Technology
Broadridge Reports Third Quarter Fiscal 2026 Results
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10 hours agoon
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Recurring revenues grew 7%; up 6% constant currency
Diluted EPS rose 15% to $2.36 and Adjusted EPS grew 11% to $2.72
Raising FY’26 guidance for Recurring revenue growth constant currency to
At or above 7% and Adjusted EPS growth to 10-12%
NEW YORK, April 30, 2026 /PRNewswire/ — Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the third quarter ended March 31, 2026 of its fiscal year 2026. Results compared with the same period last year were as follows:
Summary Financial Results
Third Quarter
Nine Months
Dollars in millions, except per share data
2026
2025
Change
2026
2025
Change
Recurring revenues
$1,288
$1,204
7 %
$3,336
$3,084
8 %
Constant currency growth (Non-GAAP)
6 %
7 %
Total revenues
$1,954
$1,812
8 %
$5,257
$4,824
9 %
Operating income
$359
$345
4 %
$754
$690
9 %
Margin
18.4 %
19.0 %
14.3 %
14.3 %
Adjusted Operating income (Non-GAAP)
$421
$405
4 %
$937
$853
10 %
Margin (Non-GAAP)
21.5 %
22.4 %
17.8 %
17.7 %
Diluted EPS
$2.36
$2.05
15 %
$6.18
$3.93
57 %
Adjusted EPS (Non-GAAP)
$2.72
$2.44
11 %
$5.81
$5.00
16 %
Closed sales
$58
$71
(19 %)
$147
$174
(16 %)
“Broadridge delivered strong third quarter results, including 6% Recurring revenue growth constant currency and 11% Adjusted EPS growth, powered by strong equity and fund position growth and higher trading volumes,” said Tim Gokey, Broadridge CEO.
“We are executing on our strategy to democratize and digitize governance, simplify and innovate trading in capital markets, and modernize wealth management. At the same time, we are putting in place the building blocks of future growth by leading in tokenization, driving the digitization of communications, and scaling AI,” Mr. Gokey noted.
“Broadridge is on track to deliver another year of strong financial performance. We are raising our fiscal 2026 outlook for Recurring revenue growth constant currency to At or above 7% and increasing our Adjusted EPS growth guidance to 10% to 12%. As a result, we are set to deliver on our long-term targets for top- and bottom-line growth for the three-year period ending in fiscal 2026,” he concluded.
Fiscal Year 2026 Financial Guidance
FY’26 Guidance
Updates
Recurring revenue growth constant currency (Non-GAAP)
At or above 7%
Raised from higher end
of 5 – 7%
Adjusted Operating income margin (Non-GAAP)
20 – 21%
No Change
Adjusted Earnings per share growth (Non-GAAP)
10 – 12%
Raised from 9 – 12%
Closed sales
$240 – $290M
Revised from $290 –
$330M
Financial Results for Third Quarter Fiscal Year 2026 compared to Third Quarter Fiscal Year 2025
Total revenues increased 8% to $1,954 million from $1,812 million.Recurring revenues increased $84 million, or 7%, to $1,288 million. Recurring revenue growth constant currency (Non-GAAP) was 6%, driven by organic growth in Investor Communication Solutions (“ICS”) and Global Technology and Operations (“GTO”) and acquisitions in ICS.Event-driven revenues increased $20 million, or 38%, to $73 million, from a combination of higher mutual fund proxy revenues and higher equity and other revenues.Distribution revenues increased $38 million, or 7%, to $593 million, driven primarily by the postage rate increase of approximately $34 million.Operating income was $359 million, an increase of $15 million, or 4%. Operating income margin decreased to 18.4%, compared to 19.0% for the prior year period.Adjusted Operating income was $421 million, an increase of $15 million, or 4%. Adjusted Operating income margin was 21.5% compared to 22.4% for the prior year period. The combination of higher distribution revenue and higher float income negatively impacted margins by 80 basis points.Interest expense, net was $25 million, a decrease of $6 million, primarily due to lower average borrowings and lower borrowing costs.The effective tax rate was 18.9% compared to 21.8% in the prior year period. The change in effective tax rate for the three months ended March 31, 2026 was primarily driven by an increase in discrete tax benefits.Net earnings increased 14% to $276 million and Adjusted Net earnings increased 10% to $318 million.Diluted earnings per share increased 15% to $2.36, compared to $2.05 in the prior year period, andAdjusted earnings per share increased 11% to $2.72, compared to $2.44 in the prior year period.
Segment and Other Results for Third Quarter Fiscal Year 2026 compared to Third Quarter Fiscal Year 2025
ICS
Total revenues were $1,465 million, an increase of $118 million, or 9%.Recurring revenues increased $60 million, or 8%, to $800 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by 4pts of Internal Growth, 2pts of Net New Business, and 1pt from acquisitions.By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows:Regulatory rose 9% and 9%, respectively. Equity revenue position growth was 11% and Mutual fund/ETF position growth was 6%.Data-driven fund solutions rose 9% and 8%, respectively, driven by growth in data and analytics revenues and the acquisitions of Acolin Group Holdco Limited (“Acolin”) and LDI-MAP, LLC (“iJoin”).Issuer rose 8% and 8%, respectively, driven by growth in disclosure solutions and shareholder engagement solutions.Customer communications rose 5% and 5%, respectively, driven by growth in digital revenues, as well as the acquisition of Signal Agency Limited (“Signal”).Event-driven revenues increased $20 million, or 38%, to $73 million, from a combination of higher mutual fund proxy revenues and higher equity and other revenues.Distribution revenues increased $38 million, or 7%, to $593 million, driven primarily by the postage rate increase of approximately $34 million.Earnings before income taxes increased by $17 million, or 6%, to $309 million, driven by higher Recurring revenue and Event-driven revenues. Operating expenses rose 10%, or $101 million, to $1,156 million driven by higher distribution expenses, volume-related expenses and the impact of acquisitions and investments.Pre-tax margins decreased to 21.1% from 21.7%.
GTO
Recurring revenues were $488 million, an increase of $24 million, or 5%. Recurring revenue growth constant currency (Non-GAAP) was 3%, all organic.By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows:Capital Markets rose 2% and (0)%, respectively, primarily driven by 4pts of revenue from new sales, which was partially offset by a 3pt decrease in internal growth. The benefit of higher trading volumes was offset by lower software term license revenue, which negatively impacted organic growth by 6pts.Wealth and Investment Management rose 10% and 8%, respectively, driven by 8pts from internal growth, which benefitted from higher trading volumes.Earnings before income taxes were $85 million, an increase of $15 million, or 21%, as higher revenues more than offset higher expenses.Pre-tax margins increased to 17.5% from 15.2%.
