Broadridge Recurring Revenue Climbs 11% As Digital-Asset Loss Drags Reported EPS Down 41%
Adjusted EPS rose 3% to $1.56 while event-driven revenue fell 41%, and the company reaffirmed its full-year guidance.
Broadridge Financial Solutions, which runs proxy voting, investor communications and trade-processing technology for banks, brokers and fund managers, said recurring revenue rose 11% to $1,083 million in its fiscal first quarter. Reported earnings per share fell 41% to $0.83, mostly on a $40 million digital-asset loss set against a gain a year earlier, while adjusted EPS rose 3% to $1.56.
Recurring growth, weaker event revenue
Total revenue for the quarter ended September 30 rose 5% to $1,669 million from $1,589 million. Recurring revenue growth of 11% on a constant-currency basis included 9 points from organic growth.
Event-driven revenue fell 41% to $67 million as lower mutual fund proxy revenue was partly offset by higher equity and other revenue. Distribution revenue rose 4% to $518 million, driven mainly by a postage rate increase worth about $18 million.
Closed sales, a measure of new business, grew 10% to $36 million.
Why reported and adjusted EPS diverge
Operating income fell 8% to $174 million, and margin slipped to 10.4% from 11.9%. Adjusted operating margin was 13.8%, against 15.8% a year earlier.
The EPS gap comes mainly from digital assets. Broadridge booked a non-cash loss of $40 million on its Canton Coin holdings, compared with a $46 million gain in the prior-year quarter, and excludes it from adjusted results. Restructuring costs of $15 million, tied to severance from workforce actions resulting in part from AI and productivity initiatives, were also excluded. The company said it continues to evaluate expanding those actions.
The effective tax rate fell to 13.6% from 22.4%. Net earnings fell 43% to $95 million, while adjusted net earnings were flat at $178 million.
Cash, buybacks and the guidance
Free cash flow was $76 million, up from $13 million a year earlier. Broadridge repurchased $200 million of its shares and paid $111 million in dividends.
CEO Tim Gokey said the company is "scaling agentic AI, and accelerating tokenization." Management reaffirmed fiscal 2027 guidance: recurring revenue growth of 6% to 8% at constant currency, adjusted EPS growth of 8% to 12%, and closed sales of $290 million to $330 million. A presentation said the company is on track for $25 million in AI savings in fiscal 2027.
As of September 30, it held $185 million of Canton coins.
Broadridge will hold an Investor Day in New York City on December 8, where executives are to give new three-year financial objectives.
Sources
- 8-K Filing — BROADRIDGE FINANCIAL SOLUTIONS, INC. (BR) — SEC EDGAR
- Exhibit ex991earningsrelease1q2027.htm — BROADRIDGE FINANCIAL SOLUTIONS, INC. 8-K exhibit — SEC EDGAR
- Exhibit exhibit992earningspresen.htm — BROADRIDGE FINANCIAL SOLUTIONS, INC. 8-K exhibit — SEC EDGAR
- Broadridge Reports First Quarter Fiscal 2027 Results – Company Announcement - FT.com — Financial Times
- Broadridge Financial Solutions (BR) Q1 Earnings and Revenues Beat Estimates — Yahoo Finance
