Broadridge Financial Solutions Reports Robust Third Quarter Results for Fiscal Year 2025

Broadridge Financial Solutions Reports Third Quarter Results

On May 1, 2025, Broadridge Financial Solutions, Inc. (NYSE: BR) released its financial results for the third quarter ending March 31, 2025, showcasing solid performance amid challenging market conditions. The company reported that recurring revenues grew by 7%, reaching $1.204 billion, and in constant currency terms, the growth was a robust 8%. This strong performance is attributed to effective operational execution within their Investor Communication Solutions (ICS) and Global Technology and Operations (GTO) segments.

Financial Performance Overview

Broadridge's total revenues increased to $1.812 billion for the third quarter, a 5% rise compared to $1.726 billion in the same period last year. Operating income surged by 14% to $345 million, reflecting a margin improvement from 17.5% to 19%. Adjusted operating income grew to $405 million, showing a 10% growth, with a margin that also increased to 22.4% from 21.4% in the previous year.

Earnings Metrics

The earnings per share (EPS) figures were particularly noteworthy: diluted EPS increased by 15%, reaching $2.05, while adjusted EPS rose by 9% to $2.44. These numbers affirm Broadridge's commitment to enhancing shareholder value. With a net income increase of 14% to $243 million, the company's ongoing efforts in revenue management are evident.

Segment Performance

In examining the specific segments, the Investor Communication Solutions experienced revenue of $1.348 billion, a gain of 4% over the prior year. Recurring revenues surpassed $740 million, driven largely by new business acquisition and internal growth. Despite a reduction in event-driven revenues, which fell by 21% due to decreased equity proxy contest activity, distribution revenues grew by 4% due to adjustments in postage rates.

Meanwhile, the Global Technology and Operations segment saw recurring revenues rise by 9% to $464 million, with an impressive constant currency growth of 11%. This growth was bolstered by internal sales enhancements and contributions from the recent acquisition of Kyndryl's Securities Industry Services business.

Adjusted Earnings and Future Guidance

Broadridge maintained its guidance for fiscal year 2025, projecting a recurring revenue growth rate of 6% to 8% in constant currency, with adjusted EPS growth anticipated in the middle of the 8% to 12% range. CEO Tim Gokey views these results as validation of their strategic approach to digitization and innovation within capital markets and wealth management. He noted, “Our continued execution is being driven by the resilience of our business and powerful long-term trends.”

The company's strategic direction remains focused on modernizing governance and streamlining operations, positioning Broadridge for sustained growth in the upcoming fiscal years. The effective management of resources and alignment with technological advancements will be crucial in meeting future objectives.

Investor Relations Update

For those interested in further details, Broadridge will host an analyst conference call today at 8:30 a.m. ET, where executives will discuss the financial results in depth. This conference can be accessed through the Broadridge Investor Relations website, and a replay will be available for interested stakeholders following the live event.

As a noteworthy leader in providing critical infrastructure for financial services, Broadridge continues to pave the way for innovation while seeking to enhance operational efficiencies across the board. Staying attuned to market demands and investing in technological evolution will remain fundamental to achieving long-term success.