SEI Reports First-Quarter 2025 Financial Results

, /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the first quarter 2025. Relative to the first quarter 2024, EPS increased by 18%, and revenue and operating income grew by 8% and 25%, respectively, with operating margins increasing to 28%. Consolidated Overview (In thousands, except earnings per share) For the Three MonthsEnded March 31, 2025 2024 % Revenues $551,344 $511,579 8 % Operating income 157,097 125,851 25 % Operating margin 28 % 25 % 12 % Net income 151,517 131,400 15 % Diluted earnings per share $1.17 $0.99 18 % "Building upon our strong momentum heading into 2025, our first-quarter results reflect another record quarter in net sales events, totaling $47 million and reinforcing our enterprise mindset and the evolution of our go-to-market strategy. Our business segments achieved higher operating profits and expanded margins—each contributing to our growth in the quarter," said CEO Ryan Hicke. "We've built our company and a resilient operating model to navigate market cycles, and we continue to engage with our clients to help them make informed, strategic decisions for long-term success. I'm confident in our team's ability to capitalize on market opportunities, execute our growth strategies, and maximize enterprise value for shareholders." Summary of First-Quarter Results by Business Segment (In thousands) For the Three MonthsEnded March 31, 2025 2024 % Investment Managers: Revenues $192,048 $172,653 11 % Expenses 117,211 109,550 7 % Operating Profit 74,837 63,103 19 % Operating Margin 39 % 37 % Private Banks: Revenues 137,714 130,137 6 % Expenses 114,749 112,974 2 % Operating Profit 22,965 17,163 34 % Operating Margin 17 % 13 % Investment Advisors: Revenues 136,576 122,718 11 % Expenses 72,455 66,958 8 % Operating Profit 64,121 55,760 15 % Operating Margin 47 % 45 % Institutional Investors: Revenues 68,506 71,778 (5) % Expenses 35,870 40,109 (11) % Operating Profit 32,636 31,669 3 % Operating Margin 48 % 44 % Investments in New Businesses: Revenues 16,500 14,293 15 % Expenses 18,496 18,383 1 % Operating Loss (1,996) (4,090) (51) % Totals: Revenues $551,344 $511,579 8 % Expenses 358,781 347,974 3 % Corporate Overhead Expenses 35,466 37,754 (6) % Income from Operations $157,097 $125,851 25 % First-Quarter Business Highlights: SEI achieved diluted EPS of $1.17, up 18% from the prior year, reflecting acceleration on the momentum achieved in the second half of 2024. SEI's strong EPS growth is attributable to both operating profit growth and margin improvement in each of our reportable segments, and the benefit of our share repurchase program. SEI had no material items in Q1 2025 affecting the comparability of EPS. Net sales events during the first quarter 2025 were $46.6 million, bringing net sales events for the trailing 12 months to $153.2 million. Both the single-quarter and trailing 12-month net sales events represent record-high levels for SEI, and similar to last quarter, the drivers of net sales activity were broad-based, coming from multiple existing and new clients. Despite recent capital markets volatility, SEI's sales pipeline remains solid, and we have not yet sensed any slowdown in market activity. Consolidated revenues and operating income increased by 8% and 25%, respectively, from Q1 2024. SEI's consolidated operating margin of 28% represents the highest level achieved in the last three years, demonstrating increasing focus on profitability and cost leverage against healthy revenue growth. Private Banks operating profit growth of 34% reflects the inflection in sales event momentum which began in Q2 2024, in addition to continued cost discipline. Investment Managers operating profit growth of 19% was driven by sales event growth, particularly among alternative and global investment managers. Investment Managers also realized a benefit from new product offerings, notably our Luxembourg