BR Q4 2026 - Preliminary Earnings Alert
Event: Quartr Q4 2026 event Retrieved: 2026-08-04T14:25:00Z Comparison mode: aggressive Scorecard contract: v1 Source status: release=available | financials=release document only | transcript=marked available, not yet read
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / total revenues | $2,220.0m | $2,170.6m | Beat +$49.4m | +2.3% |
| EPS / adjusted diluted (non-GAAP) | $3.82 | $3.76 | Beat +$0.06 | +1.6% |
Reported results and guidance
Fiscal fourth quarter ended 30 June 2026:
| Metric (GAAP unless noted) | Q4 FY2026 | Q4 FY2025 | Change |
|---|---|---|---|
| Total revenues | $2,220m | $2,065m | +7% |
| Recurring revenues | $1,542m | $1,424m | +8% |
| Event-driven revenues | $71m | $79m | −10% |
| Distribution revenues | $606m | $562m | +8% |
| Operating income | $546m | $499m | +10% |
| Operating margin | 24.6% | 24.1% | +0.5pp |
| Adjusted operating income (non-GAAP) | $598m | $558m | +7% |
| Adjusted operating margin (non-GAAP) | 26.9% | 27.0% | −0.1pp |
| Net earnings | $398m | $376m | +6% |
| Adjusted net earnings (non-GAAP) | $442m | $421m | +5% |
| Diluted EPS (GAAP) | $3.44 | $3.16 | +9% |
| Adjusted EPS (non-GAAP) | $3.82 | $3.55 | +8% |
| Effective tax rate | 23.7% | 20.6% | +3.1pp |
| Closed sales | $158m | $114m | +39% |
Fiscal year 2026:
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Total revenues | $7,477m | $6,889m | +9% |
| Recurring revenues | $4,878m | $4,508m | +8% |
| Operating income | $1,301m | $1,189m | +9% |
| Adjusted operating margin (non-GAAP) | 20.5% | 20.5% | flat |
| Diluted EPS (GAAP) | $9.60 | $7.10 | +35% |
| Adjusted EPS (non-GAAP) | $9.60 | $8.55 | +12% |
| Closed sales | $305m | $288m | +6% |
Fiscal 2027 guidance issued with the release:
| Metric | FY2027 guide | FY2026 actual |
|---|---|---|
| Recurring revenue growth, constant currency (non-GAAP) | 6–8% | 8% |
| Adjusted operating income margin (non-GAAP) | ~21% | 20.5% |
| Adjusted EPS growth (non-GAAP) | 8–12% | 12% |
| Free cash flow conversion (non-GAAP) | 100%+ | 110% |
| Closed sales | $290–330m | $305m |
- The board approved a 12% increase in the annual dividend to $4.36, the twentieth consecutive annual increase.
- Scorecard recap: revenue beat consensus by 2.3% ($2,220m vs. $2,170.6m) and adjusted diluted EPS beat by 1.6% ($3.82 vs. $3.76).
Key bullish aspects
- Both scorecard metrics beat, and the quarter completes a fifth consecutive three-year cycle in which management says it hit its recurring-revenue and adjusted-EPS growth objectives.
- Closed sales of $158m rose 39% year over year, the strongest single input to future recurring revenue, taking the full year to $305m.
- Recurring revenue grew 8% on both a reported and constant-currency basis, so growth is not currency-flattered.
- GTO earnings before income taxes nearly doubled to $68m from $34m, lifting that segment's pre-tax margin to 13.8% from 7.3%.
- ICS regulatory recurring revenue rose 14%, with equity revenue position growth of 14% and mutual fund/ETF position growth of 7%.
- Free cash flow conversion of 110% funded what the company describes as record share repurchases, alongside the 12% dividend increase.
Key bearish aspects
- Adjusted operating margin slipped to 26.9% from 27.0% in the quarter, so adjusted operating income growth (7%) trailed revenue growth (7%) on a margin basis and trailed recurring revenue growth (8%).
- Event-driven revenues fell 10% to $71m on lower mutual fund proxy revenue, an inherently volatile line the company does not guide.
- The effective tax rate rose to 23.7% from 20.6% on fewer discrete tax benefits, and the full-year rate rose to 22.2% from 20.7%.
- Corporate and Other loss before income taxes widened by $24m, including an $11m non-cash loss on digital assets and higher technology spending.
- GTO's Wealth and Investment Management recurring revenue rose only 1%, with higher trading volumes offset by a 4-point drag from lower software term license revenue.
- $32m of the $44m distribution revenue increase came from postage rate increases, which is pass-through rather than margin-accretive; the release notes distribution revenue mix and lower float income cost 40bp of full-year adjusted margin.
Key uncertainties
- FY2027 recurring revenue growth guidance of 6–8% constant currency sits below the 8% delivered in FY2026, and the release does not break out how much of the deceleration is organic versus acquisition-lapping.
- FY2026 GAAP diluted EPS of $9.60 rose 35% while adjusted EPS rose 12%, and the two converge at exactly $9.60 for the year; the release text does not explain the prior-year GAAP items that produce that convergence.
- The $11m non-cash loss on digital assets is a new item in Corporate and Other; the release does not disclose the size of the underlying digital-asset position or how it is marked.
- How much of the 39% closed-sales increase converts to recurring revenue and on what timeline is not disclosed in the release.
- The FY2027 adjusted operating margin guide of ~21% implies roughly 50bp of expansion; the release does not identify the drivers, and float income and distribution mix have been working against margin.
Market context
- API Ninjas snapshot: $174.66 on NYSE, volume 263,961, retrieved 2026-08-04T14:09:21Z (10:09 a.m. ET, roughly 39 minutes into the regular session). This is a single intraday quote, not a complete session or reaction measurement.
Source limitations
- Every actual above comes from the Quartr release document; Quartr standardized financials for this event are not yet populated. Prior-year quarterly figures for event-driven revenue, distribution revenue, net earnings, and adjusted net earnings are derived from the change amounts and percentages stated in the release.
- API Ninjas supplied no actual or difference fields for this event, so the beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
- The consensus EPS basis is inferred to be adjusted diluted from the provider's prior-year Q4 actual ($3.55, matching the company's adjusted EPS rather than the $3.16 GAAP figure); aggressive mode selects adjusted diluted EPS regardless.
- Quartr marks a transcript as available for this event but it has not been read for this preliminary report; a post-call update will follow.