Financial Data and Key Metrics Changes - The company reported an EPS of $1.78, which includes significant one-time items, notably a gain from the sale of the Family Office Services business and a vendor negotiation totaling a $0.60 EPS impact [15] - Excluding these items, the adjusted EPS would have been $1.20, reflecting an increase from both the prior year and prior quarter [15] - Consolidated operating margins improved slightly year over year but declined sequentially due to one-time expenses in corporate overhead [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 [15] - Investment managers' revenue grew 8% year over year, with double-digit growth in alternatives offsetting a 1% decline in traditional revenue [15] - Advisor and institutional businesses realized flat sequential revenue growth, with market appreciation in May and June offsetting significant declines in April [16] 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 2024 [23] - 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 [24] - The company is in the early stages of its asset management journey, focusing on larger advisors and growing the RIA business, with early progress being encouraging [24] Company Strategy and Development Direction - The company announced a strategic investment in Stratos, integrating its client-centric model with SEI's technology and investment management capabilities [5][6] - The leadership team has evolved with the appointments of Karen Riese and Tom Maratil to the Board of Directors, enhancing strategic insight and commitment to long-term growth [6] - The company is focused on flawless execution to ensure client satisfaction and is investing in talent, technology, and platforms to support growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive landscape shifting in their favor, with increased interest in outsourcing from banks and alternative asset managers [9] - The company is addressing outflow headwinds and is seeing tangible progress, with two quarters of improving net asset flows [8] - Management emphasized the importance of long-term growth and accountability, stating that investments made now are targeted and intentional [12] Other Important Information - The company returned significant capital to shareholders, with buybacks exceeding $700 million on a trailing twelve-month basis [25] - The upcoming Investor Day is scheduled for September 18, where more strategic priorities and anticipated outcomes will be discussed [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 sales - Management attributed delays to market volatility in April but noted a strong and balanced pipeline across various segments [34][36] Question: Differentiation of Stratos acquisition strategy - Management emphasized Stratos' experienced executive team, centralized investment platform, and cultural fit as key differentiators [42][44] Question: Revenue synergies from Stratos - Management indicated that while there may not be immediate revenue synergies, the focus is on enhancing Stratos' existing capabilities without disrupting their organic growth [49][50] Question: Sales cycle characterization and drivers of strength - Management noted strong pipelines across all segments, particularly in alternatives, and emphasized the importance of flawless execution to secure long-term business [53][55]

Financial Performance - SEI Investments Company's Q2 2025 revenues reached $559.6 million, a 7.8% increase compared to Q2 2024 and a 1.5% increase compared to Q1 2025[5] - Operating income for Q2 2025 was $148.6 million, up 8.9% year-over-year but down 5.4% sequentially[5] - Net income for Q2 2025 surged to $227.1 million, a 63.2% increase compared to Q2 2024 and a 49.9% increase compared to Q1 2025[5] - Earnings per share (EPS) for Q2 2025 was $1.78, a 69.5% increase year-over-year and a 52.1% increase sequentially[5] - Assets Under Management (AUM) reached $517.5 billion, a 10.0% increase compared to Q2 2024 and a 6.5% increase compared to Q1 2025[5] - Assets under Administration, Platform & Advisement totaled $1,177.4 billion, an 11.8% increase year-over-year and a 5.1% increase sequentially[5] Business Unit Performance - Private Banking revenue increased, driven by several client go-lives during Q2 2025[12] - Investment Managers revenue growth reflects double-digit alts increase offset by modest decline in traditional due to mark-to-market pressure[12] - Investment Advisors revenue year-over-year growth was driven by $21 million in Integrated Cash Program revenue, up $11 million from Q2 2024[12] Capital Allocation - The company returned significant capital to shareholders during Q2 2025, with buybacks exceeding $700 million on a trailing twelve-month (TTM) basis[21]