depositary services, reflecting investments to enhance our global service offering and operational footprint. Investment Advisors operating profit growth of 15% was largely driven by a $20.8 million contribution from the Integrated Cash Program in Q1 2025, more than double the $9.6 million contribution realized in Q1 2024. Relative to Q4 2024, both Investment Advisors and Institutional Investors realized modest revenue declines, mostly attributable to the full-quarter impact of AUM declines occurring in late 2024 and two fewer calendar days in Q1 2025 vs. Q4 2024. Average assets under administration increased by 3%, and average assets under management were flat relative to Q4 2024. Ending assets under management increased by 2% despite a 4.6% decline in US equities in Q1, reflecting SEI's significant diversification across asset types and geographies in addition to modest net inflows for the Advisors and Institutional segments. Institutional Investor and Investment Advisor net flows were modestly positive as inflows into Strategist and traditional SMA offerings offset outflows in mutual fund products. Earnings from LSV decreased to $28.7 million in the first quarter 2025 as compared to $31.6 million in the first quarter 2024 due to the full-quarter impact of late-2024 AUM declines in addition to slightly lower incentive fees vs. Q1 2024. SEI repurchased 2.5 million shares of common stock for $192.8 million during the first quarter 2025 at an average price of $77.10 per share, bringing total shares repurchased to 8.5 million for the trailing 12 months. Earnings Conference Call A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on April 23, 2025. Analysts and investors are invited to join the call by completing the registration form. The public is invited to review the presentation and listen to the call and replay at ir.seic.com/ events-presentations/events. Link for registration form: https://register-conf.media-server.com/register/ BIe62cc6f4c3834b628b007ec32e594a64 About SEI® SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com. This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to: the benefits to our clients of our engagement; the strength of our pipelines; our focus on profitability and cost leverage; our investment priorities; the value we will deliver to our stakeholders; and when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of any such revenue. You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended Dec. 31, 2024, filed with the Securities and Exchange Commission. SEI INVESTMENTS COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) (Unaudited) For the Three MonthsEnded March 31, 2025 2024 Asset management, admin. and distribution fees $432,143 $404,366 Information processing and software servicing fees 119,201 107,213 Total revenues 551,344 511,579 Subadvisory, distribution and other asset mgmt. costs 47,532 46,768 Software royalties and other information processing costs 9,081 8,471 Compensation, benefits and other personnel 190,784 192,916 Stock-based compensation 14,138 11,059 Consulting, outsourcing and professional fees 56,001 51,976 Data processing and computer related 39,319 37,160 Facilities, supplies and other costs 18,755 18,603 Amortization 10,710 10,386 Depreciation 7,927 8,389 Total expenses 394,247 385,728 Income from operations 157,097 125,851 Net gain from investments 493 2,256 Interest and dividend income 10,221 10,819 Interest expense (185) (139) Equity in earnings of unconsolidated affiliate 28,747 31,643 Income before income taxes 196,373 170,430 Income taxes 44,856 39,030 Net income $151,517 $131,400 Basic earnings per common share $1.20 $1.00 Shares used to calculate basic earnings per share 126,561 131,417 Diluted earnings per common share $1.17 $0.99 Shares used to calculate diluted earnings per share 129,450 132,745 SEI INVESTMENTS COMPANYCONSOLIDATED BALANCE SHEETS(In thousands) (Unaudited) March 31, 2025 