Executive Summary

Q2 FY25 revenue rose 13% to $1.59B, with recurring revenue up 9% (constant currency) to $980M, adjusted EPS up 70% to $1.56, and GAAP EPS up 103% to $1.20; event-driven revenue set a quarterly record at $125M .
Management reaffirmed FY25 guidance: recurring revenue growth (cc) 6–8%, adjusted operating margin ~20%, adjusted EPS growth 8–12%, and closed sales $290–$330M .
Growth drivers: 7 pts organic recurring growth, SIS acquisition contribution (2 pts), low double-digit equity position growth outlook for H2, and strong capital markets activity; closed sales were $46M in Q2 and $103M YTD with some larger deals slipping to Q3 .
Potential stock reaction catalysts: record event-driven revenues (likely to normalize), margin expansion (+420 bps AOI), and reiterated full-year targets; management emphasized ongoing investments in AI and platform capabilities and reaffirmed confidence in pipeline momentum .

What Went Well and What Went Wrong

What Went Well

Recurring revenue grew 9% (constant currency), driven by 7 pts organic growth and SIS acquisition (2 pts); ICS and GTO both delivered 9% recurring growth with strong contribution from sales and internal growth .
Record event-driven revenue ($125M, +126% YoY) on mutual fund communications; CEO noted “record event-driven revenues, and 70% Adjusted EPS growth to $1.56” .
Margin expansion: adjusted operating margin rose to 16.6% (+420 bps YoY) on higher recurring and event-driven revenue; GAAP operating margin improved to 13.3% .

Quote: “Broadridge delivered strong second quarter results, including 9% Recurring revenue growth constant currency, record event-driven revenues, and 70% Adjusted EPS growth to $1.56” — Tim Gokey, CEO .

What Went Wrong

Closed sales declined 21% YoY in Q2 to $46M, with some larger deals slipping to Q3; YTD closed sales $103M vs $106M .
License revenue created quarterly noise, a 3-pt drag in capital markets this quarter; management flagged Q3 mix shifts (low double-digit capital markets growth; low single-digit organic growth in wealth) .
Fund position growth remained at the low end of historic trends (5% in Q2), and event-driven revenues are expected to revert toward $55–$60M per quarter in the balance of FY25 .

Financial Results

Headline Metrics (Quarterly trend)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenues ($USD Millions)	$1,944.3	$1,422.9	$1,589.2
Recurring Revenues ($USD Millions)	$1,326.4	$900.3	$980.2
Event-driven Revenues ($USD Millions)	$76.1	$63.0	$124.6
Distribution Revenues ($USD Millions)	$541.9	$459.5	$484.5
Diluted EPS (GAAP) ($)	$2.72	$0.68	$1.20
Adjusted EPS (Non-GAAP) ($)	$3.50	$1.00	$1.56
Operating Income Margin (GAAP) (%)	22.7%	9.4%	13.3%
Adjusted Operating Income Margin (Non-GAAP) (%)	28.8%	13.0%	16.6%

Q2 2025 vs Q2 2024

Metric	Q2 2024	Q2 2025	YoY Change
Total Revenues ($USD Millions)	$1,405.0	$1,589.2	+13%
Recurring Revenues ($USD Millions)	$898.8	$980.2	+9% (cc +9%)
Diluted EPS (GAAP) ($)	$0.59	$1.20	+103%
Adjusted EPS (Non-GAAP) ($)	$0.92	$1.56	+70%
Operating Income ($USD Millions)	$124.4	$210.7	+69%
Operating Margin (GAAP) (%)	8.9%	13.3%	+440 bps
Adjusted Operating Income ($USD Millions)	$174.5	$263.3	+51%
Adjusted Operating Margin (%)	12.4%	16.6%	+420 bps

Segment Breakdown (Q2 2025 vs Q2 2024)

Segment/Line	Q2 2024 ($MM)	Q2 2025 ($MM)	YoY Change
ICS Recurring Revenues	$493.4	$540.2	+9%
ICS Event-driven Revenues	$55.2	$124.6	+126%
ICS Distribution Revenues	$450.9	$484.5	+7%
ICS Total Revenues	$999.5	$1,149.2	+15%
GTO Recurring Revenues	$405.4	$440.0	+9%
Capital Markets (Recurring)	$262.4	$279.4	+6%
Wealth & Investment Mgmt (Recurring)	$143.0	$160.6	+12%

ICS Product Lines (Q2 2025)

Product	Q2 2024 ($MM)	Q2 2025 ($MM)	YoY Growth
Regulatory	$194.7	$210.5	+8% (equity positions +11%, mutual fund/ETF +5%)
Data-driven Fund Solutions	$105.3	$114.5	+9%
Issuer	$30.6	$36.0	+18%
Customer Communications	$162.7	$179.2	+10%

KPIs (Quarterly trend)