Corporate and Other
Loss before income taxes was $54 million compared to Loss before income taxes of $52 million in the prior year period, primarily due to higher technology costs which more than offset a $6 million decline in Interest expense, net and a Gain on Digital Assets of $6 million.
Financial Results for Nine Months Fiscal Year 2026 compared to the Nine Months Fiscal Year 2025
Total revenues increased 9% to $5,257 million from $4,824 million.Recurring revenues increased $251 million, or 8%, to $3,336 million. Recurring revenue growth constant currency (Non-GAAP) was 7%, driven by organic growth and acquisitions in ICS and GTO.Event-driven revenues increased $37 million, or 15%, to $277 million, driven by higher equity and other communications, as well as mutual fund proxy revenues.Distribution revenues increased $145 million, or 10%, to $1,644 million, primarily driven by the postage rate increases of approximately $91 million and higher volumes.Operating income was $754 million, an increase of $64 million, or 9%. Operating income margin was flat at 14.3%, compared to 14.3% for the prior year period.Adjusted Operating income was $937 million, an increase of $84 million, or 10%. Adjusted Operating income margin was 17.8% compared to 17.7% for the prior year period. The combination of higher distribution revenue and higher float income negatively impacted margins by 50 basis points.Interest expense, net was $73 million, a decrease of $23 million, primarily due to lower average borrowings and lower borrowing costs.The effective tax rate was 21.4% compared to 20.8% in the prior year period. The change in effective tax rate for the nine months ended March 31, 2026 was primarily driven by an increase in pre-tax income relative to total discrete tax benefits.Net earnings increased 56% to $726 million and Adjusted Net earnings increased 15% to $683 million.Diluted earnings per share increased 57% to $6.18, compared to $3.93 in the prior year period, andAdjusted earnings per share increased 16% to $5.81, compared to $5.00 in the prior year period.
Segment and Other Results for Nine Months Fiscal Year 2026 compared to Nine Months Fiscal Year 2025
ICS
Total revenues were $3,828 million, an increase of $316 million, or 9%.Recurring revenues increased $134 million, or 8%, to $1,907 million. Recurring revenue growth constant currency (Non-GAAP) was 7%, driven by 3pts of Net New Business, 3pts of Internal Growth and 1pt from acquisitions.By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows:Regulatory rose 10% and 10%, respectively. Equity revenue position growth was 11% and Mutual fund/ETF position growth was 7%.Data-driven fund solutions rose 4% and 3%, respectively, driven by growth in data and analytics revenues as well as the acquisitions of Acolin and iJoin.Issuer rose 7% and 7%, respectively, driven by growth in shareholder engagement solutions and disclosure solutions.Customer communications rose 6% and 6%, respectively, driven by growth in digital and print revenues, as well as the acquisition of Signal.Event-driven revenues increased $37 million, or 15%, to 277 million, driven by higher equity and other communications, as well as mutual fund proxy revenues.Distribution revenues increased $145 million, or 10%, to $1,644 million, primarily driven by postage rate increases of approximately $91 million and higher volumes.Earnings before income taxes increased by $9 million, or 2%, to $573 million. The earnings benefit from higher Recurring revenue and Event-driven revenue was partially offset by higher Operating expenses. Operating expenses rose 10%, or $307 million, to $3,256 million driven by distribution expenses, as well as other volume-related expenses and the impact of acquisitions.Pre-tax margins decreased to 15.0% from 16.0%.
GTO
Recurring revenues were $1,428 million, an increase of $117 million, or 9%. Recurring revenue growth constant currency (Non-GAAP) was 7%, driven by 5pts of organic growth and 2pts from the acquisition of Kyndryl’s Securities Industries Services business (“SIS”).By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows:Capital Markets rose 6% and 4%, respectively, primarily driven by 4pts of revenue from new sales and 1pt of Internal Growth. Internal Growth included 2pts from digital asset revenues, offset by 2pts from lower software term license revenue.Wealth and Investment Management rose 14% and 13%, respectively, driven by 7pts from the SIS acquisition and 7pts of organic growth.Earnings before income taxes were $230 million, an increase of $63 million, or 37%, as higher revenues more than offset higher expenses, including the impact of the SIS acquisition.Pre-tax margins increased to 16.1% from 12.8%.
Corporate and Other
Earnings before income taxes were $121 million compared to Loss before income taxes of $144 million in the prior year period, primarily due to a Gain on Digital Assets of $244 million and a $23 million decline in Interest expense, net.
Subsequent Event
On April 30, 2026, the Company completed the acquisition of CQG, Inc. (“CQG”). CQG is a Denver-based execution management system provider to futures and options market participants. The total purchase price was approximately $173 million plus additional contingent consideration. CQG will be included in the Company’s GTO reportable segment.
Earnings Conference Call
An analyst conference call will be held today, April 30, 2026 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the live event and access the slide presentation, visit Broadridge’s Investor Relations website at www.broadridge-ir.com prior to the start of the webcast. To listen to the call, investors may also dial 1-877-328-2502 within the United States and international callers may dial 1-412-317-5419. A replay of the webcast will be available and can be accessed in the same manner as the live webcast at the Broadridge Investor Relations site. Through May 7, 2026, the recording will also be available by dialing 1-855-669-9658 within the United States or 1-412-317-0088 for international callers, using passcode 9736199 for either dial-in number.
Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures
The Company’s results in this press release are presented in accordance with U.S. GAAP except where otherwise noted. In certain circumstances, results have been presented that are not generally accepted accounting principles measures (“Non-GAAP”). These Non-GAAP measures are Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share, Free cash flow, and Recurring revenue growth constant currency. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results.
The Company believes our Non-GAAP financial measures help investors understand how management plans, measures and evaluates the Company’s business performance. Management believes that Non-GAAP measures provide consistency in its financial reporting and facilitates investors’ understanding of the Company’s operating results and trends by providing an additional basis for comparison. Management uses these Non-GAAP financial measures to, among other things, evaluate our ongoing operations, and for internal planning and forecasting purposes. 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 of Directors incorporates Non-GAAP financial measures in the evaluation process for determining management compensation.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share
These Non-GAAP measures are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items the exclusion of which management believes provides insight regarding our ongoing operating performance. Depending on the period presented, these adjusted measures exclude the impact of certain of the following items:
(i) Amortization of Acquired Intangibles and Purchased Intellectual Property, which represent non-cash amortization expenses associated with the Company’s acquisition activities.
