Financial Performance - Revenues for the three months ended September 30, 2025, increased by 8% to $578.5 million compared to $537.4 million in 2024[139] - Net income attributable to SEI Investments Company for the nine months ended September 30, 2025, rose by 28% to $542.8 million from $425.4 million in 2024[139] - Total revenues increased by $20.6 million, or 16%, in the three-month period and by $51.1 million, or 14%, in the nine-month period ended September 30, 2025, primarily driven by increased fee revenue from the SEI Integrated Cash Program[155] Assets and Management - Average assets under administration increased by $131.6 billion, or 13%, to $1.1 trillion during the first nine months of 2025 compared to $998.4 billion in 2024[139] - Total assets under management as of September 30, 2025, increased by 10% to $541.5 billion from $493.3 billion in 2024[143] - Client assets under administration rose by 16% to $1.2 trillion as of September 30, 2025, compared to $1.0 trillion in 2024[143] - Total assets for Institutional Investors increased to $88,886 million in Q3 2025, up 2% from $87,445 million in Q3 2024[152] - Total platform assets reached $119,123 million in Q3 2025, reflecting a 14% increase from $104,745 million in Q3 2024[152] Shareholder Actions - SEI repurchased 6.2 million shares of its common stock for $515.2 million in the first nine months of 2025[141] - Cash dividends paid were $123.3 million in the first nine months of 2025, compared to $120.3 million in the same period of 2024[187] Tax and Expenses - The effective tax rate for the first nine months of 2025 was 22.3%, down from 23.4% in the same period of 2024[141] - Corporate overhead expenses rose to $42.8 million in the three months ended September 30, 2025, compared to $37.9 million in 2024, primarily due to increased personnel costs and professional fees related to M&A activity[160] - Stock-based compensation expense increased to $42.0 million for the nine months ended September 30, 2025, compared to $37.2 million in 2024, driven by new equity awards granted[175] Acquisitions and Divestitures - The sale of the Family Office Services business resulted in a net gain of $94.4 million, contributing $0.58 to diluted earnings per share in Q2 2025[139] - SEI entered into an agreement to acquire 57.5% of Stratos Wealth Holdings for approximately $527.0 million, with the transaction expected to close in two stages[140] - The divestiture of the Family Office Services business was completed on June 30, 2025, resulting in a gain of $94.4 million, net of transaction costs[177] Regulatory and Compliance - The company has undergone or is scheduled for reviews and examinations by various regulatory authorities, which may result in remediation activities or enforcement proceedings[179] - Governmental scrutiny and regulatory inquiries have increased significantly, impacting management's focus and potentially affecting business operations[196] - Compliance with anti-money laundering and financial transparency laws is mandatory, which may lead to reduced sales or modifications of investment and banking solutions[197] - The company faces higher costs and compliance risks due to economic sanctions and anti-corruption laws globally[198] - Privacy and data protection regulations, such as GDPR and CCPA, require ongoing compliance efforts, incurring substantial costs[199] - Increased regulatory activity may significantly impact the company, leading to higher expenses and potential revenue reductions[201] - The financial services industry is experiencing extensive changes in regulations, affecting broker-dealers and investment advisors[201] Market Risks - Market risks, including changes in capital markets and interest rates, can significantly affect the company's revenues and earnings[204] - There have been no material changes to the company's market risk disclosures as reported in the Annual Report for 2024[204]

Core Viewpoint - The article compares Federated Hermes (FHI) and SEI Investments (SEIC) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - FHI has a Zacks Rank of 1 (Strong Buy), while SEIC has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for FHI [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting an improving earnings outlook for FHI [3] Group 2: Valuation Metrics - FHI has a forward P/E ratio of 10.35, compared to SEIC's forward P/E of 14.82, indicating that FHI may be undervalued [5] - FHI's PEG ratio is 0.53, while SEIC's PEG ratio is 1.23, further suggesting that FHI is a better value option when considering expected earnings growth [5] - FHI's P/B ratio is 3.35, whereas SEIC's P/B ratio is 4.22, reinforcing the notion that FHI is more attractively priced [6] Group 3: Value Grades - FHI has earned a Value grade of B, while SEIC has a Value grade of C, indicating that FHI is viewed as a superior value investment based on various valuation metrics [6]

