Broadridge Financial Solutions (NYSE:BR) 2026 Conference Transcript

Broadridge Financial Solutions Conference Summary Company Overview - Company: Broadridge Financial Solutions (NYSE:BR) - Market Position: Positioned at the intersection of capital markets, wealth management, asset management, and corporate issuers - Growth: Increased from 3,000 associates and a $2.5 billion market cap in 2010 to 15,000 associates and a $22 billion market cap today [3][4] Financial Performance - Recurring Revenue: $4.5 billion in recurring fee revenues - Trade Processing: Processes $15 trillion of trades daily and $400 billion in tokenized assets [3][4] - Shareholder Positions: Manages 1.5 billion shareholder positions across 150 million accounts [4] Key Investment Areas - Democratization of Investing: Focus on tokenization and shareholder engagement, with a belief that these trends will drive growth [5][6] - AI Integration: Utilizing AI for data analytics and operational efficiency, enhancing client engagement and predictive capabilities [6][58] - Regulatory Communications: Anticipates mid- to high-single-digit position growth driven by continuous innovation in financial services [12][13] Market Trends and Opportunities - Tokenization: Seen as a significant growth driver, with expectations that tokenized securities will still require traditional governance structures [42][43] - Digital Transformation: Emphasis on digitizing communications and operations, with a focus on simplifying platforms for clients [29][30] - Acquisition Strategy: Recent acquisition of CQG for $170 million, expected to contribute 5 points of growth to capital markets [28][29] Financial Model and Guidance - Growth Projections: Organic growth of 5%-7%, with an additional 1-2 points from M&A, targeting 7%-9% recurring revenue growth [8] - Earnings Growth: Guidance for earnings growth of 10%, with a focus on delivering low teens returns to shareholders [8][67] - Capital Allocation: Balanced approach to capital allocation, focusing on internal investments, dividends, and strategic M&A [69][70] Risks and Regulatory Environment - Regulatory Scrutiny: No significant risk identified regarding proxy voting technology; focus remains on tokenization and digital assets [25][26] - Market Volatility: Company acts as a lagging indicator in response to market volatility, with retail investors showing resilience [16][38] Client Engagement and Sales Pipeline - Sales Activity: New originations up 20% year-over-year, with a healthy pipeline multiplier indicating strong future sales potential [36][37] - Client Conversations: Engaging with clients on digital communications infrastructure and standing instructions for public companies, indicating strong demand [75][76] Conclusion - Broadridge is well-positioned to capitalize on ongoing changes in the financial services industry, with a strong focus on innovation, client engagement, and strategic growth initiatives. The company aims to leverage its market infrastructure to drive future growth while maintaining a balanced approach to capital allocation and risk management.