Notes to Condensed Consolidated Financial Statements
(Unaudited)
NOTE 1. BASIS OF PRESENTATION
A. Description of Business. Broadridge Financial Solutions, Inc. (“Broadridge” or the “Company”), a Delaware corporation, is a global financial technology leader powering investing, corporate governance, and communications to enable our clients to operate, innovate, and grow. We deliver technology-driven solutions to banks, broker-dealers, asset and wealth managers, public companies, investors, and mutual funds. The principal markets in which the Company operates are located in North America and Europe.
The Company operates in two reportable segments: Investor Communication Solutions (“ICS”) and Global Technology and Operations (“GTO”).
•Investor Communication Solutions—Broadridge provides the following governance and communications solutions through its Investor Communication Solutions business segment: Regulatory Solutions, Data-Driven Fund Solutions, Corporate Issuer Solutions, and Customer Communications Solutions.
A large portion of Broadridge’s ICS business involves the processing and distribution of proxy materials to investors in equity securities and mutual funds, as well as the facilitation of related vote processing. In addition to proxy services, Broadridge also provides regulatory communications solutions that enable global asset managers to communicate with large audiences of investors efficiently and reliably by centralizing all investor communications through one resource. Through its Fund Communication Solutions business, Broadridge provides fund managers with a single, integrated provider to manage data, perform calculations, compose documents, manage regulatory compliance, and disseminate information across multiple jurisdictions. Broadridge also provides a range of other regulatory communications solutions, including reorganization communications notifying investors of U.S. reorganizations or corporate action events such as tender offers, mergers and acquisitions, bankruptcies, and global class action services for the identification, filing and recovery of class actions and collective redress proceedings involving securities and other financial products.
For asset managers and retirement service providers, Broadridge offers data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information. Broadridge’s data and analytics solutions provide investment product distribution data, analytical tools, insights, and research to enable asset managers to optimize product distribution across retail and institutional channels globally. Broadridge also provides fiduciary-focused learning and development, software and technology, and data and analytics services to advisors, institutions and asset managers across the retirement and wealth ecosystem. Through its Retirement and Workplace business (“Broadridge Retirement and Workplace”), Broadridge provides automated mutual fund and exchange-traded funds trade processing services for financial institutions who submit trades on behalf of their clients such as qualified and non-qualified retirement plans and individual wealth accounts. In addition, Broadridge’s marketing and transactional communications solutions provide a content management and omni-channel distribution platform for marketing and sales communications for asset managers, insurance providers and retirement service providers.
Broadridge also provides a range of corporate solutions that revolve around shareholder meetings and proxy, corporate governance and sustainability, regulatory filings and disclosure, and stock transfer services. Broadridge services provide corporate issuers a single source solution that spans the entire corporate disclosure and shareholder communications and corporate disclosure lifecycle. Broadridge shareholder meetings and proxy services and corporate governance and sustainability governance and communications services include a full suite of annual meeting and shareholder engagement solutions which include proxy services, virtual shareholder meeting services, shareholder engagement, and governance and sustainability services. Broadridge also offers regulatory filings and disclosure solutions, including annual SEC filing services and capital markets transaction services, and provides registrar, stock transfer and record-keeping services through its transfer agency services.
Broadridge provides omni-channel customer communications solutions, which include print and digital solutions to modernize technology infrastructures, simplify communications processes, accelerate digital adoption and improve the customer experience. Through one point of integration, the Broadridge Communications CloudSM platform helps companies create, deliver, and manage their communications and customer engagement. The platform includes data-driven composition tools, identity and preference management, omni-channel optimization and digital communication experience, archive and information management, digital and print delivery, and analytics and reporting tools.
•Global Technology and Operations — Broadridge’s Global Technology and Operations business provides mission-critical, scale infrastructure to the global financial markets. As a leading software as a service (“SaaS”) provider, Broadridge offers capital markets, wealth and investment management firms modern technology to enable growth, simplify their technology stacks and mutualize costs. Broadridge’s highly scalable, resilient, component-based platform automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, from order capture and execution through trade confirmation, margin, cash management, clearing and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting and custody-related services. Broadridge’s Wealth Management business provides solutions for advisors and investors and also streamlines back and middle-office operations for broker-dealers by providing systems for critical post-trade activities, including books and records, transaction processing, clearance and settlement, and reporting. Broadridge’s Investment Management business provides portfolio and order management solutions for traditional and alternative asset managers, which bring insights into trading, portfolio construction, risk and analytics. Broadridge’s solutions connect asset managers to a global network of broker-dealers for trade execution and post-trade matching and confirmation. In addition, Broadridge provides business process outsourcing services for its buy and sell-side clients’ businesses. These services combine Broadridge’s technology with its operations expertise to support the entire trade lifecycle, including securities clearing and settlement, reconciliations, record-keeping, wealth management asset servicing, and custody-related functions.
Broadridge’s capital markets platform and solutions deliver simplification and innovation across the trade lifecycle, from order initiation to settlement. Through Broadridge Trading and Connectivity Solutions, Broadridge offers a set of global front-office trade order and execution management systems and connectivity solutions that enable market participants to connect and trade. Broadridge’s front-office solutions, post-trade product suite and other capital markets capabilities enable its clients to streamline their front-to-back technology platforms and operations and increase straight-through-processing efficiencies, across equities, fixed income, exchange-traded derivatives, and other asset classes. Broadridge also provides a set of multi-asset, multi-entity and multi-currency trading, connectivity and post-trade solutions that support processing of securities transactions in equities, options, fixed income securities, foreign exchange, exchange-traded derivatives and mutual funds. Largely provided on a SaaS basis within large user communities, Broadridge’s technology is a global solution, processing trades, clearance and settlement in over 90 markets. Broadridge’s technology enables its clients to meet the requirements of market change such as the T+1 securities settlement cycle and Broadridge’s solutions enable global capital markets firms to access market liquidity, drive more effective market making and efficient front-to-back trade processing.
Broadridge’s Wealth Management business delivers front-to-back technology solutions and other capabilities across the entire wealth management lifecycle and streamlines all aspects of wealth management services, including account management, fee management and client on-boarding. The wealth technology solutions enable full-service, regional and independent broker-dealers and investment advisors to better engage with customers through digital marketing and customer communications tools. Broadridge also integrates data, content and technology to drive new customer acquisition, support holistic and personalized advice and cross-sell opportunities. Broadridge’s advisor solutions help advisors optimize their practice management through customer and account data aggregation and reporting.
Broadridge’s Investment Management business services the global investment management industry with a range of buy-side technology solutions such as portfolio management, compliance and fee billing and operational support solutions for hedge funds, family offices, alternative asset managers, traditional asset managers and the providers that service this space including prime brokers, fund administrators and custodians.
B. Consolidation and Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and in accordance with SEC requirements for Quarterly Reports on Form 10-Q. These financial statements present the condensed consolidated position of the Company and include the entities in which the Company directly or indirectly has a controlling financial interest, entities in which the Company has investments recorded under the equity method of accounting as well as certain marketable and non-marketable securities. Intercompany balances and transactions have been eliminated. Amounts presented may not sum due to rounding. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 filed with the SEC on August 5 2025. These Condensed Consolidated Financial Statements include all normal and recurring adjustments necessary for a fair presentation in accordance with GAAP of the Company’s financial position on December 31, 2025 and June 30, 2025, the results of its operations for the three and six months ended December 31, 2025 and 2024, its cash flows for the six months ended December 31, 2025 and 2024, and its changes in stockholders’ equity for the three and six months ended December 31, 2025 and 2024.
C. Securities. Securities are non-derivatives that are reflected in Other non-current assets in the Condensed Consolidated Balance Sheets, unless management intends to dispose of the investment within twelve months of the end of the reporting period, in which case they are reflected in Other current assets in the Condensed Consolidated Balance Sheets. These investments are in entities over which the Company does not have control, joint control, or significant influence. Securities that have a readily determinable fair value are carried at fair value. Securities without a readily determinable fair value are initially recognized at cost and subsequently carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in transactions for an identical or similar investment of the same issuer, such as subsequent capital raising transactions. Changes in the value of securities with or without a readily determinable fair value are recorded in the Condensed Consolidated Statements of Earnings. In determining whether a security without a readily determinable fair value is impaired, management considers qualitative factors to identify an impairment including the financial condition and near-term prospects of the issuer.
D. Digital Assets. As part of its investment in its Distributed Ledger Repo solution, the Company has engaged with the Canton Network’s decentralized interoperability structure. Beginning in the fourth quarter of fiscal year 2024, the Company performs services as a Super Validator and Validator on the Global Synchronizer, the Canton Network’s decentralized interoperability infrastructure. The Canton Network is a public-permissioned blockchain network designed with privacy and controls to facilitate the exchange of regulated financial assets. The Canton Network’s Global Synchronizer includes a utility token, a digital asset called the Canton Coin, which is used to pay traffic fees for using the Global Synchronizer. The Company earns Canton Coins for its function as a Super Validator and Validator on the Canton Network.
As discussed in Note 2, “New Accounting Pronouncements”, the Company adopted ASU No. 2023-08, “Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets” during the first quarter of fiscal year 2026, which requires entities to measure crypto assets that meet specific criteria at fair value. Prior to the adoption of ASU No. 2023-08 in the first quarter of fiscal year 2026, the Company held the Canton Coins on its Balance Sheet at their cost basis, which was immaterial, for investment purposes and to pay any fees associated with its Canton Network activity. During the first quarter of 2026, the Company began converting the coins to cash nearly immediately after they were earned and continued to do so periodically throughout the second fiscal quarter of 2026.