Market Adoption - BlackRock, Apollo, Hamilton Lane, Nomura, Brevan Howard 等公司，共计 15 万亿美元资产管理规模 (AUM) 选择 SEI 作为 RWA (Real World Asset) 结算平台 [1] - DTCC 每年处理 2 quadrillion 美元交易额，SEI 获得其中 0.01% 的份额，交易额将达到 2000 亿美元 [1] Financial Implication - SEI 当前市值为 18 亿美元 [1] Competitive Advantage - 首个锁定跨机构结算的区块链平台将赢得整个市场 [1]

Core Insights - SEI Investments Company has approved an increase in its stock repurchase program by an additional $650 million, raising the total authorization to approximately $773.2 million, which includes $123.2 million remaining as of October 20, 2025 [1] Company Overview - SEI (NASDAQ: SEIC) is a prominent global provider of financial technology, operations, and asset management services within the financial services industry, managing, advising, or administering approximately $1.8 trillion in assets as of September 30, 2025 [2]

Core Insights - SEI Investments Co. reported third-quarter 2025 earnings per share (EPS) of $1.30, exceeding the Zacks Consensus Estimate of $1.25, and reflecting a year-over-year increase of 9.2% [1][9] - The company's net income attributable to SEI Investments was $164.2 million, a 6% increase from the previous year, surpassing the estimate of $148.2 million [2] - Total revenues reached $578.5 million, up 7.7% year over year, driven by higher asset management and administration fees, although it fell short of the Zacks Consensus Estimate of $579.5 million [3][9] - Total expenses increased to $418.6 million, a rise of 6.3% year over year, influenced by nearly all cost components except for facilities and depreciation [4] - As of September 30, 2025, assets under management (AUM) were $541.5 billion, reflecting a 9.8% increase from the prior year, while client assets under administration (AUA) reached $1.21 trillion, up 16% year over year [5] - SEI Investments repurchased 1.6 million shares for $141.6 million at an average price of $90.02 per share during the reported quarter [6] - The company's global presence, diverse product offerings, and strong AUM are expected to support revenue growth, despite concerns over elevated operating expenses [7] Comparative Performance - BlackRock reported third-quarter 2025 adjusted earnings of $11.55 per share, surpassing estimates and reflecting a slight year-over-year increase, with AUM reaching a record high of $13.46 trillion [8]

Core Insights - SEI Investments (SEIC) reported revenue of $578.51 million for the quarter ended September 2025, marking a year-over-year increase of 7.7% and an EPS of $1.30 compared to $1.19 a year ago, with an EPS surprise of +4% [1][3] Financial Performance - Revenue of $578.51 million represents a slight miss of -0.17% against the Zacks Consensus Estimate of $579.5 million [1] - The company’s shares have returned -4.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [3] Assets Under Management - Investments in New Business: $3.24 billion, slightly below the $3.29 billion average estimate [4] - Investment Advisors: $88.64 billion, exceeding the $86.94 billion average estimate [4] - Private Banks: $31.21 billion, slightly above the $31.17 billion estimate [4] - Institutional Investors: $84.26 billion, below the $84.63 billion average estimate [4] - LSV - Equity and Fixed Income programs: $95.8 billion, surpassing the $93.64 billion average estimate [4] Revenue Breakdown - Revenue from Investment Advisors: $147.47 million, a +16.3% change year-over-year, exceeding the $143.82 million estimate [4] - Revenue from Investment Managers: $207.05 million, a +12.2% change year-over-year, above the $204.78 million estimate [4] - Revenue from Private Banks: $143.99 million, a +3.8% change year-over-year, slightly below the $145.32 million estimate [4] - Revenue from Institutional Investors: $71.83 million, a +0.3% change year-over-year, close to the $72.05 million estimate [4] - Revenue from Information processing and software servicing fees: $116.55 million, a +2.7% change year-over-year, below the $122.9 million estimate [4] - Revenue from Asset management, administration and distribution fees: $461.96 million, a +9% change year-over-year, slightly above the $461.68 million estimate [4]

