Broadridge Reports Second Quarter Fiscal 2026 Results
Rhea-AI Summary
Broadridge (NYSE:BR) reported Q2 fiscal 2026 results for the quarter ended Dec 31, 2025: Total revenues $1,714M (+8%), Recurring revenues $1,070M (+9%; 8% constant currency), Diluted EPS $2.42 (+102%), and Adjusted EPS $1.59 (+2%).
The company raised FY'26 Adjusted EPS growth guidance to 9–12%, reaffirmed recurring revenue growth at the higher end of 5–7% CC, and noted a recent acquisition of Acolin for ~$70M.
Positive
- Recurring revenue +9% year-over-year in Q2
- Total revenue +8% to $1,714 million in Q2
- Diluted EPS $2.42, up 102% year-over-year
- Raised FY'26 adjusted EPS growth guidance to 9–12%
- Acquisition of Acolin completed for approximately $70 million
Negative
- Operating income down 2% and margin fell to 12.0%
- Event-driven revenues down 27% to $91 million
- Adjusted operating margin compressed to 15.5% from 16.6%
- Effective tax rate rose to 23.1% from 19.1%
News Market Reaction
On the day this news was published, BR declined 6.25%, reflecting a notable negative market reaction. Argus tracked a trough of -10.1% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $1.54B from the company's valuation, bringing the market cap to $23.15B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BR gained 0.62% with strong volume while multiple IT services peers also traded higher (e.g., WIT +4.26%, CTSH +1.17%, FIS +0.83%, GIB +1.12%), suggesting a broader positive sector tone alongside the company-specific earnings report.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Reputation recognition | Positive | +1.4% | Named to Fortune’s 2026 World’s Most Admired Companies list. |
| Jan 21 | Earnings call notice | Neutral | -1.2% | Announcement of date and access details for Q2 FY26 results call. |
| Jan 15 | Third-party report | Neutral | -0.7% | Hippo Housepower homeowner report; limited direct linkage to BR. |
| Jan 08 | DLR platform update | Positive | +1.6% | Distributed Ledger Repo platform processed nearly $9T in December repos. |
| Jan 08 | AI partnership | Positive | +1.6% | Strategic minority investment in DeepSee to embed agentic AI post-trade. |
Across the last five news items, BR’s stock showed consistently positive or modestly positive reactions to operational and strategic updates, with no clear instances of negative divergence.
Over recent months, Broadridge has highlighted strategic and reputational strengths alongside today’s earnings. On Jan 8, 2026, it announced a strategic AI partnership with DeepSee and disclosed its Distributed Ledger Repo platform processing nearly $9 trillion in December volumes, both followed by positive price moves around +1.6%. On Jan 22, 2026, recognition as one of Fortune’s World’s Most Admired Companies also coincided with a gain. The current fiscal 2026 results and raised EPS guidance extend this narrative of steady operational execution and technology-led growth.
Regulatory & Risk Context
Broadridge has an effective S-3ASR shelf registration dated 2025-08-05, expiring on 2028-08-05, with 0 recorded usages in the provided context. This gives the company pre-cleared flexibility to issue securities in the future, though no specific capacity or usage amounts are available here.
Market Pulse Summary
The stock moved -6.3% in the session following this news. A negative reaction despite revenue and EPS growth would fit a scenario where investors focused on weaker elements such as the 2% decline in Q2 operating income to $206M and lower operating margins. Event-driven revenue softness and higher distribution expenses could raise concerns about mix and profitability. Past news flow showed generally constructive reactions, so a sharp selloff could reflect valuation or expectations rather than a clear deterioration in fundamentals.
Key Terms
adjusted eps financial
non-gaap financial
constant currency financial
adjusted operating income financial
free cash flow financial
digital assets technical
capital markets financial
event-driven revenues financial
AI-generated analysis. Not financial advice.
Recurring revenues grew
Diluted EPS was
Raising outlook for FY'26 Adjusted EPS growth to 9
Reaffirming FY'26 guidance including Recurring revenue growth constant currency, Adjusted Operating income margin, and Closed sales
Summary Financial Results | Second Quarter | Six Months | |||||
Dollars in millions, except per share data
| 2026 | 2025 | Change | 2026 | 2025 | Change | |
Recurring revenues | 9 % | 9 % | |||||
Constant currency growth (Non-GAAP) | 8 % | 8 % | |||||
Total revenues | 8 % | 10 % | |||||
Operating income | (2 %) | 14 % | |||||
Margin | 12.0 % | 13.3 % | 12.0 % | 11.5 % | |||
Adjusted Operating income (Non-GAAP) | 1 % | 15 % | |||||
Margin (Non-GAAP) | 15.5 % | 16.6 % | 15.6 % | 14.9 % | |||
Diluted EPS | 102 % | 103 % | |||||
Adjusted EPS (Non-GAAP) | 2 % | 21 % | |||||
Closed sales | 24 % | (13 %) | |||||
"Broadridge's strong second quarter results highlight our ability to drive innovation at scale, delivering
"We are executing on our growth strategy to democratize and digitize investing, simplify and innovate trading, and modernize wealth management. Our strong results are enabling us to deliver increased bottom-line growth while funding key initiatives around tokenization, shareholder engagement, and digital communications," he continued.
