United States

Canada

United Kingdom

Europe

Other

Total Revenue

3d8bf5d9f45662492052c0e606becdc277d1f2a7c2d1d58a35ed15b648ea1f59

e0583cfc25101dfdad8c72a9d06bd81a13abef55c7dabf8a3c183293efdf232b

The drop in **Cash and cash equivalents** in Q3 2024 was primarily driven by several factors. **Financing activities** played a key role, as Broadridge experienced net cash outflows of **$275.1 million**—a significant swing compared to previous inflows—due to a decrease in net borrowings by **$180.0 million** and an increase in cash used for stock buybacks of **$150.0 million**. Additionally, **investing activities** consumed more cash, with higher capital expenditures adding to the outflow. On the operating side, although there was an uptick in cash generated from operations, it was partially offset by a decrease in cash collections and increased cash payments for income taxes. Collectively, these factors resulted in the overall drop in **Cash and cash equivalents** to **$235.6 million** in Q3 2024.  **[0001383312-24-000028_br-20240331.htm:61]** **[0001383312-24-000028_br-20240331.htm:58]** 

Why did Cash and cash equivalents drop so sharply in Q3 2024?

The documents explain that a significant change in long‑term debt was driven by the reclassification of the **Fiscal 2021 Term Loans**, which were extended and moved from the current portion to long‑term debt.  **[0001383312-24-000007_br-20231231.htm:57]** **[0001383312-24-000007_br-20231231.htm:20]**  However, while this reclassification increased long‑term debt in previous periods, the documents do not provide a definitive explanation for the **steep decline** in long‑term debt in Q2 2024.

What drove the steep decline in Long-term debt in Q2 2024?

The decline in **Total assets** in Q1 2025 was primarily driven by a **decrease in accounts receivable**, a **reduction in other non-current assets**, and a **drop in cash and cash equivalents**. Specifically, accounts receivable fell from **$1,065.6 million to $895.3 million** (a decrease of **$170.3 million**), other non-current assets dropped by **$23.2 million** (from **$870.6 million to $847.4 million**), and cash and cash equivalents decreased by **$11.6 million** (from **$304.4 million to $292.8 million**). These declines partially offset an increase in goodwill, which rose by **$42.3 million**.  **[20241105NY47693:7]** **[0001383312-24-000051_br-20240930.htm:3]** **[0001383312-24-000049_ex991earningsrelease1q2025.htm:7]** **[20241105NY47693:8]** 

What factors contributed to the drop in Total assets in Q1 2025?

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The available documents provide conflicting information. One source reports that operating income in Q1 2025 was **$210.7 million**, up from **$124.4 million** in Q1 2024  **[0001383312-25-000006_br-20241231.htm:2]** **[0001383312-24-000007_br-20231231.htm:2]** , which would imply a significant increase. However, another source details that operating income actually declined—from **$148 million in Q1 2024 to $134 million in Q1 2025**—and attributes the change to factors such as **lower event-driven revenues, the impact of E-Trade deconversion, higher operating expenses, and a negative impact from lower distribution revenues and modestly higher float income**.  **[20241105NY47693:0]** **[BR_3405713_6]** **[0001383312-24-000049_ex991earningsrelease1q2025.htm:1]** **[BR_3405713_4]** **[0001383312-24-000051_br-20240930.htm:2]**  Because these documents offer contradictory trends and explanations, there isn’t a definitive answer on what drove a significant increase in Operating Income in Q1 2025 based solely on the provided information.

What drove the significant increase in Operating Income in Q1 2025?

There is conflicting information in the documents. On one hand, one document states that Basic EPS increased from **$0.60 in Q1 2024** to **$1.22 in Q1 2025**  **[0001383312-24-000007_br-20231231.htm:2]** **[0001383312-25-000006_br-20241231.htm:2]** , which would represent nearly a doubling. On the other hand, another document explains that Basic EPS actually declined from **$0.77 in Q1 2024 to $0.68 in Q1 2025** due to lower net earnings, declines in event‐driven revenues, the impact of the E‑Trade deconversion, and higher operating expenses.  **[20241105NY47693:0]**  Because these sources are inconsistent, there isn’t enough definitive information to explain why Basic EPS would almost double in Q1 2025 based solely on the provided documents.

Why did Basic EPS almost double in Q1 2025?

Based on the available documents, there is no detailed explanation regarding a decline in Net Earnings for Q2 2025. In fact, one document explains that Net Earnings for Q2 2025 increased significantly—highlighting factors such as **higher recurring and event-driven revenues**, **improved operating income**, **lower interest expense**, and **tax benefits**.  **[0001383312-25-000006_br-20241231.htm:2]** **[20250131NY08525:1]** **[0001383312-25-000004_ex991earningsrelease2q2025.htm:8]**  Therefore, the documents do not support that there was a decline in Net Earnings in Q2 2025.