(ii) Acquisition and Integration Costs, which represent certain transaction and integration costs associated with the Company’s acquisition activities.
(iii) Restructuring and Other Related Costs, which represent costs associated with the Company’s Corporate Restructuring Initiative to exit and/or realign some of our businesses, streamline the Company’s management structure, reallocate work to lower cost locations, and reduce headcount in deprioritized areas, in addition to other restructuring activities.
(iv) Gains or Losses on Digital Assets, which represents the mark to market gain or loss recorded to remeasure the Company’s digital asset holdings in the form of Canton Coins to fair market value, in addition to the realized and unrealized gains or losses associated with the Company’s contribution of Canton Coins to Canton Strategic Holdings, Inc. and the associated mark to market gain or loss recorded to remeasure the previously held Digital Asset Loan Receivable and Warrants to fair market value.
We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, and Gains or Losses on Digital Assets from our Adjusted Operating income (as applicable) and other adjusted earnings measures because excluding such information provides us with an understanding of the results from the primary operations of our business and enhances comparability across fiscal reporting periods, as these items are not reflective of our underlying operations or performance.
We also exclude the impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, as these non-cash amounts are significantly impacted by the timing and size of individual acquisitions and do not factor into the Company’s capital allocation decisions, management compensation metrics or multi-year objectives. Furthermore, management believes that this adjustment enables better comparison of our results as Amortization of Acquired Intangibles and Purchased Intellectual Property will not recur in future periods once such intangible assets have been fully amortized. Although we exclude Amortization of Acquired Intangibles and Purchased Intellectual Property from our adjusted earnings measures, our management believes that it is important for investors to understand that these intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.
Free cash flow
In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated that could be used for dividends, share repurchases, strategic acquisitions, other investments, as well as debt servicing. Free cash flow is a Non-GAAP financial measure and is defined by the Company as Net cash flows provided by operating activities less Capital expenditures as well as Software purchases and capitalized internal use software.
Recurring revenue growth constant currency
As a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates. The exclusion of the impact of foreign currency exchange fluctuations from our Recurring revenue growth, or what we refer to as amounts expressed “on a constant currency basis,” is a Non-GAAP measure. We believe that excluding the impact of foreign currency exchange fluctuations from our Recurring revenue growth provides additional information that enables enhanced comparison to prior periods.
Changes in Recurring revenue growth expressed on a constant currency basis are presented excluding the impact of foreign currency exchange fluctuations. To present this information, current period results for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the corresponding period of the comparative year, rather than at the actual average exchange rates in effect during the current fiscal year.
Forward-Looking Statements
This press release and other written or oral statements made from time to time by representatives of Broadridge may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could be,” “on track,” and other words of similar meaning, are forward-looking statements. In particular, information appearing in the “Fiscal Year 2026 Financial Guidance” section and statements about our three-year objectives are forward-looking statements.
These statements are based on management’s expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors described and discussed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended June 30, 2025 (the “2025 Annual Report”), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2025 Annual Report.
These risks 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; andthe impact of new acquisitions and divestitures.
There may be other factors that may cause our actual results to differ materially from the forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.
Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.
About Broadridge
Broadridge Financial Solutions (NYSE: BR) is a global technology leader with trusted expertise and transformative technology, helping clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. Our technology and operations platforms process and generate over 7 billion communications annually and underpin the daily average trading of over $15 trillion in equities, fixed income, and other securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 15,000 associates in 21 countries. For more information about us, please visit www.broadridge.com.
Contact Information
Investors
broadridgeir@broadridge.com
Media
Gregg.rosenberg@broadridge.com
Condensed Consolidated Statements of Earnings
(Unaudited)
In millions, except per share amounts
Three Months Ended
March 31,
Nine Months Ended
March 31,
2026
2025
2026
2025
Revenues
$ 1,953.6
$ 1,811.7
$ 5,256.9
$ 4,823.7
Operating expenses:
Cost of revenues
1,326.7
1,235.9
3,733.8
3,456.7
Selling, general and administrative expenses
267.4
230.9
768.8
677.1
Total operating expenses
1,594.1
1,466.8
4,502.6
4,133.8
Operating income
359.5
344.9
754.3
689.9
Interest expense, net
(25.1)
(31.1)
(73.1)
(96.1)
Other non-operating income (expenses), net
6.2
(2.8)
242.7
(6.6)
Earnings before income taxes
340.6
310.9
923.9
587.2
Provision for income taxes
64.3
67.8
197.7
121.9
Net earnings
$ 276.3
$ 243.1
$ 726.2
$ 465.3
Basic earnings per share
$ 2.38
$ 2.07
$ 6.22
$ 3.97
Diluted earnings per share
$ 2.36
$ 2.05
$ 6.18
$ 3.93
Weighted-average shares outstanding:
Basic
116.3
117.2
116.7
117.1
Diluted
117.0
118.5
117.6
118.3
Amounts may not sum due to rounding.