"We are increasing our Adjusted EPS growth guidance to 9–
Fiscal Year 2026 Financial Guidance
FY'26 Guidance | Updates | ||
Recurring revenue growth constant currency (Non-GAAP) | Higher end of 5 - | No Change | |
Adjusted Operating income margin (Non-GAAP) | 20 - | No Change | |
Adjusted Earnings per share growth (Non-GAAP) | 9 - | Previously 8 - | |
Closed sales | No Change |
Financial Results for Second Quarter Fiscal Year 2026 compared to Second Quarter Fiscal Year 2025
- Total revenues increased
8% to$1,714 million $1,589 million - Recurring revenues increased
$90 million 9% , to$1,070 million 8% , driven by organic growth and acquisitions in ICS and GTO. - Event-driven revenues decreased
$34 million 27% , to$91 million - Distribution revenues increased
$69 million 14% , to$553 million $32 million
- Recurring revenues increased
- Operating income was
$206 million $5 million 2% . Operating income margin decreased to12.0% , compared to13.3% for the prior year period, primarily due to lower Event-driven revenues.- Adjusted Operating income was
$265 million $2 million 1% . Adjusted Operating income margin was15.5% compared to16.6% for the prior year period. The combination of higher distribution revenue and higher float income negatively impacted margins by 40 basis points.
- Adjusted Operating income was
- Interest expense, net was
$24 million $9 million - The effective tax rate was
23.1% compared to19.1% in the prior year period. The change in effective tax rate for the three months ended December 31, 2025 was primarily driven by an increase in pre-tax income relative to total discrete tax benefits. - Net earnings increased
100% to$285 million 1% to$187 million - Diluted earnings per share increased
102% to$2.42 $1.20 - Adjusted earnings per share increased
2% to$1.59 $1.56
- Diluted earnings per share increased
Segment and Other Results for Second Quarter Fiscal Year 2026 compared to Second Quarter Fiscal Year 2025
Investor Communication Solutions ("ICS")
- Total revenues were
$1,233 million $84 million 7% .- Recurring revenues increased
$49 million 9% , to$590 million 9% , driven by 4pts of Internal Growth, 3pts of Net New Business, and 2pts from acquisitions. - By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows:
- Regulatory rose
18% and18% , respectively. Equity revenue position growth was11% and Mutual fund/ETF position growth was15% . - Data-driven fund solutions decreased
2% and2% , respectively, driven by a decline in retirement and workplace products which more than offset growth in data and analytics revenues. - Issuer rose
8% and8% , respectively, driven by growth in shareholder engagement solutions. - Customer communications rose
6% and5% , respectively, driven by growth in digital revenues, as well as the acquisition of Signal Agency Limited ("Signal").
- Regulatory rose
- Event-driven revenues decreased
$34 million 27% , to$91 million - Distribution revenues increased
$69 million 14% , to$553 million $32 million
- Recurring revenues increased
- Earnings before income taxes decreased by
$37 million 21% , to$137 million 12% , or$121 million $1,096 million - Pre-tax margins decreased to
11.1% from15.1% .
Global Technology and Operations ("GTO")
- Recurring revenues were
$481 million $41 million 9% . Recurring revenue growth constant currency (Non-GAAP) was8% , driven by 6pts of organic growth and 2pts from the acquisition of Kyndryl's Securities Industry Services business ("SIS"). - By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows:
- Capital Markets rose
8% and6% , respectively, primarily driven by 5pts of revenue from new sales and 3pts of Internal Growth. Internal Growth included 3pts, or$7 million - Wealth and Investment Management rose
12% and11% , respectively, driven by 6pts of organic growth and 5pts from the SIS acquisition.
- Capital Markets rose
- Earnings before income taxes were
$78 million $28 million 56% , as higher revenues more than offset higher expenses, including the impact of the SIS acquisition. - Pre-tax margins increased to
16.1% from11.3% .
