Company Overview - SEI Investments Company (NASDAQ: SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry [3] - As of June 30, 2025, SEI manages, advises, or administers approximately $1.7 trillion in assets [3] Upcoming Event - SEI will host its Investor Day in New York City on September 18, 2025, from 8:30 a.m. to 12 p.m. EDT, aimed at institutional investors and industry analysts [1] - Presentations will be delivered by SEI's executive leadership, covering the company's markets, solutions, platforms, and future growth strategies [1] Public Engagement - The public is invited to view the presentation and listen to the conference webcast, which will also be available for replay shortly after the conference [2]

Core Insights - SEI has appointed Robert Hum as Head of Investment Product Development and Activation to enhance its investment product strategies and portfolio outcomes [1][4] - Hum brings 15 years of experience from BlackRock and Ladenburg Thalmann, where he managed over $2 billion in assets [2] - Heather Corkery has transitioned to support Hum, focusing on product activation strategies and user experience optimization [3] Company Strategy - SEI aims to strengthen its investment solutions by building a dedicated team to identify market trends and client needs [4] - The company is focused on enhancing access to private markets and improving investment products and model allocations [4] - SEI manages approximately $1.7 trillion in assets as of June 30, 2025, indicating its significant presence in the financial services industry [6] Leadership and Expertise - Robert Hum's diverse experience in ETF construction and implementation is expected to drive SEI's growth in new markets [4] - Heather Corkery's 20 years of experience at SEI will contribute to the depth of investment expertise within the new team [3] - Both leaders emphasize SEI's client-centric approach and the importance of leveraging technology and operations for competitive advantage [5]

Core Insights - GQG Partners has launched its first ETF, the GQG US Equity ETF, utilizing SEI's Advisors' Inner Circle Fund series trust as its operational platform, marking a significant expansion of their nine-year partnership [1][2][3] - The ETF launched on July 14, 2025, with over $200 million in assets under management, facilitated by a strategic private fund conversion under Section 351, which allows for a tax-efficient transition to an ETF structure [2][3] - The active ETF market in the U.S. is projected to grow from $856 billion in 2024 to $11 trillion by 2035, indicating a strong demand for active ETF products [3][6] Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.7 trillion in assets as of June 30, 2025 [7] - SEI's Advisors' Inner Circle Fund provides a scalable infrastructure for investment managers, supporting the launch of various investment vehicles, including mutual funds and ETFs [4][5] - GQG Partners manages $172.4 billion in client assets as of June 30, 2025, focusing on long-only equity strategies for institutions, advisors, and individuals [9]

