{"schemaVersion":1,"research":true,"symbol":"br","name":"Broadridge Financial Solutions","topic":"moat","path":"/stock/br/moat","status":"published","version":3,"updatedAt":"2026-10-18T00:41:45.270Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"Broadridge has a narrow moat supported by integrated client workflows, multi-year contracts and the coordination benefits of centralized proxy communications. Recurring revenue growth supports continued customer demand, but does not establish exceptional retention or a wide moat. Pricing power is constrained in regulated proxy services; observed postage cost recovery does not demonstrate broad discretionary pricing power. Competitive coverage and long-term resilience remain incompletely evidenced.","advantages":[{"mechanism":"switching_costs","claim":"Client system conversions, implementation work and integrated communications create switching friction. Existing-customer multi-year contracts and growing recurring revenue support a current advantage, although Broadridge's own conversion spending does not directly measure customers' switching costs.","durability":"Multi-year service relationships and operational integration support persistence across contract periods. The passages do not establish renewal rates or exceptional long-term durability.","risks":"Large clients can terminate or decline to renew, consolidate or reduce demand. Technology changes and service or security failures could overcome switching friction. Conversion investments also expose Broadridge to customer bargaining power.","invalidation":"Repeated losses of converted clients, sustained contraction in existing-customer recurring revenue, or evidence that clients replace integrated services without material conversion effort would weaken this assessment.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5"],"counterEvidenceIds":["e6","e7","e8"]},{"mechanism":"cost_advantage","claim":"Centralized proxy distribution and vote reporting reduce the coordination burden of issuers dealing separately with Nominees. This supports a current aggregation advantage, but its magnitude relative to alternative providers is not demonstrated.","durability":"Legally recurring communications and established centralized processing support repeat demand. Regulation sustains the activity without guaranteeing Broadridge's position or pricing discretion.","risks":"Regulatory changes, alternative communications infrastructure and digital delivery could reduce the value of existing arrangements. No comparative unit-cost or market-share evidence establishes an insurmountable scale advantage.","invalidation":"Evidence that issuers can coordinate directly or through alternatives at comparable total cost, or regulatory changes that materially bypass Broadridge's intermediary role, would invalidate this advantage.","competitors":[],"evidenceIds":["e9","e10","e11"],"counterEvidenceIds":["e8","e12","e13"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Risk factors: client conversion investments and potential write-offs","excerpt":"Further, in the event of the loss of a client’s business, a reduction of a 18 client’s demand for our services, or a change in the method of delivery of our services, then in addition to losing the revenue from that client, we could be required to write-off all or a portion of the related client investments or accelerate the amortization of certain costs, including costs incurred to onboard a client or convert a client’s systems to function with our technology."},{"id":"e2","sourceId":"filing-1","location":"Note 12: deferred client conversion and start-up costs","excerpt":"DEFERRED CLIENT CONVERSION AND START-UP COSTS Deferred client conversion and start-up costs consisted of the following: June 30, 2026 2025 (in millions) Deferred client conversion and start-up costs $ 819.3 $ 842.9 The table below sets forth the total amount of Deferred client conversion and start-up costs and Deferred sales commission costs amortized in Operating expenses: June 30, 2026 2025 (in millions) Deferred client conversion and start-up cost amortization $ 145.5 $ 148.8 79 NOTE 13."},{"id":"e3","sourceId":"filing-2","location":"MD&A: existing-customer multi-year contracts and internal growth definition","excerpt":"“Internal Growth” is a component of recurring revenue and generally reflects year over year changes in existing services to our existing customers’ multi-year contracts beyond the initial twelve month period in which it was included in Net New Business."