Broadridge Financial Solutions Inc (BR) 2025 Q2 法說會逐字稿

Good day, and welcome to the Broadridge fiscal second quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Edings Thibault, Head of Investor Relations. Please go ahead.

大家好，歡迎參加 Broadridge 2025 財年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給投資者關係主管 Edings Thibault。請繼續。

Thank you. Good morning, everybody, and welcome to Broadridge's second-quarter fiscal year 2025 earnings call. Our earnings release and the slides that accompany this call may be found on the Investor Relations section of broadridge.com. Joining me on the call this morning are Tim Gokey, our CEO; and our Chief Financial Officer, Ashima Ghei. Before I turn the call over to Tim, I do want to make a few standard reminders.

謝謝。大家早安，歡迎參加 Broadridge 2025 財年第二季財報電話會議。我們的收益報告和本次電話會議的幻燈片可以在 broadridge.com 的投資者關係部分找到。今天早上與我一起參加電話會議的還有我們的執行長 Tim Gokey；以及我們的財務長 Ashima Ghei。在我將電話轉給蒂姆之前，我確實想做一些標準提醒。

One, we will be making forward-looking statements on today's call regarding Broadridge that involve risks. A summary of these risks can be found on the second page of the slides and a more complete description on our annual report on Form 10-K; two, we'll also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Broadridge's underlying operating results. An explanation of these non-GAAP measures and reconciliations to the comparable GAAP measures can be found in the earnings release and presentation.

第一，我們將在今天的電話會議上就 Broadridge 做出涉及風險的前瞻性陳述。這些風險的摘要可以在投影片的第二頁找到，更完整的描述可以在我們的 10-K 表年度報告中找到；二、我們也將參考幾個非公認會計準則指標，我們相信這些指標可以讓投資人更全面地了解 Broadridge 的基本營運績效。這些非公認會計準則 (GAAP) 指標的解釋以及與可比較公認會計準則 (GAAP) 指標的調節表可在收益報告和介紹中找到。

Let me now turn the call over to Tim Gokey. Tim?

現在，我將把電話轉給 Tim Gokey。提姆？

Thank you, Edings, and good morning. I'd like to start this morning by congratulating our new Chief Financial Officer. As you know, Ashima was named our permanent CFO last month after serving as our interim CFO since the summer. She's had a very positive impact since joining Broadridge three years ago and looking forward to partnering with her even more closely as we continue to grow and transform our company and our industry.

謝謝你，埃丁斯，早安。今天上午，我首先要祝賀我們的新任財務長。如您所知，Ashima 自今年夏天起擔任我們的臨時財務官，上個月被任命為我們的常任財務長。自從三年前加入 Broadridge 以來，她產生了非常積極的影響，我們期待在公司和行業不斷發展和轉型的過程中與她進行更緊密的合作。

Before I go to my review of our results, I want to share some thoughts on the market backdrop. Financial markets remained strong even as we continue to see heightened global uncertainty. Our clients, especially in the United States, are benefiting from a combination of a healthy economy, strong markets, increased trading and growing optimism about a recovery in capital markets activity and M&A.

在回顧我們的業績之前，我想先分享一些關於市場背景的想法。儘管全球不確定性持續加劇，但金融市場仍保持強勁。我們的客戶，尤其是美國的客戶，正受益於健康的經濟、強勁的市場、成長的交易以及對資本市場活動和併購復甦日益樂觀的情緒。

That is driving an uptick in position growth and other activity is positive for Broadridge, keeping us on track to deliver another year of strong top and bottom-line growth while funding important investments for the future.

這推動了部位成長，其他活動對 Broadridge 也有利，使我們有望在為未來的重要投資提供資金的同時，實現另一年強勁的營收和利潤成長。

With that, let's go to the headlines. First, Broadridge delivered strong second quarter results. Recurring revenues rose 9%, driven by organic growth of 7% and the impact of our SIS acquisition. And we set a new quarterly record for event-driven revenues. Adjusted EPS grew 70% to $1.56.

下面，讓我們來看看頭條新聞。首先，Broadridge 第二季業績表現強勁。經常性收入成長 9%，主要得益於 7% 的有機成長和 SIS 收購的影響。我們創下了事件驅動收入的季度新紀錄。調整後每股收益成長 70% 至 1.56 美元。

Second, that growth is being driven by long-term trends and by the execution of our strategy as we continue to democratize and digitize investing, simplify and innovate capital markets and modernize wealth management.

其次，隨著我們繼續實現投資民主化和數位化、簡化和創新資本市場以及實現財富管理現代化，推動這一成長的是長期趨勢和我們策略的執行。

Third, we are now entering the seasonally more significant second half of our fiscal year, well positioned to deliver another strong set of full year results. And finally, our outlook for a strong fiscal '25 keeps us on pace to deliver on the three-year financial objectives we laid out at our Investor Day in December of '23.

第三，我們目前正進入季節性更重要的財年下半年，我們有能力再次取得強勁的全年業績。最後，我們對 25 年財政強勁的展望使我們能夠實現 23 年 12 月投資者日制定的三年財務目標。

It was a strong quarter. So let's move to a review of what drove those results on slide 4. I'll start with our governance business, where we're driving democratization and digitization by delivering innovation and by helping our clients adapt to change.

這是一個強勁的季度。讓我們來回顧一下投影片 4 中導致這些結果的原因。我首先從我們的治理業務開始，我們透過創新和幫助客戶適應變化來推動民主化和數位化。

ICS recurring revenues rose 9% in constant currency, driven by strong revenue from sales and continued growth in investor participation with strong growth across all our four product lines. Investor participation continues to be an important growth driver for our governance business. Equity position growth strengthened to 11% in the second quarter, the highest quarterly growth rate since the end of fiscal '22.

ICS 經常性收入以固定匯率計算成長 9%，這得益於強勁的銷售收入和投資者參與度的持續成長，我們四條產品線均實現強勁成長。投資者參與仍然是我們治理業務的重要成長動力。第二季度，股票部位成長率升至 11%，為 22 財年末以來的最高季度成長率。

Equity position growth, which had been trending around 7% since the summer, began to pick up in October, and we now expect low double-digit growth in the seasonally more meaningful second half of the year as Ashima will share in a few minutes. Managed accounts continue to be the biggest driver of equity position growth. Notably, physicians in self-directed accounts also grew in mid-single digits and acceleration from fiscal '23 -- '24, excuse me, when growth was essentially flat.

自夏季以來，股票部位成長率一直維持在 7% 左右，並在 10 月開始回升，我們目前預計，在季節性更明顯的下半年，股票部位成長率將達到兩位數的低位，正如 Ashima 幾分鐘後分享的那樣。管理帳戶持續成為股票部位成長的最大推動力。值得注意的是，自導帳戶中的醫生數量也以中等個位數增長，並且從 23 至 24 財年起加速增長，對不起，當時的增長基本持平。

That increased level of engagement from Main Street investors was a key driver of the acceleration in overall equity position growth. Fund position growth remained stable at 5% in the second quarter, driven by balanced growth across both fixed income and equity funds.

一般投資人參與度的提高是推動整體股票持股加速成長的關鍵因素。受固定收益基金和股票基金均衡成長的推動，第二季基金部位成長維持穩定在 5%。

While fund position growth has picked up from the 3% rate we saw in fiscal '24, it remains at the lower end of its historic mid- to -high single-digit range. Across our governance business, our revenue growth is grounded in our focus on delivering innovative solutions to our clients.

雖然基金部位成長率已從24財年的3%有所回升，但仍處於歷史中高個位數範圍的低端。在我們的治理業務中，我們的收入成長是基於我們專注於為客戶提供創新解決方案。

Two quarters in, our tailored shareholder reporting solution continues to perform very well. And as we prepare for the upcoming prostate season, more than 400 funds will be using our pass-through voting solutions to give their shareholders a greater voice on governance and other issues, up from 100 funds at the end of fiscal '24.

兩個季度以來，我們客製化的股東報告解決方案持續表現良好。在我們為即將到來的前列腺季節做準備的同時，超過 400 只基金將使用我們的直通投票解決方案，讓其股東在治理和其他問題上擁有更大的發言權，而 24 財年末這一數字為 100 只基金。

We are adding new governance clients in Europe, and our data and analytics business is benefiting from strong demand for our AI-enabled global demand model. And customer communications, our wealth and focused solution is powering digital growth.

我們正在歐洲增加新的治理客戶，我們的數據和分析業務受益於對我們基於人工智慧的全球需求模型的強勁需求。透過客戶溝通，我們擁有豐富且專注的解決方案，推動數位化成長。

Beyond our recurring revenues, we saw a new quarterly record for event-driven revenues, driven in significant part by our work facilitating board elections at a leading global mutual fund complex. Working closely with our fund client, we seamlessly process more than 100 million beneficial positions in over 400 funds held up more than 1,000 brokers.