Amy Sliwinski Will Lead Global Talent and Culture to Power Company's Strategic Growth OAKS, Pa., July 29, 2025 /PRNewswire/ -- SEI® (NASDAQ: SEIC) today announced the appointment of Amy Sliwinski as an Executive Vice President and Chief People and Culture Officer. Sliwinski will focus on transforming people strategies globally to enable SEI's business goals, scale the organization, and nurture the company's culture as the business grows and evolves. In this new role, she will be responsible for developing, ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited consolidated financial statements for the three and six months ended June 30, 2025 and 2024, highlighting a 7.8% year-over-year increase in total revenues to $1.11 billion and a 40% increase in net income to $378.6 million, significantly boosted by a $94.4 million gain on the sale of a business Consolidated Statement of Operations Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,110,945 | $1,030,565 | +7.8% | | **Income from Operations** | $305,732 | $262,365 | +16.5% | | **Gain on sale of business** | $94,412 | $0 | N/A | | **Net Income** | $378,600 | $270,520 | +40.0% | | **Diluted EPS** | $2.95 | $2.04 | +44.6% | Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | $2,626,266 | $2,684,606 | -2.2% | | **Cash and cash equivalents** | $746,349 | $840,193 | -11.2% | | **Total Liabilities** | $287,827 | $432,494 | -33.5% | | **Total Shareholders' Equity** | $2,338,439 | $2,252,112 | +3.8% | Consolidated Cash Flow Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **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) | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and breakdowns of financial statement items, including revenue recognition, equity method investments, segment performance, a business divestiture, and subsequent strategic investment agreements - The company operates through three main platforms: Investment processing, Investment operations, and Investment management, which form the basis of its revenue streams[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The company's **38.5% interest in LSV Asset Management** contributed **$62.4 million** to earnings in the first six months of 2025, a decrease from **$65.9 million** in the prior year period[45](index=45&type=chunk)[47](index=47&type=chunk) - On June 30, 2025, the company completed the sale of its Family Office Services business to Aquiline Capital Partners, recognizing a gain of **$94.4 million**[132](index=132&type=chunk) - Subsequent to the quarter end, on July 17, 2025, the company entered into a definitive agreement to acquire a **57.5% equity stake in Stratos Wealth Holdings** for approximately **$527 million**[133](index=133&type=chunk) Segment Profit (Six Months Ended June 30, 2025) | Segment | Revenue (in thousands) | Segment Profit (in thousands) | | :--- | :--- | :--- | | **Investment Managers** | $387,115 | $148,268 | | **Private Banks** | $279,163 | $45,690 | | **Investment Advisors** | $273,769 | $125,513 | | **Institutional Investors** | $137,849 | $66,122 | | **Investments in New Businesses** | $33,049 | $(3,877) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the 8% revenue growth for the first half of 2025 to higher assets under administration in the Investment Managers segment, market appreciation, and positive cash flows in the Investment Advisors segment, with net income growth significantly impacted by a $94.4 million gain from a business sale [Overview](index=37&type=section&id=Overview) Consolidated revenues for the first six months of 2025 increased by 8% year-over-year, driven by growth in asset management and administration fees, while net income rose 40% largely due to a one-time gain of $94.4 million from a business divestiture - The sale of the Family Office Services business on June 30, 2025, resulted in a net gain of **$94.4 million**, contributing **$0.58** to diluted earnings per share[138](index=138&type=chunk) - Revenue from Asset management, administration and distribution fees increased due to higher assets under administration in the Investment Managers segment (average AUA up **12% to $1.1 trillion**) and market appreciation in the Investment Advisors segment[138](index=138&type=chunk) - Earnings from the company's affiliate, LSV, decreased to **$62.4 million** in the first half of 2025 from **$65.9 million** in the prior year, attributed to client losses and negative cash flows[139](index=139&type=chunk) - The company repurchased **4.7 million shares** of its common stock for **$373.6 million** in the first six months of 2025[139](index=139&type=chunk) [Business Segments Analysis](index=43&type=section&id=Business%20Segments) The analysis details the performance of SEI's five business segments, showing revenue increases in Investment Managers, Private Banks, and Investment Advisors, a decline in Institutional Investors, and growth in Investments in New Businesses Segment Performance (Six Months Ended June 30) | Segment | 2025 Revenue (in thousands) | YoY Revenue Change | 2025 Operating Profit (in thousands) | YoY Profit Change | | :--- | :--- | :--- | :--- | :--- | | **Investment Managers** | $387,115 | +10% | $148,268 | +13% | | **Private Banks** | $279,163 | +6% | $45,690 | +21% | | **Investment Advisors** | $273,769 | +13% | $125,513 | +17% | | **Institutional Investors** | $137,849 | -4% | $66,122 | +2% | | **Investments in New Businesses** | $33,049 | +14% | $(3,877) | N/A | - The Investment Advisors segment's revenue growth was significantly impacted by a **$21.8 million** increase in fees from the SEI Integrated Cash Program[157](index=157&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $746.3 million in cash and cash equivalents and a $325 million credit facility, with operating cash flows increasing to $243.0 million, while financing activities were dominated by $383.3 million in stock repurchases and $123.3 million in dividend payments - As of July 10, 2025, the company had **$320.1 million** available for corporate purposes under its credit facility[177](index=177&type=chunk) - Cash flows from operations increased by **$16.0 million** year-over-year for the six-month period, driven by higher net income[181](index=181&type=chunk) Key Uses of Cash in Financing Activities (Six Months Ended June 30, 2025) | Activity | Amount (in thousands) | | :--- | :--- | | **Repurchase of common stock** | $(383,304) | | **Dividend payments** | $(123,297) | | **Proceeds from issuance of common stock** | $87,381 | [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section states that there have been no material changes to the market risk information previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - The company confirms no material changes to its market risk disclosures from the 2024 Form 10-K[200](index=200&type=chunk)[201](index=201&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective[202](index=202&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[203](index=203&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings.) The company states that it is party to various legal proceedings and investigations that arise in the ordinary course of business, but it does not believe the outcome of these matters will have a material adverse effect - The company does not believe that the outcome of any ongoing legal proceedings will have a material adverse effect on its financial position. For specific details, the report refers to Note 11[205](index=205&type=chunk) [Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors.) The company reports that there have been no material changes in its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K[206](index=206&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details the company's common stock repurchases during the second quarter of 2025, totaling 2,162,000 shares at an average price of $83.18 per share, with approximately $296 million remaining available for future repurchases Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 351,000 | $71.28 | | May 2025 | 735,000 | $84.63 | | June 2025 | 1,076,000 | $86.06 | | **Total** | **2,162,000** | **$83.18** | - As of June 30, 2025, approximately **$296 million** remained authorized for future stock repurchases[207](index=207&type=chunk) [Other Information](index=57&type=section&id=Item%205.%20Other%20Information) The company reports that none of its officers or directors adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No officers or directors adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025[208](index=208&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed as part of the Form 10-Q, which include certifications from the Principal Executive Officer and Principal Financial Officer, Section 1350 certifications, and various XBRL data files - The exhibits filed with this report include CEO and CFO certifications and XBRL interactive data files[209](index=209&type=chunk)[210](index=210&type=chunk)

