01—Abstract
Summary
Summary of the 10-Q filed February 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Broadridge Financial Solutions, Inc. reported results for its fiscal second quarter ended December 31, 2025.
Revenues rose 8% to $1,713.9 milliona for the quarter and 10% to $3,303.3 million for the six months. Operating income was $206.0 million for the quarter, down from $210.7 million, with operating margin of 12.0% versus 13.3%. Net earnings more than doubled to $284.6 million (diluted EPS $2.42) from $142.4 million (diluted EPS $1.20), driven mainly by $188.0 million of other non-operating income, which includes a $136.5 million unrealized gain and a $53.1 million realized gain on digital assets (Canton Coins).
Adjusted net earnings, a non-GAAP measure, were $186.6 millionb versus $184.4 million, and adjusted EPS was $1.59 versus $1.56. Growth was led by Investor Communication Solutions and Global Technology and Operations. Recurring revenues grew 9% to $1,070.1 million for the quarter, while event-driven revenues fell 27% on lower mutual fund proxy activity.
Distribution revenues rose 14%, driven by higher volume and a postage rate increase of approximately $32 millionc. Earnings before income taxes in ICS fell 21%, while GTO rose 56%. Free cash flow for the six months was $318.5 million, up from $56.3 million, as operating cash flow reached $367.1 million.
Balance sheet highlights include cash of $370.7 milliond, total debt of $3,173.1 million, and stockholders' equity of $2,879.2 million. The company acquired Acolin Group Holdco Limited in January 2026 for approximately $70.1 million plus contingent consideration. The filing also notes a new risk factor on impairment charges and the volatility of digital assets, and a restructuring tied to closing a production facility with estimated pre-tax costs of about $20 million.
02—Key points
Key Highlights
- Revenue of $1,713.9 million for the quarter, up 8% from $1,589.2 million; six-month revenue of $3,303.3 million, up 10%.
- Net earnings of $284.6 million (diluted EPS $2.42), versus $142.4 million (diluted EPS $1.20), boosted by $188.0 million of other non-operating income tied to Canton Coin digital asset gains.
- Adjusted net earnings (non-GAAP) of $186.6 million and adjusted EPS of $1.59, compared with $184.4 million and $1.56 a year earlier.
- Recurring revenues rose 9% to $1,070.1 million; event-driven revenues fell 27% to $90.6 million on lower mutual fund proxy revenues.
- Operating margin declined to 12.0% from 13.3%, as cost of revenues rose 8% and SG&A rose 15%.
- Six-month operating cash flow of $367.1 million and free cash flow (non-GAAP) of $318.5 million, versus $111.2 million and $56.3 million a year earlier.
- Company acquired Acolin Group Holdco Limited on January 5, 2026, for approximately $70.1 million plus contingent consideration; it also paid $0.975 per share in quarterly dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Broadridge Financial Solutions kept $0.17.
- Revenue$1.71B100.0%
- Cost of revenue−$1.24B72.4%
- Gross profit$473.6M27.6%
- Operating costs−$267.6M15.6%
- Operating income$206.0M12.0%
- Interest, other & tax$78.6M4.6%
- Net income$284.6M16.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed February 3, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.71B$1.59B | +7.8% |
| Cost of Revenue | $1.24B$1.15B | +8.2% |
| Gross Profit | $473.60M$443.40M | +6.8% |
| SG&A Expenses | $267.50M$232.80M | +14.9% |
| Operating Expenses | $1.51B$1.38B | +9.4% |
| Operating Income | $206.00M$210.70M | −2.2% |
| Interest Expense | $27.70M$36.60M | −24.3% |
| Net Income | $284.60M$142.40M | +99.9% |
| EPS (Basic) | $2.44$1.22 | +100.0% |
| EPS (Diluted) | $2.42$1.20 | +101.7% |
| Shares Outstanding (Basic) | 116.80M117.10M | −0.3% |
| Shares Outstanding (Diluted) | 117.70M118.30M | −0.5% |
05—Questions
Frequently Asked Questions
What drove the large increase in net earnings this quarter?
Net earnings more than doubled to $284.6 million, mainly because other non-operating income was $188.0 million, compared with a $1.9 million expense a year earlier. That income primarily reflects a $136.5 million unrealized gain on digital assets and a $53.1 million realized gain from contributing Canton Coins to the Canton Digital Asset Treasury. Operating income itself declined slightly, to $206.0 million from $210.7 million.
How did the core businesses perform?
Investor Communication Solutions revenues rose 7% to $1,233.3 million, but its earnings before income taxes fell 21% to $136.8 million, reflecting lower event-driven revenues and higher operating expenses. Global Technology and Operations revenues rose 9% to $480.6 million, and its earnings before income taxes rose 56% to $77.6 million, helped by the SIS acquisition.
What is the company's debt and liquidity position?
Total debt was $3,173.1 million at December 31, 2025, and cash and cash equivalents were $370.7 million. The company had $1,314.9 million of unused capacity under its revolving credit facilities. A $500.0 million senior note matures in June 2026, and the company stated it expects cash flows and borrowing capacity to be sufficient for the next 12 months.
What new risk does the filing highlight?
The filing adds a risk factor on potential charges or losses tied to goodwill, intangible assets, and digital assets. Goodwill, intangible assets, and deferred client conversion costs were about 67% of total assets at June 30, 2025. The company notes that Canton Coins are volatile, hard to value, and may be hard to convert to fiat currency, and that a significant decline in their value could affect results.
What capital returns did the company make?
The company paid $216.9 million in dividends and $152.5 million in treasury stock purchases during the six months. Quarterly dividends were $0.975 per share in the quarter. During the quarter, it did not repurchase shares under its publicly announced program, and 6.3 million shares remained available under that program.
06—Continue