Condensed Consolidated Balance Sheets
(Unaudited)
In millions, except per share amounts
March 31,
2026
June 30,
2025
Assets
Current assets:
Cash and cash equivalents
$ 304.8
$ 561.5
Accounts receivable, net of allowance for doubtful accounts of
$14.8 and $12.5, respectively
1,319.3
1,077.1
Other current assets
173.5
178.5
Total current assets
1,797.7
1,817.1
Property, plant and equipment, net
160.1
170.1
Goodwill
3,735.2
3,609.6
Intangible assets, net
1,159.0
1,277.4
Deferred client conversion and start-up costs
822.2
842.9
Other non-current assets
1,105.0
827.9
Total assets
$ 8,779.2
$ 8,545.0
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt
$ 499.8
$ 499.3
Payables and accrued expenses
1,143.4
1,112.8
Contract liabilities
263.4
249.1
Total current liabilities
1,906.6
1,861.2
Long-term debt
2,727.2
2,753.0
Deferred taxes
350.7
261.0
Contract liabilities
333.5
429.2
Other non-current liabilities
642.4
585.5
Total liabilities
5,960.4
5,889.9
Stockholders’ equity:
Preferred stock: Authorized, 25.0 shares; issued and outstanding,
none
—
—
Common stock, $0.01 par value: Authorized, 650.0 shares; issued,
154.5 and 154.5 shares, respectively; outstanding, 115.7 and 117.1
shares, respectively
1.6
1.6
Additional paid-in capital
1,744.5
1,663.0
Retained earnings
4,266.7
3,862.5
Treasury stock, at cost: 38.8 and 37.3 shares, respectively
(2,949.2)
(2,599.0)
Accumulated other comprehensive income (loss)
(244.8)
(272.9)
Total stockholders’ equity
2,818.8
2,655.1
Total liabilities and stockholders’ equity
$ 8,779.2
$ 8,545.0
Amounts may not sum due to rounding.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
In millions
Nine Months Ended
March 31,
2026
2025
Cash Flows From Operating Activities
Net earnings
$ 726.2
$ 465.3
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization
101.6
97.6
Amortization of acquired intangibles and purchased intellectual property
155.2
146.6
Amortization of other assets
126.2
128.0
Write-down of long-lived assets and related charges
3.8
3.3
Stock-based compensation expense
66.7
57.4
Deferred income taxes
65.1
(37.5)
Digital assets change in fair market value
(235.0)
—
Other
(29.4)
(12.0)
Changes in operating assets and liabilities, net of assets and liabilities acquired:
Accounts receivable, net
(215.7)
(89.5)
Other current assets
(0.6)
7.2
Payables and accrued expenses
(22.4)
(220.5)
Contract liabilities
62.2
39.8
Other non-current assets
(120.8)
(108.5)
Other non-current liabilities
(15.1)
(5.5)
Net cash flows from operating activities
668.2
471.6
Cash Flows From Investing Activities
Capital expenditures
(35.1)
(28.2)
Software purchases and capitalized internal use software
(42.1)
(50.3)
Acquisitions, net of cash acquired
(121.0)
(193.5)
Other investing activities
(27.1)
(4.2)
Net cash flows from investing activities
(225.4)
(276.1)
Cash Flows From Financing Activities
Debt proceeds
988.5
920.3
Debt repayments
(1,016.8)
(837.3)
Dividends paid
(330.7)
(299.2)
Purchases of Treasury stock
(352.9)
(4.2)
Proceeds from exercise of stock options
21.7
51.6
Other financing activities
(7.8)
(8.7)
Net cash flows from financing activities
(697.9)
(177.5)
Effect of exchange rate changes on Cash and cash equivalents
(1.7)
(5.2)
Net change in Cash and cash equivalents
(256.7)
12.8
Cash and cash equivalents, beginning of period
561.5
304.4
Cash and cash equivalents, end of period
$ 304.8
$ 317.2
Amounts may not sum due to rounding.
Segment Results
(Unaudited)
In millions
Three Months Ended
March 31,
Nine Months Ended
March 31,
2026
2025
2026
2025
Revenues
Investor Communication Solutions
$ 1,465.3
$ 1,347.5
$ 3,828.5
$ 3,512.3
Global Technology and Operations
488.3
464.1
1,428.4
1,311.4
Total
$ 1,953.6
$ 1,811.7
$ 5,256.9
$ 4,823.7
Earnings before Income Taxes
Investor Communication Solutions
$ 309.5
$ 292.9
$ 572.7
$ 563.5
Global Technology and Operations
85.4
70.4
230.3
167.5
Other
(54.3)
(52.4)
121.0
(143.8)
Total
$ 340.6
$ 310.9
$ 923.9
$ 587.2
Pre-tax margins:
Investor Communication Solutions
21.1 %
21.7 %
15.0 %
16.0 %
Global Technology and Operations
17.5 %
15.2 %
16.1 %
12.8 %
Amortization of acquired intangibles and purchased intellectual property
Investor Communication Solutions
$ 11.1
$ 10.6
$ 31.5
$ 33.1
Global Technology and Operations
41.7
38.3
123.8
113.5
Total
$ 52.8
$ 48.9
$ 155.2
$ 146.6
Amounts may not sum due to rounding.
Supplemental Reporting Detail – Additional Product Line Reporting
(Unaudited)
In millions
Three Months Ended
March 31,
Nine Months Ended
March 31,
2026
2025
Change
2026
2025
Change
Investor Communication Solutions
Regulatory
$ 399.4
$ 365.0
9 %
$ 845.4
$ 765.4
10 %
Data-driven fund solutions
125.7
114.8
9 %
349.4
337.4
4 %
Issuer
65.3
60.5
8 %
136.9
127.4
7 %
Customer communications
209.3
199.5
5 %
575.6
542.8
6 %
Total ICS Recurring revenues
799.8
739.8
8 %
1,907.3
1,773.0
8 %
Equity and other
40.2
31.4
28 %
103.4
77.2
34 %
Mutual funds
32.4
21.3
52 %
173.6
163.2
6 %
Total ICS Event-driven revenues
72.7
52.7
38 %
277.0
240.3
15 %
Distribution revenues
592.8
555.0
7 %
1,644.2
1,499.0
10 %
Total ICS Revenues
$ 1,465.3
$ 1,347.5
9 %
$ 3,828.5
$ 3,512.3
9 %
Global Technology and Operations
Capital markets
$ 295.5
$ 289.4
2 %
$ 877.1
$ 829.9
6 %
Wealth and investment management
192.8
174.7
10 %
551.3
481.5
14 %
Total GTO Recurring revenues
488.3
464.1
5 %
1,428.4
1,311.4
9 %
Total Revenues
$ 1,953.6
$ 1,811.7
8 %
$ 5,256.9
$ 4,823.7
9 %
Revenues by Type
Recurring revenues
$ 1,288.1
$ 1,203.9
7 %
$ 3,335.7
$ 3,084.3
8 %
Event-driven revenues
72.7
52.7
38 %
277.0
240.3
15 %
Distribution revenues
592.8
555.0
7 %
1,644.2
1,499.0
10 %
Total Revenues
$ 1,953.6
$ 1,811.7
8 %
$ 5,256.9
$ 4,823.7
9 %
Amounts may not sum due to rounding.
Select Operating Metrics
(Unaudited)
In millions
Three Months Ended
March 31,
Nine Months Ended
March 31,
2026
2025
Change
2026
2025
Change
Closed sales (a)
$ 57.5
$ 71.2
(19 %)
$ 146.8
$ 174.3
(16 %)
Position Growth (b)
Equity positions
15 %
15 %
16 %
13 %
Equity revenue positions
11 %
11 %
11 %
N/A
Mutual fund / ETF positions
6 %
6 %
7 %
6 %
Internal Trade Growth (c)
16 %
14 %
15 %
13 %
Amounts may not sum due to rounding.
(a) Refer to the “Results of Operations” section of Broadridge’s Form 10-Q for a description of Closed sales and its calculation.