The cost basis of the Canton Coins received is initially recorded at fair value on the date of receipt as a component of Other non-current assets on the Condensed Consolidated Balance Sheets and Revenue on the Statements of Earnings within the Company’s GTO reportable segment. Beginning in the first quarter of fiscal year 2026, in accordance with ASU No. 2023-08, the Canton Coins are then remeasured to fair market value at the end of each reporting period, through an adjustment to unrealized gain/(loss), included as a component of Other non-operating income (expenses), net on the Consolidated Statements of Earnings within Corporate and Other. The Company employs the specific identification method to determine the cost basis of the Canton Coins sold for the computation of gains and losses on their disposal or sale. Realized gains (losses) on sale of Canton Coins, if applicable, are included as a component of Other non-operating income (expenses), net in the Consolidated Statements of Earnings within Corporate and Other. Refer to Note 7, “Fair Value of Financial Instruments” for details regarding the Company’s digital asset holdings.
E. Use of Estimates. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes thereto. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions and judgment that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates. The use of estimates in specific accounting policies is described further in the notes to the Condensed Consolidated Financial Statements, as appropriate.
NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU No. 2023-09”), which requires an entity to annually disclose specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold, and certain information about income taxes paid. ASU No. 2023-09 is effective for the Company in the fourth quarter of fiscal year 2026. Early adoption of the amendments is permitted. The Company is currently assessing the impact that the adoption of ASU No. 2023-09 will have on its Consolidated Financial Statements.
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires an entity to disclose additional information about specific expense categories. ASU No. 2024-03 is effective for the Company in the fourth quarter of fiscal year 2028. The amendments in this ASU must be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to any or all prior periods presented in the financial statements. Early adoption of the amendments is permitted. Upon adoption, this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements.
In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which permits entities to elect a practical expedient to assume current conditions as of the balance sheet date will not change for the remaining life of accounts receivable and contract assets when developing forecasts as part of estimating expected credit losses. ASU No. 2025-05 is effective for the Company in the first quarter of fiscal year 2027. The amendments should be applied prospectively. Early adoption of the amendments is permitted. The Company is currently assessing the impact that the adoption of ASU No. 2025-05 will have on the Company’s consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software” (“ASU No. 2025-06”), which removes all references to sequential software development project stages and establishes new capitalization criteria. In order for capitalization to begin under the new guidance, management must authorize and commit to funding a project and meet a probable-to-complete recognition threshold. In evaluating whether the probable-to-complete recognition threshold has been met, management is required to consider whether there is a significant development uncertainty associated with the software project. The amendments in this ASU may be applied using (1) a prospective transition approach applying the guidance to new software costs incurred as of the beginning of the period of adoption for all projects, including in-process projects, (2) a retrospective transition approach by recasting comparative periods and recognizing a cumulative-effect adjustment to the opening balance of retained earnings, or (3) a modified transition approach applying the amendments on a prospective basis to new software costs incurred except for in-process projects that, as of the date of adoption the entity determines do not meet the capitalization requirements under the new guidance. ASU No. 2025-06 is effective for the Company in the first quarter of fiscal year 2029. Early adoption is permitted. The Company is currently assessing the impact that the adoption of ASU 2025-06 will have on the Company’s Consolidated Financial Statements.
In September 2025, the FASB issued ASU No. 2025-07, “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606)”, which refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. ASU No. 2025-07 is effective for the Company in the first quarter of fiscal year 2027. The amendments in this ASU must be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) modified retrospectively to any or all prior periods presented in the financial statements. Early adoption of the amendments is permitted. The Company is currently assessing the impact that the adoption of ASU No. 2025-07 will have on the Company’s Consolidated Financial Statements.
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”, which clarifies the applicability of the interim reporting guidance, the types of interim reporting, and the form and content of interim financial statements in accordance with U.S. generally accepted accounting principles. Per the FASB, the amendment does not intend to change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements but rather provide clarity and improve navigability of the existing interim reporting requirements. ASU No. 2025-11 is effective for the Company in the first quarter of fiscal year 2029. The amendments in this ASU must be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to any or all prior periods presented in the financial statements. Early adoption of the amendments is permitted. The Company is currently assessing the impact that the adoption of ASU No. 2025-11 will have on the Company’s Consolidated Financial Statements.
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-08, “Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets” (“ASU 2023-08”), which addresses the accounting and disclosure requirements for certain crypto assets. ASU No. 2023-08 requires entities to measure crypto assets that meet specific criteria at fair value, with changes recognized in net income each reporting period. The Company adopted ASU No. 2023-08 during the first quarter of fiscal year 2026, which resulted in a cumulative-effect increase in the opening balance of retained earnings of $24.5 million, or 18.4 million net of tax. Refer to Note 1, “Basis of Presentation” for details regarding the Company’s digital asset holdings.
In March 2024, the FASB issued ASU No. 2024-01, “Compensation—Stock Compensation - Scope Application of Profits Interest and Similar Awards” (“ASU No. 2024-01”), which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of Topic 718 or another accounting standard. The Company adopted ASU No. 2024-01 during the first quarter of fiscal year 2026. This guidance did not have a material impact on the Company’s Consolidated Financial Statements.
NOTE 3. REVENUE RECOGNITION
ASC 606 “Revenue from Contracts with Customers” outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. The core principle is that an entity recognizes revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
The Company’s revenues from clients are primarily generated from fees for providing investor communications and technology-enabled services and solutions. Revenues are recognized for the two reportable segments as follows:
•Investor Communication Solutions—Revenues are generated primarily from processing and distributing investor communications and other related services as well as vote processing and tabulation. The Company typically enters into agreements with clients to provide services on a fee for service basis. Fees received for processing and distributing investor communications are generally variably priced and recognized as revenue over time as the Company provides the services to clients based on the number of units processed, which coincides with the pattern of value transfer to the client. Broadridge works directly with corporate issuers (“Issuers”) and mutual funds to ensure that the account holders of the Company’s bank and broker clients, who are also the shareholders of Issuers and mutual funds, receive the appropriate investor communications materials and the services are fulfilled in accordance with each Issuer’s and mutual fund’s requirements. Broadridge works directly with the Issuers and mutual funds to resolve any issues that may arise. As such, Issuers and mutual funds are viewed as the customer of the Company’s services. As a result, revenues for distribution services as well as proxy materials fulfillment services are recorded in Revenue on a gross basis with corresponding costs including amounts remitted to the broker-dealers and banks (referred to as “Nominees”) recorded in Cost of revenues. Fees for the Company’s investor communications services arrangements are typically billed and paid on a monthly basis following the delivery of the services. The Company also offers certain hosted service arrangements that can be priced on a fixed and/or variable basis for which revenue is recognized over time as the Company satisfies its performance obligation by delivering services to the client on a monthly basis based on the number of transactions processed or units delivered, in the case of variable priced arrangements, or a fixed monthly fee in the case of fixed price arrangements, in each case which coincides with the pattern of value transfer to the client. These services may be billed in a variety of payment frequencies depending on the specific arrangement.
•Global Technology and Operations—Revenues are generated primarily from fees for trade processing and related services. Revenue is recognized over time as the Company satisfies its performance obligation by delivering services to the client. The Company’s arrangements for processing and related services typically consist of an obligation to provide specific services to its clients on a when and if needed basis (a stand ready obligation) with revenue recognized from the satisfaction of the performance obligations on a monthly basis generally in the amount billable to the client. These services are generally provided under variable priced arrangements based on volume of service and can include minimum monthly usage fees. Client service agreements often include up-front consideration in addition to the recurring fee for trade processing. Up-front implementation fees, as well as certain enhancements to existing technology platforms, are deferred and recognized on a straight-line basis over the service term of the contract which corresponds to the timing of transfer of value to the client that commences after client acceptance when the processing term begins. In addition, revenue is also generated from the fulfillment of professional services engagements which are generally priced on a time and materials or fixed price basis, and are recognized as the services are provided to the client which corresponds to the timing of transfer of value to the client. The Company generally recognizes license revenues from software term licenses installed on clients’ premises upon delivery and acceptance of the software license, assuming a contract is deemed to exist, and recognizes revenue attributed to the associated software maintenance and support obligation over the contract term. Software term license revenue is not a significant portion of the Company’s revenues. In addition, the Company earns revenue as a result of its performance of services related to the Canton Network. During the three and six months ended December 31, 2025, the Company recognized $7.5 million and $11.2 million, respectively, related to those services. Refer to Note 1, “Basis of Presentation” for details.
The Company uses the following methods, inputs, and assumptions in determining amounts of revenue to recognize:
Transaction Price
The Company allocates transaction price to the individual performance obligations within a contract. If the contracted prices reflect the relative standalone selling prices for the individual performance obligations, no allocations are made. Otherwise, the Company uses the relative selling price method to allocate the transaction price, obtained from sources such as the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar clients. If such evidence is unavailable, the Company uses the best estimate of the selling price, which includes various internal factors such as pricing strategy and market factors. A significant portion of the Company’s performance obligations are generated from transactions with volume based fees and includes services that are delivered at the same time. The Company recognizes revenue related to these arrangements over time as the services are provided to the client. While many of the Company’s contracts contain some component of variable consideration, the Company only recognizes variable consideration that is not expected to reverse. The Company allocates variable payments to distinct services in an overall contract when the variable payment relates specifically to that particular service and for which the variable payment reflects what the Company expects to receive in exchange for that particular service. As a result, the Company generally allocates and recognizes variable consideration in the period it has the contractual right to invoice the client.
As described above, Broadridge’s most significant performance obligations involve variable consideration which constitutes the majority of its revenue streams. The Company’s variable consideration components meet the criteria in ASC 606 for exclusion from disclosure of the remaining transaction price allocated to unsatisfied performance obligations as does any contracts with clients with an original duration of one year or less. The Company has contracts with clients that vary in length depending on the nature of the services and contractual terms negotiated with the client, and they generally extend over a multi-year period.
Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a client, are excluded from revenue. Distribution revenues associated with shipping and handling activities are accounted for as a fulfillment activity and recognized as the related services or products are transferred to the client. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between client payment and the transfer of goods or services is expected to be one year or less.
