Good evening. Welcome to the Broadridge Fiscal 2025 Recap and Fiscal 2026 Outlook Call for Main Street Investors. I'm Edings Thibault, Broadridge's Head of Investor Relations and Corporate Communications, and I'm coming to you live from Broadridge's office in Midtown Manhattan. Thanks for joining us this evening. As we get started, I encourage you to download the accompanying slides within your portal, as I'll be referring to them today throughout my discussion. Let me start with a few required callouts. First, I'll be making forward-looking statements on today's call about Broadridge that involve risks. A summary of the risks that may impact our business can be found on Form 10-K and in a report on our website. Second, I'll be referring to several financial metrics which are different from those found in our reported or GAAP financial statements.
We believe that these non-GAAP measures provide our investors with a more complete understanding of Broadridge's underlying operating results. You can find an explanation of these measures and reconciliations to their comparable GAAP measures in the appendix to the presentation. In addition, please note that all mentions of recurring revenue growth rates are in constant currency. Last, all statements related to our Fiscal Year 2026 financial guidance and long-term financial objectives are as of August 5, 2025, and are not updated. Now, we have a full agenda today, so let's turn to the next slide to get started. I'm beginning on Slide 3, and I'm going to begin our review tonight, as I always do, with a quick overview of our business. After that, I'll provide a summary of our full-year results for Fiscal Year 2025 and our outlook for Fiscal 2026. Then we'll move to Q&A.
So let's begin on Slide 4. Today, Broadridge generates almost $7 billion in total revenue, two-thirds of which is recurring. That recurring revenue has grown at a 10% annualized growth rate, or CAGR, over the last 10 years, which in turn has driven a 13% Adjusted EPS, or adjusted earnings per share CAGR, over that same period. And that combination has resulted in an annualized total shareholder return, the combination of share price appreciation and dividend, of 18% each year over the past decade. Now, we have a unique business and network model. At the core of Broadridge's business is our unique network and business model. And Broadridge operates at the intersection of financial services. We serve nearly every broker-dealer in North America, which gives us a service relationship with every public company, asset manager, fund, and investor.
Our Governance platform plays a key role in powering corporate Governance, ensuring that investors get the critical communications they need to vote in annual meetings or better understand the performance and fees of the funds they own. Our network also gives us a web of relationships that we build on to drive additional services to fund companies, public companies, and others. Now, within that network, we have carved out three franchise businesses in Governance, Capital Markets, and Wealth and Investment Management, providing mission-critical services for our clients at scale. Now, what does scale mean? Our franchises process more than $7 billion regulatory and client communications each year. We enable the clearing and settlement of over $15 trillion of trades each day.
Essentially, we have become a trusted partner to our clients by focusing on the critical services that enable them to, one, operate in a compliant, resilient, efficient, and frictionless manner, and, two, to help them adapt to change by onboarding new technologies like AI, distributed ledger, and increasingly digital communications, and to address mega-trends like the democratization of investing and the acceleration of trading, and that's why we're excited about the long-term opportunity ahead, so for more on that, let's turn to Slide 6. Broadridge has a clear plan for long-term growth. It starts with our governance franchise, where we are driving the digitization and democratization of investing. In our capital markets business, we are simplifying trading and bringing innovation, and last, in our wealth and investment management franchise, we are modernizing wealth management.
Importantly, we're also leveraging the investments we have made earlier in our wealth platform to become a platform company. What does that mean? It means we're extending our common application layer to more products, adding OpenAI API architecture to more solutions, and adding more applications onto our common BRx data layer. These changes will allow Broadridge to scale faster, deliver value to clients more rapidly, and unlock additional value through data and AI. Let's now turn to our full-year results on Slide 7. First, Broadridge delivered another strong set of financial results in Fiscal 2025, including 7% recurring revenue growth and 11% adjusted EPS growth. Second, we're executing on our growth strategy that I just highlighted across each of our three franchises.
Third, we enter Fiscal 26 positioned to deliver another strong year of financial performance, keeping us on track to deliver, again, on the three-year top and bottom line objectives we shared at our last Investor Day. Finally, music to the ears, I think, of everyone on this call, we're translating execution and financial performance into shareholder value. That includes an 11% increase in our dividend to $3.90 per share, which means we've now raised our dividend every year since becoming a public company. That's 19 years now, with double-digit increases in 13 of the past 14 years. Let's turn now to a quick summary of our financials on Slide 8. As I just noted, Broadridge delivered strong financial results in Fiscal 25. Recurring revenue rose 7% constant currency to $4.5 billion. Adjusted operating income margin increased 50 basis points to 20.5%.