},{"id":"e4","sourceId":"filing-2","location":"MD&A: nine-month operating results and recurring revenue growth drivers","excerpt":"41 Table of Contents Nine Months Ended March 31, 2026 versus Nine Months Ended March 31, 2025 The table below presents Condensed Consolidated Statements of Earnings data for the nine months ended March 31, 2026 and 2025, and the dollar and percentage changes between periods: Nine Months Ended March 31, Change 2026 2025 $ % (in millions, except per share amounts) Revenues $ 5,256.9 $ 4,823.7 $ 433.2 9 Cost of revenues 3,733.8 3,456.7 277.1 8 Selling, general and administrative expenses 768.8 677.1 91.8 14 Total operating expenses 4,502.6 4,133.8 368.8 9 Operating income 754.3 689.9 64.4 9 Margin 14.3 % 14.3 % Interest expense, net (73.1) (96.1) 23.1 (24) Other non-operating income (expenses), net 242.7 (6.6) 249.3 NM Earnings before income taxes 923.9 587.2 336.7 57 Provision for income taxes 197.7 121.9 75.7 62 Effective tax rate 21.4 % 20.8 % Net earnings $ 726.2 $ 465.3 $ 261.0 56 Basic earnings per share $ 6.22 $ 3.97 $ 2.25 57 Diluted earnings per share $ 6.18 $ 3.93 $ 2.25 57 Weighted-average shares outstanding: Basic 116.7 117.1 Diluted 117.6 118.3 _____________ NM - Not Meaningful 42 Table of Contents Revenues The table below presents Condensed Consolidated Statements of Earnings data for the nine months ended March 31, 2026 and 2025, and the dollar and percentage changes between periods: Nine Months Ended March 31, Change 2026 2025 $ % ($ in millions) Recurring revenues $ 3,335.7 $ 3,084.3 $ 251.4 8 Event-driven revenues 277.0 240.3 36.7 15 Distribution revenues 1,644.2 1,499.0 145.1 10 Total $ 5,256.9 $ 4,823.7 $ 433.2 9 Points of Growth Net New Business Internal Growth Acquisitions Foreign Exchange Total Recurring revenue Growth Drivers 3pts 3pts 2pts 1pt 8 % Revenues increased $433.2 million, or 9%, to $5,256.9 million from $4,823.7 million."},{"id":"e5","sourceId":"filing-1","location":"Business: Communications Cloud integration and capabilities","excerpt":"Through the Communications Cloud, our clients can: •create transactional, regulatory, and marketing communications with dynamic, self-service content designed to drive customer action; •deliver communications seamlessly across print, digital, email, short message service (“SMS”) and emerging channels, including interactive microsites, through a single integration; and •gain comprehensive reporting and analytics to optimize communications and increase engagement based on customer behaviors and preferences."},{"id":"e6","sourceId":"filing-1","location":"Risk factors: larger-client loss, consolidation and non-renewal","excerpt":"While our clients generally work with multiple business segments, the loss of business from any of our larger clients due to merger or consolidation, financial difficulties or bankruptcy, or the termination or non-renewal of contracts could have a material adverse effect on our revenues and results of operations."},{"id":"e7","sourceId":"filing-1","location":"Risk factors: concentration of client-related investments","excerpt":"Such costs for all clients represented approximately 9% of our total assets as of June 30, 2026, with one client representing a large portion of this amount."},{"id":"e8","sourceId":"filing-1","location":"Forward-looking statement risks: regulation, clients, technology and competition","excerpt":"Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: •changes in laws and regulations affecting Broadridge’s clients or the services provided by Broadridge; •Broadridge’s reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge’s services with favorable pricing terms; •a material security breach or cybersecurity attack affecting the information of Broadridge’s clients; •declines in participation and activity in the securities markets; •the failure of Broadridge’s key service providers to provide the anticipated levels of service; •a disaster or other significant slowdown or failure of Broadridge’s systems or error in the performance of Broadridge’s services; •overall market, economic and geopolitical conditions and their impact on the securities markets; •the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients; •Broadridge’s failure to keep pace with changes in technology and demands of its clients; •competitive conditions; •Broadridge’s ability to attract and retain key personnel; and •the impact of new acquisitions and divestitures."