BROADRIDGE FINANCIAL SOLUTIONS, INC.

Red flags

• The largest client accounted for approximately 7% of consolidated revenue in fiscal 2026; financial-sector consolidation could increase dependence on fewer customers or cause clients to insource services.
• Client conversion and onboarding costs represented approximately 9% of total assets at June 30, 2026, with one client representing a large portion; customer loss could require write-offs or accelerated amortization.
• Fixed minimum commitments under disclosed Kyndryl infrastructure agreements totaled approximately $551.1 million through 2029-2031, including $385.1 million under the main IT services agreement.
• Goodwill was $3.7878 billion at June 30, 2026, making adverse changes in reporting-unit economics potentially material to earnings.
• Proposed Regulation E-Delivery could reduce physically delivered communications and distribution revenue, potentially requiring restructuring of physical distribution operations.