Corporate and Other
- Earnings before income taxes were
$156 million $48 million $137 million $53 million $9 million
Financial Results for Six Months Fiscal Year 2026 compared to the Six Months Fiscal Year 2025
- Total revenues increased
10% to$3,303 million $3,012 million - Recurring revenues increased
$167 million 9% , to$2,048 million 8% , driven by organic growth and acquisitions in ICS and GTO. - Event-driven revenues increased
$17 million 9% , to$204 million - Distribution revenues increased
$107 million 11% , to$1,051 million $57 million
- Recurring revenues increased
- Operating income was
$395 million $50 million 14% . Operating income margin increased to12.0% , compared to11.5% for the prior year period, primarily due to higher Recurring and Event-driven revenues.- Adjusted Operating income was
$516 million $68 million 15% . Adjusted Operating income margin was15.6% compared to14.9% for the prior year period. The combination of higher distribution revenue and higher float income negatively impacted margins by 30 basis points.
- Adjusted Operating income was
- Interest expense, net was
$48 million $17 million - The effective tax rate was
22.9% compared to19.6% in the prior year period. The change in effective tax rate for the six months ended December 31, 2025 was primarily driven by an increase in pre-tax income relative to total discrete tax benefits. - Net earnings increased
103% to$450 million 20% to$365 million - Diluted earnings per share increased
103% to$3.82 $1.88 - Adjusted earnings per share increased
21% to$3.09 $2.56
- Diluted earnings per share increased
Segment and Other Results for the Six Months Fiscal Year 2026 compared to the Six Months Fiscal Year 2025
ICS
- Total revenues were
$2,363 million $198 million 9% .- Recurring revenues increased
$74 million 7% , to$1,108 million 7% , driven by 4pts of Net New Business, 2pts of Internal Growth and 1pt from acquisitions. - By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows:
- Regulatory rose
11% and11% , respectively. Equity revenue position growth was10% and Mutual fund/ETF position growth was8% . - Data-driven fund solutions rose
1% and0% , respectively, driven by global distribution insights products. - Issuer rose
7% and7% , respectively, driven by growth in shareholder engagement solutions and disclosure solutions. - Customer communications rose
7% and7% , respectively, driven by growth in digital and print revenues, as well as the acquisition of Signal.
- Regulatory rose
- Event-driven revenues increased
$17 million 9% , to 204 million, driven by a higher volume of equity and other revenues, which offset a decline in mutual fund proxy revenues. - Distribution revenues increased
$107 million 11% , to$1,051 million $57 million
- Recurring revenues increased
- Earnings before income taxes decreased by
$7 million 3% , to$263 million 11% , or$206 million $2,100 million - Pre-tax margins decreased to
11.1% from12.5% .
GTO
- Recurring revenues were
$940 million $93 million 11% . Recurring revenue growth constant currency (Non-GAAP) was10% , driven by 6pts of organic growth and 4pts from the acquisition of SIS. - By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows:
- Capital Markets rose
8% and6% , respectively, primarily driven by 5pts of revenue from new sales and 3pts of Internal Growth. Internal Growth included 2pts, or$11 million - Wealth and Investment Management rose
17% and16% , respectively, driven by 11pts from the SIS acquisition and 6pts of organic growth.
- Capital Markets rose
- Earnings before income taxes were
$145 million $48 million 49% , as higher revenues more than offset higher expenses, including the impact of the SIS acquisition. - Pre-tax margins increased to
15.4% from11.5% .
Corporate and Other
- Earnings before income taxes were
$175 million $91 million $182 million $53 million $17 million
Subsequent Event
On January 5, 2026, the Company completed the acquisition of Acolin Group Holdco Limited ("Acolin"). Acolin is a European provider of cross-border fund distribution and regulatory services. The total purchase price was approximately
Earnings Conference Call
An analyst conference call will be held today, February 3, 2026 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the live event and access the slide presentation, visit Broadridge's Investor Relations website at www.broadridge-ir.com prior to the start of the webcast. To listen to the call, investors may also dial 1-877-328-2502 within
Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures
The Company's results in this press release are presented in accordance with
The Company believes our Non-GAAP financial measures help investors understand how management plans, measures and evaluates the Company's business performance. Management believes that Non-GAAP measures provide consistency in its financial reporting and facilitates investors' understanding of the Company's operating results and trends by providing an additional basis for comparison. Management uses these Non-GAAP financial measures to, among other things, evaluate our ongoing operations, and for internal planning and forecasting purposes. In addition, and as a consequence of the importance of these Non-GAAP financial measures in managing our business, the Company's Compensation Committee of the Board of Directors incorporates Non-GAAP financial measures in the evaluation process for determining management compensation.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share
These Non-GAAP measures are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items the exclusion of which management believes provides insight regarding our ongoing operating performance. Depending on the period presented, these adjusted measures exclude the impact of certain of the following items:
(i) Amortization of Acquired Intangibles and Purchased Intellectual Property, which represent non-cash amortization expenses associated with the Company's acquisition activities.