除了經常性收入外，我們還看到了事件驅動收入的季度新紀錄，這在很大程度上得益於我們為全球領先的共同基金綜合體促進董事會選舉所做的工作。我們與基金客戶密切合作，無縫處理了 1,000 多家經紀商持有的 400 多個基金中的 1 億多個有利頭寸。

Thanks to the investments we have made, 90% of these communications were fully digital, which means that our efforts to enable digital alternatives save that fund complex and its shareholders, tens of millions of dollars in print and mail expenses.

由於我們的投資，90％的通訊都已完全數位化，這意味著我們為實現數位化替代方案所做的努力為該基金綜合體及其股東節省了數千萬美元的印刷和郵寄費用。

Boards of Directors elections like these highlight the critical role we play behind the scenes in ensuring that funds can communicate with their investors and get the approvals they need on key governance matters securely and on demand.

此類董事會選舉凸顯了我們在幕後發揮的關鍵作用，確保基金能夠與投資者溝通，並安全、及時地獲得關鍵治理事項所需的批准。

Let's turn to capital markets, which reported 6% recurring revenue growth. In Capital Markets, we're simplifying and innovating trading across the front and back office. In the front office, we continue to roll out new solutions for speed trading and reduce the cost of trade execution with a new AI-enabled trading solution that uses real-time liquidity mapping to help our clients optimize trade execution for algorithmic trading strategies.

讓我們來看看資本市場，其報告的經常性收入增加了 6%。在資本市場，我們正在簡化和創新前後台交易。在前台，我們繼續推出新的快速交易解決方案，並透過使用即時流動性映射的新人工智慧交易解決方案來降低交易執行成本，幫助我們的客戶優化演算法交易策略的交易執行。

We also introduced new trading capabilities to simplify and improve trading for structured products. In the back office, our postpaid platforms continue to support strong trading volumes across both equity and fixed income markets. We also introduced new Gen AI enhancements, her operations GPT post-trade platform and with three new clients added in Q2. Our cutting-edge distributed ledger repo product is enabling a growing number of institutions to more easily adapt to the new treasury clearing requirements.

我們也推出了新的交易功能，以簡化和改善結構化產品的交易。在後台，我們的後付費平台持續支援股票和固定收益市場的強勁交易量。我們還推出了新的 Gen AI 增強功能、她的營運 GPT 交易後平台，並在第二季增加了三個新客戶。我們先進的分散式帳本回購產品使越來越多的機構能夠更輕鬆地適應新的資金清算要求。

In Wealth and Investment Management, revenues grew 12%, largely driven by the acquisition of SIS. As we discussed last quarter, the SIS acquisition extends our Canadian wealth business by adding new clients and creating a greater opportunity for us to upsell our broader set of solutions.

在財富和投資管理方面，營收成長了 12%，主要得益於收購 SIS。正如我們上個季度所討論的那樣，SIS 的收購擴展了我們的加拿大財富業務，增加了新客戶並為我們創造了更大的機會來推銷我們更廣泛的解決方案。

We saw an early indication of our strategy bearing fruit as a leading Canadian bank and current back-office client selected our adviser marketing solutions to address their goal of making it easier for investors to connect with their advisers. More broadly, our Broadridge wealth management platform continues to be recognized for its leading-edge capabilities, winning awards in the quarter from both Charters and the Everest Group. That recognition is helping to drive a record pipeline for our wealth business.

我們看到我們的策略取得成果的早期跡象，一家領先的加拿大銀行和當前的後台客戶選擇了我們的顧問行銷解決方案來實現他們的目標，即讓投資者更容易與他們的顧問聯繫。更廣泛地說，我們的 Broadridge 財富管理平台繼續因其領先的功能而獲得認可，並在本季度贏得了 Charters 和 Everest Group 頒發的獎項。這項認可有助於推動我們的財富業務創下紀錄。

Speaking to pipeline, I'll turn to close sales. We ended December with year-to-date close sales of $103 million, essentially flat with fiscal '24. After a strong start to fiscal '25, our sales were modestly lower in the second quarter with a handful of large deals slipping into the third quarter. Some of those deals have already closed, and we expect to close the remainder over the coming weeks. Our pipeline remains healthy, and we are on track to achieve our outlook for closed sales of $290 million to $330 million for the full year.

談到管道，我將轉向完成銷售。截至 12 月，年初至今的銷售額為 1.03 億美元，與 24 財年基本持平。在 25 財年開局強勁之後，我們的銷售額在第二季略有下降，少數大額交易拖延至第三季。其中一些交易已經完成，我們預計將在未來幾週內完成剩餘交易。我們的產品線依然健康，我們預計將實現全年 2.9 億至 3.3 億美元的銷售額目標。

I'll close my remarks with a few summary comments on slide 5. First, Broadridge delivered strong second quarter results. Second, those strong results are being driven by the execution of our long-term strategy. We're driving the monetization of investing by helping tens of millions of mutual fund investors get the information they need to win in governance, while our investments in digitization and helping to drive down the cost of serving those investors.

我將透過對第 5 張投影片的幾點總結性評論來結束我的發言。首先，Broadridge 第二季業績強勁。其次，這些強勁的業績是由我們長期策略的實施所推動的。我們透過幫助數千萬共同基金投資者獲取他們在治理中獲勝所需的資訊來推動投資貨幣化，同時我們在數位化方面的投資有助於降低為這些投資者提供服務的成本。

We're delivering innovation to our capital markets clients that will simplify their trading infrastructure and reduce trading costs. And we're extending our wealth business in Canada and the US to bring increased innovation to the wealth market.

我們為資本市場客戶提供創新，以簡化他們的交易基礎設施並降低交易成本。我們正在將財富業務擴展到加拿大和美國，為財富市場帶來更多創新。

Third, as a result, we are well positioned to achieve another year of strong recurring revenue and adjusted EPS growth in fiscal '25. That outlook also keeps us on track to deliver again on our three-year financial objectives while continuing to invest for the future. Finally, Broadridge is well positioned for long-term growth. in this era of technology transformation, the gap between digital leaders and laggards and financial services is set to grow even wider. Firms who have traded in their fragmented legacy systems in exchange for cohesive platform-based strategies will continue to set themselves apart.

第三，因此，我們有能力在 25 財年再次實現強勁的經常性收入和調整後每股收益成長。這種前景也使我們有望再次實現三年財務目標，同時繼續為未來進行投資。最後，Broadridge 已為長期成長做好了準備。在這個科技轉型的時代，數位化領先者與落後者以及金融服務之間的差距將會進一步擴大。那些以基於平台的統一策略取代分散的遺留系統的公司將繼續脫穎而出。

Our position at the center of financial services and our investments in our business have positioned Broadridge to be the trusted and transformative partner of choice for our clients as they make that transition. That is driving a strong pipeline that includes a significant number large opportunities across each of our businesses, and that's a great place to be.

我們在金融服務領域的中心地位以及我們對業務的投資使 Broadridge 成為我們客戶在轉型過程中值得信賴的首選變革合作夥伴。這將推動形成一個強大的管道，其中包括我們每個業務中大量的大型機會，這是一個很好的地方。

Before I turn it over to Ashima, I want to thank my 15,000 fellow Broadridge associates around the world. Earlier this week, Broadridge was named as one of the world's most admired companies for the 11th year. This is a tremendous testament to the work and client focus of everyone here at Broadridge. Thank you.

在將麥克風交給 Ashima 之前，我想感謝遍布全球的 15,000 名 Broadridge 同事。本週早些時候，Broadridge 連續第 11 年被評為全球最受尊敬公司之一。這充分證明了 Broadridge 全體員工的努力和對客戶的關注。謝謝。

And now turn it over to Ashima. Ashima?

現在把它交給 Ashima。阿詩瑪？

Thanks, Tim. Good morning. It's great to be here with you today. I'll begin my discussion this morning with five key callouts. First, Broadridge delivered strong second quarter results, including 9% recurring revenue growth, and 70% adjusted EPS. Second, our key revenue growth drivers remain strong. Revenue from sales continues to be the biggest driver of our growth as we tap into our $450 million year-end backlog.

謝謝，蒂姆。早安.我很高興今天能和你們在一起。我將從五個關鍵點開始我今天早上的討論。首先，Broadridge 第二季業績表現強勁，經常性營收成長 9%，調整後每股盈餘成長 70%。其次，我們主要的營收成長動力依然強勁。由於我們利用了 4.5 億美元的年底積壓訂單，銷售收入繼續成為我們成長的最大動力。

In addition, our equity position growth testing is now showing low double-digit growth, which supports our outlook for internal growth. Third, we reported record event-driven revenues modestly ahead of our expectations and surpassing our prior quarterly record from fiscal 2018. Fourth, our strong performance continues to support our ongoing growth investments in product innovation, AI and in our tech capabilities.

此外，我們的股權頭寸成長測試現在顯示低兩位數成長，這支持了我們的內部成長前景。第三，我們報告了創紀錄的事件驅動收入，略高於我們的預期，並超過了 2018 財年之前的季度記錄。第四，我們強勁的業績持續支持我們在產品創新、人工智慧和技術能力方面的持續成長投資。

Fifth and last, we are on track to deliver strong fiscal '25 results, and we are reaffirming our guidance on all metrics. We also expect to generate free cash flow conversion of 95% to 105%, giving us ample cash flow to repurchase shares or pursue incremental M&A.

