Core Insights - SEI Investments (SEIC) reported a revenue of $607.93 million for the quarter ended December 2025, reflecting a year-over-year increase of 9.1% and surpassing the Zacks Consensus Estimate by 2.04% [1] - The earnings per share (EPS) for the quarter was $1.38, up from $1.19 in the same quarter last year, resulting in an EPS surprise of 3.29% over the consensus estimate of $1.34 [1] Financial Performance Metrics - SEI's assets under management (AUM) in New Business were reported at $3.04 billion, below the average estimate of $3.16 billion from five analysts [4] - AUM for LSV - Equity and Fixed Income programs reached $86.5 billion, exceeding the estimated $82.09 billion [4] - AUM for Institutional Investors was $76.99 billion, lower than the average estimate of $85.14 billion [4] - AUM for Investment Advisors stood at $79.39 billion, compared to the estimated $97.05 billion [4] - AUM for Private Banks was reported at $28.22 billion, below the average estimate of $31.45 billion [4] Revenue Breakdown - Revenue from asset management, administration, and distribution fees was $485.43 million, exceeding the estimate of $472.28 million and showing a year-over-year increase of 10.5% [4] - Revenue from information processing and software servicing fees was $122.5 million, slightly below the estimate of $123.71 million, with a year-over-year increase of 4.1% [4] - Revenue from Investment Managers was $220.84 million, surpassing the average estimate of $212.14 million, reflecting a year-over-year increase of 15.5% [4] - Revenue from Investments in New Business was $8.32 million, below the estimate of $9.59 million, showing a significant year-over-year decline of 47.1% [4] - Revenue from Investment Advisors was $156.16 million, exceeding the estimate of $152.43 million, with a year-over-year increase of 12.1% [4] - Revenue from Institutional Investors was $72.82 million, slightly below the estimate of $73.04 million, reflecting a year-over-year increase of 2.8% [4] - Revenue from Private Banks was reported at $149.78 million, exceeding the estimate of $147.29 million, with a year-over-year increase of 6.9% [4] Stock Performance - SEI shares have returned +1.8% over the past month, outperforming the Zacks S&P 500 composite, which changed by +0.8% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - SEI Investments reported an "exceptional" fourth quarter, achieving earnings per share (EPS) of $1.38, marking the highest quarterly earnings performance in the company's history [3][5] - The company experienced broad-based revenue and operating profit growth across all business segments compared to the prior year and quarter [1][5] Financial Performance - Total sales events reached $44 million, with $28 million from Private Banking and $20 million from Investment Manager Services (IMS) [5][7] - AUA (Assets Under Administration) grew by approximately 3%, while AUM (Assets Under Management) increased by about 2%, driven by market appreciation and strong win momentum [11][12] Segment Contributions - Private Banking's revenue was bolstered by recent professional services wins, which convert into revenue more quickly than recurring sales [1] - IMS benefited from a revenue accrual true-up, with meaningful revenue and margin increases driven by recent wins and modest market appreciation [1][6] Capital Allocation and Acquisitions - SEI repurchased $101 million in Q4 and $616 million for the year, representing about 6% of total shares outstanding [4][14] - The Stratos partnership contributed approximately $5 million in revenue and just under $1 million in operating income during Q4, with further acquisitions planned [4][15] Future Outlook - The company plans to focus on accelerating product launches and evolving IMS toward platform-level services, including shared tooling and workflow automation [17][18] - Management indicated that while they do not provide earnings guidance, several factors will affect early 2026 performance, including seasonality and compensation increases [16]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

We're already seeing tangible benefits, including greater awareness of SEI across the RIA and broker-dealer channels, and renewed inbound interest in our capabilities. Our focus now is on integrating our technology and investment management strengths into Stratos' platform and continuing to learn from their team as we scale together. This is a long-term strategic partnership, and we're focused on adding value in ways that support rather than disrupt their impressive organic growth. Stepping back from the nu ...

SEI Investments (SEIC) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.29%. A quarter ago, it was expected that this investment management firm would post earnings of $1.25 per share when it actually produced earnings of $1.3, delivering a surprise of +4%.Over the last four quarter ...