[Second-Quarter 2025 Financial Results Overview](index=1&type=section&id=Second-Quarter%202025%20Financial%20Results%20Overview) SEI reported strong financial results for Q2 2025, with significant increases in diluted EPS, revenue, and operating income compared to Q2 2024, notably boosted by a gain on the sale of its Family Office Services business [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) SEI reported strong financial results for Q2 2025, with significant increases in diluted EPS, revenue, and operating income compared to Q2 2024, notably boosted by a gain on the sale of its Family Office Services business | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | % Change (YoY) | | :------------------------ | :---------- | :---------- | :------------- | | Revenues | $559,601 | $518,986 | 8% | | Operating income | $148,635 | $136,514 | 9% | | Operating margin | 27% | 26% | 4% | | Net income | $227,083 | $139,120 | 63% | | Diluted earnings per share | $1.78 | $1.05 | 70% | - Q2 2025 diluted EPS benefited by **$0.58** from several items affecting comparability, most notably a **$94.4 million** gain on the sale of SEI's Family Office Services business[2](index=2&type=chunk) [CEO Commentary and Strategic Highlights](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Highlights) CEO Ryan Hicke highlighted a strong quarter across core businesses, emphasizing conviction and discipline in execution for sustained growth, while making intentional investments in talent, technology, and infrastructure - SEI is making intentional investments in talent, technology, and infrastructure to enhance capabilities and scale for expected growth[3](index=3&type=chunk) - Strategic investment in Stratos demonstrates commitment to innovation in wealth management solutions[4](index=4&type=chunk) - Two highly experienced, independent directors, Karin Risi and Tom Naratil, joined the Board to support growth strategies[5](index=5&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) SEI's business segments showed varied performance in Q2 2025, with strong revenue and operating profit growth in Investment Managers, Private Banks, and Investment Advisors, while Institutional Investors experienced a revenue decline [Investment Managers](index=2&type=section&id=Investment%20Managers) The Investment Managers segment saw an **8% increase in revenues** and a **7% rise in operating profit** for Q2 2025, driven by double-digit growth in alternative manager revenue, despite a slight decline in traditional revenue due to market volatility, with the operating profit margin remaining stable at **38%** | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | % Change (YoY) | | :---------------- | :---------- | :---------- | :------------- | | Revenues | $195,067 | $179,868 | 8% | | Expenses | $121,636 | $111,287 | 9% | | Operating Profit | $73,431 | $68,581 | 7% | | Operating Margin | 38% | 38% | — | | YTD Revenues | $387,115 | $352,521 | 10% | | YTD Operating Profit | $148,268 | $131,684 | 13% | - Operating profit growth 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[7](index=7&type=chunk) - 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[7](index=7&type=chunk) [Private Banks](index=2&type=section&id=Private%20Banks) Private Banks experienced a **7% revenue increase** and an **11% operating profit growth** in Q2 2025, reflecting continued momentum and the positive impact of new client implementations, with the operating margin improving slightly to **16%** | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | % Change (YoY) | | :---------------- | :---------- | :---------- | :------------- | | Revenues | $141,449 | $132,401 | 7% | | Expenses | $118,724 | $111,890 | 6% | | Operating Profit | $22,725 | $20,511 | 11% | | Operating Margin | 16% | 15% | — | | YTD Revenues | $279,163 | $262,538 | 6% | | YTD Operating Profit | $45,690 | $37,674 | 21% | - Operating profit growth reflects continued momentum and the positive impact of several clients going live in the quarter[7](index=7&type=chunk) [Investment Advisors](index=2&type=section&id=Investment%20Advisors) The Investment Advisors segment showed strong performance with a **14% revenue increase** and a **19% operating profit growth** in Q2 2025, significantly boosted by SEI's integrated cash program, with the operating margin improving to **45%** | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | % Change (YoY) | | :---------------- | :---------- | :---------- | :------------- | | Revenues | $137,193 | $120,587 | 14% | | Expenses | $75,801 | $68,953 | 10% | | Operating Profit | $61,392 | $51,634 | 19% | | Operating Margin | 45% | 43% | — | | YTD Revenues | $273,769 | $243,305 | 13% | | YTD Operating Profit | $125,513 | $107,394 | 17% | - Operating profit growth reflects a **$21 million** contribution from SEI's integrated cash program, an **$11 million** increase from Q2 2024[7](index=7&type=chunk) - Realized flat revenue growth