第五，也是最後一點，我們有望實現強勁的25財年業績，並且我們正在重申對所有指標的指導。我們也預計實現 95% 至 105% 的自由現金流轉換，為我們提供充足的現金流來回購股票或進行增量併購。

With that, let's go to the numbers on slide 6. Recurring revenues rose 9% on a constant currency basis, driven by 7% organic growth and 2 points from our acquisition of FIS. Adjusted operating income increased 51% driven by strong organic recurring revenue growth and record event-driven revenues. AOI margins rose 420 basis points to 16.6% and adjusted EPS increased 70% to $1.56. As strong recurring revenue growth and higher event-driven revenues more than offset the impact of investments.

接下來，我們來看第 6 張投影片上的數字。以固定匯率計算，經常性收入成長了 9%，這得益於 7% 的有機成長以及收購 FIS 帶來的 2 個百分點。調整後營業收入成長 51%，主要得益於強勁的有機經常性收入成長和創紀錄的事件驅動收入。AOI 利潤率上漲 420 個基點至 16.6%，調整後每股盈餘上漲 70% 至 1.56 美元。強勁的經常性收入成長和更高的事件驅動收入超過了投資的影響。

Finally, we delivered close sales of $46 million, year-to-date sales were $103 million compared to $106 million last year. Let's move to slide 7. Recurring revenue grew 9% to $980 million. Our growth was driven by a strong contribution from new sales, highlighting the importance of innovation. Internal growth from higher positions and increased trading volumes also contributed to recurring revenue growth.

最終，我們實現了 4,600 萬美元的銷售額，年初至今的銷售額為 1.03 億美元，而去年同期為 1.06 億美元。我們轉到第 7 張投影片。經常性收入成長 9% 至 9.8 億美元。我們的成長得益於新銷售的強勁貢獻，凸顯了創新的重要性。更高部位和增加交易量帶來的內部成長也促進了經常性收入的成長。

Let's turn to slide 8 to look at the growth across our ICS and GTO segments. ICS recurring revenues rose 9% to $540 million. Regulatory revenues rose 8%, reflecting low double-digit equity position growth and mid-single-digit fund position growth. Data-driven Fund Solutions revenue increased 8%, driven by growth in our data and analytics products. M&A contributed 0.5 point to Fund Solutions growth. Issuer revenue grew 18%, led by growth in our Disclosure Solutions and a short-term bump in our transfer agency revenues.

讓我們翻到第 8 張投影片來看一下我們的 ICS 和 GTO 部門的成長。ICS 經常性收入成長 9% 至 5.4 億美元。監管收入成長 8%，反映出股票部位的低兩位數成長和基金部位的中等個位數成長。數據驅動基金解決方案收入成長了 8%，這得益於我們數據和分析產品的成長。併購為基金解決方案成長貢獻了0.5個百分點。發行人收入成長了 18%，這主要得益於我們的揭露解決方案的成長以及我們的轉讓代理收入的短期成長。

Customer Communications revenue rose 10%, led by double-digit growth in digital revenues driven by new client onboarding and a higher mix of value-added print jobs. Looking ahead to the second half, we expect total ICS recurring revenue growth to be in line with our 6% to 8% full year recurring revenue growth outlook. By product, we expect high single-digit growth in regulatory revenue driven by equity and fund position growth and mid-single-digit growth across the balance of our ICS businesses, including customer communications.

客戶通訊收入成長 10%，其中，數位收入實現兩位數成長，這得益於新客戶的加入和增值印刷工作組合的增加。展望下半年，我們預期 ICS 總經常性收入成長將與我們 6% 至 8% 的全年經常性收入成長預期一致。按產品劃分，我們預期監管收入將實現高個位數成長，這得益於股票和基金部位的成長，而包括客戶通訊在內的 ICS 業務收入將實現中等個位數成長。

Turning to GTO. Revenues rose 8% to $440 million. Capital Markets revenue grew 6%, all organic, driven by the growth of our global post-trade capabilities, which benefited from higher fixed income and equity trading volumes as well as our BTCS front office solutions. Lower license revenues were a 3-point headwind to capital markets growth.

轉向 GTO。營收成長 8% 至 4.4 億美元。資本市場收入成長 6%，全部為有機成長，這得益於我們全球交易後能力的成長，這得益於固定收益和股票交易量的增加以及我們的 BTCS 前台解決方案。許可收入下降對資本市場成長造成了 3 個百分點的阻力。

Wealth and Investment Management revenues rose 12%, driven by a combination of 2% organic growth and the addition of two months of revenues from the SIS acquisition. Excluding the impact of e-trade deconversion, organic growth was 6%. As a reminder, this was the last quarter in which we have any drover impact from E-Trade.

財富與投資管理收入成長 12%，這得益於 2% 的有機成長和 SIS 收購帶來的兩個月收入的增加。排除電子貿易轉型的影響，有機成長率為 6%。提醒一下，這是我們受到電子貿易驅動影響的最後一季。

Looking ahead, we expect GTO revenue growth to be in the low double digits for the second half of the year, driven by high teens growth in Wealth Management and mid- to high single-digit growth in capital markets. Now let's move to slide 9 to review our key volume indicators. Broadridge continues to benefit from the secular growth in investor participation across both equities and funds. Equity position growth was 11%, driven by managed accounts and modestly ahead of our testing at the end of the first quarter.

展望未來，我們預計下半年 GTO 營收成長率將達到低兩位數，這主要得益於財富管理業務的高兩位數成長和資本市場的中高個位數成長。現在讓我們轉到第 9 張投影片來回顧我們的關鍵成交量指標。Broadridge 繼續受益於股票和基金投資者參與度的長期成長。在託管帳戶的推動下，股票部位增加了 11%，並且略高於我們在第一季末的測試結果。

Relative to first quarter equity position growth of 3%, we benefited from both an improved mix of companies hosting annual meetings and from an overall uptick in position growth. Looking ahead to the more meaningful second half of the year, when we process more than 80% of equity proxy positions, our forward testing is now showing low double-digit growth.

相對於第一季 3% 的股票部位成長，我們受益於舉辦年度會議的公司組合的改善以及部位成長的整體上升。展望更有意義的下半年，當我們處理超過 80％ 的股票代理部位時，我們的前瞻性測試現在顯示出低兩位數的成長。

The outlook reflects the underlying growth we typically see throughout the year and the additional increase that began in October, as Tim noted. Mutual fund and ETF position growth was more muted at 5%, and our current testing is indicating continued mid-single-digit fund position growth. On the bottom of the slide, trade volumes rose 13% on a blended basis, led by strong growth in both fixed income and equity volume.

正如蒂姆所指出的，這一前景反映了我們通常全年看到的潛在增長以及從十月開始的額外增長。共同基金和 ETF 部位增幅較為溫和，為 5%，我們目前的測試顯示基金部位將持續維持中等個位數的成長。在下滑的底部，交易量綜合上漲了 13%，其中固定收益和股票交易量的強勁成長功不可沒。

I'll wrap up my discussion of recurring revenue growth on slide 10. Revenue from closed sales remains the biggest driver of our recurring revenue growth at 7 points as we onboard revenues from our $450 million year-end backlog. That growth was partially offset by 3 points of losses, including the deconversion of E-Trade. Internal growth contributed 3 points, primarily driven by fund and equity position growth and higher trading volumes, which more than offset lower 33 regulatory fee revenue.

我將在第 10 張投影片上結束關於經常性收入成長的討論。由於我們從 4.5 億美元的年底積壓訂單中獲得收入，來自已完成銷售的收入仍然是我們經常性收入成長的最大驅動力，達到 7 個百分點。但這一增長被 3 個百分點的損失（包括 E-Trade 的去轉換）部分抵消。內部成長貢獻了 3 個百分點，主要得益於基金和股票部位的成長以及交易量的增加，這超過了 33 項監管費用收入的下降。

As a result, organic revenue growth was 7%. Acquisitions contributed 2 points, primarily driven by two months of revenue from SIS which closed at the beginning of November. Finally, changes in FX had an immaterial impact on our growth in the second quarter. With the recent strengthening of the dollar, we now expect changes in FX to be a 50-basis points headwind to recurring revenue and adjusted EPS growth for the balance of the fiscal year.

因此，有機收入成長了 7%。收購貢獻了 2 個百分點，主要得益於 11 月初關閉的 SIS 的兩個月收入。最後，外匯變化對我們第二季的成長影響並不重大。隨著美元近期走強，我們預期外匯變動將對本財年剩餘時間的經常性收入和調整後每股盈餘成長產生 50 個基點的阻力。

Let's close our discussion of revenues on slide 11. Total revenue increased 13% to $1.6 billion, driven by 6 points of growth from recurring revenue. Event-driven revenues rose $69 million to $125 million and contributed 5 points to total revenue growth. This was a quarterly record for event-driven revenues, surpassing the prior high of $97 million set in fiscal 2018.

