Q3 2025 Broadridge Financial Solutions Inc Earnings Call Transcript
Key Points
- Broadridge Financial Solutions Inc (BR) reported strong third-quarter results with 8% recurring revenue growth and 9% adjusted EPS growth.
- The company has a high revenue retention rate of 98% and a $450 million revenue backlog, providing strong visibility into future growth.
- Broadridge's Governance business saw a 6% increase in recurring revenues, driven by new sales and growth in investor participation.
- The Capital Markets segment reported 10% recurring revenue growth, benefiting from strong trading volumes and seamless scalability.
- Wealth & Investment Management revenues grew 13%, supported by the acquisition of SIS and progress in integrating wealth platforms.
- There is significant uncertainty in the market, which may influence the timing of new investments by clients.
- The closing process for sales is taking longer in Q4 compared to Q3, leading to a more cautious sales outlook.
- The company faced a 160-basis-point headwind to recurring revenue growth due to FX and a delayed wealth management license renewal.
- Broadridge had to close a print operation in its Customer Communications business, resulting in a $5 million restructuring charge.
- The elongation in the sales cycle could impact the timing of closed sales, with guidance for fiscal '25 sales adjusted to $240 million to $300 million.
Good day, and welcome to the Broadridge fiscal third-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Edings Thibault, Head of Investor Relations. Please go ahead.
Thank you, Dave. And good morning, everybody, and welcome to Broadridge's third-quarter and fiscal year 2025 earnings call.
The earnings release and the slides that accompany this call may be found on the Investor Relations section of broadridge.com. Joining me on the call this morning are Tim Gokey, our CEO; and our CFO, Ashima Ghei.
Before I turn the call over to Tim, a few standard reminders. One, we will be making forward-looking statements on today's call regarding Broadridge that involve risks. A summary of these risks can be found on the second page of the slides and a more complete description on our annual report on Form 10-K.
Two, we'll also be referring to several non
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