BR - Earnings call transcript Q2 2025 | Broadridge Financial Solutions, Inc.

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Operator

Good day, and welcome to the Broadridge Fiscal Second Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Edings Thibault, Head of Investor Relations. Please go ahead.

W. Thibault

Thank you. welcome Second and XXXX Fiscal everybody, Call. Earnings morning, to Quarter Broadridge's Year Good

and that of the may release earnings Our slides on Investor be accompany the Relations section broadridge.com. found call this

call this Chief our Ashima Joining me Officer, on morning Tim CEO; Financial Gokey, are Ghei. and our the

understanding summary do involve today's One, slides these Before be we page of I to making I risks. call a found make forward-looking second complete over call to turn on regarding and description will that Broadridge few A the statements be the our release comparable of GAAP can we'll and Tim, want standard more in which risks a of also reminders. on on the of operating the annual results. non-GAAP these two, the found reconciliations earnings investors measures, to Form we several report presentation. XX-K; be believe non-GAAP referring complete with measures Broadridge's measures An on underlying explanation be to provide and can more a

turn now to the over me Let Tim? Tim Gokey. call

Timothy Gokey

good Edings, Chief new this start by morning you, like to morning. our Thank Officer. congratulating Financial I'd and

impact years As and She's our to serving our a joining the interim since grow transform even we permanent Ashima summer. named industry. partnering ago X company more since and positive our last looking as to month with CFO very Broadridge was you CFO and as continue know, after had our forward our closely

want backdrop. heightened our of see as I Financial continue even review to strong the uncertainty. some remained we my to global results, go I markets thoughts share Before on market to

funding track position in while year deliver another bottom investments on strong to Broadridge, an for is growing us line about future. markets of a States, are increased a United recovery M&A. other top from healthy trading is activity for growth and especially That important and the combination markets, capital in driving a growth of clients, the Our in activity economy, keeping strong positive optimism uptick and benefiting and

With that, headlines. let's go to the

and of Recurring by strong SIS for impact to new And the Adjusted XX% acquisition. rose Broadridge delivered EPS grew record of X%, results. a second driven quarter our quarterly First, revenues. event-driven set revenues X% organic growth $X.XX. we

is Second, digitize long-term of trends capital simplify as markets and we execution democratize strategy our by driven to and the that continue growth investing, management. wealth and by being and innovate modernize

deliver our Third, we financial well us of positioned are objectives strong at keeps now set significant 'XX. X-year deliver we our a for Day to 'XX full half fiscal finally, another December to the the more Investor year results. second fiscal entering on seasonally laid of And of out strong outlook pace on year, in our

It was quarter. strong a

innovation of our with a on So constant to by delivering clients let's democratization governance strong Slide adapt what growth position highest growth 'XX. and important Equity participation sales growth to rate X for with be second and an participation Investor since in quarterly our in quarter, to and driving digitization move X. those lines. fiscal product XX% currency, by business, of the revenues our driver governance driven strengthened review helping results our strong across continues ICS change. growth I'll the the in recurring growth we're X% revenue where continued from drove start rose by all end investor to business.

driver also in growth accounts minutes. driven meaningful Main to ] more Notably, in second stable position balanced from in growth October, summer, increased was of a low and equity Managed quarter, of when essentially in flat. double-digit engagement self-directed had the X% acceleration we in fiscal in position seasonally growth. from key acceleration digits equity remained a [ the level X% growth the second and the half the position of of as 'XX, growth. position by now That Ashima since Fund expect which investors income grew up me, the across began around biggest and continue driver -- at Equity be fixed growth few 'XX pick funds. to will mid-single equity excuse growth, overall trending year accounts was been physicians share in Street both

position our delivering of from business, -high fund solutions growth While lower it our to in innovative governance range. grounded our mid- up the X% has rate to our saw growth at picked is we single-digit focus the historic 'XX, on Across remains in end clients. fiscal revenue its

our will more reporting for season, the continues solution using fiscal perform prepare their on and XXX XXX governance And we pass-through the in, solutions 'XX. other shareholder to issues, quarters tailored voice our funds shareholders up Two of give funds end be than as prostate a upcoming from to at very voting well. greater

focused We analytics for clients our demand AI-enabled strong solution digital is powering are adding Europe, governance in new our our demand data and and from benefiting and model. growth. And is communications, business customer wealth global