(ii) Acquisition and Integration Costs, which represent certain transaction and integration costs associated with the Company's acquisition activities.
(iii) Restructuring and Other Related Costs, which represent costs associated with the Company's Corporate Restructuring Initiative to exit and/or realign some of our businesses, streamline the Company's management structure, reallocate work to lower cost locations, and reduce headcount in deprioritized areas, in addition to other restructuring activities.
(iv) Gains or Losses on Digital Assets, which represents the quarterly mark to market gain or loss recorded to remeasure the Company's digital asset holdings in the form of Canton Coins to fair market value, in addition to the realized and unrealized gains or losses associated with the Company's contribution of Canton Coins to the Canton Digital Asset Treasury.
We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, and Gains or Losses on Digital Assets from our Adjusted Operating income (as applicable) and other adjusted earnings measures because excluding such information provides us with an understanding of the results from the primary operations of our business and enhances comparability across fiscal reporting periods, as these items are not reflective of our underlying operations or performance.
We also exclude the impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, as these non-cash amounts are significantly impacted by the timing and size of individual acquisitions and do not factor into the Company's capital allocation decisions, management compensation metrics or multi-year objectives. Furthermore, management believes that this adjustment enables better comparison of our results as Amortization of Acquired Intangibles and Purchased Intellectual Property will not recur in future periods once such intangible assets have been fully amortized. Although we exclude Amortization of Acquired Intangibles and Purchased Intellectual Property from our adjusted earnings measures, our management believes that it is important for investors to understand that these intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.
Free cash flow
In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated that could be used for dividends, share repurchases, strategic acquisitions, other investments, as well as debt servicing. Free cash flow is a Non-GAAP financial measure and is defined by the Company as Net cash flows provided by operating activities less Capital expenditures as well as Software purchases and capitalized internal use software.
Recurring revenue growth constant currency
As a multi-national company, we are subject to variability of our reported
Changes in Recurring revenue growth expressed on a constant currency basis are presented excluding the impact of foreign currency exchange fluctuations. To present this information, current period results for entities reporting in currencies other than the
Forward-Looking Statements
This press release and other written or oral statements made from time to time by representatives of Broadridge may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be," "on track," and other words of similar meaning, are forward-looking statements. In particular, information appearing in the "Fiscal Year 2026 Financial Guidance" section and statements about our three-year objectives are forward-looking statements.
These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors described and discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended June 30, 2025 (the "2025 Annual Report"), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2025 Annual Report.
These risks include:
- changes in laws and regulations affecting Broadridge's clients or the services provided by Broadridge;
- Broadridge's reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge's services with favorable pricing terms;
- a material security breach or cybersecurity attack affecting the information of Broadridge's clients;
- declines in participation and activity in the securities markets;
- the failure of Broadridge's key service providers to provide the anticipated levels of service;
- a disaster or other significant slowdown or failure of Broadridge's systems or error in the performance of Broadridge's services;
- overall market, economic and geopolitical conditions and their impact on the securities markets;
- the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients;
- Broadridge's failure to keep pace with changes in technology and demands of its clients;
- competitive conditions;
- Broadridge's ability to attract and retain key personnel; and
- the impact of new acquisitions and divestitures.
There may be other factors that may cause our actual results to differ materially from the forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.
Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.
