Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q2 2025 Earnings Presentation
31 slides from Broadridge Financial Solutions's earnings presentation, Jan 31, 2025
Slide 1: Powering and transforming financial markets
Powering and transforming financial markets Earnings Conference Call Fiscal Second Quarter 2025 January 31, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and other written or oral statements made from time to time by representatives of Broadridge Financial Solutions, Inc. ("Broadridge" or the "Company") contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 3: Use of Non-GAAP financial measures, KPIs and foreign exchange rates
Use of Non-GAAP financial measures, KPIs and foreign exchange rates Use of Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures including Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share (“EPS”), Fre
Slide 4: Key messages
Key messages Broadridge delivered strong second quarter results, including 9% Recurring revenue growth 1 constant currency, record event-driven revenue, and 70% Adjusted EPS growth Our growth is being driven by long-term trends and the execution of our strategy to democratize 2 and digitize investin
Slide 5: Executing across Governance, Capital Markets, and Wealth & Investment Management
Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management Governance Q2’25 Highlights • 9% ICS Recurring revenue growth driven by new sales, highlighting importance of driving innovation and high single $540M digit position growth +9% YoY • Record event-driven re
Slide 6: Broadridge remains well-positioned for long-term growth
Broadridge remains well-positioned for long-term growth Broadridge delivered strong second quarter financial results 1 We are driving the democratization and digitization of investing, delivering innovation in Capital 2 Markets, and extending our Wealth Management franchise Broadridge remains well-p
Slide 7: Summary financial results
Summary financial results SECOND QUARTER $ in millions, except per share data 2025 2024 Inc./(Dec.) Recurring revenues $980 $899 9% Constant currency growth (Non-GAAP) 9% Total revenues 1,589 1,405 13% Operating income 211 124 69% Adjusted Operating income (Non-GAAP) 263 174 51% Adjusted Operating i
Slide 8: Second quarter 2025 Recurring revenues
Second quarter 2025 Recurring revenues $ in millions; growth in constant currency Q2 RECURRING REVENUES FISCAL YEAR RECURRING REVENUE GROWTH Acquisitions Organic growth +9% $980 16% 7% 10% 10% 9% 2% 6% 6-8% 6% 9% 9% 8% 6% 4% Q2'24 Q2'25 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 Guidance Information about
Slide 9: Second quarter 2025 segment Recurring revenues
Second quarter 2025 segment Recurring revenues $ in millions; growth in constant currency ICS RECURRING REVENUES GTO RECURRING REVENUES +9% +8% $540 $440 $210 8% Regulatory $279 6% Capital $114 8% Markets Data-Driven Fund Solutions $36 18% Issuer Customer Wealth & $179 10% Investment $161 12% Comms.
Slide 10: Key volume drivers: position and trade growth
Key volume drivers: position and trade growth EQUITY & MUTUAL FUND/ETF POSITION GROWTH FY’23 FY’24 10Y Avg. 1,2 9% 6% 10% 2 8% 3% 7% ITG 3 4% 13% 7% 11% 7% 6% 6% 5% 6% 5% 5% 3% (1%) Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 INTERNAL TRADE 12% 11% 15% 10% 13% GROWTH 1. Q2’24 equity position growth represented 9%
Slide 11: Second quarter 2025 Recurring revenue growth drivers
Second quarter 2025 Recurring revenue growth drivers $ in millions. Pts contribution to growth RECURRING REVENUE GROWTH CONSTANT CURRENCY WAS 9% Organic Growth: 7 pts 7 pts 3 pts 2 pts 9% 0 pts 9% (3) pts $980 $899 Q2'24 Recurring Closed Sales Client Losses Internal Growth Acquisitions Q2'25 Rec. Re
Slide 12: Second quarter 2025 Total revenue growth drivers
Second quarter 2025 Total revenue growth drivers $ in millions. Pts contribution to growth SECOND QUARTER 2025 TOTAL REVENUE GROWTH DRIVERS 2 pts 0 pt 13% 6 pts 5 pts $1,589 $1,405 Q2'24 Total Revenues Recurring Event-Driven Distribution FX Q2'25 Total Revenues QUARTERLY EVENT-DRIVEN REVENUES $125 $
Slide 13: Operating income margin and Adjusted Operating income margin
Operating income margin and Adjusted Operating income margin Q2’25 OPERATING INCOME FISCAL YEAR OPERATING INCOME OPERATING 8.9% 13.3% 13.8% 13.6% 13.3% 15.4% 15.6% INCOME MARGIN 20.0% ~20.0% 16.6% 19.8% +20 +110 bps bps ADJUSTED 18.7% OPERATING +60 INCOME 18.1% bps MARGIN 12.4% (NON- +60 GAAP) 17.5%
Slide 14: Closed sales
Closed sales $ in millions CLOSED SALES $342 $106 $103 $290 – $330 $280 $246 $231 $224 H1'24 H1'25 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 Guidance 13
Slide 15: Free cash flow
Free cash flow $ in millions YTD’25 FREE CASH FLOW1 FISCAL YEAR FREE CASH FLOW CONVERSION 2 102% 95% – 90% 105% 85% 84% $91 48% $56 YTD'24 YTD'25 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 (E) 1. Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides 21 –
Slide 16: Capital allocation
Capital allocation $ in millions, except per share data SELECT USES OF CASH YTD’25 TOTAL CAPITAL RETURNS3 FY’25 YTD Dividends Paid $781 CapEx and Software1 $55 Client Platform $312 $4 $269 $248 $253 Investments 2 $196 M&A $193 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 (E) 6 DIVIDENDS $2.16 $2.30 $2.56 $2.
