REVENUE RECOGNITION
Disaggregation of Revenue
The Company has presented below its revenue disaggregated by product line and by revenue type within each of its Investor Communication Solutions and Global Technology and Operations reportable segments.
Revenues in the Investor Communication Solutions segment are derived from both recurring and event-driven activity. In addition, the level of recurring and event-driven activity the Company processes directly impacts Distribution revenues. While event-driven activity is highly repeatable, it may not recur on an annual basis. Event-driven revenues are based on the number of special events and corporate transactions the Company processes. Event-driven activity is impacted by financial market conditions and changes in regulatory compliance requirements, resulting in fluctuations in the timing and levels of event-driven revenues. Distribution revenues primarily include revenues related to the physical mailing and distribution of proxy materials, interim communications, transaction reporting, customer communications and fulfillment services, as well as Broadridge Retirement and Workplace administrative services.
| | | | | | | | | | | | | | | | | |
| Years ended June 30, |
| | 2025 | | 2024 | | 2023 |
| (in millions) |
| Investor Communication Solutions | | | | | |
| Regulatory | $ | 1,280.6 | | | $ | 1,195.6 | | | $ | 1,141.4 | |
| Data-driven fund solutions | 459.2 | | | 435.2 | | | 404.3 | |
| Issuer | 273.2 | | | 259.8 | | | 242.6 | |
| Customer communications | 718.8 | | | 683.1 | | | 673.1 | |
| Total ICS Recurring revenues | 2,731.8 | | | 2,573.6 | | | 2,461.4 | |
| | | | | |
| Equity and other | 115.5 | | | 151.0 | | | 116.5 | |
| Mutual funds | 203.8 | | | 134.2 | | | 94.5 | |
| Total ICS Event-driven revenues | 319.3 | | | 285.2 | | | 211.0 | |
| | | | | |
| Distribution revenues | 2,062.0 | | | 1,999.0 | | | 1,863.1 | |
| | | | | |
| Total ICS Revenues | $ | 5,113.0 | | | $ | 4,857.9 | | | $ | 4,535.6 | |
| | | | | |
| Global Technology and Operations | | | | | |
| Capital markets | $ | 1,115.3 | | | $ | 1,049.2 | | | $ | 965.2 | |
| Wealth and investment management | 660.8 | | | 599.7 | | | 560.1 | |
| Total GTO Recurring revenues | 1,776.1 | | | 1,648.9 | | | 1,525.2 | |
| | | | | |
| Total Revenues | $ | 6,889.1 | | | $ | 6,506.8 | | | $ | 6,060.9 | |
| | | | | |
| Revenues by Type | | | | | |
| Recurring revenues | $ | 4,507.9 | | | $ | 4,222.6 | | | $ | 3,986.7 | |
| Event-driven revenues | 319.3 | | | 285.2 | | | 211.0 | |
| Distribution revenues | 2,062.0 | | | 1,999.0 | | | 1,863.1 | |
| Total Revenues | $ | 6,889.1 | | | $ | 6,506.8 | | | $ | 6,060.9 | |
Contract Balances
The following table provides information about contract assets and liabilities:
| | | | | | | | | | | | | | | | | |
| June 30,
2025 | | June 30,
2024 | | June 30,
2023 |
| (in millions) |
| Contract assets | $ | 137.5 | | | $ | 125.3 | | | $ | 109.1 | |
| Contract liabilities | $ | 678.3 | | | $ | 696.6 | | | $ | 692.6 | |
Contract assets result from revenue already recognized but not yet invoiced, including certain future amounts to be collected under software term licenses and certain other client contracts. Contract liabilities represent consideration received or receivable from clients before the transfer of control occurs (deferred revenue). Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.
During the fiscal year ended June 30, 2025, contract assets increased primarily due to a difference between the timing of billing and the revenue recognition of software term license revenues, while contract liabilities decreased due to the timing of client invoices in relation to the timing of revenue recognized. During the fiscal year ended June 30, 2024, contract assets increased primarily due to a increase in software term license revenues and contract liabilities increased primarily due to the timing of client invoices in relation to the timing of revenue recognized. The Company recognized $288.4 million of revenue during the fiscal year ended June 30, 2025 that was included in the contract liability balance as of June 30, 2024. The Company recognized $249.4 million of revenue during the fiscal year ended June 30, 2024 that was included in the contract liability balance as of June 30, 2023. The Company recognized $236.5 million of revenue during fiscal year ended June 30, 2023 that was included in the contract liability balance as of June 30, 2022.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.