Financial Data and Key Metrics Changes - SEI reported earnings per share (EPS) of $1.38 for Q4 2025, marking the highest quarterly earnings performance in the company's history, with a 16% year-over-year increase and a 6% sequential increase [3][12] - The company achieved double-digit earnings growth for the year and over a full percentage point of operating margin expansion [21] Business Line Data and Key Metrics Changes - Private Banking segment posted $28 million in net sales events, significantly contributing to the overall strong performance [4] - Investment Manager Services (IMS) benefited from a $3 million revenue accrual true-up, with overall revenue and margins increasing meaningfully from both the prior year and prior quarter [13][14] - Asset management segments experienced sequential growth driven by market appreciation and healthy flows, despite some client losses in the institutional segment [14] Market Data and Key Metrics Changes - The integrated cash program contributed $21 billion to revenue, matching levels achieved in the prior quarter and prior year [14] - Assets Under Management (AUM) grew by 2% and Assets Under Administration (AUA) grew by 3%, supported by strong win momentum and market appreciation [17][18] Company Strategy and Development Direction - SEI is focused on expanding its reach in the advisor channel and capturing new flows through strategic partnerships, such as the Stratos partnership [6][8] - The company plans to accelerate investment management product launches in ETFs, SMAs, models, and select alternative products [8] - SEI is transitioning its IMS business to platform-level services, leveraging automation and AI to lower costs and expand access [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and expects positive developments to be announced in the April earnings call [5][25] - The company is committed to returning 90%-100% of free cash flow to shareholders through dividends and share repurchases [19] - Management acknowledged the need for thoughtful resource reallocation and ongoing cost efficiency efforts to support future investments [20] Other Important Information - SEI repurchased $101 million of shares in Q4, totaling $616 million for the year, representing nearly 6% of total shares outstanding [19] - The company implemented a targeted reduction in force affecting approximately 3% of its global workforce to ensure a more efficient operating model [21] Q&A Session Summary Question: Can you provide more color on the sales events from alts? - Management indicated that over two-thirds of sales events came from a combination of new business and expanding relationships with current clients, with strong visibility for 2026 [25][27] Question: What drives the gap between net recurring and non-recurring sales? - The gap is driven by the growth of the professional services strategy, with many engagements being characterized as one-time professional services [29][30] Question: Can the margin for the private banking segment stay in the high teens range? - Management expects margins to remain in the high teens range, influenced by the mix of professional services [36][37] Question: How should we think about the revenue recognition impact of the two big sales events? - The two wins are recurring revenue SWP wins, and the associated professional services will be realized immediately or over 12-18 months [56][58] Question: How strategically important is the UK market to the institutional business? - The UK market is important but represents a fraction of the overall business, with ongoing efforts to grow that segment [59][60]

Financial Data and Key Metrics Changes - SEI reported earnings per share (EPS) of $1.38 for Q4 2025, marking the highest quarterly earnings performance in the company's history, with a 16% year-over-year increase and a 6% sequential increase [3][12] - The company achieved double-digit earnings growth for the year and over a full percentage point of operating margin expansion [13][21] - Consolidated operating margins were impacted by severance and M&A costs but showed significant improvement when excluding these costs [15][21] Business Line Data and Key Metrics Changes - Private Banking segment reported $28 million in net sales events, driven by strong performance and new professional services wins [4][16] - Investment Manager Services (IMS) segment benefited from a $3 million revenue accrual true-up, with overall revenue and margins increasing significantly [13][14] - Asset Management segments experienced sequential growth due to market appreciation and healthy flows, despite some client losses in the institutional segment [14][18] Market Data and Key Metrics Changes - Assets Under Management (AUM) grew by 2% and Assets Under Administration (AUA) grew by 3%, supported by strong win momentum and market appreciation [18] - The integrated cash program contributed $21 billion to revenue, matching levels from the prior year and quarter [14] Company Strategy and Development Direction - SEI is focusing on expanding its investment management product launches, particularly in ETFs, SMAs, and select alternative products, with over $1 billion of net inflows into ETFs this year [8] - The company is leveraging automation and AI to lower unit costs and expand access to solutions, supporting entry into underserved segments [9] - SEI aims to double down on successful strategies and continue to build on its integrated approach to capture new flows and deliver greater client value [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and expects positive developments in the IMS business by the next earnings call [5][25] - The company is committed to returning 90%-100% of free cash flow to shareholders through dividends and share repurchases, ending the year with $400 million in cash and no debt [19][21] - Management highlighted the importance of maintaining a disciplined approach to investments and cost efficiency while pursuing long-term double-digit earnings growth [21] Other Important Information - SEI completed a significant share repurchase of $101 million in Q4, totaling $616 million for the year, representing nearly 6% of total shares outstanding [19] - The company achieved a major milestone with the first close of its Stratos partnership, enhancing its capabilities in the advisor channel [6][7] Q&A Session Summary Question: Can you provide more color on the sales events from ALTs? - Management indicated that the sales events were a mix of new business and expanding relationships with current clients, with strong pipeline momentum expected to continue into 2026 [25][27] Question: What drives the gap between net recurring and non-recurring sales? - The gap is primarily driven by the growth of the professional services strategy, with many engagements being characterized as one-time professional services [29][30] Question: How should we think about the margin in the private banking segment? - Management expects margins to remain in the high teens range, influenced by the mix of professional services and platform revenues [36][37] Question: What is the impact of workforce reductions on expenses? - The reduction in compensation from workforce reductions is expected to offset annual compensation increases, resulting in a flattish impact on overall expenses [45][46] Question: How significant is the UK market for the institutional business? - The UK market is considered important but is a fraction of the overall institutional business, with ongoing efforts to grow this segment [59][60]