Slide 17: Fiscal Year 2025 guidance
Fiscal Year 2025 guidance FY’25 GUIDANCE UPDATES Recurring revenue growth constant currency 6 – 8% No Change (Non-GAAP) Adjusted Operating income margin ~20% No Change (Non-GAAP) Adjusted earnings per share growth 8 – 12% No Change (Non-GAAP) Closed sales $290 – $330M No Change 16
Slide 18: Appendix
Appendix Broadridge:
Slide 19: Supplemental reporting detail - product line reporting
Supplemental reporting detail ‒ product line reporting (Unaudited) 2023 2024 2025 Q2% Dollars in millions FY Q1 Q2 Q3 Q4 FY Q1 Q2 YoY Growth Investor Communication Solutions ("ICS") Regulatory $1,141 $179 $195 $345 $477 $1,196 $190 $210 8% Data-driven fund solutions 404 102 105 106 122 435 108 114 9
Slide 20: FY'24 - FY'26 long-term growth objectives
FY’24 – FY’26 long-term growth objectives FY’24 – FY’26 (CAGR) Organic Recurring revenue growth 5-8% Recurring revenue growth constant currency 7-9% (Non-GAAP) Adjusted Operating income margin expansion (bps/year) 50+ (Non-GAAP) Adjusted earnings per share growth 8-12% (Non-GAAP) Note: AOI margin ex
Slide 21: Explanation of Non-GAAP Measures and Reconciliation of GAAP to Non-GAAP Measures
Explanation of Non-GAAP Measures and Reconciliation of GAAP to Non- GAAP Measures
Slide 22: Non-GAAP Measures
Non-GAAP Measures Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures The Company’s results in this presentation are presented in accordance with U.S. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain circumstances, results have
Slide 23: Non-GAAP Measures
Non-GAAP Measures We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, Litigation Settlement Charges, Russia-Related Exit Costs, Real Estate Realignment and Covid-19 Related Expenses, Investment Gains, the Software Charge, Gain on Acquisition-Related Financial Instrum
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended December 31, 2024 Data-Driven Fund Customer Investor Communication Solutions Regulatory Issuer Total Solutions Communications Recurring revenue growth (GAAP) 8% 9% 18% 10% 9% Impact of foreign currency exchange 0% 0% 0% 0% 0%
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Six Months Ended December 31, 2024 Data-Driven Fund Customer Investor Communication Solutions Regulatory Issuer Total Solutions Communications Recurring revenue growth (GAAP) 7% 7% 13% 7% 7% Impact of foreign currency exchange 0% 0% 0% 0% 0% Re
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year Ended June 30, 2024 Consolidated Recurring revenue growth (GAAP) 6% Impact of foreign currency exchange 0% Recurring revenue growth constant currency (Non-GAAP) 6% Fiscal Year Ended June 30, 2023 Consolidated Recurring revenue growt
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended Dec. 31, Six Months Ended Dec. 31, Fiscal Year Ended June 30, Dollars in millions 2024 2023 2024 2023 2024 2023 2022 2021 2020 Operating income (GAAP) $210.7 $124.4 $345.1 $272.8 $1,017.1 $936.4 $759.9 $678.7 $624.9 Adjustmen
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Six Months Ended December Fiscal Year Ended June 30, 31, Dollars in millions 2024 2023 2024 2023 2022 2021 2020 Net cash flows from operating activities (GAAP) $ 111.2 $ 127.8 $1,056.2 $823.3 $443.5 $640.1 $598.2 Capital expenditures and Softwa
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended December 31, Six Months Ended December 31, Dollars in millions, except per share amounts 2024 2023 2024 2023 Diluted earnings per share (GAAP) $1.20 $0.59 $1.88 $1.35 Adjustments: Amortization of Acquired Intangibles and Purc
Slide 30: Reconciliation of GAAP to Non-GAAP Measures: Fiscal Year 2025 guidance
Reconciliation of GAAP to Non-GAAP Measures: Fiscal Year 2025 guidance (Unaudited) Fiscal Year 2025 FY25 Recurring revenue growth Impact of foreign currency exchange (a) 0% - 0.5% Recurring revenue growth constant currency (Non-GAAP) 6 - 8% FY25 Adjusted Operating income margin (b) Operating income
Slide 31: Fiscal Second Quarter 2025 Earnings Conference Call
Broadridge Fiscal Second Quarter 2025 Earnings Conference Call Contacts Replay Options W. Edings Thibault Online replay available at broadridge-ir.com Sean Silva Telephone replay available through February 7, 2025 broadridgeir@broadridge.com Domestic Dial-In: 1-877-344-7529 Live Call Information Dat
Broadridge Financial Solutions — Q2 2025 Earnings Presentation on 6ix