Disaggregation of Revenue
The Company has presented below its revenue disaggregated by product line and by revenue type within each of its Investor Communication Solutions and Global Technology and Operations reportable segments.
Revenues in the Investor Communication Solutions segment are derived from both recurring and event-driven activity. In addition, the level of recurring and event-driven activity the Company processes directly impacts Distribution revenues. While event-driven activity is highly repeatable, it may not recur on an annual basis. Event-driven revenues are based on the number of special events and corporate transactions the Company processes. Event-driven activity is impacted by financial market conditions and changes in regulatory compliance requirements, resulting in fluctuations in the timing and levels of event-driven revenues. Distribution revenues primarily include revenues related to the physical mailing and distribution of proxy materials, interim communications, transaction reporting, customer communications and fulfillment services, as well as Broadridge Retirement and Workplace administrative services.
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| | | | | | | |
| 2025 | | 2024 | | 2025 | | 2024 |
| (in millions) |
| Investor Communication Solutions | | | | | | | |
| Regulatory | $ | 248.7 | | | $ | 210.5 | | | $ | 446.0 | | | $ | 400.4 | |
| Data-driven fund solutions | 112.7 | | | 114.5 | | | 223.7 | | | 222.5 | |
| Issuer | 38.9 | | | 36.0 | | | 71.6 | | | 66.9 | |
| Customer communications | 189.2 | | | 179.2 | | | 366.3 | | | 343.4 | |
| Total ICS Recurring revenues | 589.5 | | | 540.2 | | | 1,107.5 | | | 1,033.2 | |
| | | | | | | |
| Equity and other | 39.2 | | | 24.6 | | | 63.2 | | | 45.8 | |
| Mutual funds | 51.4 | | | 99.9 | | | 141.2 | | | 141.9 | |
| Total ICS Event-driven revenues | 90.6 | | | 124.6 | | | 204.4 | | | 187.6 | |
| | | | | | | |
| Distribution revenues | 553.2 | | | 484.5 | | | 1,051.3 | | | 944.0 | |
| | | | | | | |
| Total ICS Revenues | $ | 1,233.3 | | | $ | 1,149.2 | | | $ | 2,363.2 | | | $ | 2,164.8 | |
| | | | | | | |
| Global Technology and Operations | | | | | | | |
| Capital markets | $ | 300.9 | | | $ | 279.4 | | | $ | 581.6 | | | $ | 540.4 | |
| Wealth and investment management | 179.7 | | | 160.6 | | | 358.5 | | | 306.8 | |
| Total GTO Recurring revenues | $ | 480.6 | | | $ | 440.0 | | | 940.1 | | | 847.2 | |
| | | | | | | |
| Total Revenues | $ | 1,713.9 | | | $ | 1,589.2 | | | $ | 3,303.3 | | | $ | 3,012.1 | |
| | | | | | | |
| Revenues by Type | | | | | | | |
| Recurring revenues | $ | 1,070.1 | | | $ | 980.2 | | | $ | 2,047.6 | | | $ | 1,880.5 | |
| Event-driven revenues | 90.6 | | | 124.6 | | | 204.4 | | | 187.6 | |
| Distribution revenues | 553.2 | | | 484.5 | | | 1,051.3 | | | 944.0 | |
| Total Revenues | $ | 1,713.9 | | | $ | 1,589.2 | | | $ | 3,303.3 | | | $ | 3,012.1 | |
| | | | | | | |
Contract Balances The following table provides information about contract assets and liabilities: | | | | | | | | | | | |
| December 31,
2025 | | June 30,
2025 |
| (in millions) |
| Contract assets | $ | 128.8 | | | $ | 137.5 | |
| Contract liabilities | $ | 679.8 | | | $ | 678.3 | |
Contract assets result from revenue already recognized but not yet invoiced, including certain future amounts to be collected under software term licenses and certain other client contracts. Contract liabilities represent consideration received or receivable from clients before the transfer of control occurs (deferred revenue). Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.
During the six months ended December 31, 2025, contract assets decreased due to a decrease in software term license revenue, while contract liabilities remained largely unchanged due to the timing of client invoices in relation to the timing of revenue recognized. The Company recognized $237.9 million of revenue during the six months ended December 31, 2025 that was included in the contract liability balance as of June 30, 2025.
NOTE 4. WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic earnings per share (“EPS”) is calculated by dividing the Company’s Net earnings by the basic Weighted-average shares outstanding for the periods presented. The Company calculates diluted EPS using the treasury stock method, which reflects the potential dilution that could occur if outstanding stock options at the presented date are exercised and restricted stock unit awards have vested.
The computation of diluted EPS excluded 0.3 million options and restricted stock units to purchase Broadridge common stock for the three months ended December 31, 2025, and 0.3 million options and restricted stock units to purchase Broadridge common stock for the six months ended December 31, 2025, as the effect of their inclusion would have been anti-dilutive.
The computation of diluted EPS excluded 0.2 million options and restricted stock units to purchase Broadridge common stock for the three months ended December 31, 2024, and 0.3 million options and restricted stock units to purchase Broadridge common stock for the six months ended December 31, 2024, as the effect of their inclusion would have been anti-dilutive.
The following table sets forth the denominators of the basic and diluted EPS computations: | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| (in millions) |
| Weighted-average shares outstanding: | | | | | | | |
| Basic | 116.8 | | | 117.1 | | | 116.9 | | | 117.0 | |
| Common stock equivalents | 0.9 | | | 1.2 | | | 0.9 | | | 1.2 | |
| Diluted | 117.7 | | | 118.3 | | | 117.9 | | | 118.2 | |
NOTE 5. INTEREST EXPENSE, NET
Interest expense, net consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| (in millions) |
| Interest expense on borrowings | $ | (27.7) | | | $ | (36.6) | | | $ | (55.6) | | | $ | (72.5) | |
| Interest income | 3.9 | | | 3.8 | | | 7.6 | | | 7.5 | |
| Interest expense, net | $ | (23.8) | | | $ | (32.7) | | | $ | (48.0) | | | $ | (65.0) | |
NOTE 6. ACQUISITIONS
Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Condensed Consolidated Balance Sheets as of the respective acquisition date based upon the estimated fair values at such date. The results of operations of the business acquired by the Company are included in the Company’s Condensed Consolidated Statements of Earnings since the respective date of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to Goodwill. Acquired Goodwill in connection with these acquisitions represents expected synergies from the combined operations. Pro forma information for these acquired businesses is not provided because they did not have a material effect, individually or in the aggregate, on the Company’s consolidated results of operations.
FISCAL YEAR 2026 BUSINESS COMBINATIONS
In September 2025, the Company acquired all of the ownership interests of LDI-MAP, LLC (“iJoin”), a retirement plan technology provider specializing in participant onboarding, engagement, and analytics solutions for the retirement industry. iJoin is included in the Company’s ICS reportable segment. The aggregate purchase price included $31.9 million in cash, $3.5 million in deferred payments, and contingent consideration with a fair value of $8.5 million. The contingent consideration is payable through fiscal year 2028 upon the achievement by the acquired business of certain defined revenue targets. Net tangible assets acquired in the transaction were $0.1 million. This acquisition resulted in $24.1 million of Goodwill, which is tax deductible. Intangible assets acquired, which totaled $19.7 million, consist primarily of customer relationships and software technology, which are being amortized over a seven-year life and a five-year life, respectively.
In August 2025, the Company acquired Signal Agency Limited (“Signal”), a UK-based provider of design, technology and consulting services that support omni-channel communications for financial services and other firms. Signal is included in the Company’s ICS reportable segment. The aggregate purchase price was $26.6 million, net of cash acquired, which includes $2.7 million in deferred payments.
FISCAL YEAR 2025 BUSINESS COMBINATION
SIS
On November 1, 2024, the Company acquired Kyndryl’s Securities Industry Services (“SIS”) business (“SIS Business”) to provide wealth management, capital markets, and information technology solutions in Canada. SIS is included in the Company’s GTO reportable segment.
•For tax purposes, Goodwill is amortizable and tax deductible.
•Intangible assets acquired consist primarily of software technology and customer relationships, which are being amortized over a ten-year life.
•Our discussions with the Canadian Competition Bureau are ongoing.
In connection with the acquisition, on November 1, 2024, Broadridge Software Limited, a subsidiary of the Company, entered into the SIS Services Agreement with Kyndryl Canada Limited (“Kyndryl Canada”) pursuant to which Kyndryl Canada will provide infrastructure managed services for the SIS Business. Refer to Note 15, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” for further details.
Financial information for SIS is as follows:
| | | | | | | | |
| | SIS |
| Cash payments | | $ | 185.5 | |
| | |
| Net tangible liabilities assumed | | $ | (1.9) | |
| Goodwill | | 38.3 | |
| Intangible assets | | 149.1 | |
| Aggregate purchase price | | $ | 185.5 | |
During the three months ended September 30, 2024, there was also an immaterial acquisition with an aggregate purchase price of $8.0 million.
NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS
Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:
Level 1 Quoted market prices in active markets for identical assets and liabilities.
Level 2 Observable market-based inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments, as applicable, based on the exchange traded price of similar or identical instruments where available or based on other observable instruments. These calculations take into consideration the credit risk of both the Company and its counterparties. The Company has not changed its valuation techniques in measuring the fair value of any of its Level 1 and Level 2 financial assets and liabilities during the period.
The fair values of contingent consideration obligations are based on a probability weighted approach derived from the estimates of earn-out criteria and the probability assessment with respect to the likelihood of achieving those criteria. The measurement is based on significant inputs that are not observable in the market; therefore, the Company classifies this liability as Level 3 in the table below.
The determination of the fair value of the Company’s digital assets is discussed below.
