01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Broadridge Financial Solutions, Inc. reported third-quarter fiscal 2025 results for the three months ended March 31, 2025, with revenues of $1,811.7 milliona, up from $1,726.5 million, and net earnings of $243.1 million, compared with $213.7 million a year earlier.
Diluted earnings per share were $2.05b, versus $1.79. For the nine months, revenues were $4,823.7 million, net earnings were $465.3 million, and diluted EPS was $3.93, compared with $3.14. Recurring revenues grew 6% for the nine months to $3,084.3 million, with Net New Business contributing 4 points of growth.
Operating income rose to $344.9 millionc for the quarter, and the company's Adjusted Net earnings (Non-GAAP) were $288.8 million for the quarter. By segment, Investor Communication Solutions revenues increased 4% for the quarter to $1,347.5 million, and Global Technology and Operations revenues increased 9% to $464.1 million, aided by the acquisition of Kyndryl's Securities Industry Services business on November 1, 2024. Cash flow from operations for the nine months was $471.6 million, and Free cash flow (Non-GAAP) was $393.2 million, compared with $258.6 million a year earlier.
Cash and cash equivalents were $317.2 milliond at March 31, 2025, and total debt carrying value was $3,433.6 million. Dividends paid for the nine months were $299.2 million, and the company did not repurchase shares under its program during the quarter.
The filing notes that event-driven revenues fell 21% in the quarter on lower equity proxy contest activity, while distribution revenues rose 4% on a postage rate increase of approximately $32 million, partly offset by lower mail volumes. Management reports that disclosure controls were effective as of March 31, 2025.
02—Key points
Key Highlights
- Revenues rose 5% to $1,811.7 million in the quarter and 6% to $4,823.7 million for the nine months, with recurring revenues up 7% to $1,203.9 million in the quarter.
- Diluted EPS was $2.05 for the quarter versus $1.79 a year earlier; for the nine months, diluted EPS was $3.93 versus $3.14.
- Operating income increased 14% to $344.9 million for the quarter, and operating margin improved to 19.0% from 17.5%.
- The SIS acquisition from Kyndryl, completed November 1, 2024 for an aggregate purchase price of $185.5 million, contributed to Global Technology and Operations revenue growth of 9% in the quarter.
- Free cash flow (Non-GAAP) for the nine months was $393.2 million, compared with $258.6 million in the prior-year period, driven by higher operating cash flow of $471.6 million.
- Event-driven revenues declined 21% in the quarter to $52.7 million, reflecting lower equity proxy contest activity.
- The company had $317.2 million of cash and cash equivalents at March 31, 2025 and $1,374.2 million of unused revolving credit capacity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Broadridge Financial Solutions kept $0.13.
- Revenue$1.81B100.0%
- Cost of revenue−$1.24B68.2%
- Gross profit$575.8M31.8%
- Operating costs−$230.9M12.7%
- Operating income$344.9M19.0%
- Interest, other & tax−$101.8M5.6%
- Net income$243.1M13.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed May 1, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.81B$1.73B | +4.9% |
| Cost of Revenue | $1.24B$1.19B | +4.1% |
| Gross Profit | $575.80M$539.20M | +6.8% |
| SG&A Expenses | $230.90M$236.20M | −2.2% |
| Operating Expenses | $1.47B$1.42B | +3.0% |
| Operating Income | $344.90M$302.90M | +13.9% |
| Interest Expense | $33.50M$38.20M | −12.3% |
| Net Income | $243.10M$213.70M | +13.8% |
| EPS (Basic) | $2.07$1.81 | +14.4% |
| EPS (Diluted) | $2.05$1.79 | +14.5% |
| Shares Outstanding (Basic) | 117.20M117.80M | −0.5% |
| Shares Outstanding (Diluted) | 118.50M119.40M | −0.8% |
05—Questions
Frequently Asked Questions
How did Broadridge perform in the third quarter of fiscal 2025?
Revenues were $1,811.7 million, up $85.2 million or 5% from $1,726.5 million. Net earnings rose to $243.1 million from $213.7 million, and diluted EPS was $2.05 compared with $1.79. Operating income increased 14% to $344.9 million.
What drove the growth in recurring revenues?
Recurring revenues rose $77.7 million, or 7%, to $1,203.9 million. The filing attributes this to Net New Business contributing 4 points, Internal Growth 2 points, acquisitions 2 points, and a foreign exchange reduction of 1 point.
How much cash did Broadridge generate, and what did it do with it?
Net cash flows from operating activities were $471.6 million for the nine months ended March 31, 2025, and Free cash flow was $393.2 million. The company paid $299.2 million in dividends and $193.5 million in net acquisition cash outflows, and it made $4.2 million in treasury stock purchases during the nine months.
Did the company change its debt position?
Total debt carrying value rose to $3,433.6 million at March 31, 2025 from $3,355.1 million at June 30, 2024. The Fiscal 2025 Revolving Credit Facility, amended and restated in December 2024, is a $1.5 billion facility with $125.8 million drawn at quarter end, and the company was in compliance with its covenants.
What are the main risks or headwinds noted in the filing?
The filing notes that event-driven activity is difficult to forecast and depends on market conditions, with equity proxy contest activity declining this quarter. It also cites an ongoing discussion with the Canadian Competition Bureau regarding the SIS acquisition, and it states there have been no material changes to the risk factors in the 2024 Annual Report.
06—Continue