(b) Position Growth is comprised of “equity position growth” and “mutual fund/ETF position growth.” Equity position growth measures the estimated annual change in positions eligible for equity proxy materials. Beginning in the fourth quarter of fiscal year 2025, the Company began presenting information on “equity revenue position growth”. Equity revenue position growth excludes small or fractional equity positions for which the Company does not recognize revenue (“non-revenue positions”). Prior-year period comparative information for this metric is not available. Mutual fund/ETF position growth measures the estimated change in mutual fund and exchange traded fund positions eligible for interim communications. These metrics are calculated from equity proxy and mutual fund/ETF position data reported to Broadridge for the same issuers or funds in both the current and prior year periods.
(c) Represents the estimated change in daily average trade volumes for clients whose contracts are linked to trade volumes and who were on Broadridge’s trading platforms in both the current and prior year periods.
Reconciliation of Non-GAAP to GAAP Measures
(Unaudited)
In millions, except per share amounts
Three Months Ended
March 31,
Nine Months Ended
March 31,
2026
2025
2026
2025
Reconciliation of Adjusted Operating Income
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 %
Reconciliation of Adjusted Net earnings
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
Reconciliation of Adjusted EPS
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. Costs incurred are not reflected in segment profit and are recorded within Corporate and Other. The total estimated pre-tax costs for actions and associated costs related to the closure were approximately $20 million and were completed in the third quarter of fiscal year 2026.
(b) Calculated using the GAAP effective tax rate, adjusted to exclude $0.1 million and $2.4 million of excess tax benefits associated with stock-based compensation for the three and nine months ended March 31, 2026, respectively and $5.2 million and $11.5 million of excess tax benefits associated with stock-based compensation for the three and nine months ended March 31, 2025, respectively. For purposes of calculating the Adjusted earnings per share, the same adjustments were made on a per share basis.
Nine Months Ended
March 31,
2026
2025
Reconciliation of Free cash flow
Net cash flows from operating activities (GAAP)
$ 668.2
$ 471.6
Capital expenditures and Software purchases and capitalized internal use software
(77.3)
(78.5)
Free cash flow (Non-GAAP)
$ 590.9
$ 393.2
Reconciliation of Recurring Revenue Growth Constant Currency
Three Months Ended March 31, 2026
Investor Communication Solutions
Regulatory
Data-
Driven
Fund
Solutions
Issuer
Customer
Comms.
Total
Recurring revenue growth (GAAP)
9 %
9 %
8 %
5 %
8 %
Impact of foreign currency exchange
0 %
(1 %)
0 %
0 %
0 %
Recurring revenue growth constant
currency (Non-GAAP)
9 %
8 %
8 %
5 %
8 %
Three Months Ended March 31, 2026
Global Technology and Operations
Capital Markets
Wealth and
Investment
Management
Total
Recurring revenue growth (GAAP)
2 %
10 %
5 %
Impact of foreign currency exchange
(2 %)
(3 %)
(3 %)
Recurring revenue growth constant
currency (Non-GAAP)
(0 %)
8 %
3 %
Three Months Ended
March 31, 2026
Consolidated
Total
Recurring revenue growth (GAAP)
7 %
Impact of foreign currency exchange
(1 %)
Recurring revenue growth constant currency (Non-GAAP)
6 %
Nine Months Ended March 31, 2026
Investor Communication Solutions
Regulatory
Data-
Driven
Fund
Solutions
Issuer
Customer
Comms.
Total
Recurring revenue growth (GAAP)
10 %
4 %
7 %
6 %
8 %
Impact of foreign currency exchange
0 %
(1 %)
0 %
0 %
0 %
Recurring revenue growth constant
currency (Non-GAAP)
10 %
3 %
7 %
6 %
7 %
Nine Months Ended March 31, 2026
Global Technology and Operations
Capital Markets
Wealth and
Investment
Management
Total
Recurring revenue growth (GAAP)
6 %
14 %
9 %
Impact of foreign currency exchange
(2 %)
(1 %)
(2 %)
Recurring revenue growth constant
currency (Non-GAAP)
4 %
13 %
7 %
Nine Months Ended
March 31, 2026
Consolidated
Total
Recurring revenue growth (GAAP)
8 %
Impact of foreign currency exchange
(1 %)
Recurring revenue growth constant currency (Non-GAAP)
7 %
Amounts may not sum due to rounding.
Fiscal Year 2026 Guidance
Reconciliation of Non-GAAP to GAAP Measures
Adjusted Earnings Per Share Growth and Adjusted Operating Income Margin
(Unaudited)
FY26 Recurring revenue growth
Impact of foreign currency exchange (a)
(1%) – 0%
Recurring revenue growth constant currency (Non-GAAP)
7 %
FY26 Adjusted Operating income margin (b)
Operating income margin % (GAAP)
17 – 19%
Adjusted Operating income margin % (Non-GAAP)
20 – 21%
FY26 Adjusted earnings per share growth rate (c)
Diluted earnings per share (GAAP)
32 – 36% growth
Adjusted earnings per share (Non-GAAP)
10 – 12% growth
(a) Based on forward rates as of April 2026.
(b) Adjusted Operating income margin guidance (Non-GAAP) is adjusted to exclude the approximately $6 million impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, Restructuring and Other Related Costs and Gains or Losses on Digital Assets.
(c) Adjusted earnings per share growth guidance (Non-GAAP) is adjusted to exclude the approximately $0.04 per share impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, Restructuring and Other Related Costs, and Gains or Losses on Digital Assets, and is calculated using diluted shares outstanding.
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SOURCE Broadridge Financial Solutions, Inc.
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In HelloNation, Senior Living Experts Rusty and Kelly Ackerman Explain What Families Should Ask a Senior Living Community
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April 30, 2026By
TRAVERSE CITY, Mich., April 30, 2026 /PRNewswire/ — The article outlines how thoughtful questions reveal care quality, communication practices, and daily life in senior living communities.
What should families focus on when evaluating a senior living community beyond first impressions? HelloNation has released an article that provides clear guidance on how to approach this decision with confidence and clarity.
The article features insights from Senior Living Experts Rusty and Kelly Ackerman of French Manor Assisted Living in Traverse City, Michigan, and highlights how asking the right questions during a senior living community tour can reveal how care and daily life truly function.
The HelloNation article explains that while appearance and atmosphere matter, the most meaningful insights come from asking the right questions. Families who take a thoughtful approach during a senior living community tour can better understand how care, communication, and daily routines operate behind the scenes.
One of the most important areas discussed is how personalized care plans are developed and maintained. The article describes how communities assess individual needs and adjust care over time. It notes that asking about evaluation frequency and how changes in health or mobility are handled gives families a clearer understanding of long-term support.
