Broadridge Financial Solutions Reports Steady Growth as a Financial Technology Leader

The company’s position as an indispensable partner in the financial services ecosystem ensures its solutions are deeply embedded in the daily operations of banks, broker-dealers, asset managers, and corporations. This has created a resilient, high-retention business model with high barriers to entry.

What’s more, the company’s consistently growing recurring revenue streams provide stability and predictability. This growth is being driven by powerful industry trends toward digitization, increased investor participation, and the need for new technologies like AI. These are all areas where the firm has a proven track record and a competitive advantage.

Meanwhile, the stock trades at 28.4 times the company’s forward earnings forecast. This might seem a high multiple, but the company’s growth remains strong and the AI aspects of its business offer plenty of long-term upside potential.

BROADRIDGE FINANCIAL SOLUTIONS, (New York symbol BR; www.broadridge.com serves the investment industry in three areas: investor communications, securities processing, and transaction clearing.

Broadridge is best known for processing and distributing proxies and regulatory filings for nearly every publicly traded U.S. company and mutual fund, both electronically and by surface mail.

That segment comprises about three-quarters of the company’s annual revenue. Fees are tied to the volume of communications that Broadridge delivers, and a surge of interest in the stock market over the last few years has led to a wider group of investors holding more stocks and funds. That translates into business for Broadridge.

The company also has other businesses providing software to handle back-office functions for money managers, broker-dealers, and other capital markets institutions. Those functions include trade processing, record-keeping, accounting, and more.

In November 2024, Broadridge completed the acquisition of Kyndryl Canada’s Securities Industry Services (SIS) wealth and capital markets technology platform for $185 million. The business provides services such as clearing and settlement, account record keeping, tax and regulatory reporting, and order management for Canadian financial services firms. It’s adding $60 million to the company’s annual revenue.

Broadridge is now buying Acolin, a leading European provider of cross-border fund distribution and regulatory services. The purchase price has not yet been disclosed.

Acolin, based in Zurich, is a specialized distribution support provider with over 350 clients and access to over 3,000 distributors across over 30 countries. Rather than connecting directly with multiple fund platforms and distributors to access regional European markets, asset managers engage Acolin to access many platforms and distributors, and centrally manage distributor data, contracts, commissions, and compliance needs. Acolin supports fund registrations, legal representation, and ongoing compliance across Europe on behalf of its clients.

Acolin will extend Broadridge’s services in Europe, expand its regulatory fund communications services to include additional compliance operations, integrate capabilities to support fund creation and broaden its distribution insights to better support the needs of European and global asset managers.

Artificial intelligence sets Broadridge apart from its rivals

Broadridge is now using AI to improve its software products. For example, it offers OpsGPT and BondGPT, chatbots that use AI technology to help clients analyze and resolve operational issues.

At the same time, Broadridge was an early investor in AI and its current leading position makes it a preferred partner for clients looking to reduce operational complexity.

Part of its appeal for clients is that Broadridge’s approach to AI investment is based on “mutualization.” That’s where the company invests in AI solutions on behalf of multiple clients. This strategy lets Broadridge invest more than any single client could independently. It also lets it utilize better and more comprehensive data sets and create wider benefits for all participating clients.

Meanwhile, Broadridge continues to sign new clients to long-term contracts, which cuts its risk.

Revenue in the quarter ended June 30, 2025, rose 6.2%, to $2.07 billion from $1.94 billion a year earlier. Excluding one-time items, earnings per share rose 1.4%, to $3.55 from $3.50.

The shares trade at a reasonable 27.3 times the $9.39 a share Broadridge is forecast to make in 2025. The forecast reflects its strong growth prospects. As well, with the October 2025 payment, the company will raise your quarterly dividend by 10.8%. Investors will then receive $0.975 a share instead of $0.88. The new annual rate of $3.90 yields 1.5%.

Recommendation in Dividend Advisor: Broadridge Financial Solutions Inc. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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