Broadridge Financial Solutions reported 8% recurring revenue growth and adjusted EPS of $1.59 in Q2, raising full-year adjusted EPS guidance to 9–12%. The company is integrating tokenized securities into proxy and servicing capabilities, expecting Voting Choice to be used by >600 funds covering $4 trillion this proxy season.
Management reaffirmed fiscal 2026 guidance and raised adjusted EPS outlook. Recurring revenue growth is reaffirmed at 5-7%, with adjusted operating income margin of 20-21% and closed sales of $290 million to $330 million. Adjusted EPS growth guidance is raised to 9-12%.
In the governance segment, recurring revenues rose 9% to $590 million, with 2 points from acquisitions and 1 point from lower interest rates. Broadridge expects more than 600 funds covering $4 trillion to use its Voting Choice solution this proxy season.
Broadridge discussed efforts to digitize communications, with a significant sale expanding its Wealth InFocus platform. Tokenization strategy was highlighted, with plans to integrate tokenized and digital assets into proxy capabilities and extend to other servicing needs.
In Capital Markets, recurring revenues grew 6% constant currency, benefiting from sales, digital asset revenues, and higher trade volumes. The company plans to extend its tokenization platform to other asset classes and support digital assets in trade processing engines.
Wealth and investment management saw recurring revenue growth of 11%, driven by organic growth and acquisition contributions. Closed sales improved in Q2, and event-driven revenues remained elevated, contributing to a record $204 million in the first half.
Broadridge recorded a $187 million non-cash mark-to-market gain related to digital asset holdings, reporting $265 million in holdings. Free cash flow increased to $319 million in the first six months of fiscal 2026, with expectations for over 100% free cash flow conversion for the year.
On capital allocation, Broadridge completed three acquisitions totaling $126 million in fiscal 2026 and returned $367 million to shareholders. The company emphasized its operational focus and strategic investments in the digital asset space.
Read more at Yahoo Finance: Broadridge Financial Solutions Q2 Earnings Call Highlights