The following tables set forth the Company’s financial assets and liabilities at December 31, 2025 and June 30, 2025, respectively, that are recorded at fair value, segregated by level within the fair value hierarchy:
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2025 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| (in millions) |
| Assets: | | | | | | | |
| | | | | | | |
| | | | | | | |
| Other current assets: | | | | | | | |
| Securities | $ | 0.8 | | | $ | — | | | $ | — | | | $ | 0.8 | |
| Digital Asset loan receivable, net | $ | — | | | $ | 50.3 | | | $ | — | | | $ | 50.3 | |
| Other non-current assets: | | | | | | | |
| Securities (a) | 214.5 | | | — | | | — | | | 214.5 | |
| Digital assets | 214.8 | | | — | | | — | | | 214.8 | |
Total assets as of December 31, 2025 | $ | 430.1 | | | $ | 50.3 | | | $ | — | | | $ | 480.4 | |
| Liabilities: | | | | | | | |
| Derivative liability | $ | — | | | $ | 10.7 | | | $ | — | | | $ | 10.7 | |
| Contingent consideration obligations | — | | | — | | | 22.5 | | | 22.5 | |
Total liabilities as of December 31, 2025 | $ | — | | | $ | 10.7 | | | $ | 22.5 | | | $ | 33.2 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2025 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| (in millions) |
| Assets: | | | | | | | |
| Other current assets: | | | | | | | |
| Securities | $ | 0.7 | | | $ | — | | | $ | — | | | $ | 0.7 | |
| Other non-current assets: | | | | | | | |
| Securities (a) | 195.2 | | | — | | | — | | | 195.2 | |
Total assets as of June 30, 2025 | $ | 195.9 | | | $ | — | | | $ | — | | | $ | 195.9 | |
| Liabilities: | | | | | | | |
| Derivative liability | $ | — | | | $ | 24.6 | | | $ | — | | | $ | 24.6 | |
| Contingent consideration obligations | — | | | — | | | 14.0 | | | 14.0 | |
Total liabilities as of June 30, 2025 | $ | — | | | $ | 24.6 | | | $ | 14.0 | | | $ | 38.6 | |
_________
(a) Includes investments related to the Company’s Defined Benefit Pension Plans and Executive Retirement and Savings Plan (the “ERSP”).
In addition, the Company has non-marketable securities with a carrying amount of $67.4 million and $60.5 million as of December 31, 2025 and June 30, 2025, respectively, that to the extent they have been remeasured during the period are classified as Level 2 financial assets and included as part of Other non-current assets on the Condensed Consolidated Balance Sheets.
Digital Assets
Beginning in the fourth quarter of fiscal year 2024, the Company began to earn Canton Coins for its function as a Super Validator and Validator on the Global Synchronizer, the Canton Network’s decentralized interoperability infrastructure. Prior to the first quarter of fiscal year 2026, the Company held the Canton Coins on its Balance Sheet for investment purposes and to pay any fees associated with its Canton Network activity. During the first quarter of fiscal year 2026, the Company began converting the coins to cash nearly immediately after they were earned and continued to do so periodically throughout the second fiscal quarter of 2026. Refer to Note 1, “Basis of Presentation” for details regarding the Canton Network and the Company’s Canton Coin holdings.
The following table presents the Company’s Canton Coin holdings as of December 31, 2025:
| | | | | | | | | | | | | | | | | |
| December 31, 2025 |
| Quantity of Coins | | Cost Basis | | Fair Value |
| | | ($ in millions) |
| Canton Coins | 1.5 | billion | | $ | 8.0 | | | $ | 214.8 | |
Prior to the second fiscal quarter of 2026, Canton Coins were classified as Level 3 within the fair value hierarchy because the valuation required assumptions that were both significant and unobservable. During the quarter ended December 31, 2025, the Company’s Digital Asset holdings were transferred from Level 3 to Level 1 as Canton Coins were listed on several public exchanges, and therefore quoted market prices in active markets were available. As of December 31, 2025, the Company’s Canton Coin holdings were measured at fair value based on quoted market prices from the Company’s principal market.
Digital Asset Loan Receivable, net
During the second quarter of fiscal year 2026, Broadridge contributed 342 million of its Canton Coins with a total fair value of $53.1 million at the time of the transaction for pre-funded common stock purchase warrants representing an approximate 8% interest in Tharimmune, Inc. (“Tharimmune”) in conjunction with a private placement in public equity offering (the “Canton Digital Asset Treasury”). Upon exercise, the pre-funded common stock purchase warrants entitle the Company to receive an equal number of shares of common stock of Tharimmune. Upon closing of the offering, Tharimmune began to execute a digital asset treasury strategy that includes the acquisition of Canton Coins via capital markets activities, generation of Canton Coin rewards by applying to be a Super Validator, and investing in the development of applications on the Canton Network that drive institutional utility, scalability and adoption across capital markets.
The approval of Tharimmune’s shareholders was required to authorize the issuance of common stock upon exercise of the pre-funded warrants that Broadridge received in exchange for the contribution of the Canton Coins. The arrangement stipulates that the transaction will unwind if shareholder approval to issue the shares was not obtained by May 13, 2026, which would result in the return of the Canton Coins to Broadridge and cancellation of the pre-funded common stock purchase warrants. As of December 31, 2025 such approval had not been obtained. As a result, for the second quarter of fiscal year 2026, the transaction was considered a collateralized lending transaction for accounting purposes, whereby Tharimmune borrowed the Canton Coins from Broadridge and collateralized the borrowing with the common stock purchase warrants issued to Broadridge. Upon close of the transaction, Broadridge derecognized the Canton Coins, recognized a $53.1 million realized gain, and recognized a Digital Asset Loan Receivable at fair value, net of a reserve for estimated credit losses included in Other non-current assets on the Condensed Consolidated Balance Sheet. The collateral (i.e. the pre-funded common stock purchase warrants) was not recognized by Broadridge and would only be recognized in the event of Tharimmune’s default.
At December 31, 2025, the Digital Asset Loan Receivable, net was remeasured to a fair market value of $50.3 million, net of an immaterial reserve for credit losses, resulting in a $2.4 million unrealized loss included as a component of Other non-operating income (expenses), net on the Consolidated Statements of Earnings within Corporate and Other. The fair value of the Digital Asset Loan Receivable was determined based on the value of the Canton Coin, which is an observable market-based input, and therefore was classified as Level 2 in the fair value hierarchy. The fair value of the Digital Asset loan receivable, net approximates the fair value of the warrants. On January 30, 2026, Tharimmune’s shareholders approved the issuance of its common stock upon the exercise of the pre-funded warrants. The pre-funded common stock purchase warrants are not able to be sold or transferred by the Company, and the exercise of the warrants are subject to lock-up restrictions through May 5, 2026.
The following tables set forth an analysis of changes during the three and six months ended December 31, 2025, in Level 3 financial assets and liabilities of the Company. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments between levels. The Company’s policy is to record transfers between levels, if any, as of the beginning of the fiscal year.
Digital Assets
| | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, | | |
| 2025 | | 2025 | | | | |
| | (in millions) |
| Beginning balance | $ | 73.6 | | | $ | — | | | | | |
| Opening Retained Earnings Adjustment | — | | | 24.5 | | | | | |
| Beginning-of-period Level 3 transfer-out value | (73.6) | | | (24.5) | | | | | |
| Ending balance | $ | — | | | $ | — | | | | | |
During the three months ended December 31, 2025, the Company recognized realized and unrealized gains relating to digital assets totaling $57.2 million and $136.5 million, respectively, included as a component of Other non-operating income (expenses), net on the Statements of Earnings. During the six months ended December 31, 2025, the Company recognized realized and unrealized gains on digital assets totaling $58.4 million and $182.4 million, respectively, included as a component of Other non-operating income (expenses), net on the Statements of Earnings. There were no realized gains or realized losses recorded on the disposition of Level 3 digital assets during the three and six months ended December 31, 2024.
The Company did not incur any Level 3 fair value asset impairments during the six months ended December 31, 2025 and 2024, respectively.
Contingent consideration obligations
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| | (in millions) |
| Beginning balance | $ | 22.5 | | | $ | 14.0 | | | $ | 14.0 | | | $ | 14.0 | |
| Additional contingent consideration incurred | — | | | — | | | 8.5 | | | — | |
| Net increase in contingent consideration liability | — | | | — | | | — | | | — | |
| Foreign currency impact on contingent consideration liability | — | | | — | | | — | | | — | |
| Payments | — | | | — | | | — | | | — | |
| Ending balance | $ | 22.5 | | | $ | 14.0 | | | $ | 22.5 | | | $ | 14.0 | |
NOTE 8. DEFERRED CLIENT CONVERSION AND START-UP COSTS
Deferred client conversion and start-up costs consisted of the following: | | | | | | | | | | | |
| December 31,
2025 | | June 30,
2025 |
| (in millions) |
| Deferred client conversion and start-up costs | $ | 826.5 | | | $ | 837.5 | |
| Other start-up costs | 4.1 | | | 5.4 | |
| Total | $ | 830.6 | | | $ | 842.9 | |
Deferred client conversion and start-up costs include direct costs incurred to set up or convert a client’s systems to function with the Company’s technology, and are generally deferred and recognized on a straight-line basis over the service term of the arrangement to which the costs relate, which commences when the client goes live with the Company’s services. The key judgment for determining the amount of costs to be deferred relates to the extent to which such costs are recoverable. This estimate includes (i) projected future client revenues, including variable revenues, offset by an estimate of conversion costs including an estimate of onboarding costs as well as ongoing operational costs, and (ii) an estimate of the expected client life. This is also the basis for how the Company assesses such costs for impairment.
Deferred client conversion and start-up costs of $830.6 million as of December 31, 2025 consist of costs incurred to set-up or convert a client’s systems to function with the Company’s technology of $826.5 million, as well as other start-up costs of $4.1 million. Deferred client conversion and start-up costs of $842.9 million as of June 30, 2025 consist of costs incurred to set-up or convert a client’s systems to function with the Company’s technology of $837.5 million, as well as other start-up costs of $5.4 million.
