BR
IndustrialsBroadridge Financial Solutions
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2009–2025(17yr)| Metric | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.1B | $2.2B | $2.2B | $2.3B | $2.4B | $2.6B | $2.7B | $2.9B | $4.1B | $4.3B | $4.4B | $4.5B | $5.0B | $5.7B | $6.1B | $6.5B | $6.9B | +5.9% |
| Gross Profit | $562.9M | $592.8M | $549.8M | $588.4M | $663.0M | $796.6M | $866.0M | $921.2M | $1.0B | $1.2B | $1.2B | $1.3B | $1.4B | $1.6B | $1.8B | $1.9B | $2.1B | +10.5% |
| Gross Margin | 27.2% | 26.8% | 25.4% | 25.5% | 27.3% | 31.1% | 32.1% | 31.8% | 24.9% | 26.8% | 28.2% | 27.9% | 28.5% | 27.9% | 29.5% | 29.7% | 31.0% | +1.3pp |
| Operating Income | $346.0M | $342.1M | $269.7M | $200.9M | $323.2M | $395.5M | $438.9M | $468.9M | $531.6M | $594.9M | $652.7M | $624.9M | $678.7M | $759.9M | $936.4M | $1.0B | $1.2B | +16.9% |
| Operating Margin | 16.7% | 15.5% | 12.4% | 8.7% | 13.3% | 15.5% | 16.3% | 16.2% | 12.8% | 13.7% | 15.0% | 13.8% | 13.6% | 13.3% | 15.4% | 15.6% | 17.3% | +1.6pp |
| Net Income | $223.3M | $190.0M | $169.6M | $123.6M | $212.1M | $263.0M | $287.1M | $307.5M | $326.8M | $427.9M | $482.1M | $462.5M | $547.5M | $539.1M | $630.6M | $698.1M | $839.5M | +20.3% |
| Net Margin | 10.8% | 8.6% | 7.8% | 5.4% | 8.7% | 10.3% | 10.7% | 10.6% | 7.9% | 9.9% | 11.1% | 10.2% | 11.0% | 9.4% | 10.4% | 10.7% | 12.2% | +1.5pp |
| Free Cash Flow | — | — | — | — | — | — | — | $380.0M | $430.5M | $616.9M | $566.4M | $535.5M | $588.2M | $414.5M | $784.9M | $998.8M | $1.1B | +12.9% |
| FCF Margin | — | — | — | — | — | — | — | 13.1% | 10.4% | 14.2% | 13.0% | 11.8% | 11.8% | 7.3% | 13.0% | 15.4% | 16.4% | +1.0pp |
| EPS (Diluted) | $1.58 | $1.37 | $1.32 | $0.97 | $1.69 | $2.12 | $2.32 | $2.53 | $2.70 | $3.56 | $4.06 | $3.95 | $4.65 | $4.55 | $5.30 | $5.86 | $7.10 | +21.2% |
1. THE BIG PICTURE
Broadridge is the essential "plumbing" of the financial markets, occupying a unique, central role in the proxy process that makes it nearly impossible for clients to leave without disrupting their own core operations. While management emphasizes its evolution into an AI-driven innovator through tools like BondGPT, Broadridge Financial Solutions’s true power remains its "network scale"—a SaaS-based infrastructure that links broker-dealers, public companies, and shareholders in a way that competitors cannot easily replicate (10-K Item 1).
2. WHERE THE RISKS HIT HARDEST
The "network scale" Broadridge cites as a primary strength is directly threatened by financial industry consolidation; as banks and broker-dealers merge, the total pool of potential clients shrinks, increasing Broadridge’s dependency on a handful of massive firms (10-K Item 1A). Furthermore, the "mission-critical" nature of its communications business is highly vulnerable to regulatory shifts. If the SEC or stock exchanges move the default for shareholder reports from paper to digital, the revenue generated from physical distribution—a core part of the Investor Communication Solutions (ICS) segment—could be eliminated (10-K Item 1). Finally, Broadridge Financial Solutions’s reliance on "deferred client conversion costs," which represent roughly 10% of assets, means that any significant client loss or failed implementation could lead to immediate and material write-offs (10-K Item 1A).