Financial Data and Key Metrics Changes - SEI reported earnings per share (EPS) of $1.38 for Q4 2025, marking the highest quarterly earnings performance in the company's history, with a 16% year-over-year increase and a 6% sequential increase [4][11] - The company experienced double-digit earnings growth for the year and over a full percentage point of operating margin expansion [12][21] - Consolidated operating margins were impacted by severance and M&A costs but showed significant improvement when excluding these costs [14][21] Business Line Data and Key Metrics Changes - Private banking revenue increased significantly, driven by professional services wins, contributing to margin growth due to cost leverage [12][14] - Investment Management Services (IMS) benefited from a $3 million revenue accrual true-up, with overall revenue and margins increasing meaningfully [12][13] - Asset management segments saw sequential growth due to market appreciation and healthy flows, despite some client losses in the institutional segment [13][17] Market Data and Key Metrics Changes - Assets Under Administration (AUA) grew by 3%, supported by strong win momentum, while Assets Under Management (AUM) increased by 2% due to market appreciation [16][17] - The integrated cash program contributed $21 billion to revenue, matching levels from the prior quarter and year [13] Company Strategy and Development Direction - SEI is focusing on expanding its investment management product launches, particularly in ETFs, SMAs, and select alternative products, aiming to leverage its strengths in these areas [8][21] - The company is committed to a long-term strategic partnership with Stratos, enhancing its capabilities in the advisor channel and integrating technology and investment management strengths [6][8] - SEI is transitioning its IMS business model to platform-level services, utilizing automation and AI to lower costs and expand access to solutions [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum generated in Q4 2025, expecting it to carry into 2026, particularly in private banking and asset management [5][21] - The company is focused on executing its roadmap for 2026, emphasizing disciplined investment and operational efficiency [10][21] - Management acknowledged the challenges of seasonality and the impact of performance fees, indicating a cautious but optimistic outlook for the upcoming quarters [19][21] Other Important Information - SEI repurchased $101 million of shares in Q4, totaling $616 million for the year, representing nearly 6% of total shares outstanding [18] - The company completed the Stratos acquisition primarily with cash, ending the year with $400 million in cash and no debt [18] Q&A Session Summary Question: Sales events from alternative managers - Management indicated that over two-thirds of sales events came from alternative managers, with a mix of new wins and expanding relationships with current clients, expecting more updates in April [24][25][26] Question: Private banking segment margins - Management noted that private banking margins have been increasing steadily, with expectations to remain in the high teens range, influenced by professional services [36][37] Question: Impact of workforce reductions on expenses - Management clarified that the reduction in compensation from workforce reductions would largely offset annual compensation increases, resulting in a flattish impact on expenses [45][46] Question: Stratos acquisition run rate impact - Management provided insights on the Stratos acquisition, indicating a revenue contribution of about $5 million in Q4, with expectations for more detailed updates in Q1 [52][53] Question: Revenue recognition from non-recurring sales events - Management confirmed that the two significant sales events in private banking are recurring, with revenue recognition expected to occur over the coming quarters [56][57]

SEI Investments Company (NASDAQ: SEIC) Q4 2025 Earnings Presentation Q4 2025 SEI Earnings Presentation Safe Harbor Statement This presentation 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," "remain" and "continue" or "appear." Our forward-looking statements include our current expectations as to: 2 • Our ability ...

