Q2 2026 Broadridge Financial Solutions Inc Earnings Call Transcript
Key Points
- Broadridge Financial Solutions Inc (BR) reported strong second-quarter results with 8% recurring revenue growth in constant currency and adjusted EPS of $1.59.
- The company is on track to deliver another year of 100% plus free cash flow conversion, providing flexibility for M&A opportunities and returning capital to shareholders.
- Broadridge is actively investing in key growth areas such as tokenization, shareholder engagement, and digital communications, which are expected to drive future growth.
- The company has seen a significant increase in closed sales, with Q2 closed sales rising 24% to $57 million, indicating strong sales momentum.
- Broadridge is expanding its capabilities in tokenized equities and digital assets, positioning itself as a leader in this emerging market.
- Despite strong results, Broadridge faces skepticism regarding the impact of tokenization, with concerns that it could lead to disintermediation and pricing pressure.
- The company experienced a decline in adjusted operating income margin by 110 basis points to 15.5%, primarily due to a reduction in event-driven revenues.
- Digital asset revenues are expected to moderate significantly in the second half of the year due to changes in the Canton network minting curve.
- Broadridge's capital markets business faces a 7-point headwind in Q3 due to lower license revenue, impacting growth rates.
- The company needs to navigate complex regulatory environments and ensure compliance as it expands into tokenized and digital asset markets.
Good morning, and welcome to Broadridge's fiscal second-quarter 2026 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 and Corporate Communications. Please go ahead.
Thank you, Drew. And good morning, everybody, welcome to Broadridge's second quarter fiscal year 2026 earnings conference call. Our 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 Chief Executive Officer; and our Chief Financial Officer, 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
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