means made, which complex of that fully digital enable mutual saw funds a quarterly were held for investments process revenues, our than work driven million tens Thanks X,XXX by digital, of fund over seamlessly closely significant at mail global we in of XXX to elections to have revenues, shareholders, these up recurring new Working more complex. its a more than XXX our brokers. that print our with expenses. Beyond the in we and record millions efforts fund client, board save dollars leading in our part event-driven XX% beneficial and facilitating positions alternatives we fund communications

with governance matters funds in Boards they of Directors the role highlight need can and securely on we ensuring like the the critical that and key elections approvals these scenes get communicate investors on demand. their behind play

help our markets, Capital front trading algorithmic new clients to cost mapping and to reported trade X% AI-enabled optimize of Markets, for the strategies. roll new trading with trade recurring real-time for speed growth. uses out office, execution we're solutions trading that and and liquidity execution the across solution reduce trading continue capital In a to simplifying innovating turn we back which revenue Let's In front office. the

trading platforms We simplify also and support improve capabilities continue to income for new introduced postpaid trading office, equity In trading and strong volumes fixed the products. across markets. structured both our to back

introduced enhancements, X and also AI new with We post-trade GPT clients platform new in her Gen QX. added operations

enabling growing requirements. Our product ledger more institutions the number of clearing distributed easily repo a is treasury to cutting-edge adapt to new

In grew Management, of XX%, acquisition revenues Wealth driven and Investment by the largely SIS.

bank by wealth strategy solutions of bearing greater our broader we We selected As our current for client back-office a set acquisition quarter, fruit business the address drive be creating Group. is our discussed with Canadian solutions. of More capabilities, as adviser a management new for broadly, and last for clients extends their to That our to investors our in early continues to SIS making us wealth upsell opportunity their indication marketing awards easier of winning Canadian business. an saw goal the adding wealth to and the leading-edge from its recognition pipeline platform recognized it our quarter leading for Everest helping a both to and Broadridge connect record Charters advisers.

large into the start Speaking fiscal slipping ended essentially to second We flat turn sales sales of were lower third a in pipeline, quarter. $XXX a I'll modestly After close the our to close with of fiscal deals with quarter 'XX, handful to strong year-to-date December 'XX. sales. million, with

Some remainder the weeks. have over the expect deals coming closed, of close those already we to and

sales $XXX full on are to for million to healthy, track our of achieve for remains pipeline outlook and million Our $XXX year. we closed the

my close a I'll summary comments with Slide on remarks few X.

strong second Broadridge delivered First, quarter results.

investing they We're Second, by of to the the the fund win to to helping helping and by information to simplify in results the capital long-term Canada investments millions [ that driving digitization the reduce of their trading to mocetization strategy. wealth need ] down innovation those are We're costs. in governance, we're of our serving delivering our mutual wealth get being clients will those our markets and in drive strong driven cost while market. U.S. trading And our execution bring the innovation of increased tens business and of extending investors. investors infrastructure

EPS X-year to of That in revenue Third, positioned achieve for objectives growth outlook to we continuing the as year deliver our financial 'XX. future. track fiscal invest also us result, well a on another recurring and are on strong adjusted while again to keeps

Finally, financial will Broadridge era digital who set of this traded in have leaders growth. their is and exchange for systems set wider. continue positioned gap technology services between and themselves the legacy laggards platform-based fragmented in transformation, long-term strategies in is to cohesive Firms apart. well grow even for to

that's large business each our a a clients a position our in strong have significant as positioned choice is of financial services Our and opportunities transition. pipeline That investments transformative for they businesses, trusted be our partner make of our Broadridge number to and that the driving across to includes great center the place at that of be. and

XX,XXX named as want world. testament it Broadridge. Ashima, of of was at my turn everyone to over year. the Earlier tremendous to It's the I fellow around here Broadridge client I Before XXth thank work admired Broadridge this the associates most a focus week, to and companies world's for the one

it now turn And Ashima. over to

Ashima?

Ashima Ghei

morning. be callouts. today. morning with key you to great begin X Good I'll Tim. It's Thanks, with my this here discussion

and quarter second results, revenue recurring X% delivered Broadridge XX% EPS. First, growth, including strong adjusted

backlog. Revenue we biggest Second, the drivers our $XXX continues tap of our as key from revenue into our strong. sales end growth year remain growth be driver to million

internal growth. double-digit is our addition, supports testing now In low growth, equity position which for showing outlook our growth

reported ongoing in performance Fourth, we and strong AI modestly in surpassing from revenues capabilities. prior and our our to XXXX. record expectations support ahead growth continues investments event-driven record our Third, innovation, product of tech fiscal our quarterly our

to results, we all we and our track are are [ reaffirming metrics. deliver Frist 'XX guidance last, ] strong on on fiscal and

shares cash us We flow ample flow giving also expect or to cash XXX%, XX% pursue free of incremental to conversion to repurchase generate M&A.