Adjusted EPS grew 11% to $8.55. Finally, we delivered closed sales of $288 million. Next, let's take a look at what drove those headline results, starting with our governance business on Slide 9. In our governance business, we're driving the democratization and digitization of investing. ICS recurring revenues rose 6% to $2.7 billion, driven in no small part by the democratization of investing and our focus on driving digitization. Investor participation is a key driver of our governance growth, as we're paid for each shareholder position across both equities and funds. In Fiscal 2025, the number of equity shareholder positions rose 16%. Managed accounts were a key driver of this growth, as investors continue to embrace strategies where their financial advisors are putting them in portfolios holding 40-50 public companies or more.
Self-directed accounts, where investors control their own investments, are also driving growth in equity positions. Mutual fund and ETF position growth was also strong, growing 7%, driven by demand for passive funds. Beyond position growth, Broadridge is bringing greater democratization to fund investing by making it easier than ever for investors to have a voice in the governance of the funds they own. Nearly 400 funds, managing a total of $1.8 trillion, now offer a Broadridge Voting Choice solution to their shareholders, and that's up from 100 funds at the end of Fiscal 2024 and only eight funds two years ago. We're also working with funds in Europe to lower their registration and disclosure expenses. The acquisition of Acolin, which we announced last month, will further accelerate these efforts.
Acolin will extend our capabilities on fund registration and compliance, deepen our role as an intermediary between distributors and funds, and enhance the quality and scope of our fund data. Finally, our print-to-digital strategy is driving digitization and customer communications, and we reported a third consecutive year of double-digit growth in digital revenue. We've rolled out our Wealth In Focus solution to more than 6 million wealth management accounts to date, and we'll be adding a million more in the coming quarters. Let's turn now to our capital markets business on Slide 10. We continue to simplify and innovate across the trade lifecycle and capital markets, where fiscal 2025 revenues grew 6% to $1.1 billion. We're seeing strong demand for our trade processing solutions, driven by our clients' need for scalability and global interoperability. In addition, our platform seamlessly handled record trade volumes as market volatility soared last spring.
In the front office, our NYFIX trade routing solution is seamlessly delivering multi-asset class connectivity to almost 2,000 buy and sell-side clients around the world, empowering tens of millions of trades every day, and our order management solution is helping our clients automate complex, high- and low-touch trading processes for a growing number of clients. We're also driving innovation. Our OpsGPT solution, which marries agentic AI with our expertise in operations, is drawing strong interest from clients looking to optimize their back-office processes in a world of faster settlement times and extended trading hours. Finally, tokenization is clearly a hot topic in markets today. There's real momentum around speeding trade settlement times and reducing liquidity requirements across multiple asset classes by tokenizing real assets, and that's driving strong demand for Broadridge's Distributed Ledger Repo solution, which is the largest trading platform for tokenized real assets in the world.
Daily average trading volumes rose above $200 billion in June, up from $100 billion a few months ago and nearly five times the size of any other platform. It's a great example of how Broadridge can bring to bear deep domain knowledge and modern technology to drive innovation at scale for our clients. Turning now to our wealth franchise, where we are modernizing wealth management on the next slide. Wealth and investment management recurring revenues grew 12% in Fiscal 2025 to $661 million. Importantly, our wealth platform continues to gain momentum in the marketplace. After closing a sale with a leading U.S. wealth manager to modernize a set of in-house solutions in the third quarter, we closed another significant U.S. sale in the fourth quarter, this time displacing a longtime competitor.
In Canada, the acquisition of SIS last fall has allowed us to accelerate our efforts to bring new capabilities to market, and those efforts were rewarded in the fourth quarter as we closed our first wealth platform sale with a leading Canadian wealth manager, who will be using our advisor platform to modernize and enhance key elements of their front office. We're also seeing strong demand for Sentry, our market-leading private credit solution, including a sale to one of the leading alternative managers in the fourth quarter. Let me now spend a brief moment on sales. Our execution across governance, capital markets, and wealth and investment management is driving our sales. I'm especially pleased to see growing sales from our new products.
