Track market-moving stories before they get noisy

Key Takeaways Broadridge Financial's recurring revenues made up nearly 66% of total revenues in fiscal Q3 2026.BR is seeing growth in investor communications, equity positions and governance recurring revenues.BR expects the CQG acquisition and post-trade demand to strengthen institutional trading capabilities. Shares of Broadridge Financial Solutions, Inc. (BR - Free Report) have had a decent run over the past month. The stock has risen 5.7% compared with the industry’s 7.6% growth. The Zacks S&P 500 composite barely moved during the said time frame.

BR’s fourth-quarter fiscal 2026 earnings are expected to be up 5.6% year over year. Earnings for fiscal 2026 and 2027 are projected to rise 11.7% and 9.7% year over year, respectively. Revenues are expected to increase 7.7% in fiscal 2026 and 4.5% in fiscal 2027.

Factors That Bode Well for BRBroadridge Financial, a provider of investor communications and technology-driven solutions to banks, broker-dealers, asset managers and corporate issuers, benefits from a strong business model, backed by higher recurring fee revenues. A major portion of the total revenues is derived from recurring fees, driven by new client growth, internal expansion and acquisitions. During the third quarter of fiscal 2026, recurring revenues accounted for nearly 66% of total revenues. Management expects at least 7% recurring revenue growth on a constant-currency basis for fiscal 2026.

BR’s Investor Communication Solutions is also experiencing growth, aided by strong investor participation and continued growth in equity and mutual fund positions. The company reported that its Governance recurring revenues increased 8% year over year in the third quarter of fiscal 2026. Total equity position growth reached 15%, while revenue-generating equity positions increased 11% during the said time frame.

The Global Technology and Operations segment continues to perform well for the company. Strong demand for BR’s post-trade processing solutions and the recent acquisition of CQG, a leading provider of futures and options trading technology, are expected to boost Broadridge's institutional trading capabilities by adding execution management, algorithmic trading and market connectivity solutions.

The company has demonstrated a strong commitment to its shareholders through consistent dividend payments, despite the fluctuations in its cash position. BR paid dividends of $331 million, $368.2 million and $402.3 million in fiscal 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors.

Risks to WatchGlobal service providers operate in a fiercely competitive landscape. BR faces stiff competition from DST Systems Inc., investor communication and corporate governance solutions firms, brokerage firms and transfer agents across segments. This competition fuels innovation across the industry while driving pricing pressures. Ongoing technology investments increase the challenge of maintaining profitability while competing for growth.

BR is heavily exposed to the securities industry (including brokerages and asset managers). Any significant market downturn will negatively impact both the industry and the company's financial health.

BR had a current ratio of 0.94 at the end of the third quarter of fiscal 2026, lower than the industry's average of 1.9. A current ratio below 1 often suggests that a company may not be well positioned to meet its short-term obligations.

Broadridge Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to ConsiderA couple of better-ranked stocks in the Internet-Software industry are HubSpot, Inc. (HUBS - Free Report) and GitLab Inc. (GTLB - Free Report) .

HubSpot, Inc. sports a Zacks Rank #1 at present. It has a long-term earnings growth expectation of 20.8%. HUBS delivered a trailing four-quarter earnings surprise of 5%, on average.

GitLab also flaunts a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 5.8%. GTLB beat on earnings in each of the trailing four quarters, delivering an average surprise of 30.1%.

The milestone marks the expansion of Ondo – the leader in tokenized securities by total value – into the U.S. For the first time, U.S. listed securities – BlackRock's iShares Core S&P 500 (IVV) ETF and Micron (MU) shares – were tokenized by a third party on a public blockchain while staying within the existing U.S. regulatory and infrastructure framework Broadridge will enable holders of the tokenized securities to participate in proxy voting and receive regulatory disclosures, seamlessly providing token holders with the same protections and rights as holders of traditional securities Investors in securities tokenized by Ondo will have a common voting and shareholder communications platform and experience for synthetic and custodial tokenized securities leveraging Broadridge's ProxyVote.com platform , /PRNewswire/ -- Ondo Finance today announced the first live solution of third-party tokenized U.S. securities operating entirely within the existing regulatory perimeter in the U.S., in partnership with Broadridge Financial Solutions Inc., (NYSE: BR) to provide full voting rights for tokenized equity holders.