About Broadridge
Broadridge Financial Solutions (NYSE: BR) is a global technology leader with trusted expertise and transformative technology, helping clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. Our technology and operations platforms process and generate over 7 billion communications annually and underpin the daily average trading of over
Contact Information
Investors
broadridgeir@broadridge.com
Media
Gregg.rosenberg@broadridge.com
Condensed Consolidated Statements of Earnings (Unaudited)
| ||||||||
In millions, except per share amounts
| Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | |||||
Revenues | $ 1,713.9 | $ 1,589.2 | $ 3,303.3 | $ 3,012.1 | ||||
Operating expenses: | ||||||||
Cost of revenues | 1,240.3 | 1,145.8 | 2,407.1 | 2,220.8 | ||||
Selling, general and administrative expenses | 267.5 | 232.8 | 501.4 | 446.1 | ||||
Total operating expenses | 1,507.9 | 1,378.5 | 2,908.5 | 2,667.0 | ||||
Operating income | 206.0 | 210.7 | 394.8 | 345.1 | ||||
Interest expense, net | (23.8) | (32.7) | (48.0) | (65.0) | ||||
Other non-operating income (expenses), net | 188.0 | (1.9) | 236.5 | (3.8) | ||||
Earnings before income taxes | 370.2 | 176.0 | 583.3 | 276.3 | ||||
Provision for income taxes | 85.7 | 33.6 | 133.4 | 54.1 | ||||
Net earnings | $ 284.6 | $ 142.4 | $ 450.0 | $ 222.2 | ||||
Basic earnings per share | $ 2.44 | $ 1.22 | $ 3.85 | $ 1.90 | ||||
Diluted earnings per share | $ 2.42 | $ 1.20 | $ 3.82 | $ 1.88 | ||||
Weighted-average shares outstanding: | ||||||||
Basic | 116.8 | 117.1 | 116.9 | 117.0 | ||||
Diluted | 117.7 | 118.3 | 117.9 | 118.2 | ||||
Amounts may not sum due to rounding. |
Condensed Consolidated Balance Sheets (Unaudited)
| |||||
In millions, except per share amounts
| December 31, | June 30, | |||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 370.7 | $ 561.5 | |||
Accounts receivable, net of allowance for doubtful accounts of | 1,065.0 | 1,077.1 | |||
Other current assets | 258.2 | 178.5 | |||
Total current assets | 1,693.9 | 1,817.1 | |||
Property, plant and equipment, net | 160.1 | 170.1 | |||
Goodwill | 3,708.6 | 3,609.6 | |||
Intangible assets, net | 1,206.3 | 1,277.4 | |||
Deferred client conversion and start-up costs | 830.6 | 842.9 | |||
Other non-current assets | 1,040.1 | 827.9 | |||
Total assets | $ 8,639.5 | $ 8,545.0 | |||
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Current portion of long-term debt | $ 499.7 | $ 499.3 | |||
Payables and accrued expenses | 974.0 | 1,112.8 | |||
Contract liabilities | 269.1 | 249.1 | |||
Total current liabilities | 1,742.8 | 1,861.2 | |||
Long-term debt | 2,673.4 | 2,753.0 | |||
Deferred taxes | 347.9 | 261.0 | |||
Contract liabilities | 410.7 | 429.2 | |||
Other non-current liabilities | 585.5 | 585.5 | |||
Total liabilities | 5,760.3 | 5,889.9 | |||
Stockholders' equity: | |||||
Preferred stock: Authorized, 25.0 shares; issued and outstanding, none | — | — | |||
Common stock, | 1.6 | 1.6 | |||
Additional paid-in capital | 1,721.2 | 1,663.0 | |||
Retained earnings | 4,103.3 | 3,862.5 | |||
Treasury stock, at cost: 37.7 and 37.3 shares, respectively | (2,747.8) | (2,599.0) | |||
Accumulated other comprehensive income (loss) | (198.9) | (272.9) | |||
Total stockholders' equity | 2,879.2 | 2,655.1 | |||
Total liabilities and stockholders' equity | $ 8,639.5 | $ 8,545.0 | |||
Amounts may not sum due to rounding. |
Condensed Consolidated Statements of Cash Flows (Unaudited)
| |||
In millions
| Six Months Ended | ||
2025 | 2024 | ||
Cash Flows From Operating Activities | |||
Net earnings | $ 450.0 | $ 222.2 | |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 65.9 | 65.1 | |
Amortization of acquired intangibles and purchased intellectual property | 102.4 | 97.7 | |
Amortization of other assets | 84.7 | 85.9 | |
Write-down of long-lived assets and related charges | 0.8 | 2.3 | |
Stock-based compensation expense | 42.4 | 36.6 | |
Deferred income taxes | 70.5 | (32.2) | |
Digital assets change in fair market value | (235.5) | — | |
Other | (18.1) | (13.0) | |
