Broadridge BR delivered a striking fiscal result: FY2025 revenue of $6.89B (+5.88%) alongside net income of $839.5M (+20.25%), and the board approved a quarterly dividend of $0.98 — a clear signal the company is leaning into dividend growth while materially dialing back buybacks.
That divergence between stronger operating leverage and a rebalanced capital-return mix matters now: improved earnings and free cash flow enable the payout increase even as management preserves dry powder for targeted M&A and strategic investments.
Key developments and market reaction#
Broadridge's FY2025 results show accelerating profitability with an EPS beat in the most recent report: EPS $3.55 vs. estimate $3.51 (reported 2025-08-05). Market response was muted intraday with the stock at $262.49 (change -0.37%), giving the company a market cap near $30.75B. (Source: Monexa AI.
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The board's capital-allocation moves were the headline: management declared a quarterly dividend of $0.98 on 2025-08-04 (payment date Oct. 2), up from the prior quarter's $0.88 — a +11.36% increase — while share repurchases fell to $134.9M in FY2025 from $485.4M a year earlier (-72.24%). These shifts were funded from robust operating cash flow and did not materially increase leverage. (Source: Monexa AI.
Strategically, Broadridge recorded acquisitions net -$193.5M in FY2025 and net cash provided by operations of $1.17B with free cash flow of $1.06B, reflecting both deal activity and strong cash conversion. The company paid $402.3M in dividends and reduced buybacks, an allocation mix that prioritizes predictable returns and M&A optionality. (Source: Monexa AI.
Financial performance & valuation metrics#
On the top line, revenue rose to $6.89B (+5.88% y/y) while gross profit improved to $2.14B and gross margin expanded to 31.02% (from 29.72% in FY2024), a +1.30pp improvement that explains much of the operating leverage behind the net-income lift. Net margin increased to 12.19% (from 10.73%), a +1.46pp shift year-over-year. (Source: Monexa AI.
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Cash-flow generation remains central: operating cash flow $1.17B and free cash flow $1.06B provide coverage for higher dividends and selective deals. Note: Monexa AI reports a free-cash-flow growth metric of +24.18% in its growth summary, while a straight FY-on-FY calculation using reported FCF ($1.06B vs $943.2M) implies +12.39% — an inconsistency in growth-series labeling worth highlighting when comparing headline growth rates. Net debt sits near $3.27B against TTM EBITDA, yielding a net-debt/EBITDA ~1.87x, a leverage profile consistent with investment-grade-like flexibility for a cash-generative services business. (Source: Monexa AI.
Valuation remains elevated versus history: TTM metrics show a PE ~36.71x and EV/EBITDA ~23.2x, while forward estimates compress multiples (2026E PE 27.84x). The premium reflects recurring revenue, margin expansion and durable cash flows, but it also sets execution expectations. (Source: Monexa AI.
Income statement snapshot (FY2022–FY2025)#
| Metric | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|
| Revenue | $6.89B | $6.51B | $6.06B | $5.71B |
| Gross profit | $2.14B | $1.93B | $1.79B | $1.59B |
| Net income | $839.5M | $698.1M | $630.6M | $539.1M |
| Gross margin | 31.02% | 29.72% | 29.46% | 27.89% |
| Operating margin | 17.25% | 15.63% | 15.45% | 13.31% |
| Net margin | 12.19% | 10.73% | 10.40% | 9.44% |
(Source: Monexa AI
Cash flow & capital allocation (FY2022–FY2025)#
| Metric | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|
| Operating cash flow | $1.17B | $1.06B | $823.3M | $443.5M |
| Free cash flow | $1.06B | $943.2M | $748.1M | $370.4M |
| Dividends paid | $402.3M | $368.2M | $331.0M | $290.7M |
| Share repurchases | $134.9M | $485.4M | $24.3M | $22.8M |
| Acquisitions (net) | $-193.5M | $-34.3M | $0 | $-13.3M |
| Cash at end of period | $561.5M | $304.4M | $252.3M | $224.7M |
(Source: Monexa AI
Why did Broadridge raise its dividend and cut buybacks?#
Broadridge raised the quarterly payout to $0.98 because FY2025 produced stronger net income and stable free cash flow, enabling a higher, more predictable dividend while shrinking buybacks to preserve liquidity for targeted acquisitions and balance-sheet flexibility. (Answer: 49 words).
Supporting data: the company reported net income $839.5M (+20.25%), free cash flow $1.06B, and dividends paid $402.3M in FY2025; at the same time repurchases declined to $134.9M, freeing cash for M&A and dividend coverage. (Source: Monexa AI.
The payout ratio (TTM) is ~46.87% with annualized dividends per share $3.52 and a dividend yield roughly 1.34% (TTM), metrics that indicate the raise remains covered by earnings and FCF but reduces the immediately available cash for opportunistic repurchases. (Source: Monexa AI.
| Metric | FY2025 | FY2024 | YoY |
|---|---|---|---|
| Quarterly dividend | $0.98 | $0.88 | +11.36% |
| Share repurchases | $134.9M | $485.4M | -72.24% |
| Free cash flow | $1.06B | $943.2M | +12.39% |
(Source: Monexa AI
Conclusion: key takeaways & strategic implications#
Broadridge's FY2025 numbers show revenue growth with margin expansion, producing stronger net income and cash flow that support a higher quarterly dividend and selective M&A. The pivot from large buybacks to a bigger dividend and deal activity signals a more conservative liquidity posture with an emphasis on recurring returns plus strategic inorganic growth. (Source: Monexa AI.
Key financial takeaways:
- Revenue: $6.89B (+5.88% y/y). (Source: Monexa AI
- Net income: $839.5M (+20.25% y/y). (Source: Monexa AI
- Free cash flow: $1.06B; FCF/share TTM $9.61. (Source: Monexa AI
- Dividend: Quarterly raised to $0.98; payout ratio ~46.87%. (Source: Monexa AI
- Buybacks: Reduced to $134.9M (-72.24% y/y) while acquisitions increased. (Source: Monexa AI
Strategic implications: Broadridge retains the financial flexibility to pursue M&A while providing steadier income to shareholders; investors should weigh the company's premium multiples (PE ~36.7x TTM) against the demonstrated ability to expand margins and convert cash. For broader context on sector dynamics and comparable fintech/market-structure plays, see related coverage on FIS and ICE. (Sources: Monexa AI.
What this update provides is a clear, data-backed view of how operational improvement is being translated into a conservative, cash-return and M&A-ready capital-allocation stance at Broadridge — a development that reshapes near-term cash deployment without altering the company's cash‑generative profile.