and basis rose revenue from on acquisition increased that, the revenues currency revenues. X% by XX% strong and by recurring Adjusted FIS. operating points points driven income AOI numbers Slide $X.XX. Recurring to to of increased EPS X% growth adjusted rose margins X. With basis, and organic constant a X on growth organic to XXX XX.X% go driven event-driven XX% let's record our

event-driven growth offset revenue than more investments. revenues recurring strong the of As impact and higher

close of Finally, last sales $XX compared were we to year-to-date $XXX million million million, sales $XXX delivered year.

X. Let's million. $XXX move to X% Slide revenue grew to Recurring

recurring increased revenue by to importance growth the sales, innovation. highlighting a from volumes strong growth also new driven from Our contribution and of growth. was higher contributed positions trading Internal

data revenue the by short-term growth segments. rose million. a Let's and at revenues analytics fund equity turn bump by position to position GTO X%, X%, M&A look Solutions Solutions X.X in growth agency revenues. point XX%, growth grew our Disclosure growth. Issuer in to products. Solutions increased Fund led and revenue our to our X% driven contributed to ICS in X growth Data-driven ICS transfer double-digit reflecting rose Fund across mid-single-digit recurring low our revenues and Slide Regulatory $XXX and growth.

revenue rose Communications growth onboarding by Customer double-digit driven mix a digital by value-added print revenues client jobs. of new and in XX%, led higher

growth total by Looking equity ahead to product, in revenue line half, to and driven X% the year businesses, regulatory of recurring including single-digit expect fund growth our ICS second By growth revenue in across high with outlook. revenue our ICS mid-single-digit to be X% position the growth customer expect we and growth full we recurring balance communications.

organic to which by Lower rose a growth. as months the million. Turning global SIS revenues as Wealth benefited driven grew X%, Investment trading well the Management capabilities, our from solutions. X% X-point a and post-trade our volumes combination from Markets equity to headwind $XXX capital fixed to higher markets of by X% driven revenue rose were revenues license and organic, the income all acquisition. and front of growth GTO. addition X of of Capital revenues XX%, BTCS growth office Revenues

growth X%. organic Excluding the deconversion, impact was e-trade of

was last As from this quarter drover the which a any have reminder, impact we in Etrade.

by we to second the in expect half markets. high growth single-digit Wealth and growth for GTO driven the high be year, digits ahead, mid- growth revenue capital to low double Management in in of teens Looking the

by across the of managed review growth Equity Now Slide at was and let's end to ahead to growth both benefit secular funds. the investor in to move first accounts the participation our testing XX%, and key volume of continues modestly our position equities X from quarter. driven indicators. Broadridge

Annual of Relative position to hosting an Meeting equity companies uptick overall from first in benefited mix X%, quarter from position and both growth. we an growth improved of

growth. the forward Looking than underlying our now process of growth. is The to half of increase typically reflects the when fund throughout that growth proxy more double-digit indicating see XX% and additional Tim the fund meaningful we positions, and year, showing ahead mid-single-digit position more second continued year the muted equity current is low noted. testing began October, in and our ETF we Mutual at as more X%, testing the was position growth outlook

both XX% bottom strong volumes and On growth trade by slide, equity basis, blended income led rose the volume. in of on a the fixed

offset XX. biggest my of revenue from $XXX X fund growth million and wrap revenue volumes, I'll Revenue X X driver points points growth offset backlog. our and sales discussion the at up year-end onboard our losses, Internal on of revenue. fee by we growth was by regulatory of Slide partially as closed recurring than growth ETRADE. trading including contributed XX recurring revenues driven higher remains the lower points, That which primarily position deconversion more growth equity from of

driven at months revenue a points, result, the X As growth SIS of was revenue by X primarily beginning November. X%. organic Acquisitions closed which contributed of from

growth second in changes an Finally, FX in our impact on the quarter. had immaterial

now a for revenue adjusted FX expect basis EPS the of in balance headwind the points the we recent changes XX to the strengthening recurring dollar, be fiscal year. growth With to of and

