Thu, May 1, 3:59 PM (18 days ago)
**Broadridge Financial Solutions, Inc. (BR) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,811.7 million, up 5% YoY, driven by recurring revenue growth and distribution revenues. - **Net Income:** $243.1 million, up 14% YoY, with a 21.8% effective tax rate. - **EPS:** $2.07 basic, $2.05 diluted, both up 14% YoY. - **Cash Flow:** Operating cash flow of $471.6 million, with free cash flow of $393.2 million. **Profit Margins:** - **Operating Margin:** 19%, up from 17.5% YoY. - **Net Margin:** 13.4%, up from 12.4% YoY. **Earnings Changes:** - **Revenue Growth:** 5% YoY, with recurring revenues up 7% and distribution revenues up 4%. - **Operating Income Growth:** 14% YoY, driven by higher revenues and controlled expenses. - **Net Income Growth:** 14% YoY, with effective tax rate at 21.8%. **Quarterly Performance Discussion:** - **Revenue:** Increased by $85.2 million, driven by recurring and distribution revenues. - **Expenses:** Increased by $43.2 million, primarily due to higher cost of revenues. - **Taxes:** Effective tax rate increased to 21.8% due to lower discrete tax benefits. - **Cash Flow:** Improved by $136.4 million, driven by higher net earnings and changes in working capital. **Trends and Uncertainties:** - **Seasonality:** Higher revenues and earnings expected in Q3 and Q4 due to proxy materials processing. - **Acquisitions:** SIS acquisition in Q4 2024 added $38.3 million in goodwill and $149.1 million in intangible assets. - **Market Risks:** Exposure to foreign currency exchange rates and interest rate changes. **Future Operations Impact:** - **Growth Drivers:** Net New Business, Internal Growth, and Acquisitions. - **Cost Management:** Focus on controlling operating expenses and improving efficiency. - **Investments:** Continued investment in technology and strategic acquisitions. **Segment Performance:** - **Investor Communication Solutions:** Revenues up 4%, earnings before taxes up 8%. - **Global Technology and Operations:** Revenues up 9%, earnings before taxes up 32%. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $317.2 million. - **Debt:** $3.445.8 million in long-term debt, with available capacity under revolving credit facilities. - **Dividends and Repurchases:** Expect to continue dividends and share repurchases based on cash flow and market conditions. **Forward-Looking Statements:** - **Guidance:** No specific guidance provided, but expects continued growth and operational improvements. - **Risks:** Market conditions, regulatory changes, and competitive pressures may impact future performance.