讓我們在第 11 張投影片上結束關於收入的討論。總營收成長 13%，達到 16 億美元，其中經常性收入成長了 6 個百分點。事件驅動收入增加了 6,900 萬美元，達到 1.25 億美元，為總收入成長貢獻了 5 個百分點。這是事件驅動收入的季度記錄，超過了 2018 財年創下的 9,700 萬美元的最高紀錄。

It's an important reminder that while event-driven revenues tend to be variable on a quarterly or annual basis. Their long-term growth is tied to position growth, which has grown to mid- to high single-digit rates over time.

重要的提醒是，事件驅動的收入往往會按季度或年度變化。他們的長期成長與職位成長息息相關，隨著時間的推移，職位成長已成長到中高個位數。

Looking ahead, we expect event-driven revenues to be more in line with the $55 million to $60 million quarterly average over the balance of the year. I will remind you that last quarter, we benefited from the Disney proxy contest in the third quarter, which presents a headwind to growth in the third quarter this year.

展望未來，我們預期事件驅動收入將與今年餘下的季度平均值更加一致，為 5,500 萬至 6,000 萬美元。我要提醒大家的是，上個季度我們受惠於第三季的迪士尼代理權爭奪戰，這對今年第三季的成長構成了阻力。

Low to no margin distribution revenues grew 7%, contributing 2 points to total revenue growth. Higher postage rates represented approximately 90% of the growth. We now expect distribution revenue to grow in the mid-single-digit range for fiscal '25, driven primarily by higher postage rates.

低利潤或無利潤分銷收入成長7%，為總收入成長貢獻了2個百分點。郵資上漲約佔成長的90%。我們現在預計，25財年的分銷收入將以中位數個位數成長，這主要得益於郵資上漲。

Turning now to margins on slide 12. Adjusted operating income margin was 16.6%, an increase of 420 basis points from Q2 '24 as our operating leverage from higher recurring and event-driven revenues more than offset the impact of ongoing growth reinvestment and higher distribution revenues. The net impact of changes in float income and distribution revenues had virtually no impact on AOI margins in the quarter. For the year, we remain on track to generate 50 basis points-plus of underlying core margin expansion.

現在轉到第 12 張投影片的頁邊距。調整後的營業收入利潤率為 16.6%，較 24 年第二季度增加 420 個基點，因為我們從更高的經常性收入和事件驅動收入中獲得的營業槓桿超過了持續增長再投資和更高的分銷收入的影響。浮動收入和分銷收入變化的淨影響對本季的 AOI 利潤率幾乎沒有影響。今年，我們仍有望實現核心利潤率 50 個基點以上成長。

Let's move on to sales. Closed sales were $46 million, $12 million lower than the Q2, '24 sales as higher sales of our GTO products were offset by lower governance sales. Year to date, sales are $103 million. Turning to our cash flows. I'll start with a reminder that Broadridge's cash flow generation is typically lower in the first half of the year and strengthens over the second half.

讓我們繼續討論銷售。已完成銷售額為 4,600 萬美元，比 24 年第二季的銷售額低 1,200 萬美元，因為我們的 GTO 產品銷售額的成長被治理銷售額的下降所抵消。今年迄今為止，銷售額為 1.03 億美元。轉向我們的現金流。首先我要提醒一下，Broadridge 的現金流產生通常在上半年較低，而在下半年增強。

Q2 '25 free cash flow was $214 million, an increase of $46 million from Q2 '24 driven by higher earnings. Year to date, free cash flow was $56 million versus $1 million for the first six months of fiscal '24. The first half change was driven by an increase in cash taxes and severance payments in the first quarter as well as changes in working capital, which benefited -- which offset the benefit of higher income. We continue to expect free cash flow conversion of 95% to 105% in fiscal '25.

2025 年第二季自由現金流為 2.14 億美元，較 2024 年第二季增加 4,600 萬美元，主要由於獲利增加。今年迄今，自由現金流為 5,600 萬美元，而 24 財年上半年為 100 萬美元。上半年的變化是由於第一季現金稅和遣散費的增加以及營運資本的變化，這抵消了收入增加的好處。我們繼續預計25財年的自由現金流轉換率將達到95%至105%。

Turning next to capital allocation on slide 15. Year-to-date, we have deployed $55 million in capital spending and software and returned just under $200 million to shareholders via our dividend. Platform investments, which in the past have represented a significant source of investment, absorbed only $4 million. In part because of our focus on getting clients to share most of the upfront cost of onboarding. We also invested $193 million in M&A, primarily the acquisition of SIS on November 1, USD485 million.

接下來轉到投影片 15 上的資本配置。年初至今，我們已部署了 5,500 萬美元的資本支出和軟體，並透過股息向股東返還了近 2 億美元。平台投資在過去曾是重要的投資來源，但今年僅吸收了 400 萬美元。部分原因是我們專注於讓客戶分擔大部分入職前期成本。我們也投資了1.93億美元用於併購，主要是11月1日收購SIS，4.85億美元。

We remain committed to balanced capital allocation as part of our long-term growth strategy. After taking into account our strong and growing dividend, Broadridge is well positioned to return capital to shareholders in the form of share repurchases or fund additional tuck-in M&A.

作為長期成長策略的一部分，我們將繼續致力於平衡資本配置。考慮到我們強勁且不斷增長的股息，Broadridge 完全有能力以股票回購的形式向股東返還資本或為額外的補充併購提供資金。

Let's conclude by reviewing our outlook for fiscal '25 on page 16, followed by closing key messages. We are reaffirming our guidance on all key metrics, including 6% to 8% recurring revenue growth constant currency, 8% to 12% adjusted EPS growth, and closed sales of $290 million to $330 million.

最後，我們回顧第 16 頁的 25 財年展望，然後總結一下關鍵資訊。我們重申所有關鍵指標的指導，包括 6% 至 8% 的經常性收入成長（以固定匯率計算）、8% 至 12% 的調整後每股收益成長，以及 2.9 億至 3.3 億美元的成交金額。

With respect to the third quarter, a couple of modeling callouts, we expect Q3 EPS growth to be in the mid to high single-digit range. In addition, changes in license revenue will have an impact on the composition of GTO revenues, contributing to low double-digit growth in capital markets and low single-digit organic growth in Wealth Management.

就第三季而言，根據一些模型預測，我們預計第三季每股盈餘成長將處於中高個位數範圍。此外，授權收入的變化將對GTO收入的組成產生影響，導致資本市場收入實現低兩位數成長，財富管理收入實現低個位數有機成長。

Turning now to my closing messages. Broadridge delivered strong Q2 financial results, including 9% recurring revenue growth. The demand and secular trends driving our growth remains strong. For the balance of the year, our testing is showing low double-digit equity position growth and mid-single-digit fund position growth.

現在來談談我的結束語。Broadridge 公佈了強勁的第二季財務業績，其中經常性收入成長 9%。推動我們成長的需求和長期趨勢仍然強勁。就今年的餘額而言，我們的測試顯示股票部位成長率為低兩位數，基金部位成長率為中等個位數。

Third, the combination of higher equity position growth and strong second quarter event-driven revenues positions us to deliver on our full year guidance while funding our ongoing investments in new products and technology. Fourth and last, we are on track to deliver strong fiscal year '25 results and are reaffirming our guidance with strong cash flow that has Broadridge well positioned to repurchase shares or fund additional tuck-in M&A.

第三，更高的股權部位成長和強勁的第二季事件驅動收入使我們能夠實現全年預期，同時為我們對新產品和新技術的持續投資提供資金。第四點也是最後一點，我們有望實現強勁的 25 財年業績，並透過強勁的現金流重申我們的指導方針，這使 Broadridge 能夠很好地回購股票或為額外的補充併購提供資金。

With that, let's take your questions.

現在，讓我們來回答您的問題。

(Operator Instructions)

（操作員指令）

Alex Kramm, UBS.

瑞銀的亞歷克斯·克拉姆（Alex Kramm）。

Yeah. Hey. Good morning, everyone. Maybe just starting off on the guidance here where you ended. Obviously, the tone and the year-to-date performance is really, really strong. but then no real change in the outlook. And I know you mentioned FX at the end there being a headwind. So excluding that, do you feel like underlying results are running better than you expected? Or is there anything else that you would call out?

是的。嘿。大家早安。也許只是從您結束的地方開始指導。顯然，今年迄今的基調和表現確實非常強勁。但前景並未有真正的改變。我知道您最後提到了外匯存在逆風。那麼，除了這一點之外，您是否覺得基本結果比您預期的要好？或者您還有什麼要指出的嗎？

Thanks, Alex. Great question. So I'll start with, like you said, we're very pleased with the results halfway through the year. Biggest driver of our revenue growth continues to be revenue from new sales. it's coming in essentially in line with our expectations.

謝謝，亞歷克斯。好問題。所以首先，就像你說的，我們對今年中期的業績非常滿意。我們收入成長的最大動力仍然是來自新銷售的收入。它基本上符合我們的預期。

And like you said, we are tracking right in line with our guidance for both 6% to 8% recurring revenue growth and 8% to 12% earnings growth. As we think about where we are, clearly, there are some puts and takes that keep us right in that range. So let me break them out.

