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SEI Reports Second-Quarter 2025 Financial Results

1. SEI's Q2 2025 EPS surged 70% compared to Q2 2024. 2. Revenue and operating income grew by 8% and 9% respectively. 3. Notable gain of $94.4 million from divesting Family Office Services business. 4. SEI repurchased 2.2 million shares for $180.8 million during Q2. 5. Investment Managers' revenues increased by 8%; significant growth in assets under management.

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FAQ

Why Very Bullish?

The strong earnings growth, significant EPS increase, and strategic investment signal robust financial health. Similar past instances, like Q1 2021 earnings spikes, positively influenced stock performance.

How important is it?

The significant EPS growth and share buyback are likely to attract positive market sentiment, directly affecting SEIC's stock price.

Why Short Term?

Immediate investor interest likely due to solid earnings and share repurchase announcements, mirroring previous market reactions in Q2 earnings reports.

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, /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the second quarter 2025. Relative to the second quarter 2024, EPS increased by 70%, and revenue and operating income grew by 8% and 9%, respectively, with operating margin increasing to 27%. Q2 2025 EPS benefited by $0.58 from several items affecting comparability against prior quarters, most notably the $94.4 million gain on the sale of SEI's Family Office Services business. Consolidated Overview (In thousands, except earnings per share) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 % 2025 2024 % Revenues $559,601 $518,986 8 % $1,110,945 $1,030,565 8 % Operating income 148,635 136,514 9 % 305,732 262,365 17 % Operating margin 27 % 26 % 4 % 28 % 25 % 12 % Net income 227,083 139,120 63 % 378,600 270,520 40 % Diluted earnings per share $1.78 $1.05 70 % $2.95 $2.04 45 % "SEI achieved another strong quarter across our core businesses. We are executing with conviction and discipline, positioning the company for sustained growth. As we prepare SEI to support that growth and our clients' evolving needs, we are making intentional investments in our talent, technology, and infrastructure to enhance our capabilities and scale," said CEO Ryan Hicke. "Our strategic investment in Stratos demonstrates our commitment to challenging ourselves to change and innovate in the pursuit of our goal to be the leading provider of wealth management solutions and services. We will continue to invest capital in areas where we have conviction that the long-term opportunity will maximize the return for our clients, employees, and shareholders. "We're excited to welcome two highly experienced, independent directors to our Board. Karin Risi and Tom Naratil bring tremendous expertise and insight that will be invaluable as we continue to execute our growth strategies." Summary of Second-Quarter Results by Business Segment (In thousands) For the Three Months  Ended June 30, For the Six Months Ended June 30, 2025 2024 % 2025 2024 % Investment Managers: Revenues $195,067 $179,868 8 % $387,115 $352,521 10 % Expenses 121,636 111,287 9 % 238,847 220,837 8 % Operating Profit 73,431 68,581 7 % 148,268 131,684 13 % Operating Margin 38 % 38 % 38 % 37 % Private Banks: Revenues 141,449 132,401 7 % 279,163 262,538 6 % Expenses 118,724 111,890 6 % 233,473 224,864 4 % Operating Profit 22,725 20,511 11 % 45,690 37,674 21 % Operating Margin 16 % 15 % 16 % 14 % Investment Advisors: Revenues 137,193 120,587 14 % 273,769 243,305 13 % Expenses 75,801 68,953 10 % 148,256 135,911 9 % Operating Profit 61,392 51,634 19 % 125,513 107,394 17 % Operating Margin 45 % 43 % 46 % 44 % Institutional Investors: Revenues 69,343 71,507 (3) % 137,849 143,285 (4) % Expenses 35,857 38,426 (7) % 71,727 78,535 (9) % Operating Profit 33,486 33,081 1 % 66,122 64,750 2 % Operating Margin 48 % 46 % 48 % 45 % Investments in New Businesses: Revenues 16,549 14,623 13 % 33,049 28,916 14 % Expenses 18,430 18,580 (1) % 36,926 36,963 — % Operating Loss (1,881) (3,957) (52) % (3,877) (8,047) (52) % Totals: Revenues $559,601 $518,986 8 % $1,110,945 $1,030,565 8 % Expenses 370,448 349,136 6 % 729,229 697,110 5 % Corporate Overhead Expenses 40,518 33,336 22 % 75,984 71,090 