fiscal high or reminder which long-term position to XXXX. tied event-driven $XX the our to Let's be total on quarterly X points surpassing grown XX. mid- high discussion growth annual is $X.X over quarterly their to recurring while to and $XX in for growth This prior event-driven driven revenues, a basis. growth. of X Total Slide revenue. revenues revenue revenue contributed an XX% tend rose rates close on set million record single-digit million of to points a has revenues revenues was million It's to from variable $XXX to that growth, time. important billion, Event-driven by increased of

of a this remind more ahead, be distribution quarter, now primarily growth quarter year. We we million revenue X%, approximately line that Low last quarter, fiscal 'XX, postage $XX mid-single-digit with contest to rates will in Looking to for grew distribution expect third you the higher the third million driven to average points X over revenues the benefited event-driven margin revenues postage to represented the of balance no revenue the presents XX% Higher in total to to rates. contributing expect year. in the growth. the in $XX we Disney quarterly which the from grow proxy growth. range by headwind I

ongoing recurring margins event-driven to operating Adjusted of Slide operating margin net float an AOI quarter. income increase from now distribution of The as our basis in impact more revenues impact distribution leverage of offset Turning ongoing higher the revenues XXX 'XX from XX.X%, virtually XX. income changes growth reinvestment points was impact higher had and and revenues. no the on on QX and margins than in

the remain core of points For expansion. generate margin we basis year, underlying on plus to XX track

than lower Let's sales Closed $XXX higher of were move $XX GTO on the $XX our sales QX, Year-to-date, were sales. sales. million by lower as offset sales million, sales governance to products 'XX million. are

second is start over flow the half. with lower that generation strengthens of Turning the to typically cash year I'll the our cash flows. a in first half Broadridge's and reminder

million, free Year-to-date, cash by million $XX first million increase from free $X cash million driven an was fiscal the higher 'XX QX of 'XX. months earnings. versus of $XX flow QX 'XX flow X was for $XXX

an was offset first in severance income. which increase the of as changes as taxes the first well payments change The half quarter driven in which higher by in cash working benefited benefit capital, and

to 'XX. cash free expect to continue conversion XX% in fiscal XXX% flow of We

on and million. of clients $XX investment, upfront have getting dividend. XX. of to under software source share absorbed in focus the our In Slide the of investments, only have represented because most allocation deployed onboarding. capital Turning to past million our part cost to of just in $X a significant shareholders which $XXX capital million via spending next Year-to-date, returned Platform we and on

M&A, million acquisition on million. We $XXX also primarily November X, invested USD the XXX SIS of in

fund our We remain repurchases dividend, our capital positioned M&A. return additional or growth committed share of to long-term in and to form well part strategy. balanced shareholders allocation capital account After tuck-in of as into Broadridge growing the taking is strong to

reviewing by XX, by messages. Page our followed on fiscal closing key conclude for 'XX Let's outlook

to our EPS revenue million. quarter, in adjusted to on modeling we of the third the and We currency, to recurring to to all growth high growth $XXX million XX% range. of closed callouts, X% With X% growth, metrics, including a guidance constant respect X% QX be are $XXX key reaffirming expect EPS couple mid to sales single-digit

Management. have revenue In single-digit in impact will of revenues, markets license addition, growth growth the GTO double-digit an low in to changes Wealth on capital in low organic composition contributing and

including remains Broadridge to financial driving our recurring strong QX Turning results, revenue now The delivered growth. my growth messages. demand closing secular strong. and X% trends

fund equity year, growth of the testing mid-single-digit position double-digit is position showing our growth. For the and balance low

position fiscal Third, guidance while are flow to our on funding and M&A. event-driven the or revenues repurchase to that us growth investments and well full ongoing last, second fund are with shares 'XX year we equity deliver combination positions cash quarter to results higher additional year on products technology. deliver and tuck-in track in and Fourth our strong reaffirming strong has our positioned strong Broadridge of new guidance

With that, let's take your questions.

Operator

Instructions] Alex from first comes [Operator Kramm Our UBS. with question

Alex Kramm

starting And headwind. here just there where then really, being real change on really the know the Obviously, Maybe performance in no is ended. I guidance the you the the you a tone strong. at end off FX mentioned year-to-date Yes. outlook. and but

better than would you So feel that, you call is there underlying else are like excluding you do out? expected? results running anything that Or

Ashima Ghei

question. Thanks, Alex. Great

revenue earnings the with, growth like with in to revenue line are line and coming And both continues very driver guidance growth the our sales. in X% right you recurring you expectations. with said, start growth. in our XX% we to be tracking with it's our X% essentially X% to for Biggest pleased revenue we're I'll year. said, So halfway through like results of new from

that in puts right there us clearly, we As range. we takes are, think that and about keep some are where