relative to Q1 2025 as market appreciation in May and June offset significant declines realized in April[7](index=7&type=chunk) [Institutional Investors](index=2&type=section&id=Institutional%20Investors) Institutional Investors experienced a **3% decline in revenues** but a **1% increase in operating profit** for Q2 2025, with the operating margin improving to **48%**, and revenue growth was flat compared to Q1 2025, with market appreciation offsetting April declines | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | % Change (YoY) | | :---------------- | :---------- | :---------- | :------------- | | Revenues | $69,343 | $71,507 | (3)% | | Expenses | $35,857 | $38,426 | (7)% | | Operating Profit | $33,486 | $33,081 | 1% | | Operating Margin | 48% | 46% | — | | YTD Revenues | $137,849 | $143,285 | (4)% | | YTD Operating Profit | $66,122 | $64,750 | 2% | - Realized flat revenue growth relative to Q1 2025 as market appreciation in May and June offset significant declines realized in April[7](index=7&type=chunk) [Investments in New Businesses](index=2&type=section&id=Investments%20in%20New%20Businesses) The Investments in New Businesses segment reported a **13% increase in revenues** and a significant **52% reduction in operating loss** for Q2 2025, indicating improved performance and reduced investment costs | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | % Change (YoY) | | :---------------- | :---------- | :---------- | :------------- | | Revenues | $16,549 | $14,623 | 13% | | Expenses | $18,430 | $18,580 | (1)% | | Operating Loss | ($1,881) | ($3,957) | (52)% | | YTD Revenues | $33,049 | $28,916 | 14% | | YTD Operating Loss | ($3,877) | ($8,047) | (52)% | [Key Business Highlights and Operational Metrics](index=3&type=section&id=Key%20Business%20Highlights%20and%20Operational%20Metrics) SEI's Q2 2025 performance was marked by significant EPS growth driven by strategic asset sales, record net sales events, and improved asset balances, alongside continued share repurchases [Earnings Per Share Drivers](index=3&type=section&id=Earnings%20Per%20Share%20Drivers) SEI's diluted EPS of **$1.78** in Q2 2025, a **70% increase YoY**, was significantly influenced by a **$0.60 benefit** from the sale of the Family Office Services business and a settlement gain, partially offset by a **$0.02 loss** from FX transactions and M&A legal fees related to the Stratos acquisition - Diluted EPS of **$1.78**, up **70%** from prior year, includes a **$0.58** impact from several items[7](index=7&type=chunk) - A **$0.60** benefit was associated with the gain on sale of the Family Office Services business and a settlement gain from vendor negotiation[7](index=7&type=chunk) - A **$0.02** combined loss resulted from FX transaction losses and M&A legal fees from the Stratos Wealth Holdings acquisition[7](index=7&type=chunk) [Sales Events and Pipeline Health](index=3&type=section&id=Sales%20Events%20and%20Pipeline%20Health) Net sales events reached a record **$29.2 million** in Q2 2025, contributing to a trailing 12-month record of **$160.4 million**, primarily driven by the Investment Managers business, with healthy sales pipelines across all segments, including significant improvement in Private Banking and Asset Management businesses - Net sales events during Q2 2025 were **$29.2 million**, contributing to a new record of **$160.4 million** for the trailing 12 months[7](index=7&type=chunk) - Sales events were driven by the Investment Managers business, with a balanced mix of wins across alternatives, traditional, and international investment managers[7](index=7&type=chunk) - Sales pipelines across all SEI's businesses remain healthy, with considerable improvement in net sales events for Private Banking and Asset Management businesses against 2024 losses[7](index=7&type=chunk) [Asset Under Management/Administration Trends](index=3&type=section&id=Asset%20Under%20Management%2FAdministration%20Trends) Average assets under administration (AUA) increased by **4%** and average assets under management (AUM) increased by **2%** relative to Q1 2025, with ending AUM growing by **6%** from Q1 to Q2, primarily due to significant market appreciation in May and June, and net outflows for Institutional Investors and Investment Advisors improved significantly year-to-date - Average assets under administration increased by **4%**, and average assets under management increased **2%** relative to Q1 2025[7](index=7&type=chunk) - Ending assets under management increased by **6%** from Q1 to Q2, reflecting significant market appreciation during May and June[7](index=7&type=chunk) - Institutional Investors and Investment Advisors net flows improved year-to-date, posting just over **$1 billion** of net outflows against more than **$7 billion** in the first half of 