue outlook and EPS guidance - Management explained that the recurring revenue guidance increase is primarily driven by acquisitions and strong underlying business performance, while EPS guidance remains conservative due to expected normalization of event-driven revenue [46][50] Question: Impact of government shutdown on sales cycles - Management indicated that there has been no slowdown in client conversations or deal closures due to the government shutdown, maintaining a stable selling environment [60][62] Question: Role of digital assets and tokenization in business - Management views digital assets and tokenization as a significant opportunity, with plans to integrate these innovations across various asset classes [64][66] Question: Position growth trends - Management reported strong position growth in equities and funds, with direct indexing driving managed account growth [75][78] Question: Canton network and super validator role - Management clarified that the super validator role is separate from the distributed ledger repo platform, and payments for this role are commonly made in coins [80][82]

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]