So out. let me break them

On since you event-driven side, year. double now. the first strong seeing heard, digits momentum And position strong positive in outlook our to improving the October market the has equity revenues of we're low half like seen to led have growth. we the

half first the hand, year position end earlier Most impacting we And expected. to the event the half some do other strengthening earnings. our coming be though, of business. in of we modestly upside dollar low the in given continue use we second of non-U.S. remains that expect event historic the in at growth that than the lower our we the Fund activity On some year, trends. of is to importantly, to saw invest saw the

midpoint So the overall, the right gives us target confidence and range. guidance we're around half tracking of first our range in growth that

Timothy Gokey

which multiple And part, just I really strong we're areas to future see just want Tim. Alex, continue to across that get and last think investment. we is our return it's going to reinforce good a business we where really opportunities on

So that's our right focus . now.

Alex Kramm

much pretty around then shifting And But Great. a slippage. And with last decline lot going on of sales you gears Okay. quarter, wondering, I financial the things the just a in maybe industry. in line last the year. in of Obviously, enthusiasm just think post-election, the quickly. some quarter. year-over-year lot explained services

service pickup would would So more be just days. bullish these around optimistic see anything like a if industry financial you you more again, you're note as, wondering Yes, markets. conversations, if you feeling seems on to the in end

Timothy Gokey

to feel report see year, too last Alex, first X%, half. said, deals grew half, would take so slip to point And us, think and the It's it's you $XXX denominator reaffirming why first how as I in that. $XXX influencing shareholder the And close, that about a don't we're When good optimism the tailored just the sales Yes. did out the we to early increased to early about why I'll common excluding the from say too say in tell. million we some we market I would Tim. that's and that's I expect those see sales million.

tend cycles to Our long. sales be pretty

The and on repo wouldn't look and we been there solution, focus, investing. which pipeline, have on front And is it that year. Advisor digital increased if is attention like optimism analytics capital that simplification, we've private that in markets even But and wealth is record. Omnichannel a call momentum our areas and want and much and to the this modernization. at increased back-office where office do with wealth debt ledger at impact so when have and fund conversations, data Solutions, we what and side, communications probably really the I to is back

in So all we're areas. seeing good conversations those really

As but always, do to there's we a between now and lot year-end, feel good.

Operator

comes from question Research. Wolfe Scott the And with Wurtzel next

Scott Wurtzel

I incremental event-driven just a up areas upside. just and the are wanted Can on to investing you investment of terms the answer highlight point made with the some you into? deploying in maybe in there you dollars to Alex follow those of that

Timothy Gokey

just background, thanks growth a it for is something as organic is as we're an you -- it about. think company. Yes, that know, because Scott, we lot And

are and thinking and in place what's how next we about We in that put our shareholders. associates, that front do our get always of clients, our for

lot invest analytics. of on And just in demoed organic has XXXX, the is growth sales digital we omnichannel our areas the us I XX that. wealth And December so the same past at data on momentum we're beyond. and focus years conversations helped and reinvesting Day where ones product, of are seeing continuing that to and over deliver good communications which in Investor focused lots some with what our and that highlight for the of consistently

in the Canadian to platform, investment opportunity the bring been that capital And Canada, our successful takes as well. and market wealth and across with to lots bringing we're across life modular that SIS part now what U.S., Canada solutions of ledger in the then portfolio. those that platform and in continuing we of markets and office a stuff Front repo bring and to as the of AI digital on lot AI, have with doing the with simplification side, that back to

solution that. that, uptake if in with an I helping exciting So a around data a of And mention Europe, then around be Dora with helping it's remiss the for resiliency, I'd for activity lot solutions immutability, time. clients didn't clients cyber,

lot a that. our the that of belief clients importance of and And

view transformative that of part being clients' our all it's trusted So our partner. of and

Ashima Ghei

of add, investments, ongoing as guidance to right, flex think up I'll what's we event see many down baked year. we And these them the our the as and And activity. are about ability things that's just like into while we have

Scott Wurtzel

it. a side. mean, on close. seems things if follow-up Got SIS it. incremental had maybe wealth you've if as viewing months had you the you've how That's broadly I Got opportunity? with it asset and are helpful. you're then post a now can like just the few learnings Wondering well And the that share acquisition, trending any under that control for just