Communication is another central topic. The article emphasizes the importance of knowing who the main point of contact is and how updates are shared. Consistent communication helps families stay informed and builds trust between residents, staff, and loved ones.
Safety measures are addressed with a focus on specifics. The article encourages families to ask about emergency response times, monitoring systems, and protocols. These safety measures are essential for both urgent situations and everyday peace of mind.
Daily routines also provide valuable insight into community life. The article explains that families should ask what a typical day includes, from meals to activities and rest periods. Observing these routines during a senior living community tour helps determine whether the environment supports both structure and independence.
Staff training is another key factor highlighted in the article. It describes how onboarding and ongoing education prepare caregivers to meet a range of needs. Senior Living Experts note that well-trained staff contribute to consistent care and are better equipped to respond to changing situations.
The article also focuses on resident engagement. Asking about social opportunities, wellness programs, and group activities helps families understand how residents stay connected and active. Strong resident engagement supports emotional well-being and fosters meaningful relationships.
Transitions are another important consideration. The article explains that families should ask how communities support new residents and those with increasing care needs. Understanding this process helps ensure continuity and reduces stress during periods of change.
In addition, the article discusses how feedback is gathered and used. Communities that hold meetings, conduct surveys, or encourage open communication tend to be more responsive. This approach supports a stable and supportive environment for residents and families alike.
Overall, the HelloNation article emphasizes that choosing a senior living community involves more than evaluating physical space. By focusing on personalized care plans, communication, safety measures, staff training, and resident engagement, families can make more informed decisions.
For readers seeking practical guidance, the article provides a clear framework for evaluating options through meaningful questions rather than surface impressions.
What Families Should Ask a Senior Living Community features insights from Rusty and Kelly Ackerman, Senior Living Experts of Traverse City, Michigan, in HelloNation.
About HelloNation
HelloNation is a premier media platform that connects readers with trusted professionals and businesses across various industries. Through its innovative “edvertising” approach that blends educational content with storytelling, HelloNation delivers expert-driven, good-news articles that inform, inspire, and empower. Covering topics from home improvement and health to business strategy and lifestyle, HelloNation highlights leaders making a meaningful impact in their communities.
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SOURCE HelloNation
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Suzano Selects Avondale Global Gateway as Gulf Coast Hub, Bringing Regular Wood Pulp Imports Back to Louisiana for First Time in More Than 30 Years
Published
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April 30, 2026By
Five-year agreement establishes Avondale Global Gateway as a key Gulf Coast terminal for Suzano’s growing North American operations
AVONDALE, La., April 30, 2026 /PRNewswire/ — Avondale Global Gateway (AGG) and Suzano today announced a five-year terminal services agreement that will bring regular wood pulp imports back to Louisiana for the first time in more than 30 years.
Under the agreement, AGG will serve as one of Suzano’s terminals in the Central Gulf Coast for their wood pulp shipments arriving from Brazil, to be distributed across North America by rail. The first vessel is scheduled to arrive at AGG in the first week of May this year.
The agreement marks a significant milestone for both Louisiana and Suzano, the world’s largest pulp supplier and one of Brazil’s biggest exporters which has been present in the American market for over 40 years. Suzano’s decision also aligns with its continued expansion in the region, including its 2024 acquisition of mills in Arkansas and North Carolina from Pactiv Evergreen. As part of its North American growth strategy, Suzano selected Avondale following a two-year evaluation process focused on logistics efficiency, infrastructure, and long-term scalability. The Avondale operation will support this strategy by creating a more centralized and efficient logistics footprint on the Gulf Coast.
“An efficient and resilient supply chain is essential to our business, and Avondale offers the combination of river access, rail connectivity, port infrastructure, and operational flexibility we were looking for,” said Juliana Vizintim, Operations Executive Manager at Suzano. “This partnership strengthens our Gulf Coast logistics platform and enhances supply assurance and efficiency for our customers across North America. At Suzano, we believe it is only good for us if it is good for the world, and we view this milestone as a foundation for long-term value creation—benefiting the local community, our business partners, and our customers. Suzano and Avondale share a common vision focused on collaboration, growth, and building a sustainable future together.”
To support the new operation, AGG has completed major upgrades to 245,000 square feet of warehouse space, including new concrete flooring, five additional loading doors, loading platforms, overhead awnings, and a laser fire detection and suppression system. These improvements were made specifically to meet Suzano’s operational requirements.
In parallel, a $13 million rail expansion is underway at Avondale, funded in part through Louisiana Economic Development’s FastSites program. Together with other site improvements, total investment tied to the Suzano operation is expected to exceed $20 million over time. The project is also expected to support 50 full-time jobs.
“Bringing wood pulp back to Louisiana is a major milestone,” said Adam Anderson, Chairman and CEO of T. Parker Host, parent company of Avondale Global Gateway. “This is new activity for the state, new jobs, and meaningful investment at Avondale. It reflects the kind of long-term industrial growth we believed this site could support and shows what’s possible when the right partner, infrastructure, and location come together.”
Rail service will play a central role in the operation, allowing cargo to move efficiently from vessel to warehouse to inland destinations across the United States. AGG worked closely with Union Pacific to align infrastructure and service capacity ahead of launch.
Since T. Parker Host acquired the former Avondale Shipyard in 2018, the 275-acre site has been steadily redeveloped into a multimodal logistics hub. Today, Avondale supports more than 600 workers across site operations, tenants, and active construction.
About Avondale Global Gateway
Avondale Global Gateway is a multimodal logistics and terminal facility located on the Mississippi River in Jefferson Parish, Louisiana. Operated by T. Parker Host, the site offers deepwater dock access, large-scale warehousing, and Class I rail connectivity, supporting bulk and breakbulk cargo flows across North America. Learn more at www.avondaleglobalgateway.com
About Suzano
Suzano is the world’s largest pulp supplier, a major paper and packaging producer in the Americas, and one of Brazil’s largest employers.
Driven by a deep commitment to sustainability and innovation, Suzano produces responsibly grown raw materials that are exported to more than 100 countries, meeting global demand for bio-based solutions. These materials are used in everyday products that reach more than two billion people, including tissue, packaging, printing and writing paper, personal hygiene products, and textiles.
Founded in Brazil more than 100 years ago, Suzano operates across Latin America, North America, Europe, and Asia. The company’s shares are listed on B3 in São Paulo (SUZB3) and the New York Stock Exchange (SUZ). Learn more at suzano.com.br/en.
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SOURCE Avondale Global Gateway
Technology
Dolby Laboratories Reports Second Quarter 2026 Financial Results
Published
47 minutes agoon
April 30, 2026By
SAN FRANCISCO, April 30, 2026 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE: DLB) today announced the company’s financial results for the second quarter of fiscal 2026.