},{"id":"e9","sourceId":"filing-1","location":"Business: issuer coordination costs and centralized proxy processing","excerpt":"As it would increase the costs for companies and funds to work with the Nominees through which their shares are held beneficially on an individual basis, companies and funds work with us for the performance of the tasks and processes necessary to ensure that proxy materials are distributed on a timely basis to all beneficial owners and that their votes are accurately reported."},{"id":"e10","sourceId":"filing-2","location":"Description of business: existing proxy distribution and vote processing operations","excerpt":"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."},{"id":"e11","sourceId":"filing-2","location":"Seasonality: recurring activity linked to legal filing deadlines","excerpt":"The recurring periodic activity of this business is linked to significant filing deadlines imposed by law on public reporting companies."},{"id":"e12","sourceId":"filing-1","location":"Business: SRO reimbursement rate setting","excerpt":"The reimbursement rates are set forth in the rules of self-regulatory organizations (“SROs”), including the New York Stock Exchange (“NYSE”)."},{"id":"e13","sourceId":"filing-1","location":"Business: NYSE rules establishing intermediary service fees","excerpt":"In addition, the NYSE rules establish fees for certain services provided by intermediaries, such as Broadridge, in the proxy process."},{"id":"e14","sourceId":"filing-2","location":"ICS results: distribution revenue increase primarily from postage rate increases","excerpt":"45 Table of Contents •Distribution revenues increased $37.8 million, or 7%, driven primarily by the postage rate increase of approximately $34 million."},{"id":"e15","sourceId":"filing-2","location":"Non-GAAP reconciliation: quarterly and nine-month operating margins","excerpt":"49 Table of Contents Reconciliation of Non-GAAP measures to the most directly comparable GAAP measures (unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 (in millions) (in millions) Operating income (GAAP) $ 359.5 $ 344.9 $ 754.3 $ 689.9 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 52.8 48.9 155.2 146.6 Acquisition and Integration Costs 4.7 6.0 14.3 11.3 Restructuring and Other Related Costs (a) 3.5 5.5 13.2 5.5 Adjusted Operating income (Non-GAAP) $ 420.6 $ 405.2 $ 937.0 $ 853.3 Operating income margin (GAAP) 18.4 % 19.0 % 14.3 % 14.3 % Adjusted Operating income margin (Non-GAAP) 21.5 % 22.4 % 17.8 % 17.7 % Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 (in millions) (in millions) Net earnings (GAAP) $ 276.3 $ 243.1 $ 726.2 $ 465.3 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 52.8 48.9 155.2 146.6 Acquisition and Integration Costs 4.7 6.0 14.3 11.3 Restructuring and Other Related Costs (a) 3.5 5.5 13.2 5.5 Gains or Losses on Digital Assets (5.6) — (238.3) — Subtotal of adjustments 55.4 60.4 (55.6) 163.4 Tax impact of adjustments (b) (13.8) (14.6) 12.1 (37.1) Adjusted Net earnings (Non-GAAP) $ 317.9 $ 288.8 $ 682.7 $ 591.5 Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 Diluted earnings per share (GAAP) $ 2.36 $ 2.05 $ 6.18 $ 3.93 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 0.45 0.41 1.32 1.24 Acquisition and Integration Costs 0.04 0.05 0.12 0.10 Restructuring and Other Related Costs (a) 0.03 0.05 0.11 0.05 Gains or Losses on Digital Assets (0.05) — (2.03) — Subtotal of adjustments 0.47 0.51 (0.47) 1.38 Tax impact of adjustments (b) (0.12) (0.12) 0.10 (0.31) Adjusted earnings per share (Non-GAAP) $ 2.72 $ 2.44 $ 5.81 $ 5.00 (a) Restructuring and Other Related Costs for the three and nine months ended March 31, 2026 consists of severance and other costs related to the closure of substantially all operations of a production facility."