The total amount of Deferred client conversion and start-up costs and Deferred sales commission costs amortized in Operating expenses during the three months ended December 31, 2025 and 2024, were $36.7 million and $38.1 million, respectively.
The total amount of Deferred client conversion and start-up costs and Deferred sales commission costs amortized in Operating expenses during the six months ended December 31, 2025 and 2024, were $73.0 million and $74.7 million, respectively.
NOTE 9. OTHER NON-CURRENT ASSETS
Other non-current assets consisted of the following: | | | | | | | | | | | |
| December 31,
2025 | | June 30,
2025 |
| (in millions) |
| Long-term investments | $ | 333.3 | | | $ | 299.2 | |
| Digital assets (a) | 214.8 | | | — | |
| ROU assets (b) | 155.0 | | | 176.1 | |
| Contract assets (c) | 128.8 | | | 137.5 | |
| Deferred sales commissions costs | 126.4 | | | 131.7 | |
| Long-term broker fees | 19.3 | | | 24.3 | |
| Deferred data center costs (d) | 6.5 | | | 8.3 | |
| Other | 56.0 | | | 50.9 | |
| Total | $ | 1,040.1 | | | $ | 827.9 | |
_________
(a) Please refer to Note 1, “Basis of Presentation” and Note 7, “Fair Value of Financial Instruments” for further discussion.
(b) ROU assets represent the Company’s right to use an underlying asset for the lease term.
(c) Contract assets result from revenue already recognized but not yet invoiced, including certain future amounts to be collected under software term licenses and certain other client contracts.
(d) Represents deferred data center costs associated with the Company’s information technology services agreements. Please refer to Note 15, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” for a further discussion.
NOTE 10. PAYABLES AND ACCRUED EXPENSES
Payables and accrued expenses consisted of the following: | | | | | | | | | | | |
| December 31,
2025 | | June 30,
2025 |
| (in millions) |
| Accounts payable | $ | 194.4 | | | $ | 220.3 | |
| Employee compensation and benefits | 272.7 | | | 372.8 | |
| Accrued dividend payable | 113.8 | | | 103.1 | |
| Accrued broker fees | 105.1 | | | 137.0 | |
| Customer deposits | 79.1 | | | 84.4 | |
| Business process outsourcing administration fees | 55.0 | | | 52.6 | |
| Operating lease liabilities | 38.9 | | | 37.2 | |
| Accrued taxes | 31.0 | | | 60.1 | |
| Other | 83.9 | | | 45.4 | |
| Total | $ | 974.0 | | | $ | 1,112.8 | |
| | | |
Restructuring Charges
The total Employee compensation and benefits liability within the table above of $272.7 million and $372.8 million for December 31, 2025 and June 30, 2025, respectively, includes a restructuring liability of $13.1 million and $22.7 million as of December 31, 2025 and June 30, 2025, respectively.
NOTE 11. BORROWINGS
Outstanding borrowings and available capacity under the Company’s borrowing arrangements were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiration
Date | | Principal amount outstanding at December 31, 2025 | | Carrying value at December 31, 2025 | | Carrying value at June 30, 2025 | | Unused
Available
Capacity | | Fair Value at December 31, 2025 |
| | | | | (in millions) | | |
| Current portion of long-term debt | | | | | | | | | | | |
| Fiscal 2016 Senior Notes | June 2026 | | $ | 500.0 | | | $ | 499.7 | | | $ | 499.3 | | | $ | — | | | $ | 498.3 | |
| Total | | | $ | 500.0 | | | $ | 499.7 | | | $ | 499.3 | | | $ | — | | | $ | 498.3 | |
| | | | | | | | | | | |
| Long-term debt, excluding current portion | | | | | | | | | | |
| Fiscal 2025 Revolving Credit Facility: | | | | | | | | | | | |
| U.S. dollar tranche | December 2029 | | $ | 50.0 | | | $ | 50.0 | | | $ | — | | | $ | 950.0 | | | $ | 50.0 | |
| Multicurrency tranche | December 2029 | | 135.1 | | | 135.1 | | | 133.5 | | | 364.9 | | | 135.1 | |
| Total Revolving Credit Facility | | | $ | 185.1 | | | $ | 185.1 | | | $ | 133.5 | | | $ | 1,314.9 | | | $ | 185.1 | |
| | | | | | | | | | | |
| Fiscal 2026 Term Loan | August 2030 | | $ | 750.0 | | | $ | 747.0 | | | $ | 879.1 | | | $ | — | | | $ | 750.0 | |
| | | | | | | | | | | |
| Fiscal 2020 Senior Notes | December 2029 | | 750.0 | | | 746.4 | | | 746.0 | | | — | | | 712.1 | |
| Fiscal 2021 Senior Notes | May 2031 | | 1,000.0 | | | 994.8 | | | 994.4 | | | — | | | 909.8 | |
| Total Senior Notes | | | $ | 1,750.0 | | | $ | 1,741.3 | | | $ | 1,740.3 | | | $ | — | | | $ | 1,621.9 | |
| | | | | | | | | | | |
| Total long-term debt | | | $ | 2,685.1 | | | $ | 2,673.4 | | | $ | 2,753.0 | | | $ | 1,314.9 | | | $ | 2,557.0 | |
| | | | | | | | | | | |
| Total debt | | | $ | 3,185.1 | | | $ | 3,173.1 | | | $ | 3,252.3 | | | $ | 1,314.9 | | | $ | 3,055.3 | |
Future principal payments on the Company’s outstanding debt are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Years ending June 30, | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | Thereafter | | Total |
| (in millions) | | $ | 500.0 | | | $ | — | | | $ | — | | | $ | — | | | $ | 935.1 | | | $ | 1,750.0 | | | $ | 3,185.1 | |
Fiscal 2025 Revolving Credit Facility: In December 2024, the Company entered into an amended and restated $1.5 billion five-year revolving credit facility (the “Fiscal 2025 Revolving Credit Facility”) which replaced the $1.5 billion five-year revolving credit facility entered into during April 2021 (the “Fiscal 2021 Revolving Credit Facility”) (together the “Revolving Credit Facilities”). The Fiscal 2025 Revolving Credit Facility is comprised of a $1.0 billion U.S. dollar tranche and a $500.0 million multicurrency tranche.
The weighted-average interest rate on the Revolving Credit Facilities was 4.52% and 4.55% for the three and six months ended December 31, 2025, and 5.75% and 6.04% for the three and six months ended December 31, 2024, respectively. The fair value of the variable-rate Fiscal 2025 Revolving Credit Facility borrowings at December 31, 2025 approximates carrying value and has been classified as a Level 2 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”).
Under the Fiscal 2025 Revolving Credit Facility, revolving loans denominated in U.S. Dollars, Canadian Dollars, Euro, Sterling, Swedish Kronor, and Yen bear interest at Adjusted Term SOFR, Adjusted Term CORRA, EURIBOR, TIBOR, SONIA, and STIBOR, respectively, plus 1.000% per annum (subject to multiple step-ups to 1.250% per annum and multiple step-downs to 0.785%, in each case, based on ratings). The Fiscal 2025 Revolving Credit Facility also has a facility fee of 0.125% per annum (subject to multiple step-ups to 0.25% per annum and multiple step-downs to 0.090% per annum, in each case, based on ratings). The Company may voluntarily prepay, in whole or in part and without premium or penalty, borrowings under the Fiscal 2025 Revolving Credit Facility in accordance with individual drawn loan maturities. The Fiscal 2025 Revolving Credit Facility is subject to certain covenants, including a leverage ratio. At December 31, 2025, the Company was in compliance with all covenants of the Fiscal 2025 Revolving Credit Facility.
Fiscal 2021 Term Loans: In March 2021, the Company entered into an amended and restated term credit agreement, as amended on December 23, 2021 and May 23, 2023 (“Term Credit Agreement”), providing for term loan commitments in an aggregate principal amount of $2.55 billion, comprised of a $1.0 billion tranche (“Tranche 1”), and a $1.55 billion tranche (“Tranche 2,” together with Tranche 1, the “Fiscal 2021 Term Loans”). The proceeds of the Fiscal 2021 Term Loans were used by the Company to solely finance the acquisition of Itiviti Holding AB and pay certain fees and expenses in connection therewith. Once borrowed, amounts repaid or prepaid in respect of such Fiscal 2021 Term Loans may not be reborrowed. The Tranche 1 Loan was to mature on the date that is 18 months after the date on which the Fiscal 2021 Term Loans were borrowed (the “Funding Date”), but was repaid in full in May 2021 with proceeds from the Fiscal 2021 Senior Notes (as discussed further below). The Tranche 2 Loan was to mature in May 2024. The Tranche 2 Loan bore interest at Adjusted Term SOFR plus 1.000% per annum (subject to step-ups to Adjusted Term SOFR plus 1.250% or a step-down to Adjusted Term SOFR plus 0.750% based on ratings). On May 23, 2023, the Company amended the interest rate index from LIBOR to Adjusted Term SOFR. All other terms remained unchanged.
Fiscal 2024 Amended Term Loan: On August 17, 2023, the Company amended and restated the Term Credit Agreement (the “Amended and Restated Term Credit Agreement”), providing for term loan commitment in an aggregate principal amount of $1.3 billion, replacing the Tranche 2 Loan of the Fiscal 2021 Term Loans (the “Fiscal 2024 Amended Term Loan”). The Fiscal 2024 Amended Term Loan will mature in August 2026 on the third anniversary of the amended Funding Date of August 17, 2023. The Fiscal 2024 Term Loan bears interest at Adjusted Term SOFR plus 1.250% per annum (subject to a step-up to Adjusted Term SOFR plus 1.375% or step-downs to Adjusted Term SOFR plus 1.125% and Adjusted Term SOFR plus 1.000% in each case, based on ratings).
