Broadridge Financial Solutions , Inc. (NYSE:BR) delivered strong third-quarter fiscal 2025 results, showcasing resilient growth across all business segments while slightly adjusting its full-year sales outlook. The financial technology leader reported its results during an earnings conference call held on May 1, 2025.
Executive Summary
Broadridge reported an 8% increase in recurring revenue on a constant currency basis for the third quarter of fiscal 2025, with total revenues reaching $1.81 billion, up 5% from the same period last year. The company achieved a 9% growth in adjusted earnings per share (EPS), reaching $2.44 compared to $2.23 in Q3 FY2024.
"Broadridge delivered strong third quarter results, including 8% Recurring revenue growth constant currency and 9% Adjusted EPS growth," the company stated in its presentation, attributing the performance to "the resilience of the business, powerful long-term trends and the company’s strategy."
As shown in the following summary of financial results, Broadridge demonstrated solid growth across key metrics:
While maintaining most of its fiscal 2025 guidance, including the 6-8% recurring revenue growth target, the company revised its closed sales projection downward to $240-$300 million from the previous range of $290-$330 million.
Quarterly Performance Highlights
The third quarter saw Broadridge achieve notable improvements in profitability metrics. Operating income increased by 14% to $345 million, while adjusted operating income rose 10% to $405 million. The adjusted operating income margin expanded by 100 basis points to 22.4%.
Recurring revenue, a critical indicator of Broadridge’s business health, grew from $1.13 billion in Q3 FY2024 to $1.20 billion in Q3 FY2025. This growth trajectory is illustrated in the following chart:
A standout metric from the quarter was the 15% growth in equity positions, significantly outpacing the company’s 10-year average of 10%. Internal trade growth also remained robust at 14%, compared to the 10-year average of 7%.
The following chart illustrates these key volume drivers:
Segment Analysis
Broadridge’s business is divided into three main segments: Governance, Capital Markets, and Wealth & Investment Management. All segments demonstrated positive growth in the third quarter, with Wealth & Investment Management leading the way.
The Governance segment, which includes regulatory communications, data-driven fund solutions, issuer services, and customer communications, generated $740 million in recurring revenue, a 6% increase year-over-year. Capital Markets contributed $289 million, growing 10%, while Wealth & Investment Management delivered $175 million, representing the strongest growth at 13%.
The following breakdown shows the performance across segments:
A more detailed view of segment recurring revenues reveals the contributions from various sub-segments:
The growth in recurring revenue was driven by multiple factors, including closed sales, organic growth, and acquisitions, particularly in the GTO segment (which includes Capital Markets and Wealth & Investment Management). The following chart breaks down these growth drivers:
Guidance and Outlook
Broadridge maintained most of its fiscal 2025 guidance while adjusting expectations for closed sales. The company reaffirmed its 6-8% target for recurring revenue growth on a constant currency basis and expects adjusted EPS growth to be in the middle of the previously announced 8-12% range.
The following slide details the updated guidance:
Despite lowering the closed sales target, Broadridge remains confident in its long-term growth trajectory. Year-to-date closed sales reached $174 million, slightly below the $185 million reported for the same period last year.
The company’s free cash flow has shown significant improvement, with year-to-date free cash flow of $393 million, compared to $259 million in the prior year period. This improvement supports Broadridge’s capital allocation strategy, which includes investments in platform capabilities, strategic acquisitions, and shareholder returns.
Strategic Initiatives
Broadridge emphasized its continued focus on driving the digitization and democratization of investing, highlighting new wins in post-sale solutions and growth in distributed ledger repo solutions. The company also mentioned a wealth platform sale to a leading wealth manager, demonstrating its ability to expand its client base in high-growth segments.
Looking ahead, Broadridge remains committed to its three-year financial objectives for fiscal 2024-2026, which include 5-8% organic recurring revenue growth, 7-9% recurring revenue growth on a constant currency basis, and 8-12% adjusted EPS growth.
The company’s long-term growth strategy is built on its ability to drive innovation while helping clients reduce costs, a value proposition that becomes particularly attractive in challenging economic environments.
"Broadridge is well-positioned for long-term growth," the company stated, pointing to its execution of strategy, strong quarterly performance, and innovation capabilities as key factors supporting this outlook.
Broadridge’s stock closed at $242.40 on April 30, 2025, representing a 1.13% increase. The stock has traded between $188.30 and $247.01 over the past 52 weeks, reflecting investor confidence in the company’s growth strategy and execution.
Full presentation:
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