Changes in operating assets and liabilities, net of assets and liabilities acquired: | |||
Accounts receivable, net | 27.5 | 41.9 | |
Other current assets | 11.8 | (6.2) | |
Payables and accrued expenses | (204.9) | (346.3) | |
Contract liabilities | 34.3 | 18.0 | |
Other non-current assets | (39.5) | (60.4) | |
Other non-current liabilities | (25.3) | (0.3) | |
Net cash flows from operating activities | 367.1 | 111.2 | |
Cash Flows From Investing Activities | |||
Capital expenditures | (21.5) | (16.7) | |
Software purchases and capitalized internal use software | (27.0) | (38.2) | |
Acquisitions, net of cash acquired | (55.8) | (193.5) | |
Other investing activities | (18.1) | (2.0) | |
Net cash flows from investing activities | (122.5) | (250.4) | |
Cash Flows From Financing Activities | |||
Debt proceeds | 538.5 | 740.3 | |
Debt repayments | (621.1) | (437.3) | |
Dividends paid | (216.9) | (196.2) | |
Purchases of Treasury stock | (152.5) | (3.9) | |
Proceeds from exercise of stock options | 18.2 | 30.6 | |
Other financing activities | (4.6) | (5.9) | |
Net cash flows from financing activities | (438.4) | 127.7 | |
Effect of exchange rate changes on Cash and cash equivalents | 2.9 | (3.0) | |
Net change in Cash and cash equivalents | (190.8) | (14.5) | |
Cash and cash equivalents, beginning of period | 561.5 | 304.4 | |
Cash and cash equivalents, end of period | $ 370.7 | $ 289.9 | |
Amounts may not sum due to rounding. |
Segment Results (Unaudited)
| |||||||
In millions
| Three Months Ended | Six Months Ended | |||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | |||||||
Investor Communication Solutions | $ 1,233.3 | $ 1,149.2 | $ 2,363.2 | $ 2,164.8 | |||
Global Technology and Operations | 480.6 | 440.0 | 940.1 | 847.2 | |||
Total | $ 1,713.9 | $ 1,589.2 | $ 3,303.3 | $ 3,012.1 | |||
Earnings before Income Taxes | |||||||
Investor Communication Solutions | $ 136.8 | $ 174.1 | $ 263.2 | $ 270.6 | |||
Global Technology and Operations | 77.6 | 49.7 | 144.9 | 97.1 | |||
Other | 155.9 | (47.7) | 175.3 | (91.4) | |||
Total | $ 370.2 | $ 176.0 | $ 583.3 | $ 276.3 | |||
Pre-tax margins: | |||||||
Investor Communication Solutions | 11.1 % | 15.1 % | 11.1 % | 12.5 % | |||
Global Technology and Operations | 16.1 % | 11.3 % | 15.4 % | 11.5 % | |||
Amortization of acquired intangibles and purchased intellectual property | |||||||
Investor Communication Solutions | $ 10.6 | $ 10.9 | $ 20.3 | $ 22.5 | |||
Global Technology and Operations | 41.1 | 38.6 | 82.1 | 75.2 | |||
Total | $ 51.7 | $ 49.5 | $ 102.4 | $ 97.7 | |||
Amounts may not sum due to rounding. |
Supplemental Reporting Detail - Additional Product Line Reporting (Unaudited)
| |||||||||||
In millions
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | ||||||
Investor Communication Solutions | |||||||||||
Regulatory | $ 248.7 | $ 210.5 | 18 % | $ 446.0 | $ 400.4 | 11 % | |||||
Data-driven fund solutions | 112.7 | 114.5 | (2 %) | 223.7 | 222.5 | 1 % | |||||
Issuer | 38.9 | 36.0 | 8 % | 71.6 | 66.9 | 7 % | |||||
Customer communications | 189.2 | 179.2 | 6 % | 366.3 | 343.4 | 7 % | |||||
Total ICS Recurring revenues | 589.5 | 540.2 | 9 % | 1,107.5 | 1,033.2 | 7 % | |||||
Equity and other | 39.2 | 24.6 | 59 % | 63.2 | 45.8 | 38 % | |||||
Mutual funds | 51.4 | 99.9 | (49 %) | 141.2 | 141.9 | — % | |||||
Total ICS Event-driven revenues | 90.6 | 124.6 | (27 %) | 204.4 | 187.6 | 9 % | |||||
Distribution revenues | 553.2 | 484.5 | 14 % | 1,051.3 | 944.0 | 11 % | |||||
Total ICS Revenues | $ 1,233.3 | $ 1,149.2 | 7 % | $ 2,363.2 | $ 2,164.8 | 9 % | |||||
Global Technology and Operations | |||||||||||
Capital markets | $ 300.9 | $ 279.4 | 8 % | $ 581.6 | $ 540.4 | 8 % | |||||
Wealth and investment management | 179.7 | 160.6 | 12 % | 358.5 | 306.8 | 17 % | |||||
Total GTO Recurring revenues | 480.6 | 440.0 | 9 % | 940.1 | 847.2 | 11 % | |||||
Total Revenues | $ 1,713.9 | $ 1,589.2 | 8 % | $ 3,303.3 | $ 3,012.1 | 10 % | |||||
Revenues by Type | |||||||||||
Recurring revenues | $ 1,070.1 | $ 980.2 | 9 % | $ 2,047.6 | $ 1,880.5 | 9 % | |||||