3. WHAT THE NUMBERS SAY TOGETHER
Broadridge’s recent 100% jump in net earnings to $285 million suggests significant momentum, yet a comparison with peers reveals a business model that is structurally less efficient than its competitors. Broadridge operates with the lowest gross margins (28.6%) and operating margins (14.2%) in its peer group, trailing leaders like Verisk and Paychex by a wide margin (XBRL). This lower margin profile is paired with a $3.3 billion net debt load, which is nearly four times its annual free cash flow (CAPM analysis). While Broadridge Financial Solutions reported 7% organic growth in the most recent quarter, this was heavily supported by "elevated levels of event-driven activity" rather than a fundamental shift in its business mix, as data-driven fund solutions actually saw a 2% decline (8-K).
4. IS IT WORTH IT AT THIS PRICE?
At 18.3x forward earnings, Broadridge is trading in line with its peer median of 18.1x, suggesting the stock is at fair value relative to the broader fintech sector (XBRL). According to the market-implied growth rate, investors are pricing in approximately 4.4% long-term growth (CAPM analysis). This appears credible given management’s fiscal 2026 guidance for recurring revenue growth at the higher end of 5–7% (8-K). However, Broadridge offers the lowest buyback yield in its peer group (0.7%), and its valuation is highly sensitive to growth expectations; if long-term growth were to slow to a GDP-pace of 2.5%, the justified multiple would fall to 13.6x, representing a 26% downside (CAPM analysis, XBRL). The current price is only justified if Broadridge can maintain its "central role" in the proxy process while successfully transitioning to higher-margin digital services.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if the SEC mandates "digital-first" delivery for all proxy materials, which would gut the high-volume distribution revenue that currently anchors the ICS segment.
- Constructive if the Wealth and Investment Management business sustains its 12% growth rate, proving that Broadridge can successfully pivot from "mailroom" services to high-value software (8-K).
- Cautious if net debt continues to climb relative to free cash flow, further limiting Broadridge Financial Solutions's ability to return capital to shareholders via buybacks (XBRL).
6. BOTTOM LINE
Structural Advantage: High switching costs and network effects created by a multi-client SaaS platform that mutualizes regulatory and operational costs for the global financial industry. Bottom Line: Broadridge is a stable but low-margin market utility that is fairly priced for its current growth, provided regulatory shifts do not dismantle its legacy communication business.
1. Top 5 Material Risks
- Regulatory Changes in Communications: SEC or stock exchange rule amendments—such as shifting default delivery from paper to digital—could eliminate demand for Broadridge Financial Solutions’ proxy, shareholder report, and prospectus distribution services.
- Client Consolidation: Mergers among financial institutions reduce the total client base and may lead to surviving entities bringing services in-house, directly threatening Broadridge Financial Solutions’ revenue streams.
- Concentration Risk: In fiscal year 2025, the largest client accounted for approximately 7% of consolidated revenues; the loss of any major client or a reduction in their service demand would materially impact financial results.
- Cybersecurity and Data Privacy: As a processor of sensitive personal and proprietary data, Broadridge Financial Solutions faces risks from hacking, ransomware, and social engineering that could lead to service interruptions, legal actions, and regulatory fines.
- Market Participation Levels: A significant portion of revenue is tied to transaction processing fees, which are sensitive to securities market volatility, trading volumes, and the number of unique investor positions.
2. Company-Specific Risks
- Deferred Cost Write-offs: Broadridge Financial Solutions carries significant deferred client conversion and start-up costs—representing approximately 10% of total assets as of June 30, 2025—which may require accelerated amortization or write-offs if a client relationship terminates.
- Dependency on USPS and Carriers: The business relies on the United States Postal Service and other third-party carriers for physical delivery; disruptions or rate increases could force the use of more expensive alternatives or decrease demand for printed communications.
- AI Implementation Challenges: Investments in artificial intelligence and machine learning may fail to deliver anticipated benefits or could introduce new risks related to data leakage, intellectual property infringement, and regulatory scrutiny.
