Broadridge(BR) - 2025 Q3 - Quarterly Results

Revenue Growth - Recurring revenues increased by 7% to $1,204 million in Q3 FY2025, with constant currency growth at 8%[1] - The company reaffirmed FY2025 guidance of 6-8% Recurring revenue growth in constant currency and Adjusted EPS growth in the middle of the 8-12% range[2] - Total revenues for the nine months increased by 6% to$ 4,824 million, with Recurring revenues up 6% to $3,084 million[9] - Revenues for the three months ended March 31, 2025, were$ 1,811.7 million, an increase of 4.9% compared to $1,726.5 million for the same period in 2024[34] - Total revenues for the three months ended March 31, 2025, were$ 1,811.7 million, representing a 5% increase from $1,726.5 million in the same period of 2024[45] - Investor Communication Solutions revenue increased to$ 1,347.5 million, up 4% from $1,301.4 million year-over-year[45] - Global Technology and Operations revenue rose to$ 464.1 million, a 9% increase compared to $425.1 million in the prior year[45] - Recurring revenues for the three months ended March 31, 2025, were$ 1,203.9 million, a 7% increase from $1,126.2 million year-over-year[45] - Total ICS recurring revenues for the nine months ended March 31, 2025, were$ 1,773.0 million, reflecting a 7% increase from $1,663.2 million in the same period of 2024[45] - Recurring revenue growth for the three months ended March 31, 2025, was 7% (GAAP), with constant currency growth (Non-GAAP) at 8%[61] - Recurring revenue growth for the Data-Driven Fund segment was 6% (GAAP) and 7% (constant currency) for the nine months ended March 31, 2025[57] - The Wealth and Investment Management segment reported a recurring revenue growth of 7% (GAAP) and 7% (constant currency) for the same period[59] Earnings Performance - Diluted EPS rose 15% to$ 2.05, while Adjusted EPS grew 9% to $2.44[1] - Net earnings increased by 14% to$ 243 million, while Adjusted Net earnings rose by 8% to $289 million[6] - Basic earnings per share for the three months ended March 31, 2025, were$ 2.07, compared to $1.81 for the same period in 2024, reflecting a growth of 14.4%[34] - Adjusted earnings per share (EPS) for the three months ended March 31, 2025, was$ 2.44, up from $2.23 in the same period of 2024[51] - Diluted earnings per share (GAAP) is anticipated to grow by 20% to 25% for FY25, while adjusted earnings per share (Non-GAAP) growth is expected to be between 8% and 12%[61] Operating Income - Operating income increased by 14% to$ 345 million, with an operating income margin of 19.0%[6] - The company reported a total operating income of $344.9 million for the three months ended March 31, 2025, up from$ 302.9 million in the same period of 2024, representing a growth of 13.9%[34] - Adjusted operating income for the three months ended March 31, 2025, was $405.2 million, up from$ 369.5 million in the same period of 2024[51] Cash Flow and Liquidity - Free cash flow for the nine months ended March 31, 2025, was $471.6 million, indicating strong liquidity for potential dividends and strategic acquisitions[38] - Free cash flow for the nine months ended March 31, 2025, was$ 393.2 million, up from $258.6 million in the previous year, representing a 52% increase[54] - The company recorded a net cash flow from operating activities of$ 471.6 million for the nine months ended March 31, 2025, compared to $335.2 million in the previous year[54] - Cash and cash equivalents at the end of the period were$ 317.2 million, compared to $235.6 million at the end of March 31, 2024, showing an increase of 34.6%[38] Strategic Focus - The company’s strategy focuses on digitizing governance and modernizing wealth management, positioning for long-term growth[3] - The company anticipates continued revenue growth and has set financial guidance for fiscal year 2025, reflecting management's positive outlook despite market uncertainties[26] Tax and Debt - The effective tax rate for Q3 FY2025 was 21.8%, up from 19.8% in the prior year period[6] - Long-term debt increased to$ 3,433.6 million as of March 31, 2025, compared to $3,355.1 million in the previous year[36] - The company incurred acquisition costs of$ 193.5 million during the nine months ended March 31, 2025, indicating ongoing investment in growth[38]