Recurring Revenue Growth (Constant Currency)

FY 2026

6% to 8% " " "

5% to 7% " "

lowered

Adjusted EPS Growth

FY 2026

middle of the 8% to 12% range " " "

8% to 12% "

no change

Adjusted Operating Income Margin

FY 2026

approximately 20% "

20% to 21% " "

raised

Closed Sales

FY 2026

$240 million to $300 million " "

$290 million to $330 million "

raised

Distribution Revenue

FY 2026

no prior guidance

mid‑single‑digit range "

no prior guidance

Tax Rate

FY 2026

no prior guidance

22% "

no prior guidance

Q1 Adjusted EPS Contribution

FY 2026

no prior guidance

12% to 15% "

no prior guidance

Backlog Conversion

FY 2026

no prior guidance

Recurring revenue backlog stands at $430 million, representing 10% of recurring revenue " "

no prior guidance

Impact of Acquisitions

FY 2026

no prior guidance

Acquisition of SIS expected to add approximately 60 basis points to recurring revenue growth; Acquisition of Acolin not expected to have significant impact "

no prior guidance

Elongated Sales Cycles

Observed in Q3 with longer sales cycles attributed to economic uncertainty ( " " ); Q2 noted long cycles despite a record pipeline ( " ); Q1 mentioned lengthening of the sales pipeline without execution delays ( " )

Q4 highlighted that sales cycles continue to be longer due to macroeconomic uncertainty, while emphasizing that investments in key areas (e.g., voting choice, wealth platform, distributed ledger repo) are yielding a robust pipeline ( " )

Consistently reported with cautious sentiment; Q4 reinforces persistent challenges but couples them with targeted areas bolstering eventual deal closure " " " " "

Robust Pipeline

Q3 focused on a healthy pipeline with many deals in late-stage negotiations ( " " ); Q2 mentioned a record pipeline and strong conversations ( " ); Q1 noted strong start to the year with solid pipeline visibility ( " )

Q4 described strong underlying demand, strategic conversations around platform transformation, and an overall robust pipeline in key innovation areas ( " )

The pipeline remains a consistent strength with a modest improvement in strategic focus and client engagement in Q4 " " " " "

Digital Transformation and Innovation

Q3 emphasized digital solutions through AI-enabled products and tokenization initiatives ( " " " ); Q2 highlighted launches of new AI solutions and digital communications growth ( " " " ); Q1 stressed digital revenue growth, AI integration, and enhanced digital communications ( " " " " )

Q4 showcased accelerated tokenization (with reported increases in daily trading volumes), robust AI-driven solutions, and continued double-digit growth in digital communications, together with a clear vision for digital transformation ( " " " " )

Innovation remains a key focus, with Q4 demonstrating enhanced product scaling, higher volumes, and a more integrated digital strategy that supports future growth " " " " " " " " " " " " " "

Recurring Revenue Stability and Predictable Backlog

Q3 stressed a strong recurring revenue model (with 94% recurring revenue and a $450 million backlog) ( " " ); Q2 reported 9% growth in recurring revenue supported by a $450 million backlog ( " " " ); Q1 provided stable growth guidance and a $450 million sales backlog underpinning confidence ( " " " )

Q4 reported 7% recurring revenue growth on a constant currency basis, a 98% retention rate, and a $430 million backlog that supports long-term growth expectations ( " " " " )

The recurring revenue base remains stable and predictable with minor fluctuations in backlog size, underscoring resilience and consistency over time " " " " " " " " " " " "

Wealth Management Growth and Expansion

Q3 noted moderate revenue growth (13%) with integration challenges and licensing timing impacts ( " " ); Q2 showed 12% revenue growth aided by the SIS acquisition and incremental pipeline growth ( " " " " " ); Q1 referenced low double-digit growth with ongoing SIS integration and strong pipeline initiatives ( " " " " )

Q4 highlighted accelerated wealth management revenue growth at 26% (11% organic plus acquisition impacts), significant platform expansion in both the U.S. and Canada, and strong momentum for private credit solutions ( " " )

Growth in wealth management has accelerated in Q4, with strategic acquisitions and platform modernization leading to more robust expansion and market penetration " " " " " " " " " " "

Regulatory and Market Adoption Risks in Emerging Tokenized Securities

Q3 mentioned tokenization in distributed ledger repo capabilities with only indirect references to regulatory aspects ( " " ); Q2 briefly touched on digital asset regulatory changes creating disclosure opportunities ( " ); Q1 had no mention of these risks ([N/A])

Q4 provided a detailed discussion on regulatory clarity—highlighting SEC views on tokenized securities—and addressed market adoption challenges while framing tokenization as an opportunity rather than a threat ( " " )

This topic is emerging in focus; while earlier periods provided only minimal or indirect commentary, Q4 gives it significant attention, indicating growing importance and a balanced view of risks and opportunities " " " " "

Margin Pressure and Cost Challenges

Q3 discussed margin expansion efforts alongside a 10–bp impact from float income and FX headwinds, plus restructuring actions ( " " " ); Q2 focused on rising postage/distribution costs and modest FX headwinds, with a net neutral impact on AOI margins ( " " " ); Q1 reported lower margins driven by event-driven revenue volatility, E-Trade deconversion effects, and a combined 30–bp headwind from float income/distribution ( " " )

Q4 highlighted rising distribution costs (including a posted rate change), float income pressures (including expectations of rate cuts affecting float), and FX headwinds, while also noting that underlying margin expansion of over 50 basis points will help fund investments and earnings growth ( " " )

While margin pressures persist across periods, Q4 builds on past adjustments by detailing both the external cost challenges and the efforts to maintain underlying margin expansion, reflecting cautious but proactive management " " " " " " "

Acquisition Strategy and Shifts in the M&A Environment

Q3 saw a selective approach amid market uncertainty, with management remaining cautious about deal valuations ( " ); Q2 emphasized disciplined capital allocation with a focus on high-return opportunities (highlighting the SIS acquisition) ( " " ); Q1 outlined M&A as a complement to organic growth with recent completion of the SIS deal ( " " " )

Q4 emphasized a balanced capital allocation strategy with continued targeted M&A activity, citing acquisitions (SIS and Acolin) that strengthen key franchises and leverage strong free cash flow along with a favorable leverage ratio ( " )

Consistent emphasis on strategic acquisitions is noted, with Q4 reinforcing the approach by highlighting new deals and an expanded M&A portfolio, while market uncertainties continue to promote selectiveness " " " " " " "

Event-Driven Revenue Volatility and Diminished Emphasis on Fund Position Growth

Q3 reported event-driven revenues at $53 million (down due to lapping high proxy contests) and fund position growth at 6%, with a greater reliance on equity position growth ( " " " ); Q2 noted record event-driven revenues ($125 million) followed by expectations of normalization and fund position growth at 5% ( " " " ); Q1 showed event-driven revenues at $63 million with fund position growth at 6% and lower equity growth due to seasonal factors ( " " " " )

Q4 reported event-driven revenues at $79 million, with expectations of a decline toward historical averages, while fund position growth was maintained at 7% despite a slight decline in money market positions ( " " " " )

Event-driven revenue continues to show high volatility from quarter to quarter; fund position growth remains steady albeit modest, with a slight shift toward focus on private credit and equity solutions, signaling cautious realism in growth drivers " " " " " " " " " " " "