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Core Insights - SEI Investments (SEIC) reported quarterly earnings of $1.3 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and showing an increase from $1.19 per share a year ago, resulting in an earnings surprise of +4.00% [1] - The company posted revenues of $578.51 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.17%, but up from $537.4 million year-over-year [2] - SEI has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.34, with expected revenues of $594.17 million, and for the current fiscal year, the EPS estimate is $5.52 on revenues of $2.28 billion [7] - The estimate revisions trend for SEI was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Investment Management industry, to which SEI belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - SEI reported an EPS of $1.30, marking an all-time high excluding one-time items, with earnings growth of 8% sequentially and 17% year over year [4][13] - Net sales events totaled $31 million, with a record sales quarter in Investment Manager Services, reflecting strong demand for outsourcing and client expansions [5][10] - Year-to-date net sales surpassed $100 million, a record for SEI through the third quarter [10] Business Line Data and Key Metrics Changes - Private banking revenue increased by 4% year over year, driven by growth in the SWP platform [14] - Investment Manager Services experienced double-digit revenue and operating profit growth, with alternatives showing robust growth in both the U.S. and EMEA [14] - Advisors' business posted the highest year-over-year revenue growth among all segments, supported by market appreciation and the integrated cash program [14] Market Data and Key Metrics Changes - Assets under administration grew broadly across CITs, alternatives, and traditional funds, with alternatives driving the majority of growth [18] - Assets under management increased, with modestly positive net flows in advisors, driven by growth in ETFs and SMAs [18] Company Strategy and Development Direction - SEI is focused on disciplined execution, transparent communication, and creating long-term value for clients and shareholders [4] - The company is investing in technology, automation, and talent to drive margin expansion and support future growth [11][20] - SEI is well-positioned in the outsourcing fund administration market, engaging with large alternative asset managers [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales pipeline and the ability to capitalize on growth opportunities, despite a recent contract loss in private banking being a one-off event [10][27] - The company is optimistic about the impact of AI and tokenization initiatives on efficiency and scalability [11] Other Important Information - SEI ended the quarter with $793 million in cash and no net debt, with share repurchases totaling $142 million in Q3 [19][20] - The company made a $50 million investment in LSV's market-neutral hedge fund, contributing positively to Q3 results [20] Q&A Session Summary Question: Sales events from alternatives - Management noted that two-thirds of sales events were from alternatives, with a mix of large and small clients contributing to this growth [23][25] Question: Details on the known contract loss in private banking - Management clarified that the contract loss was a one-off due to a major operating model change by the client, not indicative of a trend [26][27] Question: Integrated cash program and fixed rates - The company is currently earning about 370 basis points on the integrated cash program and is monitoring investor yields as rates change [32] Question: Expense growth in private banking - Management indicated that the expense growth is related to investments in talent and onboarding new clients, not unusual [34][35] Question: Future margin expectations for Investment Manager Services - Management expects strong margins going forward but acknowledges the need for ongoing investments [40] Question: International market strategy - The company is in the early phases of defining its go-to-market strategy for international markets, focusing on existing jurisdictions [46][47] Question: Buyback pace and Stratos acquisition - Management plans to return 90% to 100% of free cash flow to shareholders through dividends or buybacks, with the pace of buybacks expected to continue [50] Question: Impact of credit fears on private credit servicing - Management reported no significant impact on the private credit servicing pipeline, as their clients are well-positioned to manage credit risk [51][53] Question: High-risk relationships in private banking - Management stated there are currently no known high-risk relationships in the private banking portfolio [57][59]