Broadridge Financial Solutions Reports 5% Revenue Growth to $1.81 Billion

Broadridge Financial Solutions, Inc. reported a revenue increase of 5% for the three months ended March 31, 2025, reaching $1.81 billion, compared to $1.73 billion in the same period last year. The company's net earnings also rose by 14% to $243.1 million, or $2.05 per diluted share, up from $213.7 million, or $1.79 per diluted share, in the prior year. For the nine months ended March 31, 2025, total revenues increased by 6% to $4.82 billion, while net earnings grew by 24% to $465.3 million.

The financial performance reflects a notable increase in recurring revenues, which rose by 7% to $1.20 billion for the quarter, driven by organic growth in both the Investor Communication Solutions (ICS) and Global Technology and Operations (GTO) segments. However, event-driven revenues decreased by 21% due to lower equity proxy contest activity. Distribution revenues increased by 4%, primarily attributed to a postage rate increase. Operating expenses also rose, but at a slower rate of 3%, leading to an operating income margin improvement to 19% from 17.5% in the previous year.

Strategically, Broadridge completed the acquisition of Kyndryl’s Securities Industry Services (SIS) business on November 1, 2024, which is expected to enhance its capabilities in wealth management and capital markets in Canada. This acquisition is included in the GTO segment and is anticipated to contribute positively to future revenues. The company also reported a significant increase in cash flows from operating activities, which rose to $471.6 million for the nine months ended March 31, 2025, compared to $335.2 million in the prior year.

Operationally, Broadridge's customer base remains strong, with a total of 117.5 million shares outstanding as of April 28, 2025. The company continues to focus on enhancing its technology solutions and expanding its market presence, particularly in the digital communications and regulatory compliance sectors. The company’s management expressed confidence in its ability to sustain growth, citing ongoing investments in technology and strategic acquisitions as key drivers for future performance.

Looking ahead, Broadridge anticipates continued growth in recurring revenues, supported by its strategic initiatives and market demand for its services. The company remains committed to leveraging its technology-driven solutions to enhance client engagement and operational efficiency, while also navigating potential market challenges and regulatory changes.