“We continue to strengthen our position and create growth opportunities across existing and new business areas,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “This quarter, we continued to expand our reach especially in sports with events like the Super Bowl, Winter Olympics and T20 Cricket World Cup available in Dolby and automotive with automakers including BMW and Lexus integrating Dolby into their in-car experiences.”
Second Quarter Fiscal 2026 Financial Highlights
Total revenue was $396 million, compared to $370 million for the second quarter of fiscal 2025.GAAP net income was $95 million or $0.99 per diluted share, compared to GAAP net income of $92 million or $0.94 per diluted share for the second quarter of fiscal 2025. On a non-GAAP basis, second quarter net income was $131 million or $1.37 per diluted share, compared to $131 million or $1.34 per diluted share for the second quarter of fiscal 2025.Dolby repurchased approximately one million shares of its common stock for approximately $65 million, and ended the quarter with approximately $142 million of stock repurchase authorization available going forward.
A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
Various sporting events were shown in Dolby Atmos and/or Dolby Vision including the Super Bowl, the 2026 Olympic Winter Games, and the ICC Men’s T20 Cricket World Cup. Apple TV is streaming Formula One in Dolby Vision.At the 2026 Beijing International Automotive Exhibition (Auto China 2026), BMW and Dolby announced the launch of Dolby Atmos in the new BMW 7 Series and the new BMW iX3 Long Wheelbase.Douyin, the Chinese version of TikTok, is fully supporting content in Dolby Vision.Hisense, TCL and Philips have announced plans to release a wide range of Dolby Vision 2 enabled TVs globally by the end of the year, with Peacock and Canal+ committed to delivering content.Sharp and SK Planet joined the Video Distribution Program, bringing the licensor total to 40.
Dividend
Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on May 20, 2026, to stockholders of record as of the close of business on May 12, 2026.
Financial Outlook
Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing herein due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2026, to be filed on or around the date hereof.
Dolby is providing the following estimates for its third quarter of fiscal 2026:
Total revenue is estimated to range from $295 million to $325 million.Licensing revenue is estimated to range from $270 million to $300 million. Gross margins are anticipated to be approximately 86% on a GAAP basis and approximately 88% on a non-GAAP basis.Operating expenses are anticipated to range from $235 million to $245 million on a GAAP basis and from $200 million to $210 million on a non-GAAP basis.Effective tax rate is anticipated to be around 23% on a GAAP basis and around 21% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.19 to $0.34 on a GAAP basis and from $0.56 to $0.71 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2026:
Total revenue is expected to range from $1.40 billion to $1.45 billion.Licensing revenue is estimated to range from $1.295 billion to $1.345 billion. Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $930 million to $950 million on a GAAP basis and from $780 million to $800 million on a non-GAAP basis.Dolby expects operating margins to be approximately 21% on a GAAP basis and to be approximately 34% on a non-GAAP basis.Effective tax rate is anticipated to be around 23% on a GAAP basis and around 20% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $2.66 to $2.81 on a GAAP basis and from $4.30 to $4.45 on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss second quarter fiscal 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, April 30, 2026.
The conference call can be accessed by registering online at Dolby Laboratories Q2 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.
A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.
Non-GAAP Financial Information
To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the third quarter of fiscal 2026 and full year fiscal 2026, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby
Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
March 27,
2026
March 28,
2025
March 27,
2026
March 28,
2025
Revenue:
Licensing
$ 372,245
$ 346,006
$ 692,016
$ 676,485
Products and services
23,385
23,555
50,320
50,075
Total revenue
395,630
369,561
742,336
726,560
Cost of revenue:
Cost of licensing
24,043
19,685
44,805
40,795
Cost of products and services
20,688
16,152
43,134
35,816
Total cost of revenue
44,731
35,837
87,939
76,611
Gross profit
350,899
333,724
654,397
649,949
Operating expenses:
Research and development
63,651
61,707
132,728
128,345
Sales and marketing
96,163
89,629
187,715
184,028
General and administrative
75,955
70,415
146,198
140,507
Restructuring charges
2,184
4,210
12,650
9,426
Total operating expenses
237,953
225,961
479,291
462,306
Operating income
112,946
107,763
175,106
187,643
Other income/(expense):
Interest income/(expense), net
5,024
3,559
9,142
6,205
Other income, net
1,729
8,928
7,053
12,453
Total other income
6,753
12,487
16,195
18,658
Income before income taxes
119,699
120,250
191,301
206,301
Provision for income taxes
(24,245)
(28,024)
(42,166)
(46,005)
Net income including noncontrolling interest
95,454
92,226
149,135
160,296
Less: net income attributable to noncontrolling interest
(539)
(433)
(893)
(681)
Net income attributable to Dolby Laboratories, Inc.