- Acquisition Integration: With three acquisitions and seven strategic investments over the last three fiscal years, Broadridge Financial Solutions faces risks related to valuation, the conversion of disparate systems, and the potential for non-cash impairment charges.
3. Regulatory/Legal Risks
- FFIEC Oversight: As a technology service provider to financial institutions, Broadridge Financial Solutions is subject to regulatory examination by the FFIEC; unfavorable reviews regarding cybersecurity or vendor risk management can increase contractual requirements and operating costs.
- Global Privacy Compliance: Broadridge Financial Solutions must navigate a fragmented landscape of privacy laws, including the GLBA, HIPAA, CPRA, and GDPR, with failure to comply resulting in penalties that could materially affect cash flows.
- Intellectual Property Litigation: Broadridge Financial Solutions faces the risk of costly litigation to enforce its own patents and trademarks or to defend against third-party claims of infringement, which could force Broadridge Financial Solutions to pay damages or alter its product offerings.
4. Financial Impact Map
Regulatory Changes → Revenue → Changes in laws could reduce or eliminate demand for investor communication services. Client Consolidation → Revenue → Mergers could lead to the loss of clients or the transition of services to in-house operations. Concentration Risk → Revenue → The loss of the largest client (7% of revenue) or other major clients would materially impact results. Cybersecurity Incidents → Operating Expenses → Significant costs to investigate, remediate, and defend against legal actions or regulatory fines. Asset Impairment → Total Assets → Goodwill, intangible assets, and deferred client conversion costs (67% of total assets as of June 30, 2025) are subject to non-cash impairment charges if business conditions deteriorate.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-Q | Feb 2026 | Dec 2025 |
| 10-K | Aug 2025 | Jun 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Broadridge completes Swift Service Bureau migration for Bayer AG global payment infrastructure
- ▸Bayer AG migrated global payment infrastructure to Broadridge Swift Service Bureau
- ▸System manages 4 million annual payment transactions across 80+ banking partners
- ▸Implementation supports ISO 20022 readiness and Swift SCORE+ performance standards
- ▸Project included integration of Swift Transaction Screening Service for real-time compliance
- ▸Migration executed via two-phase approach with 20+ banking partners
Broadridge completes Swift Service Bureau migration for Bayer AG global payment infrastructure
- ▸Bayer migrated global payment infrastructure to Broadridge Swift Service Bureau
- ▸System manages 4 million annual payment transactions across 80+ banking partners
- ▸Implementation supports ISO 20022 readiness and Swift SCORE+ performance standards
- ▸Integrated Swift Transaction Screening Service for real-time regulatory compliance
- ▸Project involved message exchange testing with over 20 banking partners
Big Rock Brewery FY25 Adjusted EBITDA +$5.8M, Net Revenue +15% to $49.1M
- ▸FY25 Adjusted EBITDA $3.6M, up $5.8M YoY
- ▸FY25 net revenue $49.1M, +15% YoY
- ▸FY25 total sales volume 311,594 hl, +34.9% YoY
- ▸Q4 net revenue $11.1M, +23.1% YoY
- ▸FY25 net loss narrowed to $0.9M from $13.5M
Big Rock Brewery FY25 Adjusted EBITDA +$5.8M, Net Revenue +15% to $49.1M
- ▸FY25 Adjusted EBITDA $3.6M, up $5.8M YoY
- ▸FY25 net revenue $49.1M, +15% YoY
- ▸FY25 total sales volumes +34.9% to 311,594 hl
- ▸Q4 net revenue $11.1M, +23.1% YoY
- ▸FY25 net loss narrowed to $0.9M from $13.5M
Broadridge Q2 Revenue $1.7B +7.9% YoY, Beats Estimates Despite 6.3% Share Drop
- ▸Q2 revenue $1.7B, +7.9% YoY, beating consensus estimates by 7.5%
- ▸Adjusted EPS beat analyst expectations of $1.34
- ▸Organic growth reached 7% driven by investor participation and event-driven activity
- ▸Shares down 34.4% from 52-week high of $271.91
- ▸Stock trading below 50-day and 200-day moving averages