Broadridge Financial Solutions, Inc. Q3 FY2026 earnings call

• Roger delivered strong third-quarter financial results and is on track to deliver a strong fiscal 2026. Market backdrop is positive with equity markets resilient and capital markets active. • On track to deliver three-year financial targets for the fifth consecutive cycle. • Raising fiscal 26 guidance for recurring revenue and adjusted EPS growth. • Governance recurring revenues rose 8% in constant currency driven by new sales and investor participation. Innovations to power shareholder engagement are building momentum. • Capital markets business had healthy 6% underlying growth offset by lower license revenues, but post-trade solutions and front office solutions have strong demand. Acquired CQG to accelerate expansion into futures and options. • Wealth management recurring revenue rose 8% in constant currency powered by strong growth in Canada. Launched next generation digital asset platform. • Year-to-date closed sales were $147 million, updating sales guidance to $240 to $290 million due to longer closing deals. Pipeline is higher than ever, well north of a billion dollars.

ICS recurring revenues rose 8% to $800 million. Organic growth was 6%. Regulatory revenues grew 9%, driven by 11% growth in equity revenue positions and fund position growth of 6%. Data-driven fund solutions revenue increased 8%, driven by a combination of organic growth and the acquisitions of iJoin and Akilin. Issuer revenues rose 8% driven by growth in disclosure and shareholder engagement solutions. Customer communications revenue growth was 5%, driven by another quarter of double-digit growth in digital revenues. GTO recurring revenue grew 3% to $488 million. Capital markets revenues were $295 million. Excluding a seven-point impact from lower license revenue, capital markets growth was 6%. Digital asset revenues from our role as Canton Network Supervalidator were $3.5 million in the quarter. Wealth and investment management grew 8%, driven by a combination of strong growth in Canada and higher trading volumes in the U.S.

• Raising fiscal 26 guidance for recurring revenue growth constant currency to at or above 7% and for adjusted EPS to 10% to 12%. • For ICS, expects another quarter of high single-digit regulatory revenue growth in fourth quarter driven by low double-digit equity revenue positions and continued mid-to-high single-digit fund position growth. • For GTO, continues to expect recurring revenue growth of 5% to 7% in the year, with fourth quarter including a three-point contribution from CQG acquisition offset by a five-point license revenue headwind in wealth management business.

Q: On closed sales guide, asked about lengthening sales cycles and when change noticed.

A: Ideal origination this year up 25% in dollar terms, pipeline 20% higher than last year same time. Pipeline in areas of investment, but larger engagements take longer to close.

Q: On custom policy voting engine opportunity.

A: Custom policy voting engine is exciting, sees strong demand from asset managers, pipeline for next year, expect growth over next three years.

Q: On tokenization views.

A: Leading provider of voting solutions for issuers, already solving complexity with multiple share types. Multiple models for tokenization, see opportunities in wealth management, capital markets, governance.

Q: On margins and investment.

A: Remain on track for full-year AOI margin guidance. Strong results enable acceleration of investments in growth initiatives, with investments baked into forecasts.

Q: On repo front and Canton network.

A: Excited about repo product, roadmap includes moving to Canton Mainnet, real-time capability, geographic and asset class expansion.

Q: On cashflow and buyback.

A: Committed to balanced capital allocation, strong cash flow, ample capacity for M&A and share buyback.

Q: On delays in closed sales and AI.

A: Not seeing AI affecting things, seeing positive trends for next year with pipeline and origination up, benefit from organic product development and M&A.

Q: On contribution of closed sales to recurring revenue and conviction in growth.

A: Conviction from volume trends, backlog, acquisitions, and internal growth. Closed sales impact on recurring revenue expected to be minimal.

Q: On Galaxy announcement and on-chain efforts.

A: Gating factor is how fast can talk to partners, partnering with broad ecosystem, some companies in pipeline, depends on supply from corporates and demand from investors