Event-driven revenues | 90.6 | 124.6 | (27 %) | 204.4 | 187.6 | 9 % | |||||
Distribution revenues | 553.2 | 484.5 | 14 % | 1,051.3 | 944.0 | 11 % | |||||
Total Revenues | $ 1,713.9 | $ 1,589.2 | 8 % | $ 3,303.3 | $ 3,012.1 | 10 % | |||||
Amounts may not sum due to rounding. |
Select Operating Metrics (Unaudited)
| |||||||||||
In millions
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | ||||||
Closed sales (a) | $ 56.8 | $ 45.7 | 24 % | $ 89.3 | $ 103.2 | (13 %) | |||||
Position Growth (b) | |||||||||||
Equity positions | 17 % | 11 % | 15 % | 8 % | |||||||
Equity revenue positions | 11 % | N/A | 10 % | N/A | |||||||
Mutual fund / ETF positions | 15 % | 5 % | 8 % | 8 % | |||||||
Internal Trade Growth (c) | 11 % | 13 % | 14 % | 12 % | |||||||
Amounts may not sum due to rounding. | |||||||||||
(a) Refer to the "Results of Operations" section of Broadridge's Form 10-Q for a description of Closed sales and its calculation. |
(b) Position Growth is comprised of "equity position growth" and "mutual fund/ETF position growth." Equity position growth measures the estimated annual change in positions eligible for equity proxy materials. Beginning in the fourth quarter of fiscal year 2025, the Company began presenting information on "equity revenue position growth". Equity revenue position growth excludes small or fractional equity positions for which the Company does not recognize revenue ("non-revenue positions"). Prior-year period comparative information for this metric is not available. Mutual fund/ETF position growth measures the estimated change in mutual fund and exchange traded fund positions eligible for interim communications. These metrics are calculated from equity proxy and mutual fund/ETF position data reported to Broadridge for the same issuers or funds in both the current and prior year periods. |
(c) Represents the estimated change in daily average trade volumes for clients whose contracts are linked to trade volumes and who were on Broadridge's trading platforms in both the current and prior year periods. |
Reconciliation of Non-GAAP to GAAP Measures (Unaudited)
| |||||||
In millions, except per share amounts
| Three Months Ended | Six Months Ended | |||||
2025 | 2024 | 2025 | 2024 | ||||
Reconciliation of Adjusted Operating Income | |||||||
Operating income (GAAP) | $ 206.0 | $ 210.7 | $ 394.8 | $ 345.1 | |||
Adjustments: | |||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 51.7 | 49.5 | 102.4 | 97.7 | |||
Acquisition and Integration Costs | 2.3 | 3.1 | 9.5 | 5.3 | |||
Restructuring and Other Related Costs (a) | 5.2 | — | 9.7 | — | |||
Adjusted Operating income (Non-GAAP) | $ 265.2 | $ 263.3 | $ 516.4 | $ 448.1 | |||
Operating income margin (GAAP) | 12.0 % | 13.3 % | 12.0 % | 11.5 % | |||
Adjusted Operating income margin (Non-GAAP) | 15.5 % | 16.6 % | 15.6 % | 14.9 % | |||
Reconciliation of Adjusted Net earnings | |||||||
Net earnings (GAAP) | $ 284.6 | $ 142.4 | $ 450.0 | $ 222.2 | |||
Adjustments: | |||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 51.7 | 49.5 | 102.4 | 97.7 | |||
Acquisition and Integration Costs | 2.3 | 3.1 | 9.5 | 5.3 | |||
Restructuring and Other Related Costs (a) | 5.2 | — | 9.7 | — | |||
Gains or Losses on Digital Assets | (186.8) | — | (232.7) | — | |||
Subtotal of adjustments | (127.6) | 52.6 | (111.1) | 103.0 | |||
Tax impact of adjustments (b) | 29.7 | (10.7) | 25.8 | (22.5) | |||
Adjusted Net earnings (Non-GAAP) | $ 186.6 | $ 184.4 | $ 364.7 | $ 302.7 | |||
Reconciliation of Adjusted EPS | |||||||
Diluted earnings per share (GAAP) | $ 2.42 | $ 1.20 | $ 3.82 | $ 1.88 | |||
Adjustments: | |||||||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 0.44 | 0.42 | 0.87 | 0.83 | |||
Acquisition and Integration Costs | 0.02 | 0.03 | 0.08 | 0.04 | |||
Restructuring and Other Related Costs (a) | 0.04 | — | 0.08 | — | |||
Gains or Losses on Digital Assets | (1.59) | — | (1.97) | — | |||
Subtotal of adjustments | (1.08) | 0.44 | (0.94) | 0.87 | |||
Tax impact of adjustments (b) | 0.25 | (0.09) | 0.22 | (0.19) | |||