What factors led to the decline in Net Earnings in Q2 2025?

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The **spike in operating cash flow in Q4 2024** was primarily driven by a **$67.5 million increase in net earnings** and a **$300.8 million decrease in cash used for client-related platform implementation and development costs**. Additionally, an **increase in accounts payable by $156.7 million** supported the positive movement. These enhancements were partially offset by reductions in collections of advanced client billings (**$280.0 million**), a decrease due to billings exceeding collections relative to the prior year (**$57.0 million**), and an **increase in cash used for income taxes of $60.0 million**.  **[0001383312-24-000039_br-20240630.htm:74]** 

What drove the spike in operating cash flow in Q4 2024?

Operating cash flow turned negative in Q1 2025 primarily because of a combination of factors. **Net earnings decreased by $11.1 million**, and **cash payments for income taxes increased by $45.1 million**, while there was also a significant **increase in cash payments related to accrued expenses and accounts payable of $118.1 million**. Although there was a mitigating effect from **increased cash collections of $111.4 million**, these changes collectively led to a substantial decline in operating cash flow, turning it negative ( **[0001383312-24-000051_br-20240930.htm:4]** **[0001383312-24-000051_br-20240930.htm:54]** ).

Why did operating cash flow turn negative in Q1 2025?

The higher capital expenditures in Q1 2025 were driven by **higher investments in client platform development** and an increase in **software-related spending**, including both software purchases and capitalized internal use software. These initiatives were undertaken to enhance platform capabilities, support new client conversions, and align with the company's long-term growth objectives.  **[20241105NY47693:8]** **[0001383312-24-000051_br-20240930.htm:4]** **[0001383312-24-000054_ex991investorpresentatio.htm:9]** **[BR_3405713_6]** 

What led to the higher capital expenditures in Q1 2025?

The improved operating cash flow in FY 2024 was primarily driven by several factors: **an increase in net earnings of $67.5 million**, **a significant decrease in cash used for client-related platform implementation and development costs of $300.8 million**, and **an increase in accounts payable of $156.7 million**. These contributions helped offset negative items such as the **decrease in collections of advanced client billings ($280.0 million)** and an **increase in cash used for income taxes ($60.0 million)**, as well as the impact from a change in net accounts receivable.  **[0001383312-24-000039_br-20240630.htm:74]** 

What factors contributed to the improved operating cash flow in FY 2024?

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Revenues (USD, millions)

Cost of Revenues (USD, millions)

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Operating Income (USD, millions)

Interest Expense, Net (USD, millions)

Other Non-Operating Income (Expenses), Net (USD, millions)

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Provision for Income Taxes (USD, millions)

Net Earnings (USD, millions)

Basic Earnings per Share (USD)

Diluted Earnings per Share (USD)

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Cash and cash equivalents (USD, millions)

Accounts receivable, net (USD, millions)

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Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Deferred client conversion and start-up costs (USD, millions)

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Total assets (USD, millions)

Payables and accrued expenses (USD, millions)

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Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Deferred taxes (USD, millions)

Contract liabilities (Non-current) (USD, millions)

Other non-current liabilities (USD, millions)

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Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Treasury stock, at cost (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

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Net earnings [USD, millions]

Depreciation and amortization [USD, millions]

Amortization of acquired intangibles and purchased intellectual property [USD, millions]

Amortization of other assets [USD, millions]

Write-down of long-lived asset and related charges [USD, millions]

Stock-based compensation expense [USD, millions]

Other adjustments to net earnings [USD, millions]

Net cash flows from operating activities [USD, millions]

Capital expenditures [USD, millions]

Software purchases and capitalized internal use software [USD, millions]

Acquisitions, net of cash acquired [USD, millions]

Other investing activities [USD, millions]

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Debt proceeds [USD, millions]

Debt repayments [USD, millions]

Dividends paid [USD, millions]

Purchases of Treasury stock [USD, millions]

Proceeds from exercise of stock options [USD, millions]

Other financing activities [USD, millions]

Net cash flows from financing activities [USD, millions]

Effect of exchange rate changes on Cash and cash equivalents [USD, millions]

Net change in Cash and cash equivalents [USD, millions]

Deferred income taxes [USD, millions]

Cash and cash equivalents, beginning of period [USD, millions]

Cash and cash equivalents, end of period [USD, millions]

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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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bbc0a82544c8684e3eb1011db8c67ada2aa376585239c102ad4ca8ff1fc10aa8

BROADRIDGE FINANCIAL SOLUTIONS (BR)

Financials