KPI	Q4 2024	Q1 2025	Q2 2025
Closed Sales ($MM)	$156.6	$57.5	$45.7
Equity Positions Growth (%)	7%	3%	11%
Mutual Fund/ETF Positions Growth (%)	6%	6%	5%
Internal Trade Growth (%)	15%	10%	13%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Recurring Revenue Growth (constant currency)	FY 2025	6–8% (raised from 5–7% on Q1)	6–8%	Maintained
Adjusted Operating Income Margin	FY 2025	~20%	~20%	Maintained
Adjusted EPS Growth	FY 2025	8–12%	8–12%	Maintained
Closed Sales	FY 2025	$290–$330M	$290–$330M	Maintained
Free Cash Flow Conversion	FY 2025	N/A	95–105% (company expectation)	New disclosure
Dividend per Share	Current quarter	Prior quarterly dividend $0.88 (Q4 2024 declaration implied annual $3.52)	$0.88 declared, payable Apr 3, 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology initiatives	FY24 release emphasized strategy execution; limited AI specifics in PR	New AI-enabled trading solution; OpsGPT gen-AI enhancements; 50+ AI projects with monetization in early stages (BondGPT, OpsGPT, global demand model)	Building capabilities; gradual monetization
Macro/Regulatory (tariffs/new administration)	Not highlighted in Q1 PR	Expect broadly deregulatory environment; potential actions on digital assets, proxy advisory reforms; overall positive sentiment for capital markets activity	Cautious optimism; watching regulatory shifts
ICS product performance	Q1: Event-driven down (–28%); recurring up 5%	Record event-driven revenue; ICS recurring +9% with strong growth across all lines	Stronger activity; event-driven normalizing ahead
Capital Markets (GTO)	Q1: Capital Markets +5% recurring	+6% recurring; higher volumes; license revenue a 3-pt headwind; Q3 forecast low double-digit growth	Solid demand; license mix noise
Wealth & Investment Mgmt (GTO)	SIS acquisition closed Nov 1, 2024	+12% recurring (2 pts organic; 11 pts SIS; –4 pts organic impact from prior-year client loss); SIS integration progressing well; early upsell to Canadian bank	SIS expanding footprint; H2 high-teens growth expected
Distribution/Postage	FY24/Q1 driven by postage increases	+7% in Q2; ~$30M postage impact; expected mid-single-digit growth FY25; margins impact baked into AOI guidance	Structural low-margin; managed within guidance

Management Commentary

Strategic positioning: “Our growth is being driven by long-term trends and the execution of our strategy to democratize and digitize investing, simplify and innovate capital markets, and modernize wealth management” — Tim Gokey .
ICS highlight: “We seamlessly process[ed] more than 100 million beneficial positions… 90% of these communications were fully digital… saving tens of millions of dollars in print and mail expenses” — Tim Gokey (mutual fund board elections) .
Pipeline and investments: “We are on track to achieve our outlook for closed sales… Our pipeline remains healthy… We continue to use some of the event upside… to invest in our business” — Ashima Ghei .
AI and monetization: “We have live products… BondGPT, OpsGPT… revenue attached… not materially enough yet… productivity gains are early days; measurable impact likely post FY26” — Tim Gokey .

Q&A Highlights

Guidance reaffirmed at midpoint despite strong H1; offsets include expected normalization of event-driven, muted fund position growth, modest FX headwind; continued reinvestment funded by event-driven upside .
Sales: Q2 decline due to deal slippage; record pipeline across omnichannel wealth communications, data analytics, DLR repo, advisor solutions; confidence in $290–$330M closed sales target .
Investment priorities: Incremental dollars to digital/omnichannel wealth, data & AI, front/back-office simplification, DLR repo, SIS platform integration; flexible investment pacing based on event activity .
SIS update: Positive client reception, energized associates, progress on APIs/integration layers; early upsell success with Canadian bank .
License revenue noise: 3-pt drag in capital markets this quarter; Q3 mix shift expected (low double-digit capital markets growth; low single-digit organic growth in wealth) .
Regulatory backdrop: Expect deregulatory tone; watching digital assets, proxy advisory reforms; IPOs and shareholder votes can modestly lift positions/event-driven activity .

Estimates Context

Wall Street consensus (S&P Global) for Q2 FY25 EPS and revenue was unavailable due to an API limit; therefore, formal beat/miss vs consensus cannot be assessed in this report. Management-reported adjusted EPS was $1.56 and total revenue was $1.589B for Q2 FY25 .

Key Takeaways for Investors

Strong Q2 print with record event-driven revenue, broad-based recurring growth, and meaningful margin expansion; momentum supported by low double-digit equity position growth outlook into seasonally heavier H2 .
ICS growth remains durable across all product lines, with digital penetration reducing cost-to-serve; expect event-driven to normalize toward $55–$60M per quarter, tempering the Q2 boost .
GTO capital markets demand is healthy; watch license revenue mix for quarterly noise and Q3 composition shifts; underlying volumes supportive .
SIS acquisition is contributing to wealth growth and opens Canada upsell pathways; integration progressing well with early cross-sell wins .
Distribution revenue growth is largely postage-driven and low margin; impact embedded in margin guidance; structural mix managed via digital transition .
Closed sales cadence may be lumpy quarter-to-quarter, but pipeline supports full-year target; any near-term deal closures could be catalysts .
Focus areas: continued AI-enabled product launches (BondGPT/OpsGPT), platform modernization, and data analytics monetization—longer-term contributors rather than immediate P&L drivers .

All figures and statements are sourced from Broadridge’s Q2 FY25 8-K and press release (including exhibits) and the Q2 FY25 earnings call transcript, with prior quarter context from Q1 FY25 and Q4 FY24 press releases.

BROADRIDGE FINANCIAL SOLUTIONS, INC. (BR)·Q2 2025 Earnings Summary