Group 1 - SEI Investments Company reported quarterly earnings of $1.20 per share, exceeding the analyst consensus estimate of $1.16 per share [1] - The company achieved quarterly sales of $559.601 million, surpassing the analyst consensus estimate of $555.724 million [1] - CEO Ryan Hicke emphasized the company's commitment to sustained growth through investments in talent, technology, and infrastructure [2] Group 2 - SEI Investments shares experienced a decline of 2.1%, trading at $88.07 following the earnings announcement [2] - Analysts adjusted their price targets for SEI Investments after the earnings report, with Piper Sandler lowering the target from $96 to $93 and Keefe, Bruyette & Woods lowering it from $100 to $98 [8]

Core Insights - SEI Investments Co. (SEIC) reported a second-quarter 2025 earnings per share (EPS) of $1.78, exceeding the Zacks Consensus Estimate of $1.18, and reflecting a 70% increase from the prior-year quarter [1][9] - The net income for the quarter was $227.1 million, up 63% from the year-ago quarter, surpassing the estimate of $145.3 million [1] Revenue and AUM Performance - Total revenues reached $559.6 million, marking an 8% year-over-year increase, driven by higher asset management, administration, distribution fees, and information processing and software servicing fees, although it fell short of the Zacks Consensus Estimate of $561.1 million [2][9] - Assets under management (AUM) stood at $517.5 billion, reflecting a 10% increase from the prior-year quarter, while client assets under administration (AUA) rose 11% year over year to $1.14 trillion [4][9] Expense Analysis - Total expenses amounted to $411 million, up 7% year over year, primarily due to increases in almost all cost components, except for amortization and depreciation charges, and slightly above the estimate of $409.8 million [3] - Operating income increased by 9% year over year to $148.6 million, exceeding the estimate of $139.7 million [3] Share Repurchase Activity - In the reported quarter, SEIC repurchased 2.2 million shares for $180.8 million at an average price of $83.60 per share [5] Strategic Outlook - The company's global presence, diverse product offerings, solid balance sheet, strategic acquisitions, and robust AUM balance are expected to support revenue growth, despite concerns over elevated operating expenses and concentrated fee-based revenues [6]