正如您所說，我們正按照預期實現 6% 至 8% 的經常性收入成長和 8% 至 12% 的獲利成長。當我們思考我們所處的位置時，顯然，有一些因素可以讓我們保持在這個範圍內。讓我來把它們分解一下。

On the positive side, like you heard, we're seeing strong equity position growth. the market momentum since October has led to our outlook improving to low double digits now. And we have seen strong event-driven revenues in the first half of the year. On the other hand, we do expect event to be lower in the second half of the year, given that we saw some activity coming earlier than expected. Fund position growth remains at the low end of historic trends.

從積極的一面來看，正如您所聽到的，我們看到了強勁的股權頭寸增長。自十月份以來的市場動能已使我們對前景的預期改善至兩位數的低點。我們在今年上半年看到了強勁的事件驅動收入。另一方面，考慮到我們看到一些活動比預期來得早，我們確實預計下半年的活動會較少。基金部位成長仍處於歷史趨勢的低端。

And the dollar strengthening is modestly impacting our non-US earnings. Most importantly, though, we continue to use some of the event upside that we saw in the first half of the year to invest in our business. So overall, we're tracking right around the midpoint of our target range and the first half growth gives us confidence in that guidance range.

美元走強對我們的非美國收入產生了一定影響。但最重要的是，我們繼續利用上半年看到的一些活動優勢來投資我們的業務。因此總體而言，我們正追蹤目標範圍的中點，而上半年的成長使我們對該指導範圍充滿信心。

And Alex, it's Tim. I just want to reinforce that last part, which is we just continue to see really strong future opportunities across our business and multiple areas where we think we're going to get a really good return on investment. So that's our focus right now.

亞歷克斯，我是提姆。我只想強調最後一部分，那就是我們繼續看到我們業務和多個領域的真正強勁未來機遇，我們認為我們將獲得非常好的投資回報。這就是我們現在的重點。

Okay. Great. And then maybe just shifting gears quickly. sales pretty much in line with last year. And the year-over-year decline in the quarter, I think you explained some slippage. Obviously, a lot of things going on in the last quarter.

好的。偉大的。然後也許只是快速換檔。銷售額與去年基本持平。對於本季同比下降的情況，我想你解釋了一些下滑的原因。顯然，上個季度發生了很多事情。

But just wondering, post-election, a lot of enthusiasm around the financial services industry. So just wondering if you see a pickup in conversations, if you're feeling more optimistic around end markets. Yes, anything you would note as, again, like the financial service industry seems to be more bullish on these days.

但只是想知道，選舉後，金融服務業的熱情很高。所以只是想知道您是否看到對話回升，是否對終端市場感到更加樂觀。是的，您會注意到任何事，例如金融服務業最近似乎更加樂觀。

Yeah. Alex, I'll take that. It's Tim. And I would point out that in the first half, excluding the tailored shareholder report sales from last year, we grew sales 8%, so we feel good about the first half. And as I said, we did see some deals slip too early to say why don't see a common denominator expect those to close, and that's why we're reaffirming the $290 million to $330 million. When you think about the increased optimism in the market and how that's influencing us, I would say it's just too early to tell.

是的。亞歷克斯，我接受。是蒂姆。我想指出的是，除去去年上半年的定制股東報告銷售額，我們的銷售額增長了 8%，因此我們對上半年的表現感到滿意。正如我所說的，我們確實看到一些交易過早滑落，所以我們沒有看到一個共同點，即期望這些交易能夠完成，這就是為什麼我們重申 2.9 億至 3.3 億美元的價格目標。當你考慮到市場樂觀情緒的增強以及這對我們的影響時，我想說現在下結論還為時過早。

Our sales cycles tend to be pretty long. And so even if there is increased optimism and increased conversations, it probably wouldn't have that much impact on this year. But what I do really like and want to call attention to is that when we look at our pipeline, which is at a record. The momentum that we have is in the areas where we've been investing.

我們的銷售週期通常相當長。因此，即使樂觀情緒增強、對話增多，也可能不會對今年產生太大影響。但我真正喜歡並且想要引起注意的是，當我們查看我們的管道時，它處於創紀錄的水平。我們的勢頭體現在我們一直投資的領域。

Omnichannel communications with wealth and focus, data analytics and fund solution, front and back-office simplification, digital ledger repo and capital markets and on the wealth side, Advisor Solutions, private debt and back-office modernization. So we're seeing really good conversations in all those areas. As always, there's a lot to do between now and year-end, but we feel good.

全通路通信，重點在於財富、數據分析和基金解決方案、前後台簡化、數位帳本回購和資本市場，以及財富方面的顧問解決方案、私人債務和後台現代化。因此，我們看到所有這些領域的對話都非常好。像往常一樣，從現在到年底還有很多事情要做，但我們感覺很好。

Thank you very much.

非常感謝。

Scott Wurtzel, Wolfe Research.

沃澤爾（Scott Wurtzel），沃爾夫研究公司。

Hey. Good morning, guys. Thanks for taking my questions. I just wanted to follow up on a point you made in the answer to Alex there just in terms of investing and with the event-driven upside. Can you maybe highlight some of the areas that you are deploying those incremental investment dollars into? Thanks

嘿。大家早安。感謝您回答我的問題。我只是想跟進一下你在回答亞歷克斯時提出的觀點，即投資和事件驅動的上升空間。您能否強調一下您將把這些增量投資投入哪些領域？謝謝

Yeah, it is -- thanks for that because it is something we think a lot about. And just as background, Scott, as you know, we're an organic growth company. We are always thinking about what's next and how do we get in front of that and put that in place for our clients, our associates, our shareholders. And so reinvesting for that organic growth is what has helped us deliver consistently over the past 10 years and beyond.

是的，謝謝你，因為這是我們思考很多的事情。如你所知，史考特，我們是一家有機成長型公司。我們始終在思考下一步該怎麼做，如何走在前面，為我們的客戶、我們的同事、我們的股東達成目標。因此，這種有機成長的再投資幫助我們在過去 10 年乃至更長時間內持續實現盈利。

And I just highlight some of the areas are the same ones that where we're seeing the sales momentum lot of focus on digital and omnichannel communications with our wealth and focused product, which we demoed at our Investor Day in December 2023, lots of good conversations on that, continuing to invest in data and analytics.

我只想強調一些領域，我們看到銷售勢頭非常關注數位和全通路溝通，以及我們的財富和重點產品，我們在 2023 年 12 月的投資者日上進行了演示，並就此進行了大量良好的對話，繼續在數據和分析方面進行投資。

And as part of that AI, lots of stuff in AI across our portfolio. Front and back office simplification and digital ledger repo and capital markets and then continuing on the wealth side, now with what we're doing in Canada with the SIS platform, a lot of opportunity to bring that platform to life across the Canadian market and to bring the modular solutions that we have been successful with in the US, bringing those to Canada, that takes investment as well.

作為人工智慧的一部分，我們的產品組合中有很多人工智慧內容。前後台簡化、數位分類帳回購和資本市場，然後繼續在財富方面，現在我們在加拿大使用 SIS 平台，有很多機會將該平台在加拿大市場推向市場，並將我們在美國成功實施的模組化解決方案帶到加拿大，這也需要投資。

So it's an exciting time. And then I'd be remiss if I didn't mention resiliency, cyber, the activity around Dora in Europe, helping clients with solutions for that, helping clients with a solution around data immutability, a lot of uptake for that. And a lot of belief that our clients and the importance of that. So it's all part of that our view of being our clients' trusted and transformative partner.

這是一個令人興奮的時刻。如果我沒有提及彈性、網路、圍繞歐洲的 Dora 的活動，幫助客戶解決這些問題，幫助客戶解決資料不變性問題，那我就是失職了，這些都得到了廣泛的應用。我們的客戶非常相信這一點並且重視這一點。因此，這都是我們希望成為客戶值得信賴和推動變革的合作夥伴的一部分。

And I'll just add, right, while many of these are ongoing investments, we have the ability to flex them up and down as we see things like event activity. And that's what's baked into our guidance as we think about the year.

我還要補充一點，雖然其中許多都是持續的投資，但我們可以根據事件活動等情況對其做出相應的調整。這就是我們在考慮這一年時所做出的指導思想。

Got it. That's helpful. And then just as a follow-up on the wealth side. I mean, it seems like with the SIS acquisition, things are trending well post close. Wondering if you can maybe share if you've had any incremental learnings now that you've had the asset under control for a few months and just broadly how you're viewing that opportunity? Thanks.

知道了。這很有幫助。然後只是對財富方面的後續關注。我的意思是，隨著 SIS 收購的完成，事情似乎順利進行。想知道您是否可以分享一下，現在您已經控制了該資產幾個月，是否有任何增量學習，以及您大致如何看待這個機會？謝謝。

Yeah, Scott. We are very pleased. When you think about it from the dimensions of clients, associates and the underlying technology, all of those are really tracking nicely. Obviously, we had lots of client discussions before we took on the acquisition and then it's always different once you have the asset and you're talking to the clients, but those conversations about our plans for how we'll support them have continue to be very warm.