Fiscal 2026 Term Loan: On August 21, 2025, the Company entered into the Term Credit Agreement (the “Term Credit Agreement”), providing for term loan commitment in an aggregate principal amount of $750.0 million (the “Fiscal 2026 Term Loan”), replacing the Fiscal 2024 Amended Term Loan. The Fiscal 2026 Term Loan will mature in August 2030 on the fifth anniversary of the amended Funding Date of August 21, 2025. The Fiscal 2026 Term Loan bears interest at Term SOFR plus 1.250% per annum (subject to a step-up to Term SOFR plus 1.375% or term SOFR plus 1.625% or a step-down to Term SOFR plus 1.125% or Term SOFR plus 1.000%, in each case, based on ratings).
The Company may voluntarily prepay the Fiscal 2026 Term Loan in whole or in part and without premium or penalty. In the event of receipt of cash proceeds by the Company or its subsidiaries from certain incurrences of indebtedness, certain equity issuances, and certain sales, transfers or other dispositions of assets, the Company will be required to prepay the Fiscal 2026 Term Loan, subject to certain limitations and qualifications as set forth in the Term Credit Agreement. The Term Credit Agreement is subject to certain covenants, including a leverage ratio. At December 31, 2025, the Company was in compliance with all covenants of the Fiscal 2026 Term Loan.
Fiscal 2016 Senior Notes: In June 2016, the Company completed an offering of $500.0 million in aggregate principal amount of senior notes (the “Fiscal 2016 Senior Notes”). The Fiscal 2016 Senior Notes will mature on June 27, 2026 and bear interest at a rate of 3.40% per annum. Interest on the Fiscal 2016 Senior Notes is payable semi-annually in arrears on June 27 and December 27 of each year. The Fiscal 2016 Senior Notes were issued at a price of 99.589% (effective yield to maturity of 3.449%). The indenture governing the Fiscal 2016 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money, to enter into certain sale-leaseback transactions, certain subsidiary indebtedness, and to engage in mergers or consolidations and transfer or lease of all or substantially all of the Company’s assets. At December 31, 2025, the Company is in compliance with the covenants of the indenture governing the Fiscal 2016 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2016 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2016 Senior Notes in whole or in part at any time before their maturity. The fair value of the fixed-rate Fiscal 2016 Senior Notes at December 31, 2025 and June 30, 2025 was $498.3 million and $494.1 million, respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”).
Fiscal 2020 Senior Notes: In December 2019, the Company completed an offering of $750.0 million in aggregate principal amount of senior notes (the “Fiscal 2020 Senior Notes”). The Fiscal 2020 Senior Notes will mature on December 1, 2029 and bear interest at a rate of 2.90% per annum. Interest on the Fiscal 2020 Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year. The Fiscal 2020 Senior Notes were issued at a price of 99.717% (effective yield to maturity of 2.933%). The indenture governing the Fiscal 2020 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money, to enter into certain sale-leaseback transactions, certain subsidiary indebtedness, and to engage in mergers or consolidations and transfer or lease of all or substantially all of the Company’s assets. At December 31, 2025, the Company is in compliance with the covenants of the indenture governing the Fiscal 2020 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2020 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2020 Senior Notes in whole or in part at any time before their maturity. The fair value of the fixed-rate Fiscal 2020 Senior Notes at December 31, 2025 and June 30, 2025 was $712.1 million and $$702.8 million, respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”).
Fiscal 2021 Senior Notes: In May 2021, the Company completed an offering of $1.0 billion in aggregate principal amount of senior notes (the “Fiscal 2021 Senior Notes”). The Fiscal 2021 Senior Notes will mature on May 1, 2031 and bear interest at a rate of 2.60% per annum. Interest on the Fiscal 2021 Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year. The Fiscal 2021 Senior Notes were issued at a price of 99.957% (effective yield to maturity of 2.605%). The indenture governing the Fiscal 2021 Senior Notes contains certain covenants including covenants restricting the Company’s ability to create or incur liens securing indebtedness for borrowed money, to enter into certain sale-leaseback transactions, certain subsidiary indebtedness, and to engage in mergers or consolidations and transfer or lease of all or substantially all of the Company’s assets. At December 31, 2025, the Company is in compliance with the covenants of the indenture governing the Fiscal 2021 Senior Notes. The indenture also contains covenants regarding the purchase of the Fiscal 2021 Senior Notes upon a change of control triggering event. The Company may redeem the Fiscal 2021 Senior Notes in whole or in part at any time before their maturity. The fair value of the fixed-rate Fiscal 2021 Senior Notes at December 31, 2025 and June 30, 2025 was $909.8 million and $891.4 million, respectively, based on quoted market prices and has been classified as a Level 1 financial liability (as defined in Note 7, “Fair Value of Financial Instruments”).
The Fiscal 2025 Revolving Credit Facility, Fiscal 2026 Term Loan, Fiscal 2016 Senior Notes, Fiscal 2020 Senior Notes and Fiscal 2021 Senior Notes are senior unsecured obligations of the Company and are ranked equally in right of payment.
In addition, certain of the Company’s subsidiaries established unsecured, uncommitted lines of credit with banks. As of December 31, 2025 and June 30, 2025, respectively, there were no outstanding borrowings under these lines of credit.
NOTE 12. OTHER NON-CURRENT LIABILITIES
Other non-current liabilities consisted of the following: | | | | | | | | | | | |
| December 31,
2025 | | June 30,
2025 |
| (in millions) |
| Post-employment retirement obligations | $ | 258.1 | | | $ | 238.0 | |
| Operating lease liabilities | 151.0 | | | 169.5 | |
| Non-current income taxes | 78.2 | | | 74.6 | |
| Acquisition related contingencies | 25.2 | | | 14.0 | |
| Other (a) | 73.0 | | | 89.3 | |
| Total | $ | 585.5 | | | $ | 585.5 | |
(a) Includes $10.7 million and $24.6 million derivative liabilities as of December 31, 2025, and June 30, 2025, respectively, related to the Company’s cross-currency swap derivative contracts. Please refer to Note 15, “Contractual Commitments, Contingencies and Off-Balance Sheet Arrangements” for a further discussion.
The Company sponsors a Supplemental Officer Retirement Plan (the “Broadridge SORP”). The Broadridge SORP is a non-qualified ERISA defined benefit plan pursuant to which the Company will pay supplemental pension benefits to certain key officers upon retirement based upon the officers’ years of service and compensation. The Broadridge SORP was closed to new participants beginning in fiscal year 2015. The Company also sponsors a Supplemental Executive Retirement Plan (the “Broadridge SERP”). The Broadridge SERP is also a non-qualified ERISA defined benefit plan pursuant to which the Company will pay supplemental pension benefits to certain key executives upon retirement based upon the executives’ years of service and compensation. The Broadridge SERP was closed to new participants beginning in fiscal year 2015.
The SORP and SERP are effectively funded with assets held in a Rabbi Trust. The assets invested in the Rabbi Trust are to be used in part to fund benefit payments to participants under the terms of the plans. The Rabbi Trust is irrevocable and no portion of the trust funds may be used for any purpose other than the delivery of those assets to the participants, except that assets held in the Rabbi Trust would be subject to the claims of the Company’s general creditors in the event of bankruptcy or insolvency of the Company. The Broadridge SORP and SERP are non-qualified plans for federal tax purposes and for purposes of Title I of ERISA. The Rabbi Trust assets had a value of $68.6 million at December 31, 2025 and $66.4 million at June 30, 2025 and are included in Other non-current assets in the accompanying Condensed Consolidated Balance Sheets. The SORP and the SERP had a total benefit obligation of $62.8 million at December 31, 2025 and $62.6 million at June 30, 2025 and are included in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets.
NOTE 13. STOCK-BASED COMPENSATION
The activity related to the Company’s incentive equity awards for the three months ended December 31, 2025 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Stock Options | | Time-based
Restricted Stock Units | | Performance-based
Restricted Stock Units |
| Number of
Options | | Weighted-
Average
Exercise
Price | | Number
of Shares | | Weighted-
Average
Grant
Date Fair
Value | | Number
of Shares | | Weighted-
Average
Grant
Date Fair
Value |
Balances at September 30, 2025 | 1,729,290 | | | $ | 163.01 | | | 587,692 | | | $ | 179.67 | | | 177,723 | | | $ | 189.71 | |
| Granted | 13,730 | | | 225.61 | | | 218,007 | | | 223.32 | | | 95,595 | | | 223.70 | |
| Exercise of stock options (a) | (11,740) | | | 121.58 | | | — | | | — | | | — | | | — | |
Vesting of restricted stock units | — | | | — | | | (36,412) | | | 158.00 | | | (7,698) | | | 211.26 | |
| Expired/forfeited | (7,549) | | | 165.33 | | | (9,840) | | | 200.22 | | | (1,700) | | | 206.49 | |
Balances at December 31, 2025 (b),(c) | 1,723,731 | | | $ | 163.78 | | | 759,447 | | | $ | 192.97 | | | 263,920 | | | $ | 201.29 | |
_________
(a)Stock options exercised during the period of October 1, 2025 through December 31, 2025 had an aggregate intrinsic value of $1.3 million.
(b)As of December 31, 2025, the Company’s outstanding vested and currently exercisable stock options using the December 31, 2025 closing stock price of $223.17 (approximately 1.0 million shares) had an aggregate intrinsic value of $81.3 million with a weighted-average exercise price of $137.83 and a weighted-average remaining contractual life of 4.9 years. The total of all stock options outstanding as of December 31, 2025 has a weighted-average remaining contractual life of 6.3 years.
(c)As of December 31, 2025, time-based restricted stock units and performance-based restricted stock units expected to vest using the December 31, 2025 closing stock price of $223.17 (approximately 0.7 million and 0.2 million shares, respectively) had an aggregate intrinsic value of $158.3 million and $55.3 million, respectively. Performance-based restricted stock units granted in the table above represent initial target awards, and performance adjustments for (i) change in shares issued based upon attainment of performance goals determined in the period, and (ii) estimated change in shares issued resulting from attainment of performance goals to be determined at the end of the prospective performance period.