Financial Performance - SEI reported a 16% increase in diluted EPS to $1.38 for Q4 2025 compared to Q4 2024, with revenues growing by 9% to $607.9 million[3]. - Operating income for Q4 2025 rose by 11% to $161.6 million, resulting in an operating margin of 27%, up from 26% in the previous year[3]. - Full-year revenues reached $2.3 billion, an 8% increase from $2.1 billion in 2024, while net income attributable to SEI Investments increased by 23% to $715.3 million[3]. Segment Performance - The Investment Managers segment saw a 15% revenue increase to $220.8 million in Q4 2025, with operating profit growing by 25%[5]. - Private Banks reported a 7% revenue increase to $149.8 million, with operating profit up 47% to $29.1 million, reflecting strong demand for services[5]. Acquisitions and Strategic Moves - SEI completed the acquisition of Stratos for $440.8 million, enhancing its capabilities in the advisory space and expanding distribution channels[7]. - The company achieved record net sales events of $149.9 million for the year, with Q4 net sales totaling $43.6 million[7]. Asset Management - Assets under administration increased by 3% and assets under management rose by 2% from Q3 to Q4 2025, driven by client wins and market appreciation[7]. - Total assets under management reached $554,611 million by the end of 2025, an increase from $476,713 million in 2024, representing a growth of approximately 16.3%[17]. - Client assets under administration grew to $1,248,721 million in 2025, up from $1,055,943 million in 2024, indicating an increase of about 18.3%[21]. - Total platform assets increased to $126,483 million in Q4 2025, compared to $107,030 million in Q4 2024, a rise of approximately 18.2%[21]. - The average assets under management for equity and fixed-income programs reached $299,047 million in Q4 2025, up from $273,032 million in Q4 2024, reflecting a growth of approximately 9.6%[22]. - Stratos Wealth Holdings managed $38.4 billion in client assets as of November 30, 2025, contributing to the company's overall asset growth strategy[19]. - Stratos Wealth Holdings manages $38.1 billion in client assets as of November 30, 2025[24]. Sales Performance - Total Net Recurring Sales Events for Q4 2025 reached $18.748 million, a decrease from $28.211 million in Q4 2024[26]. - Total Non-Recurring Sales Events for Q4 2025 increased significantly to $24.851 million, compared to $10.008 million in Q4 2024[28]. - Total Sales Events for Q4 2025 amounted to $43.599 million, up from $38.219 million in Q4 2024[30]. - Investment Processing-related Businesses generated $49.576 million in total sales for Q4 2025, a notable increase from $36.359 million in Q4 2024[30]. - Private Banks within Investment Processing-related Businesses reported a substantial increase in sales to $29.079 million in Q4 2025, compared to $15.867 million in Q4 2024[30]. - Asset Management-related Businesses reported a loss of $7.320 million in total sales for Q4 2025, worsening from a loss of $839,000 in Q4 2024[30]. - Investments in New Businesses contributed $1.343 million to total sales in Q4 2025, a decrease from $2.699 million in Q4 2024[30]. - The performance of Private Banks in Asset Management-related Businesses showed a loss of $1.567 million in Q4 2025, compared to a loss of $495,000 in Q4 2024[30]. - The company is focusing on expanding its Investment Processing-related Businesses to enhance overall sales performance[30]. Expenses and Liabilities - Corporate overhead expenses increased by 61% to $62.1 million in Q4 2025, primarily due to severance and M&A-related costs[5]. - Total assets increased to $3,259,844 million in 2025, up from $2,684,606 million in 2024, representing a growth of approximately 21.3%[15]. - Total current assets decreased to $1,273,337 million in 2025 from $1,551,810 million in 2024, a decline of about 17.9%[15]. - Total liabilities rose to $556,068 million in 2025, compared to $432,494 million in 2024, marking an increase of approximately 28.6%[15]. - Shareholders' equity increased to $2,459,817 million in 2025, up from $2,252,112 million in 2024, reflecting a growth of about 9.2%[15].