Broadridge Financial Solutions Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dan Perlin - RBC Capital Markets - Analyst : Thanks. Good morning. I wanted to just maybe touch on the demand environment a little bit more closely. It sounds like there's this dichotomy where you've got client demand that's there, and now, maybe you're starting to get a sense that there's a little bit of a pause in willingness to make these investments. Tim, I know you called that out a little bit in your prepared remarks, so maybe you can just dive a little bit deeper into those conversations and what maybe some of the nuances are.

Question: Dan Perlin - RBC Capital Markets - Analyst : Yeah. No, that's great color. Just a quick follow-up, if you wouldn't mind. On the equity position growth and the call-out between kind of smaller positions, not really driving revenues, but over time, that is expected to build versus kind of revenue producing. Again, can you just maybe tease out a little bit the nuance there and how that is, again, going to impact the business maybe going forward? It seems like that position growth could stay elevated, but the revenue piece of that. So I'm just trying to make sure that we understand maybe the spread differential between revenue producing versus not. Thank you.

Question: Dan Perlin - RBC Capital Markets - Analyst : Excellent. Thank you so much.

Question: Scott Wurtzel - Wolfe Research, LLC - Analyst : Hey. Good morning, guys. Thank you for taking my questions. I just wanted to go with one on the sales to start. I'm just wondering when you're seeing these elongations potentially in the sales cycles, is that happening in specific product lines or geographies?

Question: Scott Wurtzel - Wolfe Research, LLC - Analyst : Got it. That's helpful. And then just one quick follow-up on the margin side of things. The margin expansion you drove during the quarter was pretty strong still holding your guidance for the year. So just wondering as we think about the fourth quarter, are there incremental planned investments maybe or anything with the revenue mix that we should be thinking about?

Question: Scott Wurtzel - Wolfe Research, LLC - Analyst : Great. Thank you, guys.

Question: Michael Infante - Morgan Stanley & Co. LLC - Analyst : Hi, guys. Thanks for taking our question. I just wanted to circle back on Dan's earlier question, just in terms of the differential between equity position growth and revenue growth. Is there a way to quantify what revenue growth maybe would have been if the size of positions was more in line with historical trends? I just wanted to clarify just because the comp in 3Q in regulatory was quite a bit easier than what you faced in 2Q of last year. Thanks.

Question: Michael Infante - Morgan Stanley & Co. LLC - Analyst : Okay, very helpful. Maybe just on some of the license activity. I know there are obviously some comp dynamics. Tim, I think in the past, you've mentioned there could be an opportunity to sort of smooth some of the quarterly revenue volatility from license renewals by switching to more of a subscription model. I know it's still -- license is still only a low single-digit percentage of your overall recurring revenue. But where are you just in that journey from transitioning from license to subscription? Thanks.

Question: Michael Infante - Morgan Stanley & Co. LLC - Analyst : Thank you.

Question: Puneet Jain - JPMorgan - Analyst : Hey. Thanks for taking my question. Tim, totally agree that timing of bookings doesn't impact medium-term growth rates, but can you also recap what the new administration policies and priorities, such as deregulation, potentially fewer disclosure requirements could mean for Broadridge?

Question: Puneet Jain - JPMorgan - Analyst : Got it. No, that's very helpful. And then, like the work that's being delayed, like the closed sales that are being delayed, are these typically long implementation cycle type of deals, or are these like the quick, short-term deals, which could have generated revenue in fiscal '26 as well? I'm just trying to think about the waterfall impact, like if things remain weak in bookings, for more than a quarter, like the waterfall impact on revenue.

Question: Puneet Jain - JPMorgan - Analyst : Yeah. No, understood. Very helpful. Thank you.

Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst : Hey. Good morning. Starting out with your Wealth platform sale that you mentioned, can you give a little bit more color on what's within that suite of solutions that you sold to that client?

Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst : Yeah, that's very helpful. Thank you. And then, I apologize if I missed this earlier, but did you provide any color on kind of current position count growth trends, what your early testing for next fiscal year looks like in light of recent market weakness? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 12:30PM, BR.N - Q3 2025 Broadridge Financial Solutions Inc Earnings Call

Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst : All right. Terrific. Thank you.

Question: Peter Heckmann - D.A. Davidson & Company - Analyst : Hey. Good morning. Thanks for taking the question. Tim, I didn't hear you mention it, but do you have any early thoughts on some of the public-private kind of retail investment vehicles that are being discussed that would basically create a hybrid product? I'm not sure exactly how they would be created, but do you see that as an opportunity? And would there be any unique accounting needs?

Question: Peter Heckmann - D.A. Davidson & Company - Analyst : Okay, that's helpful. And then just lastly, any thoughts on kind of the M&A pipeline, whether there's -- you view this as a relatively attractive or unattractive market to go hunting for tuck-in deals?

Question: Peter Heckmann - D.A. Davidson & Company - Analyst : Sure. Okay, that's helpful. Appreciate it.