2024[7](index=7&type=chunk) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) SEI repurchased **2.2 million shares** of common stock for **$180.8 million** during Q2 2025 at an average price of **$83.60 per share**, bringing the total repurchased shares to **9.0 million** for the trailing 12 months - SEI repurchased **2.2 million shares** of common stock for **$180.8 million** during Q2 2025 at an average price of **$83.60 per share**[7](index=7&type=chunk) - Total shares repurchased for the trailing 12 months amounted to **9.0 million**[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents SEI's consolidated statements of operations, balance sheets, and cash flows, detailing the company's financial performance and position for Q2 2025 and year-to-date [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations detail SEI's revenues, expenses, and profitability for the three and six months ended June 30, 2025, compared to the same periods in 2024, with key highlights including significant increases in net income and diluted EPS, largely influenced by the gain on sale of business | Metric (Thousands of USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------- | :---------- | :---------- | :---------- | :---------- | | Total revenues | $559,601 | $518,986 | $1,110,945 | $1,030,565 | | Total expenses | $410,966 | $382,472 | $805,213 | $768,200 | | Income from operations | $148,635 | $136,514 | $305,732 | $262,365 | | Gain on sale of business | $94,412 | — | $94,412 | — | | Net income | $227,083 | $139,120 | $378,600 | $270,520 | | Diluted earnings per common share | $1.78 | $1.05 | $2.95 | $2.04 | | Dividends declared per common share | $0.49 | $0.46 | $0.49 | $0.46 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets provide a snapshot of SEI's financial position as of June 30, 2025, compared to December 31, 2024, showing that total assets slightly decreased, while total liabilities saw a notable reduction, leading to an increase in total shareholders' equity | Metric (Thousands of USD) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total Current Assets | $1,531,004 | $1,551,810 | | Total Assets | $2,626,266 | $2,684,606 | | Total Current Liabilities | $247,574 | $380,513 | | Total Liabilities | $287,827 | $432,494 | | Total Shareholders' Equity | $2,338,439 | $2,252,112 | - Cash and cash equivalents decreased from **$840.193 million** at Dec 31, 2024, to **$746.349 million** at June 30, 2025[14](index=14&type=chunk) - Accrued liabilities significantly decreased from **$347.513 million** to **$214.507 million**[14](index=14&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) The Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2025, show a net decrease in cash, cash equivalents, and restricted cash, with operating activities providing cash, while financing activities used a significant amount, and investing activities provided cash, a reversal from the prior year | Metric (Thousands of USD) | YTD 2025 | YTD 2024 | | :-------------------------------------------------- | :---------- | :---------- | | 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) | | Net decrease in cash, cash equivalents and restricted cash | ($93,844) | ($66,406) | | Cash, cash equivalents and restricted cash, end of period | $746,349 | $768,592 | - Investing activities shifted from a net cash outflow of **$61.082 million** in YTD 2024 to a net cash inflow of **$65.268 million** in YTD 2025[16](index=16&type=chunk) - Net cash used in financing activities significantly increased from **$229.687 million** in YTD 2024 to **$419.220 million** in YTD 2025[16](index=16&type=chunk) [Asset Balances](index=8&type=section&id=Asset%20Balances) SEI's asset balances demonstrated growth in Q2 2025, with total assets under management, advisement, and administration reaching approximately **$1.69 trillion** by quarter-end, reflecting market appreciation and strategic divestitures [Ending Asset Balances](index=8&type=section&id=Ending%20Asset%20Balances) As of June 30, 2025, SEI's total ending assets under management, advisement, and administration reached approximately **$1.69 trillion**, showing growth across most segments compared to previous quarters, particularly in Investment Managers and Investment Advisors | Metric (Millions of USD) | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | | Total assets under management | $517,496 | $485,976 | $476,713 | | Client assets under advisement | $8,683 | $7,792 | $8,140 | | Client assets under administration | $1,136,756 | $1,084,278 | $1,055,943 | | Total assets | $1,694,938 | $1,605,853 | $1,568,438 | - Investment Managers' total assets increased from **$1.270802 trillion** (Mar 31, 2025) to **$1.354322 trillion** (Jun 30, 2025)[18](index=18&type=chunk) - Client assets under administration related to the Family Office Services business were divested on June 30, 2025[20](index=20&type=chunk) [Average Asset Balances](index=9&type=section&id=Average%20Asset%20Balances) For Q2 2025, SEI's total average assets under management, advisement, and administration were approximately **$1.66 trillion**, showing a consistent upward trend over the past year, with Investment Managers and Investment Advisors segments contributing significantly to this growth | Metric (Millions of USD) | 2nd Qtr. 2025 | 1st Qtr. 2025 | 4th Qtr. 