是的，斯科特。我們非常高興。當你從客戶、同事和底層技術的角度考慮時，所有這些都進展順利。顯然，我們在進行收購之前與客戶進行了大量討論，而一旦你擁有資產並與客戶交談，情況總是會有所不同，但有關我們將如何支持他們的計劃的對話一直非常熱烈。

It's been very gratifying to onboard the SIS associates to see their knowledge and passion for what they're doing, but also their excitement about now working with larger associates who have passion around those same topics because they were a bit isolated before as part of Kindrel. And then the plans that we've talked about on technology to bring the open APIs and integration layer and ability to bring the different modules that we have into the clients that are served by the SIS back office, and that's going well.

很高興看到 SIS 員工對所做工作充滿知識和熱情，而且他們很高興能夠與對相同主題充滿熱情的更大團隊一起工作，因為他們之前在 Kindrel 時有點孤立。然後，我們討論的技術計劃是帶來開放 API 和整合層，並能夠將我們擁有的不同模組帶入 SIS 後台服務的客戶，這些進展順利。

So we're happy. It really fits into the broader strategy of modernizing wealth management with that modular solutions around adviser productivity, including client experience and digitizing operations. And so we think that's going to really play out well in Canada. And we're feeling very good about it.

所以我們很高興。它確實符合現代化財富管理的更廣泛策略，即圍繞顧問生產力提供模組化解決方案，包括客戶體驗和數位化營運。因此我們認為這在加拿大將會得到很好的發展。我們對此感覺非常好。

Great. Thanks, guys.

偉大的。謝謝大家。

James Faucette, Morgan Stanley.

摩根士丹利的詹姆斯·福塞特（James Faucette）。

Great. Thank you very much. I wanted to ask a couple of questions. First, on monetization AI-related product improvements. Previously, you talked about the fact that over time, you thought you might be able to charge incrementally for AI-related product improvements. How are you thinking about that among the key factors or what the key factors are that would drive that transition as well when we can expect some contribution there.

偉大的。非常感謝。我想問幾個問題。第一，關於貨幣化AI相關的產品改進。之前，您談到這樣一個事實，您認為隨著時間的推移，您可能會對與 AI 相關的產品改進逐步收費。您如何看待其中的關鍵因素，或推動這項轉變的關鍵因素是什麼，以及我們可以期待哪些貢獻。

Yeah, James. And we talked about being an AI leader in our space. That doesn't mean that we're going to be inventing the next generation of GenAI models, although with all the recent news, maybe makes you think about that. But it's really about how do we apply that in sort of the arcane areas that we're in.

是的，詹姆斯。我們也討論瞭如何成為我們所在領域的人工智慧領導者。這並不意味著我們將要發明下一代 GenAI 模型，儘管最近的新聞也許會讓你考慮這一點。但這實際上關乎我們如何將其應用於我們所處的神秘領域。

And we are at the center of a unique network. And over time, we think the power of the large data set that we steward is a potential differentiator for us. But getting more directly to your question around monetization.

我們處於一個獨特網路的中心。隨著時間的推移，我們認為我們管理的大型數據集的力量將成為我們潛在的差異化因素。但更直接回答你關於貨幣化的問題。

We think about AI really across four areas. There is -- we believe in the future that AI will be part of their product. So there's really work around bringing AI to our current products and platforms. And I'm not sure if there's a specific monetization opportunity there that's really just -- it is -- I think it's going to be a client expectation, and it's going to be part of making sure that we're on the cutting edge with all those platforms in the future.

我們實際上從四個方面來思考人工智慧。是的——我們相信未來人工智慧將成為他們產品的一部分。因此，我們確實需要努力將人工智慧引入我們目前的產品和平台中。我不確定那裡是否存在一個特定的獲利機會，這確實只是——它是——我認為這將成為客戶的期望，並將成為確保我們在未來所有這些平台上處於領先地位的一部分。

The second part, though, is launching new AI products where there's new functionality that is enabled by AI. And we've seen that with BondGPT, with OpsGPT with our global demand model with industry insights. So we have live products out there.

然而，第二部分是推出新的人工智慧產品，這些產品具有由人工智慧實現的新功能。我們已經透過 BondGPT 和 OpsGPT 以及我們的全球需求模型和產業洞察看到了這一點。因此，我們有活躍的產品。

And you also get real learnings from those because when people are beginning to pay incremental money for it, they ask a lot of questions, and you learn a lot about what does it really mean to have this be ready. So we're -- we're excited to have real clients signed up for those and have those in production and being used.

你也可以從中獲得真正的經驗，因為當人們開始為此支付增量資金時，他們會問很多問題，你也會學到很多關於做好準備的真正意義。因此，我們很高興有真正的客戶註冊這些產品並將其投入生產和使用。

And the there is revenue attached to that. It is not materially enough at this point to be really showing up in our aggregate sales numbers is something that is a material driver. But over time, we would expect it to be more important.

而且這還有收入。目前，這還不足以真正體現在我們的總銷售數字中，而這是一種實質的驅動因素。但隨著時間的推移，我們預計它會變得更加重要。

The third piece is productivity. And we have 50-plus AI projects going on across Broadridge, about half of those on the revenue side, half are on the productivity side. We are seeing some nice pickups in coding. We're seeing some nice pickups in when you think about bringing all the events together globally for some of the things that we do and how we source that. But again, too small to be really notably impinging on our margins or other sort of broad cost metrics.

第三部分是生產力。我們在 Broadridge 有 50 多個 AI 項目正在進行，其中大約一半在收入方面，一半在生產力方面。我們在編碼方面看到了一些不錯的進展。當您考慮將全球所有的活動聚集在一起，討論我們所做的一些事情以及我們如何獲得這些活動時，我們看到了一些不錯的收穫。但同樣，規模太小，不會對我們的利潤或其他廣泛的成本指標產生明顯影響。

It's still pretty early days. So I wouldn't -- I'm not seeing really a measurable impact probably on this call is not about FY26, but when we thinking about FY26, I wouldn't look for a measurable impact in '26 but I'd look for us to do a lot of things that could begin to help after that.

現在還為時過早。所以我不會 - 我沒有看到真正可衡量的影響，可能這次電話會議與 FY26 無關，但是當我們考慮 FY26 時，我不會尋找 26 年可衡量的影響，但我會期待我們做很多事情，這些影響可以在那之後開始有所幫助。

And I'd be very remiss I didn't talk about the governance that we have around all of this. Very important thing for our client. Everyone wants to know where their data is that it's being used in the right way. And so that's also a key focus for us.

如果我沒有談論我們對這一切的治理，那就太失職了。對我們的客戶來說非常重要。每個人都想知道他們的數據在哪裡，以及是否以正確的方式使用。這也是我們關注的重點。

Great. Appreciate that. And then on the Wealth segment, just wondering if you can give us an update on where you are for your targets to add incremental module sales within wealth and how that's tracking?

偉大的。非常感謝。然後關於財富部分，我只是想知道您是否可以向我們介紹一下您在財富領域增加增量模組銷售的目標以及追蹤情況如何？

Yeah. James, we talked about wanting to have relative to the sort of baseline of a couple of years ago, an incremental $20 million to $30 million of wealth sales. And when we look at our pipeline right now, it is quite a bit up since 6 months ago and a nice increase since 12 months ago. And so we feel we're on track for that $20 million to $30 million this year. It's across lots of different things, a couple of chunkier things inside there, but is across a lot of different areas, both in the US and Canada.

是的。詹姆斯，我們談到了希望相對於幾年前的基線，財富銷售額能夠增加 2000 萬到 3000 萬美元。當我們查看目前的管道時，我們發現它比 6 個月前有了很大的增長，比 12 個月前有了很大的增長。因此我們覺得今年我們有望實現 2,000 萬至 3,000 萬美元的目標。它涉及很多不同的東西，裡面有幾個比較大的東西，但涉及很多不同的地區，包括美國和加拿大。

That's great. Thank you very much.

那太棒了。非常感謝。

Dan Perlin, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Dan Perlin。

Thanks. Good morning, everyone. I just wanted to clarify a couple of things on -- I think you called out in GTO that there were lower license sales revenues, and that was a 3-point headwind in the quarter. But then I think actually, you called out in the third quarter, guidance that there's going to be some changes in license sales that's going to impact capital markets like I thought you said low double digits. So would you mind just maybe helping me reconcile some of the book lot there?

謝謝。大家早安。我只是想澄清幾件事——我認為您在 GTO 中提到過，許可證銷售收入較低，這是本季度 3 個百分點的阻力。但實際上，您在第三季曾指出，許可證銷售將會發生一些變化，這將影響資本市場，我以為您說的是低兩位數。那麼，您介意幫我核對那裡的一些書籍嗎？

Absolutely. Yeah. Just for context, Dan, license revenues on a full year basis are not as impactful for us there about 5% of GTO's total recurring revenue. But you're right, they do cause some quarterly noise, and that's what I was aiming to clarify in my notes. The -- for this quarter specifically, we did see a 3-point drag due to license revenue growth, specifically in capital markets. And we do expect it to have an impact on the third quarter.