$ 94,915
$ 91,793
$ 148,242
$ 159,615
Net income per share:
Basic
$ 1.00
$ 0.95
$ 1.55
$ 1.66
Diluted
$ 0.99
$ 0.94
$ 1.54
$ 1.64
Weighted-average shares outstanding:
Basic
95,218
96,329
95,342
95,972
Diluted
95,515
97,471
96,273
97,581
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
March 27,
2026
September 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 594,282
$ 701,893
Restricted cash
79,523
91,468
Short-term investments
460
703
Accounts receivable, net
391,293
331,096
Contract assets, net
238,924
180,804
Inventories, net
31,929
30,424
Prepaid expenses and other current assets
78,298
51,873
Total current assets
1,414,709
1,388,261
Long-term investments
81,220
80,205
Property, plant, and equipment, net
461,841
470,608
Operating lease right-of-use assets
44,759
33,204
Goodwill and intangible assets, net
919,378
926,957
Deferred taxes
209,321
214,361
Other non-current assets
118,266
114,164
Total assets
$ 3,249,494
$ 3,227,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 20,688
$ 17,840
Accrued liabilities
405,200
369,256
Income taxes payable
15
8,928
Contract liabilities
38,837
31,382
Operating lease liabilities
9,866
10,384
Total current liabilities
474,606
437,790
Non-current contract liabilities
24,084
29,687
Non-current operating lease liabilities
39,826
28,494
Other non-current liabilities
83,846
99,843
Total liabilities
622,362
595,814
Stockholders’ equity:
Class A common stock
53
54
Class B common stock
40
40
Retained earnings
2,630,175
2,634,980
Accumulated other comprehensive loss
(12,276)
(12,517)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,617,992
2,622,557
Noncontrolling interest
9,140
9,389
Total stockholders’ equity
2,627,132
2,631,946
Total liabilities and stockholders’ equity
$ 3,249,494
$ 3,227,760
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year-To-Date Ended
March 27,
2026
March 28,
2025
Operating activities:
Net income including noncontrolling interest
$ 149,135
$ 160,296
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
48,242
43,899
Stock-based compensation
67,919
66,734
Amortization of operating lease right-of-use assets
5,417
5,725
Provision for credit losses
3,691
1,967
Deferred income taxes
5,212
(3,741)
Share of net income of equity method investees, net of cash distributions
(1,933)
(1,325)
Other non-cash items affecting net income
(1,741)
(443)
Changes in operating assets and liabilities:
Accounts receivable, net
(104,083)
(420)
Contract assets, net
(60,474)
(32,864)
Inventories
3,853
(1,155)
Operating lease right-of-use assets
(17,177)
(1,608)
Prepaid expenses and other assets
(33,842)
26,577
Accounts payable and accrued liabilities
82,873
27,267
Income taxes, net
(6,067)
5,906
Contract liabilities
7,478
3,282
Operating lease liabilities
11,029
(5,682)
Other non-current liabilities
(12,227)
(12,739)
Net cash provided by operating activities
147,305
281,676
Investing activities:
Proceeds from sales of marketable securities
—
15,911
Proceeds from sale of assets held for sale
—
16,881
Proceeds from sale of intangible assets
6,623
—
Purchases of property, plant, and equipment
(13,690)
(13,676)
Business combinations, net of cash and restricted cash acquired, and other related payments
—
(1,362)
Purchases of intangible assets
(37,775)
—
Net cash provided by/(used in) investing activities
(44,842)
17,754
Financing activities:
Proceeds from issuance of common stock
15,293
26,124
Repurchase of common stock
(135,004)
(49,999)
Payment of excise tax on repurchase of common stock
—
(261)
Payment of cash dividend
(68,674)
(63,377)
Distributions to noncontrolling interest
(1,106)
(981)
Shares repurchased for tax withholdings on vesting of restricted stock
(32,222)
(33,950)
Net cash used in financing activities
(221,713)
(122,444)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
(306)
(4,396)
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(119,556)
172,590
Cash, cash equivalents, and restricted cash at beginning of period
793,361
577,752
Cash, cash equivalents, and restricted cash at end of period
$ 673,805
$ 750,342
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
Market
March 27, 2026
March 28, 2025
March 27, 2026
March 28, 2025
Broadcast
$ 119,199
32 %
$ 94,249
27 %
$ 219,462
32 %
$ 210,011
31 %
Mobile
94,240
25 %
100,123
29 %
169,189
24 %
161,647
24 %
CE
40,949
11 %
38,140
11 %
86,551
13 %
87,597
13 %
PC
59,463
16 %
58,402
17 %
88,180
13 %
89,658
13 %
Other
58,394
16 %
55,092
16 %
128,634
18 %
127,572
19 %
Total licensing revenue
$ 372,245
100 %
$ 346,006
100 %
$ 692,016
100 %
$ 676,485
100 %
GAAP to Non-GAAP Reconciliations
(unaudited)
The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the
second quarters of fiscal 2026 and fiscal 2025:
Net income:
Fiscal Quarter Ended
(in thousands)
March 27,
2026
March 28,
2025
GAAP net income attributable to Dolby Laboratories, Inc.
$ 94,915
$ 91,793
Stock-based compensation (1)
30,708
30,664
Amortization of acquisition-related intangibles (2)
9,713
10,078
Restructuring charges
2,184
4,210
Income tax adjustments
(6,190)
(6,017)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 131,330
$ 130,728
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 424
$ 414
Research and development
9,807
9,043
Sales and marketing
10,216
10,640
General and administrative
10,261
10,567
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 6,589
$ 6,720
Cost of products and services
772
728
Sales and marketing
356
317
General and administrative
1,555
1,872
Other income, net
441
441
Diluted earnings per share:
Fiscal Quarter Ended
March 27,
2026
March 28,
2025
GAAP diluted earnings per share
$ 0.99
$ 0.94
Stock-based compensation
0.32
0.32
Amortization of acquisition-related intangibles
0.10
0.10
Restructuring charges
0.02
0.04
Income tax adjustments
(0.06)
(0.06)
Non-GAAP diluted earnings per share
$ 1.37
$ 1.34
Weighted-average shares outstanding – diluted (in thousands)
95,515
97,471
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the third quarter of
fiscal 2026 and full year fiscal 2026 included in this release:
Gross margin:
Q3 2026
Fiscal 2026
GAAP gross margin
86.0 %
88.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
1.9 %
1.9 %
Non-GAAP gross margin
88.0 %
90.0 %
Operating expenses (in millions):
Q3 2026
Fiscal 2026
GAAP operating expenses (low – high end of range)
$235 – $245
$930 – $950
Stock-based compensation
(32)
(128)
Amortization of acquisition-related intangibles
(3)
(9)
Restructuring charges
—
(13)
Non-GAAP operating expenses (low – high end of range)
$200 – $210
$780 – $800
Operating margin:
Fiscal 2026
GAAP operating margin
21% +/-
Stock-based compensation
9 %
Amortization of acquisition-related intangibles
3 %
Restructuring charges
1 %
Non-GAAP operating margin
34% +/-
Effective tax rate:
Q3 2026
Fiscal 2026
GAAP effective tax rate
23.0 %
23.0 %
Stock-based compensation (low – high end of range)
(2%) – 1%
(2%) – 0%
Amortization of acquisition-related intangibles (low – high end of range)
(1%) – 0%
(1%) – 0%
Non-GAAP effective tax rate
21.0 %
20.0 %
Diluted earnings per share:
Q3 2026
Fiscal 2026
Low
High
Low
High
GAAP diluted earnings per share (low – high end of range)
$ 0.19
$ 0.34
$ 2.66
$ 2.81
Stock-based compensation
0.34
0.34
1.34
1.34
Amortization of acquisition-related intangibles
0.11
0.11
0.43
0.43
Restructuring charges
—
—
0.13
0.13
Income tax adjustments
(0.08)
(0.08)
(0.26)
(0.26)
Non-GAAP diluted earnings per share (low – high end of range)
$ 0.56
$ 0.71
$ 4.30
$ 4.45
Weighted-average shares outstanding – diluted (in thousands)
95,000
95,000
95,700
95,700
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/dolby-laboratories-reports-second-quarter-2026-financial-results-302759263.html
SOURCE Dolby Laboratories, Inc.
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