BR Filings — Broadridge Financial Solutions, Inc. - FilingSpy
BR
Broadridge Financial Solutions, Inc.
A financial technology company that powers the plumbing of modern investing, Broadridge processes shareholder proxy votes and investor communications for banks, brokers, and corporations, and provides software that handles trillions of dollars in daily securities trades and wealth-management platforms. It began in 1962 as the brokerage services division of payroll giant ADP, then became its own company in a 2007 spinoff, taking the name "Broadridge" as a nod to its brokerage roots. Fun fact: it helps process the votes for the vast majority of shareholder ballots cast in the U.S., quietly sitting behind many corporate elections.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
Net income rose 34% to $1.12B, but $227M came from a non-cash digital-asset gain, masking flat operating margins.
Broadridge's core engine held steady at 8% growth, but stalled. rose 9% to $7.48B and climbed 35% to $9.60, yet the was inflated by a $227 million on digital assets that nearly doubled net income. The business itself is stable, but reported earnings now carry a new layer of volatility from Canton Coins.
Key takeaways
, the core growth engine, rose 8% to $4.88B, driven by Net New Business and Internal Growth across both segments, matching the prior year's growth rate despite a 16% decline in FY25 closed sales.
was flat at 17.4%, as a $176.7M increase in postage and distribution costs that pass through to clients and higher labor and technology spending offset gains.
rose 34% to $1.12B, but $227M of that came from a on digital assets (Canton Coins), without which earnings growth would have been in the single digits.
Section summaries
Business
Broadridge operates two segments: Investor Communication Solutions (~74% of revenue) and Global Technology and Operations (~26%), providing financial technology and operations services globally.
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Investor Communication Solutions provides regulatory proxy processing, data-driven fund analytics, corporate issuer services, and omni-channel customer communications, handling over 1 billion equity proxy positions in FY2026.
The Global Technology and Operations 's pre-tax margin expanded, with up 8% aided by the SIS and CQG acquisitions and 15% Internal Trade Growth, confirming that acquisition is no longer compressing earnings.
rose 13% to $1.28B, and the company has no near-term debt maturities until 2030 after refinancing its capital structure.
The SEC proposed Regulation E-Delivery, which management expects to modestly reduce growth over 2-3 years but increase margins, with no impact in FY27.
What changed
The 16% decline in FY25 closed sales flagged as a risk to FY26 growth did not materialize: recurring revenue growth held at 8%, matching FY25's rate, as the Q1 FY25 spike in closed sales appears to have been an early signal of pipeline rebuilding.
The Global Technology and Operations 's pre-tax margin, which had been compressed for two years by acquisition , stabilized and expanded in FY26, confirming the SIS acquisition is now accretive to segment earnings.
Event-driven volatility persisted through FY26 — an 81% spike in Q1, a 27% decline in Q2, and a 38% rebound in Q3 — settling into no predictable pattern, as flagged in prior periods.
The SEC tailored shareholder reports rule, previously estimated to reduce by $30M, was not called out as a material in FY26 results, suggesting it was absorbed or offset by new business.
A new and material earnings driver emerged that was not flagged in any prior filing: a $227M on digital assets (Canton Coins), which the company now holds on its balance sheet and marks to market each quarter.
What to watch
The impact of Canton Coins in FY27, given that $227M in non-cash gains drove over 20% of FY26 and a decline in their fair value would reverse a material portion of reported earnings.
Whether the 8% growth rate holds in FY27, or if the 16% decline in FY25 closed sales finally weighs on the core engine with a lag.
The trajectory of now that postage and labor costs are rising — whether the flat 17.4% margin in FY26 represents a ceiling or a temporary pause before expansion.
The SEC's proposed Regulation E-Delivery rulemaking progress, and whether the preliminary expectation of a modest 2-3 year growth reduction begins to affect client behavior before any rule is finalized.
Global Technology and Operations delivers front-to-back capital markets trade processing, wealth management platforms, and investment management solutions, processing over $18 trillion in daily securities trades.
The company's strategy focuses on three growth themes: democratizing governance, simplifying capital markets trading, and modernizing wealth and investment management.
Broadridge is actively integrating next-generation technologies like AI, blockchain, and tokenization, including a distributed ledger solution and AI-driven tools like BondGPT.
The company serves a diverse client base including 22 of 26 U.S. primary dealers and the 15 largest U.S. wealth providers, with operations in 28 countries and approximately 16,000 associates.
Key regulatory aspects include SEC and NYSE rules governing proxy reimbursement, and oversight of subsidiaries like broker-dealer BBPO and transfer agency Broadridge Corporate Issuer Solutions.
Regulatory shifts, client concentration, cybersecurity threats, and technological disruption pose material risks to revenue and operations.
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Proposed SEC Regulation E-Delivery could reduce physical communication volumes, decreasing growth and distribution revenues, and potentially forcing restructuring of physical distribution operations.