Timothy Gokey

Scott. Yes,

pleased. When the the to lots are those onboard then had see about associates Obviously, SIS and a plans as they're back We part you are before ability about took those isolated gratifying the technology to tracking been well. to conversations and about that's integration for to passion going the once all and topics technology, have very the be . It's that dimensions think into the different asset office, their bit served are from we've have very Kindrel. warm. it the APIs clients, discussions we the because nicely. the of really And you talking and on for talked of we how very layer clients, and SIS larger knowledge but the modules have that acquisition client open now to and about of by to we and always we'll associates have our bring passion you're it's clients different on plans associates bring excitement that them the support with those their they doing, of continue were working also but what before around same underlying then who

broader So that and client with It the modular strategy including happy. fits wealth we're solutions really operations. around productivity, modernizing experience management adviser of into digitizing

to very so well think And in we Canada. out feeling about good And play we're it. really that's going

Operator

next Faucette question the James with comes And from Stanley. Morgan

James Faucette

ask wanted of couple a questions. I to Great.

AI-related incrementally First, over thought on among there. monetization to be you the for drive some are key as the How product are about that you Previously, when or able transition expect thinking you might key about fact can the that charge contribution time, product well talked you improvements. AI-related we that factors improvements. would factors that what

Timothy Gokey

the Yes, about we're inventing recent about in James. how that. about the that for sort And more think in. that is AI next center unique monetization. being although But That maybe we question it's power going of are we the And over areas we to data space. we leader arcane do makes the of of But differentiator And AI be really models, in potential mean steward to we're a of we the that at apply Gen time, an doesn't set network. our news, large with the that a talked generation think getting directly you us. your all around

product. future about that part We their There think AI the AI in will be really across areas. of X is -- believe we

we're to around to -- and in there not it's that specific part platforms current the those of on edge opportunity be sure cutting the with products think work making platforms. monetization sure bringing if I and is that's all there's And AI it be really to a -- expectation, just our going there's a So going I'm it's client really future.

AI by global where there's though, industry launching with products that The second demand insights. that GPT with model new AI. GPT, part, with OPs is functionality is with new Bond And seen enabled we've our

of out it there. about this learn lot get and what it, products you people because does they real are money questions, lot be ask a live from when have mean a you And we those also to pay beginning have really for to incremental So learnings ready.

expect is attached have for those be be enough is So driver. revenue those And at to point it our numbers is in aggregate and production we're But time, signed showing to up clients over there important. we the something a really -- would to is being sales material excited real this and materially we're not that have up to that. used. in more It

The the are third piece half side, going on XX-plus those AI across is Broadridge, the about we have on productivity on revenue projects half productivity. of And side.

coding. of things small in But and pickups broad in be bringing we cost or when some do We're sort globally notably we seeing events pretty some too early some other margins metrics. seeing It's are impinging think all still days. again, really together you to for on that the nice source that. the of about nice pickups We how our

wouldn't seeing to I'd begin when call thinking not measurable that to really in for look -- a FY that. FY is look probably I'm measurable us a but of could this wouldn't not about things on for help impact about but I 'XX 'XX, I impact lot 'XX, So do after we a

be And the right very to around of wants in the being that way. remiss data is used for I talk client. Everyone important have it's we their about I'd where our thing didn't Very this. know that all governance

And also us. key for so a that's focus

James Faucette

Great. that's on targets add wondering And where to then incremental can your sales if you and wealth update give tracking? that. us segment, an module just the on you Appreciate how for wealth within are

Timothy Gokey

million nice since look months XX James, have sales. $XX ago, pipeline quite And sort relative it $XX million at of talked a we wealth months incremental years Yes. about to baseline is X our wanting when of couple now, ago increase up to since and a a bit ago. to we of of an the right

U.S. million things, chunkier we areas, track across this lot $XX for and a things Canada. feel to in there, $XX couple but million is different we're . It's across different of the inside of both so And of that year. on lots a

Operator

Markets. Perlin comes RBC The Capital next from question Dan with

Daniel Perlin

X-point GTO to I quarter. -- things wanted called you the be But sales there's digits. and headwind that you that a was on think you in there I to I that's couple that clarify of license revenues, were going going lower out then in to in called a markets the impact said changes low capital third think like some license thought guidance sales I quarter, in actually, out double just

So mind the lot just would book you me helping of there? reconcile maybe some

Ashima Ghei

Absolutely. Yes.

you're an license clarify not a revenue do do see we Because single-digit my a growth, growth they -- context, notes. expecting again, low strong noise, material on third impactful drag the in total of specifically aiming the for some for X-point GTO's just specifically It's Markets, the growth, license some that's management this side, in was see And low we third we will quarterly out. third wealth there capital driver, full across will as quarter. not it to right, impact did see the in year X% for recurring Dan, to have double-digit what organic markets. quarter I Just noise, revenues a basis But Capital year, for the it of to on specifically, quarter. noise. evens on expect and us due growth all quarterly cause in and the we're we about The But are revenue. quarter just

Daniel Perlin

it maybe Yes. No, clarify specific. that because much that has the of to I wanted historically, like don't feel swing I just a on

Ashima Ghei

[indiscernible]. Yes.

