Broadridge's Q3 2025: Navigating Contradictions in Revenue Growth, Sales Cycles, and Margin Expectations

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Recurring Revenue and Market Performance:
- Broadridge Financial Solutions reported 8% recurring revenue growth in Q3 and expects 6% to 8% growth for fiscal 2025.
- Despite market volatility, the growth was supported by strong scalability of its technology and high trading volumes, which benefitted both Broadridge and its financial services clients.

Equity Position Growth and Regulatory Impact:
- Equity position growth rose to 15% in Q3, driven by managed accounts, with strong demand for passive funds leading to 6% fund position growth.
- The rise in small position growth, likely due to direct indexing, supports long-term growth as these positions have the potential to expand in size over time.

Capital Markets and Post-Trade Solutions:
- Capital Markets reported 10% recurring revenue growth, with global post-trade capabilities processing record fixed income trades and doubling equity volumes.
- Broadridge's ability to seamlessly scale post-trade capabilities during market stress, such as the week following April 2, drove demand for its solutions.

Wealth and Investment Management Expansion:
- Wealth and Investment Management revenues grew 13%, driven by the acquisition of SIS and integration of platforms.
- The integration of Canadian wealth platforms and the rollout of a next-generation wealth platform contribute to strong sales momentum and client growth.