7 % Income from Operations $148,635 $136,514 9 % $305,732 $262,365 17 % Second-Quarter Business Highlights: SEI achieved diluted EPS of $1.78, up 70% from the prior year, reflecting continued momentum in SEI's business in addition to the $0.58 impact of several items affecting comparability in the quarter, specifically: A $0.60 benefit associated with the gain on sale of the Family Office Services business, and a settlement gain from the resolution of a long-standing vendor negotiation. A $0.02 combined loss from FX transaction losses and M&A legal fees from our recently announced acquisition of Stratos Wealth Holdings, reflected in Corporate Overhead. Net sales events during the second quarter 2025 were $29.2 million, bringing net sales events for the trailing 12 months to $160.4 million, a new record. Sales events were driven by the Investment Managers business, which achieved a balanced mix of wins across alternatives, traditional and international investment managers. Sales pipelines across all of SEI's businesses remain healthy, including Private Banking and the Asset Management businesses, where net sales events have improved considerably against 2024 losses. Consolidated revenues and operating income increased by 8% and 9%, respectively, from Q2 2024. SEI's consolidated operating margin of 27% represents a modest improvement over the prior year and a decline vs. Q1 2025, reflecting increased investments in both talent and technology to support expected growth. Private Banks operating profit growth of 11% reflects continued momentum and the positive impact of several clients going live in the quarter. Investment Managers operating profit growth of 7% was driven by a double-digit increase in alternative manager revenue, partially offset by a slight decline in traditional revenue due to volatile Q2 market valuations. Investment Managers operating profit margin declined vs. Q1 2025 due to hiring ahead of expected new business and a challenging comparison due to first quarter delays in hiring. Investment Advisors operating profit growth of 19% reflects the $21M contribution from SEI's integrated cash program, up $11M from Q2 2024. Investment Advisors and Institutional Investors realized flat revenue growth relative to Q1 2025 as market appreciation in May and June offset significant declines realized in April. Average assets under administration increased by 4%, and average assets under management increased 2% relative to Q1 2025. Ending assets under management increased by 6% from Q1 to Q2, reflecting significant market appreciation realized during the months of May and June. Institutional Investors and Investment Advisors net flows have improved year-to-date, posting just over $1 billion of net outflows against more than $7 billion of net outflows in the first half of 2024. SEI repurchased 2.2 million shares of common stock for $180.8 million during the second quarter 2025 at an average price of $83.60 per share, bringing total shares repurchased to 9.0 million for the trailing 12 months. Earnings Conference CallA conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on July 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://edge.media-server.com/mmc/p/hxy2xx8e/ 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 June 30, 2025, SEI manages, advises, or administers approximately $1.7 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: whether we are positioned for sustained growth; the nature of our internal investments and the factors that drive these investments; our goals; the strength of our pipelines; our focus on profitability and cost leverage; our cost discipline and its effects on profitability; our investment priorities; 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 COMPANYCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) (Unaudited) For the Three Months Ended June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Asset management, admin. and distribution fees $437,543 $409,398 $869,686 $813,764 Information processing and software servicing fees 122,058 109,588 241,259 216,801 Total revenues 559,601 518,986 1,110,945 1,030,565 Subadvisory, distribution and other asset mgmt. costs 49,709 46,542 97,241 93,310 Software royalties and other information processing costs 9,191 8,096 18,272 16,567 Compensation, benefits and