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | | Total assets under management | $496,867 | $487,254 | $486,481 | | Client assets under advisement | $8,170 | $7,946 | $9,101 | | Client assets under administration | $1,122,108 | $1,084,400 | $1,057,856 | | Total assets | $1,656,585 | $1,607,726 | $1,580,733 | - Investment Managers' average total assets increased from **$1.270258 trillion** (Q1 2025) to **$1.314298 trillion** (Q2 2025)[22](index=22&type=chunk) - Client assets under administration include **$14.9 billion** of average assets during Q2 2025 related to the Family Office Services business, which was divested on June 30, 2025[24](index=24&type=chunk) [Sales Events](index=10&type=section&id=Sales%20Events) SEI's Q2 2025 sales events totaled **$29.170 million**, a decrease from the prior quarter, with Investment Processing-related Businesses driving recurring and non-recurring sales, while Asset Management-related Businesses showed mixed results [Net Recurring Sales Events](index=10&type=section&id=Net%20Recurring%20Sales%20Events) Net recurring sales events for Q2 2025 totaled **$24.143 million**, a decrease from the previous quarter but still showing positive contributions from Investment Processing-related Businesses and Newer Initiatives, while Asset Management-related Businesses, particularly Investment Advisors, experienced net outflows | Business Category (Thousands of USD) | Q2 2025 | Q1 2025 | Q4 2024 | | :---------------------------------- | :---------- | :---------- | :---------- | | Total Investment Processing-related Businesses | $22,182 | $32,355 | $27,272 | | Total Asset Management-related Businesses | $716 | $871 | ($839) | | Investments in New Businesses | $1,245 | $3,614 | $1,778 | | Total Net Recurring Sales Events | $24,143 | $36,840 | $28,211 | - Investment Managers' net recurring sales events were **$21.928 million** in Q2 2025[26](index=26&type=chunk) - Private Banks' net recurring sales events significantly decreased to **$0.254 million** in Q2 2025 from **$7.059 million** in Q1 2025[26](index=26&type=chunk) [Non-Recurring Sales Events](index=10&type=section&id=Non-Recurring%20Sales%20Events) Non-recurring sales events for Q2 2025 amounted to **$5.027 million**, a decrease from the prior quarter, with Investment Processing-related Businesses and Newer Initiatives continuing to generate non-recurring sales | Business Category (Thousands of USD) | Q2 2025 | Q1 2025 | Q4 2024 | | :---------------------------------- | :---------- | :---------- | :---------- | | Total Investment Processing-related Businesses | $3,475 | $7,895 | $9,087 | | Investments in New Businesses | $1,552 | $1,834 | $921 | | Total Non-Recurring Sales Events | $5,027 | $9,729 | $10,008 | - Private Banks' non-recurring sales events decreased to **$2.373 million** in Q2 2025 from **$7.060 million** in Q1 2025[28](index=28&type=chunk) [Total Sales Events](index=10&type=section&id=Total%20Sales%20Events) Total sales events for Q2 2025 were **$29.170 million**, a decline from the previous quarter but still reflecting positive contributions from Investment Processing-related Businesses and Newer Initiatives, while Asset Management-related Businesses continued to show mixed results | Business Category (Thousands of USD) | Q2 2025 | Q1 2025 | Q4 2024 | | :---------------------------------- | :---------- | :---------- | :---------- | | Total Investment Processing-related Businesses | $25,657 | $40,250 | $36,359 | | Total Asset Management-related Businesses | $716 | $871 | ($839) | | Investments in New Businesses | $2,797 | $5,448 | $2,699 | | Total Sales Events | $29,170 | $46,569 | $38,219 | - Private Banks' total sales events significantly decreased to **$2.627 million** in Q2 2025 from **$14.119 million** in Q1 2025[30](index=30&type=chunk) - Institutional Investors' total sales events turned positive at **$2.544 million** in Q2 2025, compared to **$0.041 million** in Q1 2025 and negative values in prior quarters[30](index=30&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) This section provides details on SEI's upcoming earnings conference call, an overview of the company's global services, and important disclosures regarding forward-looking statements and associated risks [Earnings Conference Call Details](index=4&type=section&id=Earnings%20Conference%20Call%20Details) SEI scheduled an earnings