Financial technology provider Broadridge (NYSE:BR) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 6.2% year on year to $2.07 billion. The company expects next quarter’s revenue to be around $1.51 billion, close to analysts’ estimates. Its non-GAAP profit of $3.55 per share was 1.5% above analysts’ consensus estimates.
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Revenue: $2.07 billion vs analyst estimates of $2.06 billion (6.2% year-on-year growth, in line)
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Adjusted EPS: $3.55 vs analyst estimates of $3.50 (1.5% beat)
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Adjusted EBITDA: $626.8 million vs analyst estimates of $618.6 million (30.3% margin, 1.3% beat)
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Revenue Guidance for Q3 CY2025 is $1.51 billion at the midpoint, roughly in line with what analysts were expecting
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Operating Margin: 24.1%, up from 22.7% in the same quarter last year
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Market Capitalization: $30.75 billion
Broadridge’s second quarter saw a strong positive market reaction as the company met Wall Street’s revenue expectations and slightly exceeded profit forecasts. Management attributed this performance to broad-based gains across its core governance, capital markets, and wealth management businesses. CEO Tim Gokey highlighted growth in investor positions, a continued shift toward digital communications, and increased demand for solutions supporting capital markets and wealth modernization. Notably, recurring revenue growth was driven by higher investor engagement, strong demand for fund voting choice solutions, and new client wins for the company’s wealth management platform.
Looking forward, Broadridge’s guidance is supported by expectations for continued growth in regulatory revenues, robust sales pipelines in wealth and capital markets, and expanding adoption of digital and AI-enabled products. Management noted that the pipeline is especially strong for offerings like distributed ledger repo and wealth platform solutions, which are expected to meet evolving client needs for scalability and modernization. CFO Ashima Ghei emphasized, “We expect another year of steady and consistent growth in the ICS business, in line with our overall recurring revenue guidance.” The company also sees ongoing regulatory changes and increased digitization as long-term growth catalysts.
Management credited recurring revenue growth and margin expansion to increased investor engagement, digital adoption, and strong momentum across governance, capital markets, and wealth management platforms.