other personnel 199,574 185,878 390,358 378,794 Stock-based compensation 13,891 12,469 28,029 23,528 Consulting, outsourcing and professional fees 56,942 53,991 112,943 105,967 Data processing and computer related 41,801 38,074 81,120 75,234 Facilities, supplies and other costs 21,744 18,570 40,499 37,173 Amortization 10,449 10,485 21,159 20,871 Depreciation 7,665 8,367 15,592 16,756 Total expenses 410,966 382,472 805,213 768,200 Income from operations 148,635 136,514 305,732 262,365 Net gain from investments 1,759 666 2,252 2,922 Interest and dividend income 9,283 11,552 19,504 22,371 Interest expense (92) (139) (277) (278) Gain on sale of business 94,412 — 94,412 — Other income 4,500 — 4,500 — Equity in earnings of unconsolidated affiliate 33,640 34,219 62,387 65,862 Income before income taxes 292,137 182,812 488,510 353,242 Income taxes 65,054 43,692 109,910 82,722 Net income $227,083 $139,120 $378,600 $270,520 Basic earnings per common share $1.82 $1.06 $3.02 $2.06 Shares used to calculate basic earnings per share 124,470 130,815 125,516 131,116 Diluted earnings per common share $1.78 $1.05 $2.95 $2.04 Shares used to calculate diluted earnings per share 127,278 132,073 128,364 132,409 Dividends declared per common share $0.49 $0.46 $0.49 $0.46 SEI INVESTMENTS COMPANYCONSOLIDATED BALANCE SHEETS(In thousands) (Unaudited) June 30, December 31, 2025 2024 Assets Current Assets:  Cash and cash equivalents $746,349 $840,193  Receivables from investment products 49,095 54,118  Receivables, net of allowance for doubtful accounts of $2,124 and $1,435 637,568 567,634  Securities owned 31,682 29,583  Other current assets 66,310 60,282 Total Current Assets 1,531,004 1,551,810 Property and Equipment, net of accumulated depreciation of $503,326 and $493,219 155,690 159,643 Operating Lease Right-of-Use Assets 26,693 28,905 Capitalized Software, net of accumulated amortization of $653,008 and $641,071 235,601 236,023 Investments 290,466 315,567 Goodwill 168,738 170,287 Intangible Assets, net of accumulated amortization of $41,550 and $55,835 65,189 77,370 Deferred Contract Costs 47,218 45,855 Deferred Income Taxes 51,379 51,984 Other Assets, net 54,288 47,162 Total Assets $2,626,266 $2,684,606 Liabilities and Equity Current Liabilities:  Accounts payable $13,084 $13,081  Accrued liabilities 214,507 347,513  Current portion of long-term operating lease liabilities 7,400 7,900  Deferred revenue 12,583 12,019 Total Current Liabilities 247,574 380,513 Long-term Income Taxes Payable — 803 Long-term Operating Lease Liabilities 21,646 24,235 Other Long-term Liabilities 18,607 26,943 Total Liabilities 287,827 432,494 Shareholders' Equity: Common stock, $0.01 par value, 750,000 shares authorized; 123,697 and 126,840 shares issued and outstanding 1,236 1,268 Capital in excess of par value 1,619,133 1,539,816 Retained earnings 739,453 758,003 Accumulated other comprehensive loss, net (21,383) (46,975) Total Shareholders' Equity 2,338,439 2,252,112 Total Liabilities and Shareholders' Equity $2,626,266 $2,684,606 SEI INVESTMENTS COMPANYCONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS(In thousands) (Unaudited) For the Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income $378,600 $270,520 Adjustments to reconcile net income to net cash provided by operating activities (135,595) (43,490) Net cash provided by operating activities $243,005 $227,030 Net cash provided by/(used in) investing activities $65,268 ($61,082) Net cash used in financing activities ($419,220) ($229,687) Effect of exchange rate changes on cash, cash equivalents and restricted cash 17,103 (2,667) Net decrease in cash, cash equivalents and restricted cash (93,844) (66,406) Cash, cash equivalents and restricted cash, beginning of period 840,193 834,998 Cash, cash equivalents and restricted cash, end of period $746,349 $768,592 ENDING ASSET BALANCES(In millions)  (Unaudited) Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 2024 2024 2024 2025 2025 Investment Managers: Collective trust fund programs (A) $192,747 $204,429 $202,384 $209,491 $225,690 Liquidity funds 221 233 188 244 307 Total assets under management $192,968 $204,662 $202,572 $209,735 $225,997 Client assets under administration 998,315 1,022,515 1,032,812 1,061,067 1,128,325 Total assets $1,191,283 $1,227,177 $1,235,384 $1,270,802 $1,354,322 