Daniel Perlin

does just had And great. impacts how then, a that wondering a kind of any Again, potentially Can you as to How this more What Are business business, new in need a then bunch start months, just potentially the though, I is a that else you. on a market the robust into where mindful that Tim, maybe of flow would is show good X of with X regulatory other the or I'm we that whole? business, in P&L? That's your the happening. just horizon. flow deals you it all be administration next both the bad question piece and that changes of us things: your be if could could impact the remind backdrop. equal, see the one, things And there up as Okay. these to think specifically, strength. for over about lot about M&A backdrop to you X kind talked we and the stuff

Timothy Gokey

corporate incremental of companies, more not IPOs you markets creates prospectuses specific with Yes. disclosure. in but do sort there's We do a how could of -- first nice I that company activity, a that around a it reduce into guess, positive the Broadridge. increased all, help Dan, little where doesn't and them capital the a really this just positions. on issuers, away, much, if flows bit, large of goes of affect that have private but so positions business, things as a things that M&A specifically public is sort we serving much know. is

shareholder side sometimes there. hugely event-driven it see But needs The material is then other it And to where a a we'd be doesn't that with on if be activity really place vote, come the to a M&A can to pickup. tend piece.

On the administration. regulatory obviously, side, a new I is -- there's think the it lot on going with

There just done. they looking issues, When discussed the a immigration, about, broadly market the the get sort business. of of taxes, positive. a to window sentiment for cultural at trying those which that full is we around and reasons to administration's positive look neutral is all think understand they talked things we And priorities and our just to I biggest are at impact. we us the things are tariffs, know have

So for those really our core the things are space, primary issues. they're in they're look not the focused administration. at very, on you the very issues When that

a it's going deregulatory broadly new environment. a to However, It be be environment. will

anticipate should change. we think I So

certainly -- action they definitely that's make over of time. be to probably Some could the we're to topic an digital crypto will on investors accessible that street areas opportunity disclosure for digital assets, tracking main more opportunity an that are create and assets

that certainly engagement shareholder not we're but to shareholder firms. advisory around of everyone a -- So around that. action we're voting. inquiries to opportunities voting proxy around proxy We around firm, pass-through Certainly, that lot our include may the of Trump probably leads we're Likely platform and in administration. saw advisory reform previous leads with that sort making also a tracking

things could be those nice So things. some

And we've know, the on which you last one in. invested is continued digitization, just progress as

very coming a clients that. with Paul to both with we as going a is SEC think that before, on. to very lot more know is commissioner SEC. lot do lead been in approved. He's Atkins the a a commissioner We'll choice strong the quarters obviously, We So new knowledgeable, trusted them it, by change, technical sides there's help that assistance adapt just to the that really when And remind aisles, providing and markets. need of then and our you we've I'll historically, worked

Operator

from And Heckmann Peter with the next D.A. Davidson. question comes

Peter Heckmann

few items. my of but answered, a housekeeping have just little questions Most been more

proxy to revenue a towards . reason normalized then So even the more revert range. for low million is in And the year, that of fiscal tracking any back XXXX? range wouldn't why it right? that Is event-driven kind $XXX

Ashima Ghei

We the Yes, the to right? of where XX I think couple event-driven of a quarters. kind It's quarter what next your it's predict we going choppy, exactly hard over That's math add it's XX are. is to up right, The thing is But with visibility to in the more X that, would events next have I within be any quarter X long-term year. 'XX be or with months. for to about the in expect beyond our averages. in line any event typically to average

Peter Heckmann

lap higher? When just I'm of Okay. increase, helpful. to feel just margins. That's postage how terms kind get range in you planned are X% are postage that others there already increase, to guess, would ex I distribution that drive in would of postage rate And increase? that a better the then trying year? a X% grow you the to do And distribution affects of that expect

Ashima Ghei

Yes.