In ICS, we're benefiting from our efforts to increase investor engagement with new voting choice solutions for funds, our investment in digital omnichannel solutions, and our AI-enabled data solutions. And in GTO, we're seeing growing sales of our Wealth Platform, Distributed Ledger Repo network, and our global post-trade solutions. As we look ahead, we have a robust pipeline, which positions us to deliver another strong sales year in Fiscal 2026. And that strong demand for our innovative solutions makes it clear that our clients increasingly see Broadridge as a trusted and transformative partner as they modernize and adapt their business. Turning to our capital deployment on Slide 12, Broadridge is using your capital effectively and efficiently. Our priorities are to invest internally, maintain an investment-grade credit rating, continue to pay a growing dividend that is in line with earnings growth, pursue strategic M&A, and evaluate share repurchases.
In Fiscal 25, we returned $402 million in capital to shareholders through our dividend. We just announced our 19th consecutive dividend increase for Fiscal 26. We were able to do this while still delivering on the remainder of our capital allocation priorities, which include making internal investments in our business, investing almost $200 million in tuck-in M&A, mostly for the SIS business in Canada, and repurchasing about $100 million of Broadridge shares. Let's wrap up now with the guidance on Slide 13. During last month's earnings call, we announced Fiscal 26 guidance that included 5%-7% recurring revenue growth constant currency, 8%-12% adjusted EPS growth, and closed sales of $290 million-$320 million. That's another strong set of—that's an outlook for another strong year. Let me wrap on the final slide with a set of simple messages.
One, we delivered strong results in Fiscal 2025 and are positioned for another strong year in Fiscal 2026. Two, we're executing on our growth strategy across each of our franchise businesses. Three, and last, Broadridge remains well-positioned for long-term growth. We have become a trusted and transformative partner for our clients in helping them navigate change and grow their businesses. That's a great place to be. So that concludes my prepared remarks. So let me explain how our Q&A session will work. All shareholders who are given a shareholder registration number on their invitation may submit questions electronically through our portal. Your submission will come to me with your name and shareholder registration number, and I'll answer as many questions as time allows.
If you're not a shareholder or became a shareholder after July 21st, 2025, then you are on this call in listen-only mode, and you can always contact our investor relations team with questions after the event. Now, please allow a moment for me to load up the questions here. Terrific. I think I see the questions loading now. So why don't we go to the first one? Oh, boy, I probably would have won this bet. Great. Great question. Please recap for us how blockchain technology is being utilized at Broadridge, and will Broadridge benefit in any way from the tokenization of everything in the future? That's a tremendous question. I think it's important, as I start to think about answering this question, to really distinguish between digital assets on one hand and tokenized securities on the other. It's too easy to blend these together.
And if you think about stablecoin, there's been a lot of focus on stablecoin and some recent laws and other regulations passed. Stablecoin is really in the middle of those two assets because it's not really a tokenized treasury, but it is backed by treasuries and will be a strong vehicle for real-time cash settlement. But digital assets, which are really those assets created on the chain, primarily coins today, our wealth management clients historically have been reluctant to offer these, but they're now starting to get on board with that change. And you're seeing the regulatory push helping to make that environment much more clear. Our opportunity at Broadridge is really to help our wealth clients offer these digital assets to their clients, and especially to connect them to traditional capabilities like statements, tax, margin, risk, and other needs. So think about it.
This is an asset in a portfolio. How do you incorporate that asset into your total portfolio and all of the reporting that wealth managers make to you as an investor around those assets? And it's really, when we think about that, digital assets are really just another leg of the democratization of investing. They're another asset class, like equities, like funds, like arguably private assets that are potentially going to be able to be offered to retail investors. And that's pretty exciting for us. But, and then I think in the long run, there's really some questions about what kind of disclosure regime should accompany those digital assets. What do investors need to know about the digital assets in their portfolio? Is there a consistent approach to helping them better understand these?
Again, that's not in place today, but it's certainly not out of the realm of possibility that as these assets become more widely adopted, you'll begin to see more pressure around a disclosure regime. And obviously, Broadridge has actually developed a product to help address this need, and we've signed clients over the past 12 months. So we think we're well-positioned as the disclosure opportunity unfolds. So that's digital assets. Separately, we think tokenization of real securities and funds will be a mega trend over the next 10 years because it's really about driving the speed and cost advantages relative to other forms of trading. And really, this is a part of the long-term trend towards the acceleration of trading. We've seen trading settlement times over the last decades go from five days to three days to two days. Last year in the U.S., they went to one day.