Private Banks: Equity and fixed-income programs $25,031 $26,565 $25,523 $25,590 $27,839 Collective trust fund programs 5 5 4 4 3 Liquidity funds 2,699 2,948 2,688 3,670 2,796 Total assets under management $27,735 $29,518 $28,215 $29,264 $30,638 Client assets under administration 7,813 8,349 8,340 8,365 8,431 Total assets $35,548 $37,867 $36,555 $37,629 $39,069 Investment Advisors: Equity and fixed-income programs $74,556 $78,361 $76,283 $75,689 $80,618 Liquidity funds 4,301 2,790 3,105 3,153 3,457 Total Platform assets under management $78,857 $81,151 $79,388 $78,842 $84,075 Platform-only assets 21,908 24,501 25,244 25,591 29,848 Platform-only assets-deposit program 894 2,447 2,398 2,216 2,155 Total Platform assets $101,659 $108,099 $107,030 $106,649 $116,078 Institutional Investors: Equity and fixed-income programs $75,542 $79,252 $75,481 $76,491 $80,112 Collective trust fund programs 1 1 1 1 — Liquidity funds 2,309 1,829 1,511 1,580 1,768 Total assets under management $77,852 $81,082 $76,993 $78,072 $81,880 Client assets under advisement 7,886 8,038 5,955 5,573 6,090 Total assets $85,738 $89,120 $82,948 $83,645 $87,970 Investments in New Businesses: Equity and fixed-income programs $2,285 $2,825 $2,747 $2,661 $2,867 Liquidity funds 631 246 297 288 244 Total assets under management $2,916 $3,071 $3,044 $2,949 $3,111 Client assets under administration (E) 14,848 15,110 14,791 14,846 — Client assets under advisement 1,886 2,021 2,185 2,219 2,593 Total assets $19,650 $20,202 $20,020 $20,014 $5,704 LSV Asset Management: Equity and fixed-income programs (B) $90,197 $93,855 $86,501 $87,114 $91,795 Total: Equity and fixed-income programs (C) $267,611 $280,858 $266,535 $267,545 $283,231 Collective trust fund programs 192,753 204,435 202,389 209,496 225,693 Liquidity funds 10,161 8,046 7,789 8,935 8,572 Total assets under management $470,525 $493,339 $476,713 $485,976 $517,496 Client assets under advisement 9,772 10,059 8,140 7,792 8,683 Client assets under administration (D) 1,020,976 1,045,974 1,055,943 1,084,278 1,136,756 Platform-only assets 22,802 26,948 27,642 27,807 32,003 Total assets $1,524,075 $1,576,320 $1,568,438 $1,605,853 $1,694,938 (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 June 30, 2025). (C) Equity and fixed-income programs include $6.7 billion of assets invested in various asset allocation funds (as of June 30, 2025). (D) In addition to the assets presented, SEI also administers an additional $11.4 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of June 30, 2025). (E) Client assets under administration related to the Family Office Services business divested on June 30, 2025. AVERAGE ASSET BALANCES(In millions) (Unaudited) 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 2024 2024 2024 2025 2025 Investment Managers: Collective trust fund programs (A) $189,884 $198,839 $204,954 $208,720 $215,085 Liquidity funds 227 245 223 256 288 Total assets under management $190,111 $199,084 $205,177 $208,976 $215,373 Client assets under administration 982,806 1,005,111 1,034,500 1,061,282 1,098,925 Total assets $1,172,917 $1,204,195 $1,239,677 $1,270,258 $1,314,298 Private Banks: Equity and fixed-income programs $24,859 $25,823 $26,067 $25,894 $26,533 Collective trust fund programs 5 5 4 4 3 Liquidity funds 2,734 2,858 2,814 2,961 2,771 Total assets under management $27,598 $28,686 $28,885 $28,859 $29,307 Client assets under administration 7,884 8,074 8,395 8,488 8,266 Total assets $35,482 $36,760 $37,280 $37,347 $37,573 Investment Advisors: Equity and fixed-income programs $73,793 $76,111 $77,866 $77,287 $76,629 Liquidity funds 4,348 4,264 3,031 3,119 3,464 Total Platform assets under management $78,141 $80,375 $80,897 $80,406 $80,093 Platform-only assets 20,897 23,194 25,109 25,939 27,288 Platform-only assets-deposit program 886 1,176 2,186 2,187 2,152 Total Platform assets $99,924 $104,745 $108,192 $108,532 $109,533 Institutional Investors: Equity and fixed-income programs $75,203 $77,473 $77,399 $76,492 $77,843 Collective trust fund programs 1 1 1 1 — Liquidity funds 1,893 2,046 2,154 1,655 1,853 Total assets under management $77,097 $79,520 $79,554 $78,148 $79,696 Client assets under advisement 7,508 7,925 6,991 5,741 5,841 Total assets $84,605 $87,445 $86,545 $83,889 $85,537 Investments in New Businesses: Equity and fixed-income