Total Revenue

+13% " " " "

Strong net new business in both ICS and GTO drove top-line growth, while robust corporate action and mutual fund proxy activity further boosted revenues. Favorable market conditions supported demand for Broadridge’s solutions, though event-driven revenues can fluctuate with economic cycles.

Investor Communication Solutions (ICS)

+15% " " " " "

Growth in ICS came from higher recurring revenues (including regulatory and data-driven solutions) and significant event-driven activity (e.g., corporate actions). The company’s focus on digital shareholder communications and governance solutions positioned ICS well in a market emphasizing compliance and engagement.

ICS Event-Driven Revenues

+126% " " " " "

The major surge reflects increased corporate action volumes and mutual fund proxy communications, which are episodic and contingent on market activity. While these revenues are volatile, Broadridge’s enhanced capabilities helped capture more event-driven campaigns, boosting short-term performance.

Global Technology & Operations (GTO)

+9% " " " " "

Growth was primarily organic, aided by strong demand for post-trade and wealth management platforms. Efforts to streamline operations and expand product offerings (including recent acquisitions) supported this increase. Potential interest rate fluctuations and client mergers could affect transaction levels going forward.

Operating Income

+69% " "

Strong revenue expansion across segments combined with effective expense management drove operating margins higher. Company-specific initiatives to optimize costs and leverage existing infrastructure contributed to the jump, though ongoing investment in technology may moderate margin gains in future periods.

Net Income

+102% " " "

The significant earnings growth was fueled by higher revenues, improved margins, and disciplined cost controls. While event-driven activity provided a near-term lift, lower corporate actions in subsequent periods could moderate profit growth. Tax considerations (e.g., discrete benefits) also influenced net income comparisons year over year.

Diluted EPS

+103% " "

Diluted EPS benefited from robust net income and marginal share count changes. The combination of higher revenues and operating leverage led to a larger bottom-line impact. Forward-looking implications depend on market-driven event activity and the company’s ongoing initiatives to expand digital, regulatory, and data-driven services.

Recurring Revenue Growth

FY 2025

6% to 8% " " " " " "

6% to 8% " "

no change

Adjusted EPS Growth

FY 2025

8% to 12% " " " "

8% to 12% "

no change

Closed Sales

FY 2025

$290 million to $330 million " " "

$290 million to $330 million "

no change

Free Cash Flow Conversion

FY 2025

95% to 105% "

95% to 105% " "

no change

Distribution Revenue Growth

FY 2025

mid- to high single-digit range "

mid-single-digit range "

lowered

Event-Driven Revenue

FY 2025

high end of historical levels "

$55 million to $60 million "

no change

GTO Revenue Growth

FY 2025

high end of 6% to 8% "

low double digits (second half) "

raised

Core Margin Expansion

FY 2025

no prior guidance

50 basis points plus underlying core margin expansion "

no prior guidance

Acquisitions (SIS, tuck-ins)

SIS deal closed for about $185-200M in prior calls, expected low-double-digit growth in Wealth. Tuck-ins (AdvisorTarget, CompSci) also pursued. " "

SIS integration performing well, contributing 2pts to recurring revenue, extends Canadian wealth business. Company cautious but open to more tuck-ins. " " " "

Steady integration for SIS with potential for more tuck-ins.

AI-enabled solutions (OpsGPT, BondGPT)

Q1 2025 had no mention. Previous calls noted interest and pilot programs, highlighting patent for BondGPT. " "

Mentioned OpsGPT and BondGPT are live with clients, generating revenue but not yet material. "

Continuing interest, expecting future revenue impact.

Customer communications (BRCC) digital growth

Double-digit digital growth in previous quarters, building on print-to-digital strategy. " " "

Digital revenues grew double digits, driven by onboarding new clients and shift from print to digital. " "

Ongoing strong digital adoption.

Event-driven revenues

Fluctuated between $63M and $76M in prior quarters, generally elevated by proxy activity. " " "

Hit a record $125M, driven by a large mutual fund proxy campaign, expected to normalize to $55M-$60M. " "

Peaked, expected to moderate.

Foreign exchange headwinds

Minimal or no mention in Q1 2025; prior calls noted a slight positive 20bps effect. "

Modest FX impact, 50bps headwind projected for full year, immaterial effect on Q2. "

Shift from slight tailwind to moderate headwind.

Fund position growth

Previously 6% in Q1 2025; historically ranges 3-6%. " " "

5% fund/ETF position growth, stable mid-single-digit levels. " "

Stable mid-single-digit growth.

Lengthening sales cycles

Mentioned longer closing times in prior quarter, but strong pipeline. "

Acknowledged long cycles, optimism but minimal near-term impact. "

Recognized factor; no major shift noted.

Margin expansion constraints

Q1 margin fell 90bps. Previous calls cited distribution revenues and float income as constraints. " " "

Postage costs a notable factor, but 20% margin guidance includes 50bps core expansion. "

Mostly stable, offset by cost pressures.

Recurring revenue growth

Grew 4% in Q1; 6% in FY24; typically mid-single digits. " " "

Up 9% (7% organic + 2% acquisition), driven by sales and volumes. " "

Accelerating growth momentum.

Strong sales pipeline

Consistent strength in prior calls, pipeline up 30% YoY in Q4 2024, record levels in Q3. " "

Record pipeline, some deals slipped to Q3, reaffirmed $290-$330M target. " "

Continues to broaden with high confidence.

Tailored shareholder reports

Previously hundreds of fund clients onboarded, a standout contributor to sales growth. " " "

Still performing well, over 400 funds using pass-through voting vs. 100 last year. "

Ongoing expansion, broader adoption.

Wealth management solutions

Previously impacted by E-Trade deconversion, though seeing strong pipeline and modular sales. " " "

Revenues grew 12%, buoyed by SIS. High teens growth expected in 2H; SIS integration progressing. " " "

Expanding with acquisitions and modernization.