We think they're going to one day in Europe soon, and that'll be pretty constant around the world. Effectively, tokenization and the trading of assets on the chain will be a great way to take some of those asset classes from T+1, a one-day settlement time, to T+0, which is effectively instantaneous or more like near-instantaneous settlement. The great news there is Broadridge is really well-positioned in that market. Our Distributed Ledger Repo platform, which I referenced earlier, we've been investing in that for nearly 10 years, and we're the clear market leader. As I noted earlier, in June, we processed $200 billion per day in Distributed Ledger repos, which is more than the entire crypto market outside of Tether. It's already the leading trading platform for tokenized real assets in the world.
So we think we're really well-positioned to play a role as the trading environment moves towards something closer to T+0. But ultimately, this is really about the bridging of digital finance, DeFi, to the existing market structure for both digital assets as well as tokenized assets. And given where Broadridge sits at that intersection of brokers, asset managers, and public companies, we think we have actually a natural position to help connect digital assets and tokenized securities to our clients' traditional infrastructure. And we're updating all of our platforms to represent such assets. So we really see this as a long-term opportunity for Broadridge. Okay. What is the difference between event-driven revenue and recurring revenue? Great. Always appreciate an opportunity to help educate our shareholders about some of the inside baseball of Broadridge.
When we think about event-driven revenue and recurring revenue, event-driven revenue represents revenues we gain from a series of activities that don't take place every year. A classic example of that would be a mutual fund proxy. Unlike public companies, which are required to have an annual meeting every year and have annual voting for their securities, for mutual funds, mutual funds do not have annual reelections of their boards of directors. Those elections happen every five to seven years. As a result, there can be several reminders attached to that. That's a classic example of a revenue-generating activity for Broadridge that doesn't happen annually.
We'd like to separate it from our recurring revenues to help investors have a better understanding of the recurring annualized growth trends in the company, as opposed to those more episodic activities, which can be very attractive for us and are an important part of our value proposition, but perhaps would distract investors from the year-on-year growth trends that we see really driving the long-term growth of the company. That's our answer for agenda driven. Thank you for asking me. Next question. Okay. Can you remind me what the position growth looks like for Fiscal 2026? Forward-looking questions. Love it. I think when you think about position growth, we're clearly excited about the long-term trends here around growing and around investor participation. Position growth remains strong in Fiscal 2025, and we continue to see really driven by the underlying drivers of democratization.
When you think about equity position growth, equity position growth overall for the year was 16%. Now, when we look underneath the surface for positions for which we can charge revenue, that number was a little bit lower. It was 12%. Still very strong on a historical basis and at the high end of the historical mid to high single-digit growth rate for equity positions over that time. Fund growth, and again, we're still talking about Fiscal 2025, fund growth was also solid at 7% overall. Again, right in the sweet spot of that mid to high single-digit long-term growth trend.
So that gives us a lot of confidence in the long-term growth drivers underpinning demand for both funds and equities, which we really think is an outcome of the democratization investing, which puts more opens the markets to more investors and enables those investors to tap into a growing array of financial opportunities. The second element here is really 26. So as we look ahead, we're coming off a strong Fiscal 25. What do we see for Fiscal 26? I think we continue to see our testing, which extends about six months in time, continues to show very strong growth for equity positions. We're seeing our testing showing low double-digit growth for equity positions, which we think when you parse through the revenue positions, is going to translate into high single-digit growth for revenue positions over the first half of the year for equities.
For funds, we continue to see mid-single-digit growth in the number of fund positions. So the bottom line here, we're coming off a strong Fiscal 2025 with growth rates at or above the high end of the mid to high single-digit growth range for both of those securities. We expect another year of similar growth, at least in the first half of the year where we have strong visibility. And that visibility, again, gives us confidence in the long-term trends. Mid to high single-digit growth in the number of positions is what's built into our forecast really for 2026, but also something probably as we think ahead, that's kind of the growth we think we'll continue to see here. Okay. Besides dividends, what other investments did Broadridge make in Fiscal 2025? Great.