conference call and presentation for July 23, 2025, at 5 p.m. Eastern time, inviting analysts, investors, and the public to register and access the event online - A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on July 23, 2025[8](index=8&type=chunk) - Analysts and investors can register via a provided link, and the public can listen to the call and replay at ir.seic.com/events-presentations/events[8](index=8&type=chunk) [About SEI](index=4&type=section&id=About%20SEI) SEI is a global provider of financial technology, operations, and asset management services, aiming to help clients deploy capital effectively, managing, advising, or administering approximately **$1.7 trillion** in assets as of June 30, 2025 - SEI is a leading global provider of financial technology, operations, and asset management services[8](index=8&type=chunk) - As of June 30, 2025, SEI manages, advises, or administers approximately **$1.7 trillion** in assets[8](index=8&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements regarding SEI's future growth, investments, goals, pipeline strength, profitability, cost discipline, and revenue generation from sales events, which are subject to risks and uncertainties outlined in the company's Annual Report on Form 10-K - Forward-looking statements include expectations regarding sustained growth, nature of internal investments, company goals, strength of pipelines, focus on profitability and cost leverage, cost discipline, investment priorities, and generation of net annualized recurring revenues from sales events[9](index=9&type=chunk)[10](index=10&type=chunk) - These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties, as detailed in the 'Risk Factors' section of the Annual Report on Form 10-K[9](index=9&type=chunk)

Core Insights - SEI Investments Company reported strong financial results for Q2 2025, with a 70% increase in EPS, 8% growth in revenue, and 9% growth in operating income compared to Q2 2024 [1][2][8] - The operating margin improved to 27%, reflecting the company's strategic investments in talent, technology, and infrastructure to support growth [1][2][8] Financial Performance - **Earnings Per Share (EPS)**: Q2 2025 EPS was $1.78, up 70% from $1.05 in Q2 2024, benefiting from a $0.58 impact from various items, including a $94.4 million gain from the sale of the Family Office Services business [1][2][8] - **Revenue**: Total revenues for Q2 2025 were $559.6 million, an 8% increase from $519.0 million in Q2 2024 [2][8] - **Operating Income**: Operating income rose to $148.6 million, a 9% increase from $136.5 million in the same quarter last year [2][8] - **Net Income**: Net income for Q2 2025 was $227.1 million, a 63% increase from $139.1 million in Q2 2024 [2][8] Business Segment Performance - **Investment Managers**: Revenues increased by 8% to $195.1 million, with operating profit growing by 7% to $73.4 million [4][5] - **Private Banks**: Revenues grew by 7% to $141.4 million, and operating profit increased by 11% to $22.7 million [4][5] - **Investment Advisors**: Revenues rose by 14% to $137.2 million, with operating profit up 19% to $61.4 million [4][5] - **Institutional Investors**: Revenues decreased by 3% to $69.3 million, but operating profit remained stable at $33.5 million [5] Strategic Initiatives - The company is focused on innovation and growth, as highlighted by its strategic investment in Stratos Wealth Holdings [3] - SEI is enhancing its capabilities through investments in technology and talent to meet evolving client needs [1][3] Shareholder Actions - SEI repurchased 2.2 million shares for $180.8 million during Q2 2025, bringing total shares repurchased to 9.0 million over the trailing 12 months [8]

Core Insights - SEI has appointed Karin Risi and Tom Naratil to its Board of Directors, effective immediately, while Stephanie Miller has resigned from the board [1][2] Group 1: Board Appointments - Karin Risi brings 30 years of experience in wealth management, having previously led Vanguard's $2.5 trillion Personal Investor and Wealth Management businesses [2][3] - Tom Naratil has a 39-year career at UBS, where he held several senior positions, including Co-President of Global Wealth Management [3][4] Group 2: Leadership Perspectives - Risi expressed enthusiasm for SEI's commitment to innovation and long-term value delivery, emphasizing the need to adapt to changing client needs in the asset and wealth management industry [4] - Naratil highlighted the importance of capitalizing on industry shifts for growth and expressed excitement about supporting SEI's leadership in achieving sustained growth [4] Group 3: Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.6 trillion in assets as of March 31, 2025 [5]