The largest client accounted for 7% of FY2026 consolidated revenues, and loss of a major client could trigger write-offs of deferred conversion costs representing 9% of total assets.
Evolving regulation of tokenized securities and digital assets creates uncertainty that may alter or reduce demand for traditional securities processing, investor communications, and transfer agency services.
AI-enabled cybersecurity threats are increasing in sophistication and frequency, and past non-material incidents including social engineering and denial-of-service attacks highlight ongoing vulnerability.
, , and deferred client conversion costs represent 65% of total assets, exposing the company to significant charges if a key client is lost or a prolonged recession occurs.
We operate our business primarily from 50 facilities. We lease 10 production-related facilities in Edgewood, New York; El Dorado Hills, California; South Windsor, Connecticut; Urbandale, Iowa; Dallas, Texas; Coppell, Texas; and Markham, Canada, with a combined space of 2.2 milli…
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We operate our business primarily from 50 facilities. We lease 10 production-related facilities in Edgewood, New York; El Dorado Hills, California; South Windsor, Connecticut; Urbandale, Iowa; Dallas, Texas; Coppell, Texas; and Markham, Canada, with a combined space of 2.2 million square feet which are used in connection with our Investor Communication Solutions business. We also lease one facility in Newark, New Jersey, which houses our principal Global Technology and Operations business operations. We lease space at 39 additional locations, subject to customary lease arrangements which expire on a staggered basis. We believe our facilities are currently adequate for their intended purposes and are adequately maintained.
Currently, there are no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company is a party or of which any of the Company’s property is the subject. In the normal course of business, the Company is subject to cl…
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Currently, there are no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company is a party or of which any of the Company’s property is the subject. In the normal course of business, the Company is subject to claims and litigation. While the outcome of any claim or litigation is inherently unpredictable, the Company believes that the ultimate resolution of these matters will not, individually or in the aggregate, result in a material impact on its financial condition, results of operations, or cash flows. For information concerning the Company’s legal proceedings, reference is made to Note 20, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” to our Consolidated Financial Statements under Item 8. of Part II of this Annual Report on Form 10-K.
Broadridge's FY26 revenue rose 9% to $7.48B, driven by 8% recurring growth and a $227M non-cash digital asset gain.
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Consolidated revenues grew 9% to $7,476.8M, with recurring revenues up 8% ($370.1M) on and acquisitions, and distribution revenues up 9% ($188.7M) largely from postage rate increases.
ICS rose 8% driven by 12% growth in Regulatory and 8% in Issuer, while GTO recurring revenue rose 8% aided by the SIS and CQG acquisitions and 15% Internal Trade Growth.
margin was flat at 17.4%, as higher revenues were offset by increased costs including $176.7M in higher postage/distribution expenses and higher labor and technology spending.
surged 34% to $1,124.3M, significantly boosted by a $227.0M non-cash gain on digital assets (Canton Coins) and a $22.8M decline in net .
increased to $1,233.0M, and the company expects existing cash, operations, and borrowing capacity to fund activities for the foreseeable future, with no near-term debt maturities until 2030.
The SEC proposed Regulation E-Delivery, which management preliminarily expects to modestly reduce growth over 2-3 years but increase margins, with no impact in FY27.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate and foreign currency risks are managed through operating practices and designated derivatives, with no trading or speculative use.
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31% of total debt ($1,022.0 million) is floating-rate, tied to benchmarks like SOFR, CORRA, and EURIBOR plus ratings-based spreads.
A hypothetical 100 rate increase would have lowered pre-tax earnings by $11.3 million in FY2026, partly offset by interest earned on cash.
In May 2026, the company executed $500 million in interest rate swaps to hedge exposure on its Fiscal 2026 Term Loan.
Approximately 15% of FY2026 revenues were earned outside the U.S., exposing earnings to fluctuations in the Canadian dollar, British pound, Euro, Indian Rupee, and Swedish Krona.
A hypothetical 10% adverse move in those five currencies would have reduced pre-tax earnings by $15.8 million in FY2026.
The company uses cross-currency swaps (EUR 880 million notional) designated as net investment hedges to manage Euro-denominated subsidiary exposure.
Deloitte issued an unqualified audit opinion on Broadridge's financial statements and internal controls for the fiscal year ended June 30, 2026.
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The independent auditor, Deloitte & Touche LLP, opined that the consolidated financial statements present fairly, in all material respects, the company's financial position and results of operations for the three years ended June 30, 2026.
The auditor also issued an that the company maintained effective as of June 30, 2026, based on COSO criteria.
A was identified related to the accounting for digital assets (Canton Coins), which had a of $216 million as of June 30, 2026, due to the complexity of auditing their existence, rights, and accounting treatment.
Audit procedures for the digital assets included testing internal controls over private key management, observing asset movements on the blockchain, and confirming holdings with a third party.
The report confirms the financial statements were audited in accordance with PCAOB standards, and Deloitte has served as the company's auditor since 2007.