came postage postage change So into this shared, of like by time, driven effect distribution rate changes. the the we The July. most was in rate quarter, for increase

seeing distribution be. continue may both say hard digital seeing to for exclude and side for. months growth coming changes, see was digitization, something more the some posted at what would you been customer plan So to looking the hard postage I we're about me few to changes print. low predict and single-digit rate on There of exactly through. we're we on our we than it It's have will if is, discussion for yes, else be It's rate regulatory impact communications as more now. What the growth in side, more a

Timothy Gokey

been negative. -- to of think decade the helping I thinking that. to with And print about want strategy their clients will grow been for I think future probably distribution turn about when do we've platform to And sort what we've of Peter, and they a think digital as communications ex postage

So one our it, but to that that a business. things the experience provide bring they've it platform as they the as than before. the is digital runs it to can of better take volume, print had new digital remaining much do That lose opportunity a over combination rationalize off, driving cloud-based

sort other but is you've focus, does to with theme transition. So with and of talk help print lot them about wealth that the big heard more that at that. our volume platform into initial sort the of us up feeding clients a working end stages And of

would happen, the despite piece distribution what we positive. remain has so And thought continue to

Ashima Ghei

of into of average as of margins on our close the off XX you we when core as about The just we And expected Yes. margin talk the it both because plus. margins, guidance, expansion points mentioned the XX% I'll we right? think impact if is as baked distribution impact margin well exclude basis about

Operator

Jain from with Next comes Puneet question JPMorgan.

Puneet Jain

your of I question you GTO the up behavior behavior from remind like GTO follow your wanted like your that reduced potential Like how client have administration's deregulation if -- seen on priorities. impacted bookings? how quickly change regulations, the to level specifically about has earlier segment? can and new any And in you client in us

Timothy Gokey

think I Yes, Puneet, it's It's you question. -- Tim. for early Thank that it's too to tell.

out. our sorting think things I themselves clients are

happy know scheduled the of would capital that you concerned of and they about increase rules things III capital they have that would that upcoming therefore, some detriment carry to I won't think be happen. maybe amount like been happy other -- have happen first were clients to the to the with are next I think and things real phase significantly Obviously, Basel trading that activity. very

is X. So I -- down some or slowing think that of Phase of stopping is sort

help I think for deregulatory move to of that there's the that little been a decade past over public environment, environment public the private at companies being I more the as punishing the look bit private. has could I some you a been the deregulatory is -- a here advantage other balance could versus think think between piece the assets. such being motion so out of And

threats. I there lots of So think are

things that while all a to take will are unfold. there think I

Puneet Jain

investments, next then thinking like you M&A about and plans should versus of budgeting period And How or about like those we think Understood. fiscal as capital ROI for about for investments? payback are how your you investments like the year? think

Timothy Gokey

Yes.

Ashima take let that add and in. Let me just I'll

sort that P&L cash investments and between go sort M&A, of Puneet, which part between sort have flow to segregate our our buybacks. about out I and sheet we you of free of are versus balance of of they is this, think share when think on

-- to investment flow invest to and what's our really in think you returns when to delivering returns the about so while former free continue future, capacity good XXX% And earnings cash it's shareholders. around the

So we that prioritize sort framework. of within really

seeing need about free to similar they've nice a think time strong to capital we internally grow pretty different Those dividends, mix out cash remain been M&A think pencils conversion buyback. have our you play year. As led high-return what the balance principles year. certainly flow our investment a dividend according this we're the it buybacks. think we share a in times. of and clear that between with priority a what's balance to earnings. we to then then allocation that And about But how next I the -- they grade free play allocation remainder model, you're have out between flow, We at and aware the balanced share continue in deploy spoke resulted algos business invest do over we'll of really capital different to strong M&A, and with to constant, are our about And what for see past, from cash how think

of fit of been right still market clearing do, -- market. at I they But M&A excited things able a what been for with think is criteria. There to very if the like would now, would economic be are our lot SIS. it's the we've you some unclear those whether -- assets the to and it it's into look we've coming price

comfortable something, compelling, find something We're back going and we shares. do buying it's we be executing So very don't if something compelling. really because see our you found to

our last that think So right? question. Is Yes. that was I

Okay.

in want just interest that, today. thank for with I So your being to us for Thank Broadridge. with you everyone

future the to talking with We're forward work presented. you our returns to quarter. And clients, we we next about and quarter are continuing look strong excited excited again we're shareholders. to how associates about We for delivering our our momentum, our

Operator

now today's has you concluded. attending Thank presentation. for Conference

You may now disconnect.

Broadridge Financial Solutions (BR) 31 Jan 252025 Q2 Earnings call transcript