Broadridge (BR) is a leading global provider of technology infrastructure for capital markets, offering essential data processing and communication solutions to major financial institutions worldwide.
Investors should consider Broadridge due to its entrenched market position with high barriers to entry, consistent double-digit earnings growth evidenced by the rise from $630.6M to $839.5M over three years, and a diversified global client base that insulates it from single-market downturns.
Potential concerns include the company's large accumulated other comprehensive loss of -$272.9M which may indicate hedging pressures or valuation adjustments, and the capital-intensive nature of maintaining legacy infrastructure against shifting cloud adoption trends in the fintech sector.
Broadridge Financial Solutions provides critical infrastructure for the global capital markets, serving banks, broker-dealers, exchanges, and corporate issuers across North America, Europe, Asia, and Latin America. The company specializes in data processing, communications, and information services that enable the efficient execution of trades, settlement of securities, and distribution of financial data.
Broadridge delivered robust financial performance with revenue growing to $6.89B and net income reaching $839.5M, demonstrating strong operational leverage against rising costs. The company maintained a healthy cash position of $561.5M while returning significant capital to shareholders through dividends and buybacks, reflecting confidence in its long-term growth trajectory.
The global capital markets technology industry is experiencing a transition from on-premise hardware to cloud-based solutions, driven by increasing demand for real-time data, lower latency trading, and enhanced cybersecurity protocols. As financial institutions modernize their stacks, established players like Broadridge face competition from agile startups while simultaneously upgrading their own legacy systems.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $6.06B | $6.51B | $6.89B |
| Cost of Revenue | $4.28B | $4.57B | $4.75B |
| Gross Profit | $1.79B | $1.93B | $2.14B |
| Operating Expenses | $849.0M | $916.8M | $948.2M |
| Operating Income | $936.4M | $1.02B | $1.19B |
| G&A | $849.0M | $916.8M | $948.2M |
| Stock-Based Comp | $73.1M | $70.6M | $73.4M |
| Amortization | $257.6M | $279.5M | $283.8M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-225.8M | $-301.0M | $-285.0M |
| Pre-Tax Income | $710.6M | $716.1M | $903.6M |
| Income Tax | $164.3M | $179.3M | $219.2M |
| Continuing Ops | $546.3M | $536.8M | $684.4M |
| Discontinued Ops | $84.3M | $161.3M | $155.1M |
| Net Income | $630.6M | $698.1M | $839.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $630.6M | $698.1M | $839.5M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.39B | $1.54B | $1.82B |
| Cash & Equivalents | $252.3M | $304.4M | $561.5M |
| Marketable Securities | $700.0K | $800.0K | $700.0K |
| Inventory | $34.1M | $30.5M | $32.1M |
| Other Current Assets | $1.11B | $1.21B | $1.22B |
| Long-Term Assets | $6.84B | $6.70B | $6.73B |
| PP&E (Net) | $145.7M | $162.2M | $170.1M |
| Intangibles | $1.47B | $1.31B | $1.28B |
| Goodwill | $3.46B | $3.47B | $3.61B |
| Operating Leases | $198.3M | $186.2M | $176.1M |
| LT Securities | $141.3M | $170.6M | $195.2M |
| LT Investments | $241.9M | $271.1M | $299.2M |
| Other LT Assets | $1.18B | $1.13B | $1.00B |
| Total Assets | $8.23B | $8.24B | $8.54B |
| Current Liabilities | $2.40B | $1.42B | $1.86B |
| Accounts Payable | $157.3M | $314.0M | $220.3M |
| Current Debt | $1.18B | $0 | $499.3M |
| Current Leases | $40.9M | $38.0M | $37.2M |
| Deferred Revenue | $199.8M | $227.4M | $249.1M |
| Taxes Payable | $69.7M | $112.5M | $60.1M |
| Other Current Liab | $666.0M | $636.5M | $692.1M |
| Long-Term Liabilities | $3.59B | $4.65B | $4.03B |
| Long-Term Debt | $2.23B | $3.36B | $2.75B |
| LT Operating Leases | $198.5M | $183.8M | $169.5M |
| Other LT Liab | $668.8M | $644.3M | $677.0M |
| Total Liabilities | $5.99B | $6.07B | $5.89B |
| Shareholders' Equity | $2.24B | $2.17B | $2.66B |
| Paid-In Capital | $1.44B | $1.55B | $1.66B |
| Retained Earnings | $3.11B | $3.44B | $3.86B |
| AOCI | $-284.7M | $-331.7M | $-272.9M |
| Total L&E | $8.23B | $8.24B | $8.54B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $630.6M | $698.1M | $839.5M |
| Non-Cash Adjustments | $-506.5M | $-75.3M | $369.3M |
| Working Capital Changes | $699.2M | $433.4M | $-37.5M |
| Cash from Operations | $823.3M | $1.06B | $1.17B |
| Capital Expenditures | $38.4M | $57.4M | $43.8M |
| Cash from Investing | $-80.4M | $-148.0M | $-316.2M |
| Debt Issuances | $990.0M | $1.02B | $1.24B |
| Debt Repayments | $1.38B | $1.08B | $1.34B |
| Share Buybacks | $24.3M | $485.4M | $134.9M |
| Dividends Paid | $331.0M | $368.2M | $402.3M |
| Cash from Financing | $-714.7M | $-855.5M | $-600.8M |
| FX Effect | $-600.0K | $-600.0K | $2.8M |
| Net Change in Cash | $27.6M | $52.1M | $257.1M |
| Beginning Cash | $224.7M | $252.3M | $304.4M |
| Ending Cash | $252.3M | $304.4M | $561.5M |
The company's revenue is driven by its core offerings in Data Processing and Communications, which handle trade execution and settlement; Information Services that provide real-time market data and analytics; and Financial Technology platforms enabling digital transformation for clients in securities finance and wealth management.
Regulatory changes in capital markets could impact pricing models or operational requirements; intense competition from cloud-native entrants threatens traditional on-premise infrastructure revenue; currency fluctuations and geopolitical instability may affect international operations and supply chains.
Broadridge benefits from high switching costs due to the deep integration of its systems into client workflows, a dominant global footprint with extensive technology infrastructure, and strong recurring revenue streams from long-term service contracts that ensure predictable cash flows.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.