},{"id":"e16","sourceId":"filing-1","location":"Consolidated cash flow statements: fiscal 2024–2026 cash generation and allocation","excerpt":"Consolidated Statements of Cash Flows (In millions) Years ended June 30, 2026 2025 2024 Cash Flows From Operating Activities Net earnings $ 1,124.3 $ 839.5 $ 698.1 Adjustments to reconcile Net earnings to net cash flows from operating activities: Depreciation and amortization 137.7 130.7 119.8 Amortization of acquired intangibles and purchased intellectual property 203.6 196.6 200.3 Amortization of other assets 167.1 170.8 157.8 Write-down of long lived assets and related charges 5.3 14.5 18.2 Stock-based compensation expense 93.9 73.4 70.6 Deferred income taxes 105.8 (5.2) (119.7) Digital assets change in fair market value (231.4) — — Other (41.8) (24.4) (57.7) Changes in operating assets and liabilities, net of assets and liabilities acquired: Accounts receivable, net (19.6) 31.8 (37.4) Other current assets (31.5) (5.4) (2.8) Payables and accrued expenses (86.5) (146.5) 136.5 Contract liabilities 68.8 56.5 80.6 Other non-current assets (155.7) (148.2) (232.4) Other non-current liabilities 5.9 (12.8) 24.3 Net cash flows from operating activities 1,345.6 1,171.3 1,056.2 Cash Flows From Investing Activities Capital expenditures (67.2) (43.8) (57.4) Software purchases and capitalized internal use software (45.4) (71.1) (55.6) Acquisitions, net of cash acquired (282.7) (193.5) (34.3) Other investing activities (56.7) (7.8) (0.8) Net cash flows from investing activities (452.0) (316.2) (148.0) Cash Flows From Financing Activities Debt proceeds 2,017.0 1,238.1 1,022.7 Debt repayments (2,015.6) (1,342.5) (1,082.7) Dividends paid (443.5) (402.3) (368.2) Purchases of Treasury stock (603.7) (134.9) (485.4) Proceeds from exercise of stock options 22.3 62.3 72.4 Other financing activities (25.1) (21.6) (14.3) Net cash flows from financing activities (1,048.5) (600.8) (855.5) Effect of exchange rate changes on Cash and cash equivalents (3.7) 2.8 (0.6) Net change in Cash and cash equivalents (158.7) 257.1 52.1 Cash and cash equivalents, beginning of fiscal year 561.5 304.4 252.3 Cash and cash equivalents, end of fiscal year $ 402.9 $ 561.5 $ 304.4 Supplemental disclosure of cash flow information: Cash payments made for interest $ 102.8 $ 131.5 $ 143.0 Cash payments made for income taxes, net of refunds $ 203.6 $ 279.8 $ 240.2 Non-cash investing and financing activities: Accrual of unpaid property, plant, equipment and software $ 9.6 $ 13.3 $ 1.2 Accrual of unpaid stock repurchase excise tax $ 5.4 $ — $ 2.7 Amounts may not sum due to rounding."},{"id":"e17","sourceId":"filing-1","location":"Digital assets: Canton Coin holdings and realized and unrealized gains","excerpt":"The following table presents a summary of the changes in the Company’s Canton Coin holdings during the years ended June 30, 2026: June 30, 2026 (in millions) Beginning balance $ — Opening Retained Earnings Adjustment 24.5 Additions - Revenue 16.5 Dispositions (8.5) Canton Digital Asset Treasury transaction (53.1) Total realized and unrealized gains included in other income (loss), net (a) 236.7 Ending balance $ 216.1 (a) Includes realized gains totaling $58.4 million and unrealized gains totaling $178.4 million during the year ended June 30, 2026."},{"id":"e18","sourceId":"filing-3","location":"Compensation discussion: fiscal 2026 incentive metrics, payouts and clawback policy","excerpt":"For fiscal year 2026, these included: Annual Cash Incentive: ▪ Fee-Based Revenue is the foundation for the Company’s future growth ▪ Adjusted EBT is a key measure of annual corporate performance ▪ Closed Sales is an important measure for expected future revenue, which drives the Company’s growth ▪ Client Onboarding reflects the importance of timely conversion of client engagements into revenue realization ▪ Client Satisfaction emphasizes the importance of client retention to the achievement of Broadridge’s financial goals ▪ Strategic and Leadership goals reinforce the importance of the Company’s non-financial strategic objectives, including human capital matters ▪ Associate engagement as a component of the Strategic and Leadership goals emphasizes the importance of engaging associates in driving the Company’s performance Long-Term Equity Incentive: ▪ Adjusted EPS is a primary measure of long-term corporate profitability and is intended to provide alignment with stockholders’ interests and hold executives accountable for the long-term performance of the Company ▪ Organic Recurring Revenue Growth was added as an additional performance measure in fiscal year 2026 in response to feedback provided by some investors and to further align our compensation