The activity related to the Company’s incentive equity awards for the six months ended December 31, 2025 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Stock Options | | Time-based
Restricted Stock Units | | Performance-based
Restricted Stock Units |
| Number of
Options | | Weighted-
Average
Exercise
Price | | Number
of Shares | | Weighted-
Average
Grant
Date Fair
Value | | Number
of Shares | | Weighted-
Average
Grant
Date Fair
Value |
Balances at June 30, 2025 | 1,917,328 | | | $ | 157.97 | | | 590,603 | | | $ | 178.58 | | | 179,113 | | | $ | 189.69 | |
| Granted | 13,730 | | | 225.61 | | | 227,586 | | | 224.72 | | | 96,032 | | | 223.64 | |
| Exercise of stock options (a) | (170,599) | | | 103.40 | | | — | | | — | | | — | | | — | |
Vesting of restricted stock units | — | | | — | | | (41,908) | | | 162.19 | | | (7,698) | | | 211.26 | |
| Expired/forfeited | (36,728) | | | 163.64 | | | (16,834) | | | 194.09 | | | (3,527) | | | 199.45 | |
Balances at December 31, 2025 | 1,723,731 | | | $ | 163.78 | | | 759,447 | | | $ | 192.97 | | | 263,920 | | | $ | 201.29 | |
_________
(a)Stock options exercised during the period of July 1, 2025 through December 31, 2025 had an aggregate intrinsic value of $26.4 million.
The Company has stock-based compensation plans under which the Company annually grants stock option and restricted stock unit awards. Stock options are granted to employees at exercise prices equal to the fair market value of the Company’s common stock on the dates of grant, with the measurement of stock-based compensation expense recognized in Net earnings based on the fair value of the award on the date of grant. Stock-based compensation expense of $26.9 million and $21.8 million, as well as related expected tax benefits of $4.5 million and $4.0 million were recognized for the three months ended December 31, 2025 and 2024, respectively. Stock-based compensation expense of $42.4 million and $36.6 million, as well as related expected tax benefits of $6.9 million and $6.4 million were recognized for the six months ended December 31, 2025 and 2024, respectively.
As of December 31, 2025, the total remaining unrecognized compensation cost related to non-vested stock options and restricted stock unit awards amounted to $11.1 million and $99.2 million, respectively, which will be amortized over the weighted-average remaining requisite service periods of 1.4 years and 1.9 years, respectively.
For stock options granted, the fair value of each stock option was estimated on the date of grant using a binomial option pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on a combination of implied market volatilities, historical volatility of the Company’s stock price and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock option grants is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding.
NOTE 14. INCOME TAXES
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| (in millions) |
| Provision for income taxes | $ | 85.7 | | | $ | 33.6 | | | $ | 133.4 | | | $ | 54.1 | |
| Effective tax rate | 23.1 | % | | 19.1 | % | | 22.9 | % | | 19.6 | % |
| Excess tax benefits | $ | 0.4 | | | $ | 3.2 | | | $ | 2.3 | | | $ | 6.3 | |
The increase in the effective tax rate for the three months ended December 31, 2025 was primarily driven by an increase in pre-tax income relative to total discrete tax benefits.
The increase in the effective tax rate for the six months ended December 31, 2025 was primarily driven by an increase in pre-tax income relative to total discrete tax benefits.
NOTE 15. CONTRACTUAL COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS
Data Center Agreements
The Company is a party to an Amended and Restated IT Services Agreement with Kyndryl, Inc. (“Kyndryl”), an entity formed by IBM’s spin-off of its managed infrastructure services business, under which Kyndryl provides certain aspects of the Company’s information technology infrastructure, including supporting its mainframe, midrange, network and data center operations, as well as providing disaster recovery services. The Amended and Restated IT Services Agreement expires on June 30, 2027, however the Company may renew the agreement for up to one additional 12-month period. Fixed minimum commitments remaining under the Amended and Restated IT Services Agreement at December 31, 2025 are $37.5 million through June 30, 2027, the final year of the Amended and Restated IT Services Agreement.
Broadridge Software Limited, a subsidiary of the Company is party to the SIS Services Agreement with Kyndryl Canada, under which Kyndryl Canada provides infrastructure managed services for the SIS Business. The SIS Services Agreement expires on October 31, 2029. Fixed minimum commitments remaining under the SIS Services Agreement at March 31, 2025 are $122.9 million through October 31, 2029, the final year of the SIS Services Agreement.
The Company is a party to an information technology agreement for private cloud services (the “Private Cloud Agreement”) under which Kyndryl operates, manages and supports the Company’s private cloud global distributed platforms and products, and operates and manages certain Company networks. The Private Cloud Agreement expires on March 31, 2030. Fixed minimum commitments remaining under the Private Cloud Agreement at December 31, 2025 are $63.1 million through March 31, 2030, the final year of the contract.
Cloud Services Resale Agreement
On December 31, 2021, the Company and Presidio Networked Solutions LLC (“Presidio”), a reseller of services of Amazon Web Services, Inc. and its affiliates (collectively, “AWS”), entered into an Order Form and AWS Private Pricing Addendum, dated December 31, 2021 (the “Order Form”), to the Cloud Services Resale Agreement, dated December 15, 2017, as amended (together with the Order Form, the “AWS Cloud Agreement”), whereby Presidio will resell to the Company certain public cloud infrastructure and related services provided by AWS for the operation, management and support of the Company’s cloud global distributed platforms and products. The AWS Cloud Agreement expires on December 31, 2026. Fixed minimum commitments remaining under the AWS Cloud Agreement at December 31, 2025 are $57.1 million through December 31, 2026.
Investments
The Company has an equity method investment that is a variable interest in a variable interest entity. The Company is not the primary beneficiary and therefore does not consolidate the investee. The Company’s potential maximum loss exposure related to its unconsolidated investments in this variable interest entity totaled $27.1 million as of December 31, 2025, which represents the carrying value of the Company's investment.
In addition, as of December 31, 2025, the Company has future commitments to fund $15.8 million to the Company’s other investees.
Software License Agreements
The Company has incurred the following expenses under software license agreements:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| (in millions) |
| Software License Agreements | $ | 43.3 | | | $ | 36.0 | | | $ | 85.4 | | | $ | 70.3 | |
Fixed Operating Lease Cost
The Company has incurred the following fixed operating lease costs:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Six Months Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| (in millions) |
| Fixed Operating Lease Cost | $ | 12.9 | | | $ | 10.5 | | | $ | 26.4 | | | $ | 20.6 | |
Litigation
Broadridge or its subsidiaries are subject to various claims and legal matters that arise in the normal course of business (referred to as “Litigation”). The Company establishes reserves for Litigation and other loss contingencies when it is both probable that a loss will occur, and the amount of such loss can reasonably be estimated. For certain Litigation matters for which the Company does not believe it probable that a loss will occur at this time, the Company is able to estimate a range of reasonably possible losses in excess of established reserves. Management currently estimates an aggregate range of reasonably possible losses for such matters of up to $5.0 million in excess of any established reserves. The Litigation matters underlying the estimated range will change from time to time, and it is reasonably possible that the actual results may vary significantly from this estimate. The Company’s management currently believes that resolution of any outstanding legal matters will not have a material adverse effect on the Company’s financial position or results of operations. However, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse impact on the Company’s financial position and results of operations in the period in which any such effects are recorded.
Other
It is not the Company’s business practice to enter into off-balance sheet arrangements. However, the Company is exposed to market risk from changes in foreign currency exchange rates that could impact its financial position, results of operations, and cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments.
In January 2022, the Company executed a series of cross-currency swap derivative contracts with an aggregate notional amount of EUR 880 million which are designated as net investment hedges to hedge a portion of its net investment in its subsidiaries whose functional currency is the Euro. The cross-currency swap derivative contracts are agreements to pay fixed-rate interest in Euros and receive fixed-rate interest in U.S. Dollars, thereby effectively converting a portion of the Company’s U.S. Dollar denominated fixed-rate debt into Euro denominated fixed-rate debt. The cross-currency swaps mature in May 2031 to coincide with the maturity of the Fiscal 2021 Senior Notes. Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss), net in the Condensed Consolidated Statements of Comprehensive Income and will remain in Accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets until the sale or complete liquidation of the underlying foreign subsidiary. At December 31, 2025, the Company’s position on the cross-currency swaps was a liability of $10.7 million, and is recorded as part of Other non-current liabilities on the Condensed Consolidated Balance Sheets with the offsetting amount recorded as part of Accumulated other comprehensive income (loss), net of tax. The Company has elected the spot method of accounting whereby the net interest savings from the cross-currency swaps is recognized as a reduction in interest expense in the Company’s Condensed Consolidated Statements of Earnings.
In May 2021, the Company settled a forward treasury lock agreement that was designated as a cash flow hedge, for a pre-tax loss of $11.0 million, after which the final settlement loss is being amortized into Interest expense, net ratably over the ten-year term of the Fiscal 2021 Senior Notes. The expected amount of the existing loss that will be amortized into earnings before income taxes within the next twelve months is approximately $1.1 million.
In the normal course of business, the Company enters into contracts in which it makes representations and warranties that relate to the performance of the Company’s products and services. The Company does not expect any material losses related to such representations and warranties, or collateral arrangements.
The Company’s business process outsourcing and mutual fund processing services are performed by Broadridge Business Process Outsourcing, LLC (“BBPO”), an indirect subsidiary, which is a broker-dealer registered with the SEC and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Although BBPO’s FINRA membership agreement allows it to engage in clearing and the retailing of corporate securities in addition to mutual fund retailing on a wire order basis, BBPO does not clear customer transactions, process any retail business or carry customer accounts. As a registered broker-dealer and member of FINRA, BBPO is subject to the Uniform Net Capital Rule 15c3-1 of the Securities Exchange Act of 1934, as amended, which requires BBPO to maintain a minimum net capital amount. At December 31, 2025, BBPO was in compliance with this net capital requirement. BBPO, as a participant of the Depository Trust Company (“DTC”), is also subject to DTC Section 1.B.iii which requires BBPO to maintain a minimum excess net capital amount. At December 31, 2025, BBPO was in compliance with this excess net capital requirement.
