What drove the strong growth in second-quarter results?

Growth was driven by a 126% increase in event-driven revenues to $125 million, mainly from higher mutual fund communications volume, and a 7% increase in distribution revenues to $484 million, which included a postage rate increase of approximately $30 million. Recurring revenues also grew 9%, supported by Net New Business and Internal Growth in ICS and the SIS acquisition in GTO.

Did Broadridge change its fiscal 2025 outlook?

No. The company reaffirmed its FY'25 guidance: recurring revenue growth of 6-8% in constant currency, Adjusted Operating income margin of approximately 20%, Adjusted EPS growth of 8-12%, and Closed sales of $290-$330 million.

What acquisition did Broadridge complete during the period?

On November 1, 2024, Broadridge completed the acquisition of Kyndryl's Securities Industry Services (SIS) business, which provides wealth management, capital markets and information technology solutions in Canada. The total purchase price, translated to U.S. dollars, was approximately $185 million.

How did cash flow and debt change in the first half of fiscal 2025?

Net cash flows from operating activities were $111.2 million versus $127.8 million a year earlier, and free cash flow was $56.3 million versus $91.4 million. Long-term debt rose to $3,655.6 million at December 31, 2024 from $3,355.1 million at June 30, 2024, and debt proceeds were $740.3 million.

BR 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 31, 2025. Cited figures are marked; the original filing is the authoritative source.

Broadridge Financial Solutions, Inc. (NYSE: BR) furnished an 8-K on January 31, 2025 reporting results for its second quarter of fiscal 2025, ended December 31, 2024.

Total revenues rose 13% to $1,589 million^a from $1,405 million, and recurring revenues rose 9% to $980 million, or 9% in constant currency, driven by Net New Business and Internal Growth in ICS and Internal Growth and Acquisitions in GTO. Event-driven revenues increased 126% to $125 million on higher mutual fund communications volume, and distribution revenues rose 7% to $484 million, helped by a postage rate increase of approximately $30 million. Operating income increased 69% to $211 million, and diluted EPS more than doubled to $1.20 from $0.59, while Adjusted EPS grew 70% to $1.56 from $0.92.

For the six months ended December 31, 2024, total revenues rose 6% to $3,012 million^b and Adjusted Operating income margin was 14.9%. Free cash flow (non-GAAP) for the six months was $56.3 million, compared with $91.4 million a year earlier, and cash from operating activities was $111.2 million versus $127.8 million. Long-term debt increased to $3,655.6 million from $3,355.1 million at June 30, 2024.

The company completed its acquisition of Kyndryl's Securities Industry Services business on November 1, 2024 for approximately $185 million^c. Management reaffirmed its fiscal 2025 guidance, including 6-8% recurring revenue growth in constant currency, Adjusted EPS growth of 8-12%, an Adjusted Operating income margin of approximately 20%, and Closed sales of $290-$330 million. The filing furnishes the earnings press release (Exhibit 99.1) and an earnings presentation (Exhibit 99.2), and the information is not deemed filed under Section 18 of the Exchange Act.

02—Key points

Key Highlights

Total revenues increased 13% to $1,589 million; recurring revenues rose 9% to $980 million (9% in constant currency).
Event-driven revenues increased 126% to $125 million, driven by higher mutual fund communications volume.
Operating income rose 69% to $211 million; Adjusted Operating income rose 51% to $263 million, with Adjusted Operating income margin of 16.6% versus 12.4%.
Diluted EPS increased 103% to $1.20 from $0.59; Adjusted EPS increased 70% to $1.56 from $0.92.
Closed sales declined 21% to $46 million in the quarter, though six-month Closed sales were $103 million versus $106 million a year earlier.
Free cash flow for the six months fell to $56.3 million from $91.4 million, with operating cash flow of $111.2 million versus $127.8 million.
Fiscal 2025 guidance was reaffirmed, including 6-8% recurring revenue growth in constant currency, 8-12% Adjusted EPS growth, and Closed sales of $290-$330 million.

03—Questions

Frequently Asked Questions

What drove the strong growth in second-quarter results?
Growth was driven by a 126% increase in event-driven revenues to $125 million, mainly from higher mutual fund communications volume, and a 7% increase in distribution revenues to $484 million, which included a postage rate increase of approximately $30 million. Recurring revenues also grew 9%, supported by Net New Business and Internal Growth in ICS and the SIS acquisition in GTO.
Did Broadridge change its fiscal 2025 outlook?
No. The company reaffirmed its FY'25 guidance: recurring revenue growth of 6-8% in constant currency, Adjusted Operating income margin of approximately 20%, Adjusted EPS growth of 8-12%, and Closed sales of $290-$330 million.
What acquisition did Broadridge complete during the period?
On November 1, 2024, Broadridge completed the acquisition of Kyndryl's Securities Industry Services (SIS) business, which provides wealth management, capital markets and information technology solutions in Canada. The total purchase price, translated to U.S. dollars, was approximately $185 million.
How did cash flow and debt change in the first half of fiscal 2025?
Net cash flows from operating activities were $111.2 million versus $127.8 million a year earlier, and free cash flow was $56.3 million versus $91.4 million. Long-term debt rose to $3,655.6 million at December 31, 2024 from $3,355.1 million at June 30, 2024, and debt proceeds were $740.3 million.

04—Continue

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