program to the Company’s performance Compensation Aligned with Performance We believe that aligning our executives’ incentives with Broadridge’s strategic goals is critical to attain long-term strategic success Annual cash incentive payments to the NEOs for fiscal year 2026 ranged from 102% to 110% of their targets Our NEOs’ actual TDC for fiscal year 2026 reflects the Company’s strong overall financial performance Robust Clawback Policy Broadridge’s Clawback Policy includes compensation elements such as time-vested equity awards, discretionary bonuses, and severance payments, as recoupable in the event of either an accounting restatement that the Board determines is the result of a person’s intentional acts or omissions, or engagement in certain activities, such as intentional misconduct, fraud, and failure to appropriately supervise, that causes financial or reputational damage."},{"id":"e19","sourceId":"filing-3","location":"Compensation design: majority performance-based target executive compensation","excerpt":"We have a combination of pay elements and a majority of our NEOs’ target TDC is performance based, with the objective of balancing short- and long-term decision-making in support of our business strategy."},{"id":"e20","sourceId":"filing-3","location":"Compensation governance: clawback and prohibition on hedging or pledging","excerpt":"Risk Mitigation and Corporate Governance Policies and Practices Broadridge has certain policies in place to minimize excessive risk taking such as our Clawback Policy and a policy that prohibits the hedging or pledging of the Company’s securities."},{"id":"e21","sourceId":"filing-3","location":"Corporate governance: current independent Chairperson","excerpt":"The Board determined that the leadership of the Board is currently best led by an independent Chairperson."},{"id":"e22","sourceId":"filing-3","location":"Corporate governance: independent executive sessions held during fiscal 2026","excerpt":"The independent directors met in executive session at all of the regularly scheduled Board and Committee meetings held in 2026."},{"id":"e23","sourceId":"filing-3","location":"Audit governance: actual service and fee pre-approvals","excerpt":"Pursuant to the Sarbanes-Oxley Act of 2002, the fees and services provided as noted in the table on page 77 of this Proxy Statement were authorized and approved by the Audit and Risk Committee in compliance with the pre-approval procedures described herein."},{"id":"e24","sourceId":"filing-3","location":"Appendix: fiscal 2023–2026 earnings reconciliation and digital-asset adjustments","excerpt":"Asset write-downs or gains including, but not limited to, mark to market minority investment in private companies not accounted for under equity method accounting, and realized or unrealized impact from rabbi trust investment Litigation or claim judgements or settlements (2024 only) Reorganization and restructuring programs to the extent such programs resulted in aggregate net gain, loss, charge or expense in excess of $11 million Acquisitions or divestures closed during the fiscal year and not included in the operating plan, including earnings generated by the business and expenses related to funding an acquisition Foreign exchange gains and losses whether or not disclosed as described above, based on the variance of (i) the actual impact of FX EBIT to (ii) the FX EBIT amount included in the operating plan finalized within the first 90 days of the performance period 2026 Proxy Statement Broadridge 89 TABLE OF CONTENTS Appendix – Non-GAAP Reconciliation Tables Fiscal Years Ended June 30 2026 2025 2024 2023 NET EARNINGS Net earnings (GAAP) $1,124 $839 $698 $631 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 204 197 200 214 Acquisition and Integration Costs 17 18 4 16 Restructuring and Other Related Costs(a) 13 7 63 20 Litigation Settlement Charges — — 18 — Russia-Related Exit Costs(b) — — — 11 Gains or Losses on Digital Assets (227) — — — Investment Gain (7) — — — Subtotal of adjustments (0) 222 286 262 Tax impact of adjustments(c) — (50) (63) (57) Adjusted Net earnings (Non-GAAP) $1,124 $1,011 $921 $835 Fiscal Years Ended June 30 2026 2025 2024 2023 DILUTED EARNINGS PER SHARE Diluted earnings per share (GAAP) $9.60 $7.10 $5.86 $5.30 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 1.74 1.66 1.68 1.80 Acquisition and Integration Costs 0.15 0.15 0.03 0.13 Restructuring and Other Related Costs(a) 0.11 0.06 0.53 0.17 Litigation Settlement Charges — — 0.15 — Russia-Related Exit Costs(b) — — — 0.09 Gains or Losses on Digital Assets (1.94) — — — Investment Gain (0.06) — — — Subtotal of adjustments — 1.88 2.40 2.20 Tax impact of adjustments(c) — (0.43) (0.53) (0.48) Adjusted earnings per share (Non-GAAP) $9.60 $8.55 $7.73 $7.01 Note: Amounts may not sum due to rounding."