programs $2,234 $2,432 $2,819 $2,801 $2,732 Liquidity funds 471 546 269 274 244 Total assets under management $2,705 $2,978 $3,088 $3,075 $2,976 Client assets under administration (E) 14,713 14,973 14,961 14,630 14,917 Client assets under advisement 2,014 1,885 2,110 2,205 2,329 Total assets $19,432 $19,836 $20,159 $19,910 $20,222 LSV Asset Management: Equity and fixed-income programs (B) $90,849 $93,195 $88,880 $87,790 $89,422 Total: Equity and fixed-income programs (C) $266,938 $275,034 $273,031 $270,264 $273,159 Collective trust fund programs 189,890 198,845 204,959 208,725 215,088 Liquidity funds 9,673 9,959 8,491 8,265 8,620 Total assets under management $466,501 $483,838 $486,481 $487,254 $496,867 Client assets under advisement 9,522 9,810 9,101 7,946 8,170 Client assets under administration (D) 1,005,403 1,028,158 1,057,856 1,084,400 1,122,108 Platform-only assets 21,783 24,370 27,295 28,126 29,440 Total assets $1,503,209 $1,546,176 $1,580,733 $1,607,726 $1,656,585 (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 second-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 $6.5 billion of average assets invested in various asset allocation funds during second-quarter 2025. (D) In addition to the assets presented, SEI also administers an additional $11.2 billion of average assets in Funds of Funds assets during second-quarter 2025 on which SEI does not earn an administration fee. (E) Client assets under administration include $14.9 billion of average assets during second-quarter 2025 related to the Family Office Services business which was divested on June 30, 2025. SALES EVENTS(In thousands) (Unaudited) Net Recurring Sales Events 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 2024 2024 2024 2025 2025 Investment Processing-related Businesses: Investment Managers $      17,180 $      23,319 $      18,027 $      25,296 $      21,928 Private Banks 4,331 9,417 9,245 7,059 254 Total Investment Processing-related Businesses $      21,511 $      32,736 $      27,272 $      32,355 $      22,182 Asset Management-related Businesses: Private Banks-AMD $         (494) $         (854) $          495 $          (58) $         (174) Investment Advisors (3,299) 2,686 1,339 888 (1,654) Institutional Investors (1,787) (576) (2,673) 41 2,544 Total Asset Management-related Businesses $      (5,580) $       1,256 $         (839) $          871 $          716 Newer Initiatives: Investments in New Businesses $          (43) $          936 $       1,778 $       3,614 $       1,245 Total Net Recurring Sales Events $      15,888 $      34,928 $      28,211 $      36,840 $      24,143 Non-Recurring Sales Events 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 2024 2024 2024 2025 2025 Investment Processing-related Businesses: Investment Managers $          930 $          712 $       2,465 $          835 $       1,102 Private Banks 4,431 8,796 6,622 7,060 2,373 Total Investment Processing-related Businesses $       5,361 $       9,508 $       9,087 $       7,895 $       3,475 Newer Initiatives: Investments in New Businesses $          717 $       1,976 $          921 $       1,834 $       1,552 Total Non-Recurring Sales Events $       6,078 $      11,484 $      10,008 $       9,729 $       5,027 Total Sales Events 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 2024 2024 2024 2025 2025 Investment Processing-related Businesses: Investment Managers $      18,110 $      24,031 $      20,492 $      26,131 $      23,030 Private Banks 8,762 18,213 15,867 14,119 2,627 Total Investment Processing-related Businesses $      26,872 $      42,244 $      36,359 $      40,250 $      25,657 Asset Management-related Businesses: Private Banks-AMD $         (494) $         (854) $          495 $          (58) $         (174) Investment Advisors (3,299) 2,686 1,339 888 (1,654) Institutional Investors (1,787) (576) (2,673) 41 2,544 Total Asset Management-related Businesses $      (5,580) $       1,256 $         (839) $          871 $          716 Newer Initiatives: Investments in New Businesses $          674 $       2,912 $       2,699 $       5,448 $       2,797 Total Sales Events $      21,966 $      46,412 $      38,219 $      46,569 $      29,170 SOURCE SEI Investments Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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