絕對地。是的。丹，僅就背景而言，全年授權收入對我們來說影響並不大，約佔 GTO 總經常性收入的 5%。但你是對的，它們確實會造成一些季度噪音，這正是我想要在筆記中澄清的。具體到本季度，我們確實看到由於許可收入成長（特別是在資本市場）而導致的 3 個百分點的拖累。我們確實預計它會對第三季產生影響。

Because of the noise, we will see strong growth in the third quarter in Capital Markets, we're expecting low double-digit growth, and we will see low single-digit organic growth on the wealth management side, just specifically for the third quarter. But again, across the year, it all evens out. It's not a material driver, just some quarterly noise.

由於這些噪音，我們將看到資本市場在第三季度實現強勁增長，我們預計增長率將達到兩位數以下，而財富管理方面則將出現個位數以下的有機增長，具體到第三季度的情況來看。但全年來看，一切又趨於平衡。這不是一個實質的驅動因素，只是一些季度噪音。

Yeah. No, I just wanted to clarify that because historically, I don't feel like it has maybe that much of a swing on the specific.

是的。不，我只是想澄清這一點，因為從歷史上看，我覺得它對具體情況的影響可能不大。

(inaudible) Yeah.

（聽不清楚）是的。

Okay. That's great. And then, Tim, I just had a question for you. Again, you talked a lot about the market backdrop and the strength. What I'm wondering specifically, though, is as we think about maybe two things: one, kind of a potentially more robust M&A backdrop.

好的。那太棒了。然後，提姆，我只想問你一個問題。再次，您談了很多關於市場背景和實力的問題。不過，我特別想知道的是，我們可能會考慮兩件事：第一，一種可能更強勁的併購背景。

How does that flow into the business, all else equal, if these deals start to flow in over the next six to nine months, you see a bunch of the stuff happening. Can you just remind us how that impacts your business and where it would show up kind of in the P&L? And then the other piece is just on the regulatory horizon. Are there any things that we need to be mindful of that could be changes with this new administration that could potentially impact your business, both good or bad as a whole? Thank you.

在其他條件相同的情況下，這些交易將如何融入業務，如果這些交易在未來六到九個月內開始流入，你會看到很多事情發生。您能否提醒我們這對您的業務有何影響以及它將在損益表中體現在哪裡？另一部分則涉及監管層面。我們需要注意哪些事情？謝謝。

Yeah. Dan, just first of all, on how increased capital markets activity, where it specifically flows into Broadridge. M&A really doesn't affect things that much, if there's a public company that goes away, I guess, that could reduce positions a little bit, but so much of this is private companies, as you know. IPOs is a nice sort of incremental positive that creates more positions. We do have a -- not a large business, but in serving corporate issuers, we do help them with the prospectuses and sort of things around the specific disclosure.

是的。丹，首先請談談資本市場活動如何增加，特別是流入 Broadridge 的資金。併購實際上不會產生太大影響，如果有一家上市公司倒閉，我想，這可能會減少一些職位，但如你所知，其中許多都是私人公司。首次公開發行 (IPO) 是一種很好的增量利好，可以創造更多的部位。我們的業務確實不大，但在為公司發行人提供服務時，我們確實會幫助他們準備招股說明書以及與具體揭露相關的事宜。

The other place is really on the event-driven side where sometimes with M&A if it needs to come to a shareholder vote, then we'd see activity there. And that can be a pickup. But it doesn't tend to be a hugely material piece. On the regulatory side, I think it is -- obviously, there's a lot going on with the new administration. I think all of us are looking at that and trying to understand the full impact.

另一個地方實際上是事件驅動的，有時如果併購需要進行股東投票，那麼我們就會看到那裡的活動。這可以算是一種回升。但它往往不是一個非常物質化的作品。從監管方面來說，我認為——顯然，新政府有很多事情要做。我想我們所有人都在關注這個問題，並試圖了解其全部影響。

There is sort of the positive market sentiment we just talked about, which for the reasons we just discussed is a positive. When we look at the administration's biggest priorities around taxes, tariffs, immigration, cultural issues, and those things are broadly neutral to our business.

我們剛才談到了正面的市場情緒，出於我們剛才討論的原因，這種情緒是正面的。當我們看看政府在稅收、關稅、移民、文化問題方面的首要任務時，我們發現這些事情對我們的業務基本上是中性的。

And they know they have a window to get things done. So they're very, very focused on those core issues. When you look at the things that are in our space, they're not really the primary issues for the administration. However, it's going to be a broadly deregulatory environment. It will be a new environment. So I think we should anticipate change.

他們知道他們有機會完成任務。所以他們非常非常關注這些核心問題。當你看看我們所在空間裡的事情時，你會發現它們實際上並不是政府的主要問題。然而，這將是一個廣泛放鬆管制的環境。這將是一個新的環境。所以我認為我們應該預見變化。

Some of the topic areas that we're certainly tracking digital assets, they are definitely -- probably will be action on digital assets that's an opportunity to make crypto more accessible to Main Street investors and that could create an opportunity for disclosure over time. So we're certainly tracking that. Likely probably action around reform with proxy advisory firms.

我們肯定會追蹤數位資產的一些主題領域，它們肯定 - 很可能是對數位資產採取行動，這是一個讓普通投資者更容易獲得加密貨幣的機會，並且可能隨著時間的推移創造披露的機會。所以我們肯定會追蹤這一點。很可能會圍繞代理諮詢公司採取改革行動。

We saw that in the previous Trump administration. Certainly, we're making may include everyone that we're not a proxy advisory firm, but also that sort of leads to -- leads to opportunities around shareholder engagement around a lot of inquiries around our shareholder voting platform and pass-through voting. So those things could be some nice things.

我們在前川普政府中就曾經看到過這種情況。當然，我們可能要向所有人說明，我們不是代理諮詢公司，但這也帶來了圍繞股東參與的機會，圍繞著我們的股東投票平台和傳遞投票的大量詢問。所以這些東西可能是一些好東西。

And the last one is just continued progress on digitization, which as you know, we've invested in. So obviously, a lot going on. We'll know a lot more in coming quarters as the new SEC commissioner is approved. We do think that Paul Atkins is a strong choice to lead the SEC. He's been a commissioner before, very knowledgeable, very trusted by markets.

最後一個是數位化的持續進步，正如你所知，我們對此進行了投資。顯然，有很多事情發生。隨著新任美國證券交易委員會委員的任命獲得批准，我們將在未來幾季內了解更多資訊。我們確實認為保羅·阿特金斯是領導美國證券交易委員會的最佳人選。他以前擔任過委員，知識淵博，深受市場信賴。

And then I'll just remind you that historically, we've worked with both sides of the aisles, really providing technical assistance and that when there's change, our clients need to adapt to it, and we help them with that.

然後我要提醒你，從歷史上看，我們與雙方都有合作，真正提供技術援助，當改變時，我們的客戶需要適應，我們會幫助他們。

That's great. Thank you, both very much.

那太棒了。非常感謝你們二位。

Peter Heckmann, D.A. Davidson.

彼得‧赫克曼（Peter Heckmann），地方檢察官戴維森。

Hey, good morning. Most of my questions have been answered, but just a few little more housekeeping items. So even event-driven proxy revenue for the year, is that tracking towards the low $300 million range. Is that right? And then any reason why it wouldn't kind of revert back to a more normalized range in fiscal '26?

嘿，早安。我的大部分問題都已得到答复，只剩下幾個小問題需要解答。因此，即使是今年的事件驅動代理收入，也只能追蹤到 3 億美元的低點。是嗎？那麼，有什麼理由它不會在 26 財年恢復到更正常化的範圍？

Yeah, I think your math is right, add up the $55 million to $60 million a quarter over the next couple of quarters. That's kind of where we are. The thing with event-driven is it's choppy, right? It's hard to predict exactly what it's going to be in any quarter or in any year. We typically have more visibility about event within the next three to four months. But beyond that, I would expect '26 events to be in line with our average for the long-term averages.

是的，我認為你的計算是正確的，在接下來的幾個季度裡，每季的金額加起來是 5500 萬美元到 6000 萬美元。這就是我們現在的狀況。事件驅動的問題在於它很不穩定，對嗎？很難準確預測某個季度或某一年的情況。我們通常會對未來三到四個月內的事件有更多的了解。但除此之外，我預計 26 場活動將與我們的長期平均值一致。

Okay. That's helpful. And then just in terms of the postage increase, I'm just trying to get a better feel of how that affects margins. When do you lap that postage rate increase? And are there others that are already planned that would drive distribution higher? I guess, ex-postage increase, would you expect distribution to kind of grow in the 3% to 5% range a year?

好的。這很有幫助。就郵資上漲而言，我只是想更了解這對利潤有何影響。什麼時候郵資會漲？還有其他已經計劃好的可以提高分銷量的措施嗎？我想，除去郵資上漲，您是否預期配送量每年會成長 3% 到 5% 左右？

Yeah. So this time, for the quarter, like we shared, most of the distribution increase was driven by postage rate changes. The postage rate change came into effect in July. So we have been seeing it for a few months now. It's hard to predict exactly what the postage rate changes would be.