},{"id":"e25","sourceId":"filing-3","location":"Appendix: completion of production facility closure actions","excerpt":"Actions and associated costs related to the closure were completed in the third quarter of fiscal year 2026."},{"id":"e26","sourceId":"filing-2","location":"Equity compensation note: actual grants, exercises, vesting and forfeitures","excerpt":"27 Table of Contents The activity related to the Company’s incentive equity awards for the nine months ended March 31, 2026 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 539,247 191.77 239,740 222.73 101,259 221.28 Exercise of stock options (a) (203,037) 104.22 — — — — Vesting of restricted stock units — — (46,919) 166.70 (7,698) 211.26 Expired/forfeited (36,728) 163.64 (23,189) 195.89 (3,527) 199.45 Balances at March 31, 2026 2,216,810 $ 171.02 760,235 $ 192.71 269,147 $ 200.83 _________ (a)Stock options exercised during the period of July 1, 2025 through March 31, 2026 had an aggregate intrinsic value of $28.8 million."},{"id":"e27","sourceId":"filing-1","location":"MD&A: use of non-GAAP measures in management compensation","excerpt":"In addition, and as a consequence of the importance of these Non-GAAP financial measures in managing our business, the Company’s Compensation Committee of the Board incorporates Non-GAAP financial measures in the evaluation process for determining management compensation."}],"changes":["No comparable previous version."],"limitations":["Only supplied issuer passages were assessed. Filing dates retain dateKind=filed: April 30, August 4 and September 29, 2026; they are not retrieval dates.","No companies are identified as operating competitors in the supplied passages. Compensation peers, suppliers, acquisition targets and directors' former employers do not establish competitor coverage.","The coordination-cost advantage and platform benefits include issuer descriptions rather than comparative cost studies. Conversion assets establish Broadridge's investment, not the amount a customer would spend to switch.","No renewal rates, customer loss series, market shares or comparative pricing are supplied. Recurring growth supports retention indirectly and includes volume, acquisitions and currency effects.","No broad discretionary price increase evidence is supplied. Postage-related revenue growth demonstrates cost recovery rather than an increase in service pricing.","Actual compensation and governance practices are disclosed, but executive beneficial ownership and ownership-guideline compliance are not established by the supplied passages. November 2026 election proposals are not treated as completed actions.","Digital-asset gains are separated from operating execution. AI and tokenization ambitions do not establish additional current moat mechanisms."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":2,"rationale":"Integrated client conversions and centralized proxy coordination support a narrow structural advantage. Relative costs, market position and customer switching expense remain unquantified.","evidenceIds":["e1","e2","e5","e9","e10"]},{"criterion":"durability","grade":2,"rationale":"Multi-year existing-customer contracts and legally recurring communications support persistence, but do not demonstrate exceptional durability through technological or regulatory change.","evidenceIds":["e3","e11","e8"]},{"criterion":"customer_dependency","grade":3,"rationale":"System conversions, integrated delivery and legally timed proxy processing demonstrate substantial operational embeddedness. This supports dependency without implying customers cannot leave.","evidenceIds":["e1","e2","e5","e10","e11"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Recurring revenue rose 8% with positive existing-customer and net-new-business contributions, supporting current resilience. Client concentration and technology and regulatory risks limit confidence; these