In its January 2026 statement on tokenized securities, the SEC described a custodial model in which a third party holds an issuer's securities and issues crypto assets representing a holder's entitlement to the underlying security. Ondo's launch of tokenized BlackRock iShares Core S&P 500 (IVV) ETF and Micron (MU) stock are the first production deployments of that model in the U.S.

Under this model, which closely follows the SEC's third-party custodial model, the underlying shares never leave the traditional U.S. regulated custody chain. Ondo's registered transfer agent mints corresponding tokens, backed 1:1 by those shares, which are issued on the Ethereum blockchain and held by regulated custodians. Each token holder will receive the same shareholder rights and protections as shareholders holding through U.S. brokerage accounts receive, including issuer communications and onchain proxy voting through Broadridge's ProxyVote.com platform.  Transfer restrictions are enforced by the participating broker-dealer, transfer agent, and custodian in accordance with existing regulatory requirements and practices, maintaining full regulatory compliance.

"Tokenized Securities in the U.S. are too often framed as a binary choice between competing models and tokenization providers. This is a false premise. Ondo has built the regulatory, product, and service infrastructure to support all major models within the United States. Today's milestone shows we can tokenize securities in ways that meet both market and regulatory requirements, for U.S. and global investors and provides a strong foundation for our expanding access to onchain investments for more U.S. investors," said Ian De Bode, CEO of Ondo Finance.

Today's announcement marks a major step forward for tokenized securities in the United States. Until now, tokenized securities have largely operated outside the U.S. or have required issuer sponsorship on an issuer-by-issuer basis. This model brings them inside the U.S. regulatory perimeter, with the underlying securities held in the same infrastructure that custodies U.S. securities today. This new structure shows how the benefits of tokenization can be attained while preserving the safeguards, recordkeeping, and market infrastructure that underpin U.S. capital markets.

"Tokenization will only scale when it delivers both innovation and investor confidence," said Doug DeSchutter, President of Broadridge's Investor Communication Solutions business. "By enabling proxy voting, issuer communications, and regulatory disclosures for Ondo's token holders, we're living up to our promise to empower investors and issuers by providing them with the full range of trusted governance capabilities for tokenized securities regardless of how assets are structured."

The launch is another milestone in realizing Broadridge's strategy to enable the adoption of tokenized securities by ensuring that they are supported by governance capabilities with the highest standards for auditability, accountability, and investor protection and comply with U.S. regulatory guidelines. Broadridge supports all models of tokenized securities, including issuer-listed models, synthetic tokenized securities issued outside the United States, and now, third-party tokenized shares within the U.S. by ensuring that investors get the critical communications they need to exercise their voting rights and stay informed about their investments.

About Ondo Finance

Ondo Finance is a blockchain-based technology company focused on tokenizing real-world assets and bringing institutional-quality financial products onchain. By bridging traditional finance and decentralized infrastructure, Ondo aims to make capital markets more accessible, transparent, and efficient.

The Global Markets platform for Ondo tokenized securities outside of the U.S. currently supports more than $1 billion in tokenized securities across 430+ tokenized stocks & ETFs. This launch expands Ondo's tokenization footprint into the U.S., to enable third-party issuance of tokenized security entitlements for major ETFs and stocks.

Oasis Pro TA, LLC, an SEC-registered transfer agent and indirect wholly owned subsidiary of Ondo Finance Inc., issues the tokenized security entitlements in the new model herein described. Such tokenization services are not a regulated activity of Oasis Pro TA, LLC.

About Broadridge's Tokenization Solutions

Broadridge enables onchain proxy voting and governance, digital asset infrastructure including post-trade, wallets and custody, and the scaling of digital asset capabilities across multiple asset classes. Through these innovations, Broadridge is helping financial institutions unlock the next era of digital asset investing.

Broadridge's Distributed Ledger Repo solution is the world's largest institutional platform for settling tokenized real assets. As tokenization gains momentum across financial services, Broadridge is meeting the complexity of operating across traditional and digital ecosystems with established scale, critical market knowledge, and technological expertise.

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 tokenized and traditional 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

SOURCE Ondo Finance