In addition, Matrix Trust Company, a subsidiary of the Company, is a Colorado State non-depository trust company and National Securities Clearing Corporation trust member, whose primary business is to provide cash agent, custodial and directed trustee services to institutional customers, and investment management services to collective investment trust funds. As a result, Matrix Trust Company is subject to various regulatory capital requirements administered by the Colorado Division of Banking and the Arizona Department of Financial Institutions, as well as the National Securities Clearing Corporation. Specific capital requirements that involve quantitative measures of assets, liabilities, and certain off-balance sheet items, when applicable, must be met. At December 31, 2025, Matrix Trust Company was in compliance with its capital requirements.
NOTE 16. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) BY COMPONENT
The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income/(loss) for the three and six months ended December 31, 2025, and 2024, respectively: | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign
Currency
Translation | | Pension
and Post-
Retirement
Liabilities | | Cash Flow Hedge | | Total |
| (in millions) |
| Balances at September 30, 2025 | $ | (233.6) | | | $ | (4.3) | | | $ | (4.7) | | | $ | (242.5) | |
| Other comprehensive income before reclassifications | 43.3 | | | — | | | — | | | 43.3 | |
Amounts reclassified from accumulated other comprehensive income | — | | | 0.1 | | | 0.2 | | | 0.3 | |
Balances at December 31, 2025 | $ | (190.2) | | | $ | (4.2) | | | $ | (4.5) | | | $ | (198.9) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign
Currency
Translation | | Pension
and Post-
Retirement
Liabilities | | Cash Flow Hedge | | Total |
| (in millions) |
Balances at June 30, 2025 | $ | (263.6) | | | $ | (4.4) | | | $ | (4.9) | | | $ | (272.9) | |
| Other comprehensive income before reclassifications | 73.4 | | | — | | | — | | | 73.4 | |
Amounts reclassified from accumulated other comprehensive income | — | | | 0.1 | | | 0.4 | | | 0.6 | |
Balances at December 31, 2025 | $ | (190.2) | | | $ | (4.2) | | | $ | (4.5) | | | $ | (198.9) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign
Currency
Translation | | Pension
and Post-
Retirement
Liabilities | | Cash Flow Hedge | | Total |
| (in millions) |
| Balances at September 30, 2024 | $ | (291.4) | | | $ | (5.6) | | | $ | (5.5) | | | $ | (302.5) | |
| Other comprehensive income before reclassifications | (48.8) | | | — | | | — | | | (48.8) | |
Amounts reclassified from accumulated other comprehensive income | — | | | 0.1 | | | 0.2 | | | 0.3 | |
Balances at December 31, 2024 | $ | (340.3) | | | $ | (5.5) | | | $ | (5.3) | | | $ | (351.1) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign
Currency
Translation | | Pension
and Post-
Retirement
Liabilities | | Cash Flow Hedge | | Total |
| (in millions) |
Balances at June 30, 2024 | $ | (320.3) | | | $ | (5.7) | | | $ | (5.7) | | | $ | (331.7) | |
| Other comprehensive income before reclassifications | (19.9) | | | — | | | — | | | (19.9) | |
Amounts reclassified from accumulated other comprehensive income | — | | | 0.2 | | | 0.4 | | | 0.6 | |
Balances at December 31, 2024 | $ | (340.3) | | | $ | (5.5) | | | $ | (5.3) | | | $ | (351.1) | |
NOTE 17. INTERIM FINANCIAL DATA BY SEGMENT
The Company operates in two reportable segments: Investor Communication Solutions and Global Technology and Operations. See Note 1, “Basis of Presentation” for a further description of the Company’s reportable segments.
The Company’s chief operating decision maker is the Chief Executive Officer (“CEO”). The chief operating decision maker utilizes earnings before income taxes, to make decisions on resource allocation, including investment of profits, potential acquisitions, or return of capital. The chief operating decision maker does not review assets and capital expenditures in evaluating the results of the Company’s segments, therefore such information is not presented.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Investor
Communication
Solutions (a), (b) | | Global
Technology and
Operations (a), (b) | | Total Reportable Segments | | Corporate and Other (c) | | Total |
| | | (in millions) |
| Three months ended December 31, 2025 | | | | | | | | |
| Revenues | | $ | 1,233.3 | | | $ | 480.6 | | | $ | 1,713.9 | | | $ | — | | | $ | 1,713.9 | |
| Depreciation and amortization | | 11.6 | | | 12.6 | | | 24.2 | | | 9.1 | | 33.3 | |
| Amortization of acquired intangibles | | 10.6 | | | 41.1 | | | 51.7 | | | — | | | 51.7 | |
| Amortization of other assets | | 9.8 | | | 26.6 | | | 36.4 | | | 5.7 | | 42.1 | |
| Other direct expenses | | 960.4 | | | 284.1 | | | 1,244.5 | | | (27.9) | | | 1,216.6 | |
| Other segment items | | 104.2 | | | 38.7 | | | 142.9 | | | (142.9) | | | — | |
| Earnings (loss) before income taxes | | $ | 136.8 | | | $ | 77.6 | | | $ | 214.3 | | | $ | 155.9 | | | $ | 370.2 | |
| | | | | | | | | | |
| Six months ended December 31, 2025 | | | | | | | | |
| Revenues | | $ | 2,363.2 | | | $ | 940.1 | | | $ | 3,303.3 | | | $ | — | | | $ | 3,303.3 | |
| Depreciation and amortization | | 23.4 | | | 24.9 | | | 48.3 | | | 17.6 | | 65.9 | |
| Amortization of acquired intangibles | | 20.3 | | | 82.1 | | | 102.4 | | | — | | | 102.4 | |
| Amortization of other assets | | 20.1 | | | 53.3 | | | 73.5 | | | 11.2 | | 84.7 | |
| Other direct expenses | | 1,842.1 | | | 562.6 | | | 2,404.7 | | | 62.3 | | | 2,467.0 | |
| Other segment items | | 194.0 | | | 72.4 | | | 266.4 | | | (266.4) | | | — | |
| Earnings (loss) before income taxes | | $ | 263.2 | | | $ | 144.9 | | | $ | 408.1 | | | $ | 175.3 | | | $ | 583.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Investor
Communication
Solutions (a), (b) | | Global
Technology and
Operations (a), (b) | | Total Reportable Segments | | Corporate and Other (c) | | Total |
| | | (in millions) |
| Three months ended December 31, 2024 | | | | | | | | |
| Revenues | | $ | 1,149.2 | | | $ | 440.0 | | | $ | 1,589.2 | | | $ | — | | | $ | 1,589.2 | |
| Depreciation and amortization | | 11.2 | | | 13.3 | | | 24.5 | | | 8.3 | | 32.8 | |
| Amortization of acquired intangibles | | 10.9 | | | 38.6 | | | 49.5 | | | — | | | 49.5 | |
| Amortization of other assets | | 9.5 | | | 29.3 | | | 38.8 | | | 4.3 | | 43.1 | |
| Other direct expenses | | 870.4 | | | 271.3 | | | 1,141.7 | | | 146.0 | | | 1,287.7 | |
| Other segment items | | 73.2 | | | 37.7 | | | 110.9 | | | (110.9) | | | — | |
| Earnings (loss) before income taxes | | $ | 174.1 | | | $ | 49.7 | | | $ | 223.8 | | | $ | (47.7) | | | $ | 176.0 | |
| | | | | | | | | | |
| Six months ended December 31, 2024 | | | | | | | | |
| Revenues | | $ | 2,164.8 | | | $ | 847.2 | | | $ | 3,012.1 | | | $ | — | | | $ | 3,012.1 | |
| Depreciation and amortization | | 22.2 | | | 26.1 | | | 48.4 | | | 16.7 | | 65.1 | |
| Amortization of acquired intangibles | | 22.5 | | | 75.2 | | | 97.7 | | | — | | | 97.7 | |
| Amortization of other assets | | 20.0 | | | 57.2 | | | 77.2 | | | 8.7 | | 85.9 | |
| Other direct expenses | | 1,686.7 | | | 520.4 | | | 2,207.1 | | | 280.0 | | | 2,487.1 | |
| Other segment items | | 142.8 | | | 71.2 | | | 214.0 | | | (214.0) | | | — | |
| Earnings (loss) before income taxes | | $ | 270.6 | | | $ | 97.1 | | | $ | 367.7 | | | $ | (91.4) | | | $ | 276.3 | |
(a)Other direct expenses included in the Segment earnings (loss) before income taxes include interest, distribution, labor, lease, data center, and other expenses that are directly incurred by the segment.
(b)Other segment items include expenses related to centrally managed activities that are allocated to the reportable segments based on usage and other factors.
(c)The primary components of “Corporate and Other” are certain gains, losses, centrally managed activities, and non-operating expenses that have not been allocated to the reportable segments, such as interest expense, and for fiscal year 2026, the unrealized and realized gains or losses, as applicable, on the Company’s digital asset holdings as a result of the quarterly mark to market to remeasure the digital assets to fair market value and gains or losses upon sale. Refer to Note 1, “Basis of Presentation” for further details. Refer to Note 7, “Fair Value of Financial Instruments” for details related to realized and unrealized gains or losses.
NOTE 18. SUBSEQUENT EVENT
On January 5, 2026, the Company completed the acquisition of Acolin Group Holdco Limited (“Acolin”). Acolin is a European provider of cross-border fund distribution and regulatory services. The total purchase price was approximately $70.1 million plus an additional contingent consideration liability. Acolin will be included in the Company’s ICS reportable segment.