risks are possibilities, not demonstrated erosion.","evidenceIds":["e4","e6","e7","e8"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Distribution revenue recovered approximately $34 million of postage rate increases. This is an observed pricing-related outcome, but does not establish higher underlying service prices or discretionary pricing power.","evidenceIds":["e14"]},{"criterion":"retention","grade":2,"rationale":"Positive internal growth under existing multi-year contracts and positive net new business support repeat demand indirectly. Neither a renewal rate nor gross client losses is disclosed, and volume growth can contribute.","evidenceIds":["e3","e4","e1"]},{"criterion":"margin_resilience","grade":2,"rationale":"Nine-month GAAP operating margin held at 14.3%, while quarterly margin fell from 19.0% to 18.4%. Results demonstrate mixed resilience, not broad evidence of pricing-led margin protection.","evidenceIds":["e4","e15"]},{"criterion":"contractual_freedom","grade":1,"rationale":"SRO reimbursement schedules and NYSE-established intermediary fees constrain pricing discretion in proxy services. Other business lines' repricing rights and escalation clauses are not supplied.","evidenceIds":["e12","e13"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Operating cash flow increased from $1,056.2 million in 2024 to $1,345.6 million in 2026. In 2026, acquisitions, capital and software spending, dividends and repurchases together exceeded operating cash generation, and cash declined. Digital-asset exposure and absent acquisition-return evidence temper the assessment.","evidenceIds":["e16","e17"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual fiscal 2026 incentives include organic recurring growth, onboarding and client satisfaction, with majority performance-based target compensation, equity awards and anti-hedging and clawback policies. Non-GAAP compensation measures and missing beneficial ownership evidence limit the conclusion.","evidenceIds":["e18","e19","e20","e26","e27"]},{"criterion":"execution","grade":3,"rationale":"Recurring revenue and operating income grew, three-year operating cash generation increased, and facility closure actions were completed. Execution is assessed from operating outcomes rather than a full targets-versus-results record; digital-asset gains do not receive operating credit.","evidenceIds":["e4","e16","e24","e25"]},{"criterion":"governance","grade":3,"rationale":"An independent Chairperson, independent executive sessions at all regularly scheduled 2026 Board and Committee meetings, and actual audit service pre-approvals establish substantive governance practices. The passages do not establish exceptional long-term oversight effectiveness.","evidenceIds":["e21","e22","e23"]}]}],"qualityPolicy":"quality-scores-2","basisHash":"bfe669bebca292bbcb34c8fcfc5ad6b2a527bdbd7fe1dec5a5ecd2718e2b6485","updatedAt":"2026-10-18T00:41:45.270Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/1383312/000162828026052243/br-20260630.htm","publishedAt":"2026-08-04","sha256":"57b710f794b75e2fe8154f221e5a2c044071229ead87326132ff8abc973ef373","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/1383312/000162828026028675/br-20260331.htm","publishedAt":"2026-04-30","sha256":"c55d1ae64e407e67b0fbb565c4c800a21b4a6465707107d32ffb7b4c1f78bc78","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/1383312/000114036126037937/ny20075597x1_def14a.htm","publishedAt":"2026-09-29","sha256":"da98ede145f91cd90e5803647a01f4b5de125a32b1223e95ea0fafb81651506b","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:a32a1497316f41e7eb4bc4ffe945bcbd24077fbd9b8328eea5b857c37608e3f9","usage":{"input_tokens":55683,"cached_input_tokens":20992,"cache_write_input_tokens":0,"output_tokens":3302,"reasoning_output_tokens":80}},"signals":[{"period":"2022","end":"2022-06-30","values":{"gross_margin":27.888809094253048,"operating_margin":13.310329123679738,"roic":11.17245042796545,"fcf_margin":7.26033875742236,"sbc_revenue":1.1980872641922544},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2023","end":"2023-06-30","values":{"gross_margin":29.4576713029418,"operating_margin":15.44985068224191,"roic":13.644224628699082,"fcf_margin":12.950221914237158,"sbc_revenue":1.2060915045620286},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. 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