01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Broadridge Financial Solutions, Inc. reported revenues of $1,953.6 milliona for the three months ended March 31, 2026, up from $1,811.7 million a year earlier, and $5,256.9 million for the nine months, up from $4,823.7 million.
Operating income was $359.5 millionb for the quarter versus $344.9 million, while net earnings rose to $276.3 million from $243.1 million, and diluted EPS was $2.36 versus $2.05. For the nine months, net earnings were $726.2 million, including $242.7 million of other non-operating income, which the company attributes primarily to realized and unrealized gains and losses on digital assets (Canton Coins) and related Canton Digital Asset Treasury warrants. Adjusted Net earnings (Non-GAAP) for the nine months were $682.7 million, and Free cash flow (Non-GAAP) was $590.9 million versus $393.2 million a year earlier.
Recurring revenues were $1,288.1 millionc for the quarter, up 7%, with recurring revenue growth constant currency at 6%. Distribution revenues rose 7%, driven primarily by a postage rate increase of approximately $34 million. Investor Communication Solutions pre-tax earnings grew 6% for the quarter, while Global Technology and Operations pre-tax earnings rose 21%.
Closed sales for the quarter declined 19% to $57.5 milliond. Total debt was $3,227.0 million carrying value at March 31, 2026, and cash and cash equivalents were $304.8 million.
Subsequent to the quarter, on April 30, 2026, the company completed the acquisition of CQG, Inc. for a total purchase price of approximately $173.0 million plus contingent consideration. The company also amended its Kyndryl IT services agreements on March 31, 2026, extending the ITSA through December 31, 2031.
02—Key points
Key Highlights
- Revenues rose 8% to $1,953.6 million for the quarter and 9% to $5,256.9 million for the nine months, with recurring revenues up 7% and 8%, respectively.
- Diluted EPS for the quarter was $2.36 versus $2.05; for the nine months it was $6.18 versus $3.93, with Adjusted EPS (Non-GAAP) of $5.81 versus $5.00.
- Nine-month other non-operating income of $242.7 million was driven mainly by gains and losses on digital assets, including Canton Coins and related Canton Digital Asset Treasury warrants.
- Free cash flow (Non-GAAP) for the nine months was $590.9 million, up from $393.2 million, while net cash from operating activities was $668.2 million.
- Treasury stock purchases totaled $352.9 million in the nine months, and dividends paid were $330.7 million.
- Closed sales fell 19% to $57.5 million for the quarter and 16% to $146.8 million for the nine months.
- On April 30, 2026, the company completed the acquisition of CQG, Inc. for approximately $173.0 million plus contingent consideration, to be included in the GTO segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Broadridge Financial Solutions kept $0.14.
- Revenue$1.95B100.0%
- Cost of revenue−$1.33B67.9%
- Gross profit$626.9M32.1%
- Operating costs−$267.4M13.7%
- Operating income$359.5M18.4%
- Interest, other & tax−$83.2M4.3%
- Net income$276.3M14.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed April 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.95B$1.81B | +7.8% |
| Cost of Revenue | $1.33B$1.24B | +7.3% |
| Gross Profit | $626.90M$575.80M | +8.9% |
| SG&A Expenses | $267.40M$230.90M | +15.8% |
| Operating Expenses | $1.59B$1.47B | +8.7% |
| Operating Income | $359.50M$344.90M | +4.2% |
| Interest Expense | $27.30M$33.50M | −18.5% |
| Net Income | $276.30M$243.10M | +13.7% |
| EPS (Basic) | $2.38$2.07 | +15.0% |
| EPS (Diluted) | $2.36$2.05 | +15.1% |
| Shares Outstanding (Basic) | 116.30M117.20M | −0.8% |
| Shares Outstanding (Diluted) | 117.00M118.50M | −1.3% |
05—Questions
Frequently Asked Questions
What drove the increase in net earnings for the nine months ended March 31, 2026?
Net earnings rose to $726.2 million from $465.3 million, reflecting higher operating income of $754.3 million versus $689.9 million and other non-operating income of $242.7 million versus a $6.6 million expense in the prior year. The filing attributes the non-operating income primarily to realized and unrealized gains and losses on digital assets, the previously held Digital Asset Loan Receivable, and the Canton Digital Asset Treasury warrants.
How did the Canton Coin digital asset accounting change affect results?
The company adopted ASU 2023-08 in the first quarter of fiscal 2026, which requires crypto assets to be measured at fair value. This resulted in a cumulative-effect increase to opening retained earnings of $18.4 million net of tax. Canton Coin holdings of 1.5 billion coins had a fair value of $217.8 million at March 31, 2026, against a cost basis of $11.5 million. Gains on digital assets are excluded from Adjusted Net earnings.
What is driving revenue growth in the Investor Communication Solutions segment?
For the three months ended March 31, 2026, ICS revenues increased 9% to $1,465.3 million. Recurring revenue growth was 8%, with 4 points from Internal Growth, 2 points from Net New Business and 1 point from acquisitions. Distribution revenues increased 7%, primarily from a postage rate increase of approximately $34 million.
What capital return and debt activity occurred during the nine months?
The company repurchased treasury stock for $352.9 million and paid dividends of $330.7 million. Debt proceeds were $988.5 million and debt repayments were $1,016.8 million. The Fiscal 2026 Term Loan of $750.0 million matures in August 2030, and the $500.0 million Fiscal 2016 Senior Notes mature in June 2026.
What did the company disclose about the Kyndryl agreements and the CQG acquisition?
On March 31, 2026, the company amended its Kyndryl IT Services Agreement, extending it through December 31, 2031, with fixed minimum commitments of $400.4 million. On April 30, 2026, it completed the acquisition of CQG, Inc., a Denver-based execution management system provider, for approximately $173.0 million plus contingent consideration.
06—Continue