是的。因此，就本季而言，正如我們所分享的，大部分分發量的成長是由郵資變化所推動的。郵資調整於七月起生效。我們已經看到它幾個月了。很難準確預測郵資的變動幅度。

There was some discussion about something else may be coming through. It's hard for me to plan for. What I will say is, yes, if you exclude the impact of posted rate changes, we're looking at low single-digit growth in distribution as we continue to see more and more digitization, both on the regulatory side and on our customer communications side, we're seeing more digital growth than print.

有人討論可能會發生其他事情。我很難制定計劃。我想說的是，是的，如果排除公佈利率變化的影響，我們看到分銷業務將出現低個位數增長，因為我們繼續看到越來越多的數位化，無論是在監管方面還是在我們的客戶溝通方面，我們都看到數位成長比印刷成長更快。

And Peter, we've been -- I think we've been sort of thinking about for probably a decade as to when will distribution grow ex postage turn negative. And I think the print to digital strategy of helping clients think about their future communications platform and what they want to do with that. So as they lose volume, the opportunity to take that over rationalize it, bring it to a new cloud-based platform that can do the remaining print as it runs off, but provide a much better digital experience than they've had before.

彼得，我們－我想我們可能已經思考了十年了，什麼時候郵資分銷量會從負成長變成正成長。我認為從印刷到數位化的策略可以幫助客戶思考他們未來的通訊平台以及他們想要用它做什麼。因此，當他們失去數量時，他們就有機會接手並使其合理化，將其帶到一個新的基於雲端的平台上，該平台可以在列印完後完成剩餘的列印，但提供比以前更好的數位體驗。

That combination is one of the things driving our digital business. So you've heard us talk a lot about wealth and focus, but the other sort of big theme is working with clients sort of to help them with that transition. And that does end up feeding more print volume into our platform at the initial stages of that. And so despite what we thought would happen, the distribution piece has continue to remain positive.

這種結合是推動我們數位業務發展的因素之一。你已經聽到我們談論了很多關於財富和重點的話題，但另一個重要主題是與客戶合作，幫助他們實現這種轉變。這確實會在初始階段為我們的平台帶來更多的印刷量。因此，不管我們認為會發生什麼，分銷部分仍然保持積極態勢。

And I'll just close off because you mentioned margins, right? The expected impact of distribution is baked into our margin guidance, both as we think about the 20% margins on average as well as if we exclude the impact of it when we talk about the core margin expansion of 50 basis points-plus.

我這裡就結束啦，因為你提到了利潤率，對吧？分銷的預期影響已反映在我們的利潤率指引中，我們既考慮平均 20% 的利潤率，也考慮在核心利潤率擴大 50 個基點以上時排除其影響。

Thanks, both.

謝謝你們。

Puneet Jain, JPMorgan.

摩根大通的 Puneet Jain。

Hey. Thanks for taking my question. I wanted to quickly follow up on the earlier question about the new administration's priorities. Like have you seen any change in your client behavior from potential deregulation specifically in your GTO segment? And if you can remind us like how -- like reduced level of regulations, how has that impacted client behavior and your GTO bookings?

嘿。感謝您回答我的問題。我想快速跟進先前關於新政府優先事項的問題。例如，您是否看到您的客戶行為因潛在的放鬆管製而發生任何變化，特別是在您的 GTO 領域？您能否提醒我們一下—例如降低監管水平，這對客戶行為和您的 GTO 預訂有何影響？

Yeah, Puneet, it's Tim. Thank you for that question. It is -- I think it's too early to tell. I think our clients themselves are sorting things out. I think they are happy -- first happy with maybe some things that won't happen that were scheduled to happen.

是的，Puneet，我是提姆。感謝您的提問。是的——我認為現在說還為時過早。我認為我們的客戶自己正在理清事情。我認為他們很高興——首先，他們高興的可能是一些原定不會發生的事情。

Obviously, I think you know the clients have been very concerned about upcoming capital rules like the next phase of Basel III and other things that would significantly increase the amount of capital that they would have to carry and therefore, be real detriment to trading activity.

顯然，我想您知道客戶一直非常關注即將出台的資本規則，例如巴塞爾協議 III 的下一階段以及其他將大大增加他們必須攜帶的資本金額並因此對交易活動造成真正損害的規則。

So I think stopping or slowing down some of that is sort of -- is Phase 1. I think as you look at a more deregulatory environment, I think the other piece is the -- the environment has been so punishing for public companies over the past decade that there's been such a move to private assets.

所以我認為停止或減緩其中一些是第一階段。我認為，當你看著一個更放鬆管制的環境時，我認為另一個因素是——過去十年來，環境對上市公司來說非常不利，以至於它們紛紛轉向私人資產。

And I think some of the deregulatory motion here could help that balance out a little bit between the advantage of being public versus being private. So I think there are lots of threats. I think there are all things that will take a while to unfold.

我認為這裡的一些放鬆管制的舉措可以幫助平衡上市公司和私人企業的優勢。所以我認為存在著許多威脅。我認為所有的事情都需要一段時間才能揭曉。

Understood. Thanks for that. And then like as you think about your capital budgeting plans for next fiscal year? How are you thinking about like M&A versus investments and for the investments, how should we think about ROI or like payback period of those investments?

明白了。謝謝。然後您如何考慮下一財政年度的資本預算計劃？您如何看待併購與投資？

Yeah. Let me just take that and I'll let Ashima add in. I think when you think about this, Puneet, we have to sort of segregate between investments that are sort of part of our P&L and they go on our balance sheet versus M&A, which is sort of out of free cash flow and share buybacks. And so when you think about the former it's really around what's our investment capacity to continue to invest in the future, while delivering 100% free cash flow and good returns -- earnings returns to shareholders.

是的。讓我先接受這一點，然後讓 Ashima 補充。我認為，當您考慮到這一點時，Puneet，我們必須將屬於我們損益表一部分的投資與屬於我們資產負債表的投資以及來自自由現金流和股票回購的投資區分開來。因此，當您考慮前者時，它實際上圍繞著我們的投資能力，以便我們能夠繼續投資未來，同時提供 100% 的自由現金流和良好的回報——為股東帶來收益回報。

So we really sort of prioritize within that framework. As we think about the -- how we deploy our strong free cash flow, I think our principles for capital allocation are similar to what you're aware of from the past, a business model, strong free cash flow conversion remain investment grade and then we really think about balanced capital allocation with a clear priority of what do you need to invest internally according to that algos spoke about how to continue to grow our dividend with earnings. And then what's the balance between high-return M&A and the remainder in share buyback. And we're certainly seeing that play out this year. We think we'll see it play out next year.

因此我們確實在這個框架內決定優先順序。當我們思考如何部署我們強勁的自由現金流時，我認為我們的資本配置原則與您過去所了解的類似，即商業模式、強勁的自由現金流轉換保持投資級，然後我們真正考慮平衡的資本配置，明確的優先事項是您需要在內部進行什麼投資，根據該算法談論如何繼續通過收益增加我們的股息。那麼高報酬的併購和股票回購的剩餘之間的平衡是什麼？我們今年確實看到了這一幕。我們認為明年就會看到結果。

Those pencils have been constant, and they have resulted in a pretty different mix at different times. But they've led over time to a nice balance between dividends, M&A, share buybacks. I think if you look at the M&A market right now, it is -- it's -- we've been excited with some of the things we've been able to do, like SIS. There are a lot of assets coming to market. But it's still very unclear what the clearing price for those would be and whether they would fit into our economic criteria.

這些鉛筆保持不變，並且在不同時間產生了相當不同的混合。但隨著時間的推移，它們在股息、併購和股票回購之間實現了良好的平衡。我認為，如果你看看現在的併購市場，你會發現——我們對我們能夠做的一些事情感到非常興奮，例如 SIS。大量資產正進入市場。但目前還不清楚這些產品的清算價格是多少以及它們是否符合我們的經濟標準。

So if you do see executing something, it's going to be because we found something really compelling, and we don't find something compelling. We're very comfortable buying back our shares.

因此，如果你確實看到執行某件事，那是因為我們發現了一些真正引人注目的東西，而我們沒有發現一些引人注目的東西。我們非常樂意回購我們的股票。

Thank you.

謝謝。

So I think that was our last question. Is that right? Yes. Okay. So with that, I want to just thank everyone for being with us today. Thank you for your interest in Broadridge. We are excited about the strong quarter we presented. We're excited about our future momentum, and how we're continuing to work with our clients, our associates and delivering returns for our shareholders. And we look forward to talking to you again next quarter.

我想這是我們的最後一個問題。是嗎？是的。好的。因此，我只想感謝大家今天的到來。感謝您對 Broadridge 的關注。我們對於本季的強勁表現感到非常興奮。我們對未來的發展勢頭感到興奮，也對我們將繼續與客戶、同事合作並為股東帶來回報感到興奮。我們期待下個季度再次與您交談。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。