Core Insights - SEI and Stratos Wealth Holdings have entered into a strategic partnership aimed at enhancing the growth and scalability of financial advisors' businesses [1][2] - SEI will invest approximately $527 million for a 57.5% equity stake in Stratos, with the potential to acquire 100% in the future [4][5] - The partnership is expected to leverage SEI's technology, custody, operations, and asset management capabilities to support Stratos' existing business model [2][4] Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.6 trillion in assets as of March 31, 2025 [6][7] - Stratos Wealth Holdings supports a network of independent financial advisors, advising and servicing over $37 billion in client assets [8] Leadership and Vision - Jeff Concepcion, Founder and CEO of Stratos, emphasizes the importance of SEI's investment and expertise in driving growth and enhancing service offerings for advisors [3] - Ryan Hicke, CEO of SEI, highlights the strategic investment as a reinforcement of their commitment to financial advisors and the value they provide [4]

Core Viewpoint - SEI Investments (SEIC) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with the consensus outlook suggesting a positive earnings picture [1][3]. Earnings Expectations - The consensus EPS estimate for SEI is $1.18 per share, reflecting a year-over-year increase of 12.4% [3]. - Expected revenues for the quarter are $561.07 million, which is an 8.1% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 7.78% higher in the last 30 days, indicating a reassessment by analysts [4]. - SEI's Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [9][10]. - SEI currently holds a Zacks Rank of 1, but the combination with a 0% Earnings ESP makes it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, SEI exceeded the consensus EPS estimate of $1.12 by delivering earnings of $1.17, resulting in a surprise of 4.46% [13]. - Over the past four quarters, SEI has beaten consensus EPS estimates three times [14]. Industry Comparison - Invesco (IVZ), a peer in the investment management industry, is expected to report an EPS of $0.39 for the same quarter, indicating a year-over-year decline of 9.3% [18]. - Invesco's revenues are projected to be $1.1 billion, reflecting a 1% increase from the previous year, and it has an Earnings ESP of +3.4% with a Zacks Rank of 1, suggesting a likely earnings beat [19].

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [4] - The Growth Score evaluates a company's future prospects through projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines all three styles, providing a comprehensive rating based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, outperforming the S&P 500 [8][10] - There are typically over 800 top-rated stocks available, making it essential to utilize Style Scores for effective selection [9] Stock Highlight: SEI Investments - SEI Investments Co. is a leading asset management firm with a 1 (Strong Buy) Zacks Rank and a VGM Score of B [12] - The company is particularly appealing to growth investors, with a Growth Style Score of A and a projected year-over-year earnings growth of 11.3% for the current fiscal year [13] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase to $4.91 per share further enhance SEIC's attractiveness [13]

Core Insights - SEI is set to release its second quarter 2025 earnings on July 23, 2025, after market close, followed by a conference call at 5 p.m. Eastern Time to discuss the financial results [1] - The public can listen to the conference call and access a replay through the company's investor relations website [2] - As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets, positioning itself as a leading global provider of financial technology and asset management services [3]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with SEI Investments (SEIC) currently holding a Momentum Style Score of A [2] - The Zacks Rank system complements Style Scores, with SEIC rated 2 (Buy), indicating potential for outperformance in the market [3] Group 2: SEI Investments Performance Metrics - SEIC shares have increased by 3.95% over the past week, outperforming the Zacks Financial - Investment Management industry, which rose by 1.91% [5] - Over the past quarter, SEIC shares have gained 26.15%, and over the last year, they have increased by 42.86%, compared to the S&P 500's gains of 23.56% and 13.28% respectively [6] - The average 20-day trading volume for SEIC is 871,550 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - In the past two months, four earnings estimates for SEIC have been revised upwards, raising the consensus estimate from $4.66 to $4.80 [9] - For the next fiscal year, four estimates have also moved higher, with no downward revisions during the same period [9] Group 4: Conclusion - SEIC is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a strong candidate for near-term investment opportunities [11]