01—Abstract
Summary
Summary of the 10-Q filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Broadridge Financial Solutions, Inc. reported results for the first fiscal quarter ended September 30, 2025.
Revenues rose $166.6 milliona, or 12%, to $1,589.4 million from $1,422.9 million, with recurring revenues up $77.2 million, or 9%, to $977.5 million and event-driven revenues up $50.8 million, or 81%, driven by higher mutual fund proxy volume. Operating income increased $54.3 million, or 40%, to $188.8 million, and net earnings more than doubled to $165.4 million from $79.8 million, helped by a $45.8 million unrealized gain on digital assets (Canton Coins) recorded in other non-operating income. Diluted EPS was $1.40 versus $0.68.
Adjusted net earnings, a non-GAAP measure, were $178.1 millionb, up from $118.3 million, and adjusted earnings per share were $1.51 versus $1.00. Cash flow improved, with net cash flows from operating activities of $42.3 million compared with a $125.5 million outflow a year earlier, and free cash flow (non-GAAP) of $12.7 million versus negative $157.6 million. Cash and cash equivalents fell to $290.7 million at quarter end from $561.5 million at June 30, 2025, as the company repurchased $150.5 million of treasury stock, paid $103.1 million in dividends, and made $55.8 million of acquisition payments.
Total debt was $3,281.3 millionc in carrying value, and stockholders' equity was $2,635.1 million. The company also adopted ASU 2023-08 on crypto assets, which increased retained earnings by $18.4 million net of tax. Business activity was strong in the quarter.
Internal Trade Growth was 17%, equity positions grew 12%, and Closed sales were $32.5 milliond, down $25.0 million, or 43%, from the prior-year quarter. The company also agreed on November 3, 2025 to contribute 342 million Canton Coins for a roughly 8% interest in Tharimmune, Inc., and it is pursuing the Acolin acquisition, expected to close in the first half of fiscal 2026 for about $70 million plus contingent consideration.
02—Key points
Key Highlights
- Revenue increased $166.6 million, or 12%, to $1,589.4 million, with recurring revenues up 9% to $977.5 million and event-driven revenues up 81% to $113.8 million.
- Operating income rose $54.3 million, or 40%, to $188.8 million, and operating margin reached 11.9% versus 9.4%.
- Net earnings were $165.4 million, or $1.40 diluted EPS, versus $79.8 million, or $0.68, including a $45.8 million unrealized gain on Canton Coin digital assets.
- Adjusted diluted EPS (non-GAAP) was $1.51 versus $1.00 in the prior-year quarter.
- Operating cash flow was $42.3 million versus a $125.5 million outflow a year earlier, and free cash flow (non-GAAP) was $12.7 million versus negative $157.6 million.
- Cash and cash equivalents declined to $290.7 million from $561.5 million at June 30, 2025, reflecting $150.5 million of share repurchases and $103.1 million of dividends paid.
- Closed sales fell 43% to $32.5 million, and the company disclosed a November 3, 2025 subscription to contribute 342 million Canton Coins to Tharimmune, Inc. for an approximate 8% interest.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Broadridge Financial Solutions kept $0.10.
- Revenue$1.59B100.0%
- Cost of revenue−$1.17B73.4%
- Gross profit$422.6M26.6%
- Operating costs−$233.8M14.7%
- Operating income$188.8M11.9%
- Interest, other & tax−$23.4M1.5%
- Net income$165.4M10.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed November 4, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.59B$1.42B | +11.7% |
| Cost of Revenue | $1.17B$1.07B | +8.5% |
| Gross Profit | $422.60M$347.90M | +21.5% |
| SG&A Expenses | $233.90M$213.40M | +9.6% |
| Operating Expenses | $1.40B$1.29B | +8.7% |
| Operating Income | $188.80M$134.40M | +40.5% |
| Interest Expense | $27.90M$35.90M | −22.3% |
| Net Income | $165.40M$79.80M | +107.3% |
| EPS (Basic) | $1.41$0.68 | +107.4% |
| EPS (Diluted) | $1.40$0.68 | +105.9% |
| Shares Outstanding (Basic) | 117.00M116.90M | +0.1% |
| Shares Outstanding (Diluted) | 118.00M118.10M | −0.1% |
05—Questions
Frequently Asked Questions
What drove the large increase in net earnings this quarter?
Net earnings rose to $165.4 million from $79.8 million. Operating income increased $54.3 million on higher revenues, interest expense fell $8.1 million on lower average borrowings, and other non-operating income was $48.5 million compared with a $1.9 million expense a year earlier, mainly from a $45.8 million unrealized gain on digital assets.
How did the company's recurring and event-driven revenues perform?
Recurring revenues increased 9% to $977.5 million, with Investor Communication Solutions recurring revenue up 5% and Global Technology and Operations recurring revenue up 13%, aided by the SIS acquisition. Event-driven revenues increased 81% to $113.8 million, driven by higher mutual fund proxy communications volume. The filing notes that event-driven activity is difficult to forecast.
Why did cash decline and how did the company use its cash?
Cash and cash equivalents fell to $290.7 million from $561.5 million. Financing activities used $214.2 million, including $150.5 million for treasury stock purchases and $103.1 million for dividends, and investing activities used $100.0 million, including $55.8 million for acquisitions. Operating cash flow of $42.3 million partly offset these outflows.
What do the Canton Coin holdings and the Tharimmune agreement mean for the company?
The company held 1.7 billion Canton Coins with a fair value of $73.6 million at September 30, 2025, against a cost basis of $3.2 million, and these are classified as Level 3 assets. On November 3, 2025 it agreed to contribute 342 million Canton Coins for an approximate 8% interest in Tharimmune, Inc., with closing expected around November 6, 2025. The filing also warns that digital asset values are highly speculative and can fluctuate dramatically.
What is the outlook for the Acolin acquisition and the company's debt position?
Broadridge announced in July 2025 its proposed acquisition of Acolin Group Holdco Limited for approximately $70 million plus contingent consideration, expected to close in the first half of fiscal 2026 subject to regulatory approvals. Total debt carrying value was $3,281.3 million at September 30, 2025, including $499.5 million of current debt due in June 2026, and the company stated it was in compliance with all debt covenants.
06—Continue