Core Insights - SEI has expanded its SEI Access platform by adding 17 new fund managers, enhancing access to alternative investment products for wealth managers and financial advisors [1][2] - The platform aims to provide a public markets experience for private markets, facilitating broader access to alternative investments through a digital marketplace [2][5] - Since its launch in 2019, SEI Access has achieved over 23,500 subscriptions and processed transactions exceeding $5.1 billion in alternative investments [3] Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.7 trillion in assets as of June 30, 2025 [4] - The company focuses on tailoring solutions to help clients effectively deploy their capital, enhancing their ability to serve clients and achieve growth objectives [4] SEI Access Platform - SEI Access is designed to improve the investment experience for registered investment advisors, broker-dealers, and private banks, offering a streamlined subscription process for alternative investment fund managers [5] - The platform integrates electronic subscription documents, proprietary firm paperwork, custodian forms, and e-signature capabilities to ensure efficient transaction processing [5]

Company Performance - SEI Investments (SEIC) reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.18 per share, and up from $1.05 per share a year ago, representing an earnings surprise of +50.85% [1] - The company posted revenues of $559.6 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.26%, but up from $518.99 million year-over-year [2] - Over the last four quarters, SEI has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.25 on revenues of $574.91 million, and for the current fiscal year, it is $4.91 on revenues of $2.27 billion [7] - The estimate revisions trend for SEI was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong 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 ranked in the top 6% of over 250 Zacks industries, suggesting a strong outlook for the 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 - The company's EPS for the quarter was reported at $1.78, which includes significant one-time items that impacted EPS by $0.60, while excluding these items, the adjusted EPS would be $1.20, reflecting an increase from both the prior year and prior quarter [16][17] - Consolidated operating margins improved slightly year over year but declined sequentially due to one-time expenses in corporate overhead [19][20] Business Line Data and Key Metrics Changes - Private banking revenue increased both year over year and sequentially, supported by larger clients going live in the quarter [16] - Investment managers revenue grew by 8% year over year, with double-digit growth in alternatives, offsetting a 1% decline in traditional revenue [17] - Advisor and institutional businesses realized flat sequential revenue growth, with market appreciation in May and June offsetting significant declines in April [17] Market Data and Key Metrics Changes - AUM net flows for advisor and institutional businesses were negligible year to date, significantly improving from the first half of the previous year [22] - Traditional mutual fund outflows were largely offset by growth in models and custom portfolios, indicating a shift in resource allocation towards tax-sensitive ETFs and SMAs [23] Company Strategy and Development Direction - The company announced a strategic investment in Stratos, aiming to integrate Stratos' client-centric model with SEI's technology and investment management capabilities, enhancing their position in the wealth management landscape [5][6] - The focus remains on flawless execution to ensure client satisfaction, with proactive investments in talent, technology, and platforms [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and depth of their sales pipeline, despite temporary delays in private banking due to market volatility [36][37] - The competitive landscape is shifting in favor of the company, with increased interest in outsourcing from banks and alternative asset managers [9][10] Other Important Information - The company has returned significant capital to shareholders, with buybacks exceeding $700 million on a trailing twelve-month basis [24] - The upcoming Investor Day is expected to provide deeper insights into the company's strategic priorities and anticipated outcomes [26] Q&A Session Summary Question: Key investments in talent and technology - Management highlighted investments in talent and technology, particularly in IMS to streamline systems for better scalability and cost efficiency [29][30] Question: Temporary delays in private banking - Management attributed delays to market conditions in April but emphasized a strong pipeline moving forward [34][36] Question: Differentiation of Stratos acquisition - Management noted Stratos' experienced executive team, centralized investment platform, and cultural fit as key differentiators [42][44] Question: Sales cycle characterization and drivers of strength - Management indicated a robust pipeline across all segments, particularly in alternatives, with a focus on strategic outsourcing partnerships [55][58]