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]

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]