Adjusted earnings per share (Non-GAAP) | $ 1.59 | $ 1.56 | $ 3.09 | $ 2.56 | |||
(a) Restructuring and Other Related Costs for the three and six months ended December 31, 2025 consists of severance and other costs related to the closure of substantially all operations of a production facility. Costs incurred are not reflected in segment profit and are recorded within Corporate and Other. The total estimated pre-tax costs for actions and associated costs related to the closure are approximately |
(b) Calculated using the GAAP effective tax rate, adjusted to exclude |
Six Months Ended | |||
2025 | 2024 | ||
Reconciliation of Free cash flow | |||
Net cash flows from operating activities (GAAP) | $ 367.1 | $ 111.2 | |
Capital expenditures and Software purchases and capitalized internal use software | (48.6) | (54.9) | |
Free cash flow (Non-GAAP) | $ 318.5 | $ 56.3 | |
Reconciliation of Recurring Revenue Growth Constant Currency | |||||||||
Three Months Ended December 31, 2025 | |||||||||
Investor Communication Solutions | Regulatory | Data- | Issuer | Customer | Total | ||||
Recurring revenue growth (GAAP) | 18 % | (2 %) | 8 % | 6 % | 9 % | ||||
Impact of foreign currency exchange | 0 % | 0 % | 0 % | 0 % | 0 % | ||||
Recurring revenue growth constant currency (Non-GAAP) | 18 % | (2 %) | 8 % | 5 % | 9 % | ||||
Three Months Ended December 31, 2025 | |||||
Global Technology and Operations | Capital Markets | Wealth and | Total | ||
Recurring revenue growth (GAAP) | 8 % | 12 % | 9 % | ||
Impact of foreign currency exchange | (2 %) | (1 %) | (2 %) | ||
Recurring revenue growth constant currency (Non-GAAP) | 6 % | 11 % | 8 % | ||
Three Months Ended | |
Consolidated | Total |
Recurring revenue growth (GAAP) | 9 % |
Impact of foreign currency exchange | (1 %) |
Recurring revenue growth constant currency (Non-GAAP) | 8 % |
Six Months Ended December 31, 2025 | |||||||||
Investor Communication Solutions | Regulatory | Data- | Issuer | Customer | Total | ||||
Recurring revenue growth (GAAP) | 11 % | 1 % | 7 % | 7 % | 7 % | ||||
Impact of foreign currency exchange | 0 % | (1 %) | 0 % | 0 % | 0 % | ||||
Recurring revenue growth constant currency (Non-GAAP) | 11 % | — % | 7 % | 7 % | 7 % | ||||
Six Months Ended December 31, 2025 | |||||
Global Technology and Operations | Capital Markets | Wealth and | Total | ||
Recurring revenue growth (GAAP) | 8 % | 17 % | 11 % | ||
Impact of foreign currency exchange | (1 %) | 0 % | (1 %) | ||
Recurring revenue growth constant currency (Non-GAAP) | 6 % | 16 % | 10 % | ||
Six Months Ended | |
Consolidated | Total |
Recurring revenue growth (GAAP) | 9 % |
Impact of foreign currency exchange | (1 %) |
Recurring revenue growth constant currency (Non-GAAP) | 8 % |
Amounts may not sum due to rounding. |
Fiscal Year 2026 Guidance Reconciliation of Non-GAAP to GAAP Measures Adjusted Earnings Per Share Growth and Adjusted Operating Income Margin (Unaudited)
| ||
FY26 Recurring revenue growth | ||
Impact of foreign currency exchange (a) | ( | |
Recurring revenue growth constant currency (Non-GAAP) | 5 - | |
FY26 Adjusted Operating income margin (b) | ||
Operating income margin % (GAAP) | 17 - | |
Adjusted Operating income margin % (Non-GAAP) | 20 - | |
FY26 Adjusted earnings per share growth rate (c) | ||
Diluted earnings per share (GAAP) | 32 - | |
Adjusted earnings per share (Non-GAAP) | 9 - | |
(a) Based on forward rates as of January 2026. |
(b) Adjusted Operating income margin guidance (Non-GAAP) is adjusted to exclude the approximately |
(c) Adjusted earnings per share growth guidance (Non-GAAP) is adjusted to exclude the approximately |
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SOURCE Broadridge Financial Solutions, Inc.
FAQ
What were Broadridge's key Q2 FY2026 financial results for BR on February 3, 2026?
How did Broadridge (BR) change its FY2026 guidance on February 3, 2026?
What drove Broadridge's recurring revenue growth in Q2 FY2026 for BR?
What were the main margin and profitability headwinds mentioned by Broadridge for Q2 FY2026?
