01—Abstract
Summary
Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Broadridge Financial Solutions, Inc. furnished its results for the third quarter of fiscal year 2025, ended March 31, 2025, through a press release (Exhibit 99.1) and an earnings presentation (Exhibit 99.2).
Total revenues rose 5% to $1,812 milliona from $1,726 million, and recurring revenues rose 7% to $1,204 million, or 8% in constant currency (non-GAAP). Operating income increased 14% to $345 million, with operating margin of 19.0% versus 17.5% a year earlier. Diluted EPS rose 15% to $2.05, and Adjusted EPS (non-GAAP) rose 9% to $2.44.
For the nine months, total revenues increased 6% to $4,824 millionb, and diluted EPS increased 25% to $3.93. Adjusted EPS grew 18% to $5.00. Closed sales were $71 million in the quarter, down 11%, and $174 million year to date, down 6%.
Free cash flow (non-GAAP) for the nine months was $393.2 millionc, compared with $258.6 million a year earlier. Management reaffirmed its fiscal 2025 guidance of 6-8% constant-currency recurring revenue growth and approximately 20% Adjusted operating income margin, and said Adjusted EPS growth is expected in the middle of its 8-12% range. It lowered its closed sales outlook to $240-$300 million from $290-$330 million.
02—Key points
Key Highlights
- Q3 FY25 total revenues of $1,812 million, up 5%; recurring revenues of $1,204 million, up 7% (8% constant currency)
- Q3 diluted EPS of $2.05, up 15%; Adjusted EPS of $2.44, up 9%
- Q3 operating income of $345 million, up 14%; operating margin expanded to 19.0% from 17.5%
- Nine-month diluted EPS of $3.93, up 25%; Adjusted EPS of $5.00, up 18%
- FY25 guidance reaffirmed for 6-8% constant-currency recurring revenue growth and ~20% Adjusted operating income margin; Adjusted EPS growth now expected at the middle of the 8-12% range
- FY25 closed sales guidance lowered to $240-$300 million from $290-$330 million
- Free cash flow (non-GAAP) of $393.2 million for the nine months, compared with $258.6 million a year earlier
03—Questions
Frequently Asked Questions
How did Broadridge perform in the third quarter of fiscal 2025?
Total revenues rose 5% to $1,812 million and recurring revenues rose 7% to $1,204 million. Operating income increased 14% to $345 million, and diluted EPS increased 15% to $2.05.
What changed in the fiscal 2025 guidance?
Recurring revenue growth constant currency (6-8%) and the Adjusted operating income margin (~20%) were unchanged. Adjusted EPS growth was narrowed to the middle of the 8-12% range, and closed sales guidance was lowered to $240-$300 million from $290-$330 million.
How did closed sales trend?
Closed sales were $71 million in the third quarter, down 11% from $80 million, and $174 million for the nine months, down 6% from $185 million.
What drove the recurring revenue growth?
In Investor Communication Solutions, recurring revenues rose 6% to $740 million, led by Data-driven fund solutions (up 8%) and Regulatory (up 6%). In Global Technology and Operations, recurring revenues rose 9% to $464 million, with 6 points coming from the Kyndryl SIS acquisition.
What is the status of the cash flow and capital returns?
Nine-month free cash flow (non-GAAP) was $393.2 million, versus $258.6 million a year earlier. Dividends paid were $299.2 million, and treasury stock purchases were $4.2 million.
04—Continue