BR · 10-K · 2026A · Full report
Operating Expense Trends
BROADRIDGE FINANCIAL SOLUTIONS, INC. · 2026-08-04 · Importance 49 · Surprise 32 · No source text
Total operating expenses increased $475.7 million, or 8%, to $6,176.2 million in fiscal 2026. Cost of revenues increased $348.4 million, primarily because of approximately $176.7 million of higher postage and distribution costs in Investor Communication Solutions, along with higher labor, technology, and acquisition-related expenses. Selling, general and administrative expense increased $127.2 million, or 13%, to $1,075.5 million, driven by higher labor and compensation-related expenses and higher investment expenses. Investor Communication Solutions operating expenses increased 10%, or $398.3 million, due to distribution expenses, other volume-related expenses, and acquisitions.
Key facts
- Investor Communication Solutions operating expenses rose 10%, or $398.3 million to $4,457.3 million, driven by distribution expenses, other volume-related expenses and impact of acquisitions. source
- Total operating expenses for fiscal year ended June 30, 2026: $6,176.2 million, an increase of $475.7 million, or 8%, from $5,700.6 million. source
- Amortization of acquired intangibles and purchased intellectual property: $203.6 million in fiscal year 2026 (Investor Communication Solutions $42.7 million; Global Technology and Operations $160.9 million). source
- Cost of revenues for fiscal year ended June 30, 2026: $5,100.7 million, up $348.4 million from $4,752.3 million. source
- Selling, general and administrative expenses for fiscal year ended June 30, 2026: $1,075.5 million, up $127.2 million from $948.2 million. source
- Goodwill as of June 30, 2026: $3,787.8 million. source
- Refer to Note 2, “Summary of Significant Accounting Policies” for a discussion on the impact of the adoption of new accounting pronouncements. source
- A hypothetical change of five percentage points in the volatility assumption for fiscal year 2026 stock option grants would result in an approximate $4.0 million change in total pre-tax stock-based compensation expense for the fiscal year 2026 grants. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.3% | Investor Communication Solutions operating expenses rose 10%, or $398.3 million to $4,457.3 million, driven by distribution expenses,… |
| operating_income | negative | realized | -4.7% | Cost of revenues for fiscal year ended June 30, 2026: $5,100.7 million, up $348.4 million from $4,752.3 million. |
| operating_income | positive | realized | +1.5% | Total operating expenses for fiscal year ended June 30, 2026: $6,176.2 million, an increase of $475.7 million, or 8%, from $5,700.6 million. |
| operating_income | negative | realized | — | Amortization of acquired intangibles and purchased intellectual property: $203.6 million in fiscal year 2026 (Investor Communication… |