December 31,2024 Assets Current Assets: Cash and cash equivalents $710,685 $839,891 Restricted cash 302 302 Receivables from investment products 49,460 54,118 Receivables, net of allowance for doubtful accounts of $1,790 and $1,435 601,338 567,634 Securities owned 31,174 29,583 Assets held for sale 22,765 — Other current assets 62,663 60,282 Total Current Assets 1,478,387 1,551,810 Property and Equipment, net of accumulated depreciation of $494,941 and $493,219 159,264 159,643 Operating Lease Right-of-Use Assets 25,225 28,905 Capitalized Software, net of accumulated amortization of $648,268 and $641,071 235,696 236,023 Investments 278,084 315,567 Goodwill 167,899 170,287 Intangible Assets, net of accumulated amortization of $37,833 and $55,835 66,484 77,370 Deferred Contract Costs 47,751 45,855 Deferred Income Taxes 55,209 51,984 Other Assets, net 52,043 47,162 Total Assets $2,566,042 $2,684,606 Liabilities and Equity Current Liabilities: Accounts payable $11,168 $13,081 Accrued liabilities 224,696 347,513 Current portion of long-term operating lease liabilities 7,359 7,900 Deferred revenue 13,824 12,019 Liabilities related to assets held for sale 4,383 — Total Current Liabilities 261,430 380,513 Long-term Income Taxes Payable 803 803 Long-term Operating Lease Liabilities 20,971 24,235 Other Long-term Liabilities 24,986 26,943 Total Liabilities 308,190 432,494 Shareholders' Equity: Common stock, $0.01 par value, 750,000 shares authorized; 124,784 and 126,840 shares issued and outstanding 1,247 1,268 Capital in excess of par value 1,558,125 1,539,816 Retained earnings 737,020 758,003 Accumulated other comprehensive loss, net (38,540) (46,975) Total Shareholders' Equity 2,257,852 2,252,112 Total Liabilities and Shareholders' Equity $2,566,042 $2,684,606 SEI INVESTMENTS COMPANYCONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS(In thousands) (Unaudited) For the Three MonthsEnded March 31, 2025 2024 Cash flows from operating activities: Net income $151,517 $131,400 Adjustments to reconcile net income to net cash provided by operating activities (5,037) (19,106) Net cash provided by operating activities $146,480 $112,294 Net cash used in investing activities ($38,350) ($37,634) Net cash used in financing activities ($241,548) ($62,157) Effect of exchange rate changes on cash, cash equivalents and restricted cash 4,212 (572) Net (decrease) increase in cash, cash equivalents and restricted cash (129,206) 11,931 Cash, cash equivalents and restricted cash, beginning of period 840,193 834,998 Cash, cash equivalents and restricted cash, end of period $710,987 $846,929 ENDING ASSET BALANCES(In millions) (Unaudited) Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, 2024 2024 2024 2024 2025 Investment Managers: Collective trust fund programs (A) $161,660 $192,747 $204,429 $202,384 $209,491 Liquidity funds 202 221 233 188 244 Total assets under management $161,862 $192,968 $204,662 $202,572 $209,735 Client assets under administration 959,904 998,315 1,022,515 1,032,812 1,061,067 Total assets $1,121,766 $1,191,283 $1,227,177 $1,235,384 $1,270,802 Private Banks: Equity and fixed-income programs $25,282 $25,031 $26,565 $25,523 $25,590 Collective trust fund programs 5 5 5 4 4 Liquidity funds 2,733 2,699 2,948 2,688 3,670 Total assets under management $28,020 $27,735 $29,518 $28,215 $29,264 Client assets under administration 8,024 7,813 8,349 8,340 8,365 Total assets $36,044 $35,548 $37,867 $36,555 $37,629 Investment Advisors: Equity and fixed-income programs $74,715 $74,556 $78,361 $76,283 $75,689 Liquidity funds 4,722 4,301 2,790 3,105 3,153 Total Platform assets under management $79,437 $78,857 $81,151 $79,388 $78,842 Platform-only assets 20,516 21,908 24,501 25,244 25,591 Platform-only assets-deposit program 897 894 2,447 2,398 2,216 Total Platform assets $100,850 $101,659 $108,099 $107,030 $106,649 Institutional Investors: Equity and fixed-income programs $75,969 $75,542 $79,252 $75,481 $76,491 Collective trust fund programs 1 1 1 1 1 Liquidity funds 2,179 2,309 1,829 1,511 1,580 Total assets under management $78,149 $77,852 $81,082 $76,993 $78,072 Client assets under advisement 6,862 7,886 8,038 5,955 5,573 Total assets $85,011 $85,738 $89,120 $82,948 $83,645 Investments in New Businesses: Equity and fixed-income programs $2,269 $2,285 $2,825 $2,747 $2,661 Liquidity funds 223 631 246 297 288 Total assets under management $2,492 $2,916 $3,071 $3,044 $2,949 Client assets under administration (E) 15,411 14,848 15,110 14,791 14,846 Client assets under advisement 1,248 1,886 2,021 2,185 2,219 Total assets $19,151 $19,650 $20,202 $20,020 $20,014 LSV Asset Management: Equity and fixed-income programs (B) $93,616 $90,197 $93,855 $86,501 $87,114 Total: Equity and fixed-income programs (C) $271,851 $267,611 $280,858 $266,535 $267,545 Collective trust fund programs 161,666 192,753 204,435 202,389 209,496 Liquidity funds 10,059 10,161 8,046 7,789 8,935 Total assets under management $443,576 $470,525 $493,339 $476,713 $485,976 Client assets under advisement 8,110 9,772 10,059 8,140 7,792 Client assets under administration (D) 983,339 1,020,976 1,045,974 1,055,943 1,084,278 Platform-only assets 21,413 22,802 26,948 27,642 27,807 Total assets $1,456,438 $1,524,075 $1,576,320 $1,568,438 $1,605,853 (A) Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include $1.4 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of March 31, 2025). (C) Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds (as of March 31, 2025). (D) In addition to the assets presented, SEI also administers an additional $10.9 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of March 31, 2025). (E) Client assets under administration include $14.8 billion of assets related to the Family Office Services business to be divested during the second quarter 2025 (as of March 31, 2025). AVERAGE ASSET BALANCES(In millions) (Unaudited) 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2024 2024 2024 2024 2025 Investment Managers: Collective trust fund programs (A) $156,737 $189,884 $198,839 $204,954 $208,720 Liquidity funds 207 227 245 223 256 Total assets under management $156,944 $190,111 $199,084 $205,177 $208,976 Client assets under administration 938,804 982,806 1,005,111 1,034,500 1,061,282 Total assets $1,095,748 $1,172,917 $1,204,195 $1,239,677 $1,270,258 Private Banks: Equity and fixed-income programs $24,593 $24,859 $25,823 $26,067 $25,894 Collective trust fund programs 4 5 5 4 4 Liquidity funds 3,902 2,734 2,858 2,814 2,961 Total assets under management $28,499 $27,598 $28,686 $28,885 $28,859 Client assets under administration 7,753 7,884 8,074 8,395 8,488 Total assets $36,252 $35,482 $36,760 $37,280 $37,347 Investment Advisors: Equity and fixed-income programs $72,689 $73,793 $76,111 $77,866 $77,287 Liquidity funds 4,649 4,348 4,264 3,031 3,119 Total Platform assets under management $77,338 $78,141 $80,375 $80,897 $80,406 Platform-only assets 19,198 20,897 23,194 25,109 25,939 Platform-only assets-deposit program 849 886 1,176 2,186 2,187 Total Platform assets $97,385 $99,924 $104,745 $108,192 $108,532 Institutional Investors: Equity and fixed-income programs $76,414 $75,203 $77,473 $77,399 $76,492 Collective trust fund programs 1 1 1 1 1 Liquidity funds 1,812 1,893 2,046 2,154 1,655 Total assets under management $78,227 $77,097 $79,520 $79,554 $78,148 Client assets under advisement 6,498 7,508 7,925 6,991 5,741 Total assets $84,725 $84,605 $87,445 $86,545 $83,889 Investments in New Businesses: Equity and fixed-income programs $2,200 $2,234 $2,432 $2,819 $2,801 Liquidity funds 214 471 546 269 274 Total assets under management $2,414 $2,705 $2,978 $3,088 $3,075 Client assets under administration (E) 15,147 14,713 14,973 14,961 14,630 Client assets under advisement 1,194 2,014 1,885 2,110 2,205 Total assets $18,755 $19,432 $19,836 $20,159 $19,910 LSV Asset Management: Equity and fixed-income programs (B) $90,708 $90,849 $93,195 $88,880 $87,790 Total: Equity and fixed-income programs (C) $266,604 $266,938 $275,034 $273,031 $270,264 Collective trust fund programs 156,742 189,890 198,845 204,959 208,725 Liquidity funds 10,784 9,673 9,959 8,491 8,265 Total assets under management $434,130 $466,501 $483,838 $486,481 $487,254 Client assets under advisement 7,692 9,522 9,810 9,101 7,946 Client assets under administration (D) 961,704 1,005,403 1,028,158 1,057,856 1,084,400 Platform-only assets 20,047 21,783 24,370 27,295 28,126 Total assets $1,423,573 $1,503,209 $1,546,176 $1,580,733 $1,607,726 (A) Collective trust fund program average assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs during first-quarter 2025 include $1.4 billion of average assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee. (C) Equity and fixed-income programs include $6.4 billion of average assets invested in various asset allocation funds during first-quarter 2025. (D) In addition to the assets presented, SEI also administers an additional $10.6 billion of average assets in Funds of Funds assets during first-quarter 2025 on which SEI does not earn an administration fee. (E) Client assets under administration include $14.6 billion of average assets during first-quarter 2025 related to the Family Office Services business to be divested during the second quarter 2025. SALES EVENTS(In thousands) (Unaudited) Net Recurring Sales Events 1st Qtr. 2024 2nd Qtr. 2024 3rd Qtr. 2024 4th Qtr. 2024 1st Qtr. 2025 Investment Processing-related Businesses: Investment Managers $ 20,407 $ 17,180 $ 23,319 $ 18,027 $ 25,296 Private Banks 247 4,331 9,417 9,245 7,059 Total Investment Processing-related Businesses $ 20,654 $ 21,511 $ 32,736 $ 27,272 $ 32,355 Asset Management-related Businesses: Private Banks-AMD $ (85) $ (494) $ (854) $ 495 $ (58) Investment Advisors (942) (3,299) 2,686 1,339 888 Institutional Investors (4,649) (1,787) (576) (2,673) 41 Total Asset Management-related Businesses $ (5,676) $ (5,580) $ 1,256 $ (839) $ 871 Newer Initiatives: Investments in New Businesses (1) $ 1,494 $ (43) $ 936 $ 1,778 $ 3,614 Total Net Recurring Sales Events $ 16,472 $ 15,888 $ 34,928 $ 28,211 $ 36,840 Non-Recurring Sales Events 1st Qtr. 2024 2nd Qtr. 2024 3rd Qtr. 2024 4th Qtr. 2024 1st Qtr. 2025 Investment Processing-related Businesses: Investment Managers $ 1,213 $ 930 $ 712 $ 2,465 $ 835 Private Banks 2,613 4,431 8,796 6,622 7,060 Total Investment Processing-related Businesses $ 3,826 $ 5,361 $ 9,508 $ 9,087 $ 7,895 Newer Initiatives: Investments in New Businesses $ 987 $ 717 $ 1,976 $ 921 $ 1,834 Total Non-Recurring Sales Events $ 4,813 $ 6,078 $ 11,484 $ 10,008 $ 9,729 Total Sales Events 1st Qtr. 2024 2nd Qtr. 2024 3rd Qtr. 2024 4th Qtr. 2024 1st Qtr. 2025 Investment Processing-related Businesses: Investment Managers $ 21,620 $ 18,110 $ 24,031 $ 20,492 $ 26,131 Private Banks 2,860 8,762 18,213 15,867 14,119 Total Investment Processing-related Businesses $ 24,480 $ 26,872 $ 42,244 $ 36,359 $ 40,250 Asset Management-related Businesses: Private Banks-AMD $ (85) $ (494) $ (854) $ 495 $ (58) Investment Advisors (942) (3,299) 2,686 1,339 888 Institutional Investors (4,649) (1,787) (576) (2,673) 41 Total Asset Management-related Businesses $ (5,676) $ (5,580) $ 1,256 $ (839) $ 871 Newer Initiatives: Investments in New Businesses (1) $ 2,481 $ 674 $ 2,912 $ 2,699 $ 5,448 Total Sales Events $ 21,285 $ 21,966 $ 46,412 $ 38,219 $ 46,569 (1) Includes $1.6 million in total sales events during first-quarter 2025 related to the Family Office Services business to be divested during the second quarter 2025. The net annualized recurring revenues associated with these sales events is approximately $994 thousand. SOURCE SEI Investments Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

SEI Reports First-Quarter 2025 Financial Results

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