So I talked earlier about our balanced capital allocation strategy, and it's important to remember that really sits as an important pillar in how Broadridge deploys capital. And really, as I said in my remarks, we see this as your capital. The cash flow we generate is really our shareholders' capital, and we're very careful with how we deploy that capital over time. And the core principles we use are a commitment to balanced capital allocation. That starts with maintaining our investment-grade credit rating, funding internal investments that drive our long-term growth. Then we pay a strong dividend. And as you pointed out and buried in your question, was that 11% announced dividend growth in Fiscal 2026? And I think I'm obligated to remind you once again, that's the 13th double-digit increase in the last 14 years. We've increased our dividend every year since we've become a public company.
That's 19 years, so those two great callouts I want to repeat again, but after our dividend, we'd like to use our capital to pursue attractive M&A, where we really think we're the right owner and we can generate both strong strategic synergies for us that make our business better, but also very attractive financial returns that are in excess of our cost of capital, and then finally, if we can't find that M&A, we're more than happy to repurchase Broadridge shares because we're going to keep a disciplined capital structure and disciplined balance sheet, so it starts with investment-grade credit, then you go to funding our internal investments, then it goes to paying that strong and growing dividend, and then M&A and buyback shares. In Fiscal 2025, we did all of the above. We funded internal investments to drive our growth.
Internally, we funded those investments in things like AI, our platform strategy, other key growth driving digitization, and other growth initiatives. We also use them to fund the continued growth of our platform, our client onboarding, which was $12 million. Clearly paid that strong and growing dividend, more than $400 million in dividend payments over the year. Then we also accomplished strategic tuck and M&A. Recall that we acquired SIS, which is a Canadian wealth management technology company we used to strengthen our business in Canada and position us to bring more products to the Canadian market. That was about $200 million between SIS and some other small acquisitions. And then finally, on top of that, we repurchased $100 million of our shares. So a great example of balanced capital allocation at work at Broadridge. Next question. Okay.
What have been the broad drivers of Broadridge's performance over the long run? Well, where to start on that? I think ultimately the biggest driver of our growth historically has been sales. I think I could talk a lot about value proposition, but the biggest financial driver of our business is really close sales. Broadridge is very focused on how we offer more value to our clients every year and how we capture that in the form of stronger sales. And historically, revenue from sales, which is revenue that we recognize in a year from sales that we made either in prior years or in that years, contributes about six points to our growth. So if our typical growth year like Fiscal 2026 is 5%-7% growth, revenue from new sales would represent about six points of that growth or 6%. We would then expect a high retention rate.
Broadridge has historically had a 97-98% retention rate. So think of that as negative 2% or negative 3%. So you're thinking at this point, we are anywhere from 3%-4% growth. And then on top of that, we have the drivers of what we call internal growth. And the biggest driver of internal growth for Broadridge historically is position growth. So as we grow the number of positions, that drives our revenue, and that contributes to 1-2 points from internal growth along with a bunch of different other factors. So the key driver and the single biggest driver of that 5%-7% growth outlook for fiscal 2026 is the revenue we expect from closed sales. And it's important for you as a shareholder to know our confidence in that outlook for those sales is really grounded in our strong backlog.
We exited the year with a $430 million backlog. It's $430 million of services we've sold to clients, but haven't yet recognized. We expect we'll recognize the bulk of those revenues over Fiscal 26 and Fiscal 27. $430 million backlog equivalent to about 10% of our current year recurring revenue. That gives us great visibility into the biggest driver of our expected revenue growth in Fiscal 26. All right. Let's think about that. I think we are running out of time here this evening, so I want to go to a callout. Let me wrap up with a few key thoughts for you at the end of this evening. First, thank you very much. We appreciate your continued participation and engagement on these calls. We value your ownership, and we appreciate you taking the time to better understand our company.
Remember that you can contact Broadridge's investor relations team at any time with questions about our business. I hope you've heard tonight that we believe Broadridge is well-positioned to help transform the financial services industry and has a long runway for continued growth. But most importantly, remember that your voice matters. I encourage you, all of you, to be engaged in the governance of the companies you own and the funds that you're invested in. Download the ProxyVote app on your phone, vote your proxy, respond to surveys asking you for your views on how funds should vote. I say this every quarter. I urge all of you to be an owner of your investments and not a renter. Now, thank you again for your interest and investment in Broadridge. Stay dry out there if you're in the New York area, and have a wonderful evening.