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

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

Financial Data and Key Metrics Changes - SEI reported an EPS of $1.30, marking an all-time high when excluding one-time items, with earnings growth of 8% sequentially and 17% year-over-year [4][13] - The company recognized unusual items that positively impacted EPS by approximately $0.03 from insurance proceeds and $0.01 from an earnout true-up, offset by $0.02 of M&A expenses and $0.02 of severance expenses [13][14] - Net sales events totaled $31 million for the quarter, with year-to-date net sales surpassing $100 million, a record for SEI [5][9] Business Line Data and Key Metrics Changes - Private banking revenue increased by 4% year-over-year, driven by growth in the SWP platform [14] - The investment manager segment experienced double-digit revenue and operating profit growth, with a notable increase in alternatives across the U.S. and EMEA [14] - The advisors segment posted the highest year-over-year revenue growth, supported by market appreciation and contributions from the integrated cash program [14] Market Data and Key Metrics Changes - Assets under administration (AUA) grew broadly across CITs, alternatives, and traditional funds, with the majority of growth driven by alternatives [18] - Assets under management (AUM) increased, with modestly positive net flows in advisors, driven by growth in ETFs and SMAs [18] - LSV's AUM increased over 4% from Q2, supported by strong market performance [18] Company Strategy and Development Direction - SEI is focused on disciplined execution, transparent communication, and creating long-term value for clients and shareholders [4] - The company is investing in technology, automation, and talent to drive margin expansion and optimize capital allocation [10][19] - SEI is strategically positioned to support large alternative asset managers exploring outsourcing fund administration [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline and the ability to capitalize on opportunities, emphasizing the importance of client relationships [9][72] - The company is optimistic about the impact of recent wins and the diversified pipeline of opportunities, despite a notable contract loss in private banking [9][26] - Management highlighted the ongoing investments in talent and technology to support future growth and client onboarding [33][35] Other Important Information - SEI ended the quarter with $793 million in cash and no net debt, with share repurchases totaling $142 million in Q3 [19] - The company made a $50 million anchor investment in LSV's market-neutral hedge fund, contributing $1.5 million to Q3 results before taxes [19] Q&A Session Summary Question: Sales events from alternatives - Management confirmed that 2/3 of sales events were from alternatives, with a mix of large and small clients contributing to this growth [22][24] Question: Details on the contract loss in private banking - Management clarified that the contract loss was a one-off event due to a major operating model change by the client, not indicative of a trend [25][26] Question: Integrated cash program yields - Management stated that the integrated cash program is currently earning about 370 basis points, with yields adjusted as rates change [31][32] Question: Expense growth in private banking - Management indicated that the expense growth is primarily due to investments in talent and onboarding new clients [33][35] Question: IMS business margins and future expectations - Management expects strong margins going forward but acknowledges the need for ongoing investments to support growth [38][40] Question: International market strategy - Management is in the early phases of defining a go-to-market strategy for international growth, focusing on existing jurisdictions [46][47] Question: Buyback pace and future expectations - Management plans to return 90%-100% of free cash flow to shareholders through dividends or buybacks, with a focus on maintaining this pace [50][51] Question: Impact of credit fears on private credit servicing - Management reported no significant impact on the private credit servicing pipeline, emphasizing the strength of their client base [51][54] Question: High-risk relationships in private banking - Management stated there are currently no known high-risk relationships in the private banking portfolio, reflecting strong client engagement [57][59]

Financial Data and Key Metrics Changes - Earnings per share (EPS) reached $1.30, an all-time high for SEI, with earnings growth of 8% sequentially and 17% year over year, excluding one-time items [5][17][18] - Net sales events totaled $31 million, with a record sales quarter in the Investment Managers segment, reflecting strong revenue growth and margin expansion [5][12][18] Business Line Data and Key Metrics Changes - Private Banking revenue increased by 4% year over year, driven by growth in the SWP platform [18] - The Investment Manager segment posted double-digit revenue and operating profit growth, with alternatives showing robust growth in both the U.S. and EMEA [18][20] - Advisors business experienced the highest year-over-year revenue growth among all segments, supported by market appreciation and contributions from the integrated cash program [20] Market Data and Key Metrics Changes - Assets under administration (AUA) grew broadly across CITs, alternatives, and traditional funds, with alternatives being the primary driver of growth [24] - Assets under management (AUM) increased with modestly positive net flows in advisors, driven by growth in ETFs and SMAs, offsetting pressure on traditional mutual funds [24][25] Company Strategy and Development Direction - The company is focused on disciplined execution, transparent communication, and creating long-term value for clients and shareholders [4][15] - SEI is investing in technology, automation, and talent to drive margin expansion and support future growth, particularly in AI and tokenization initiatives [14][15][27] - The company is strategically positioned to support large alternative asset managers exploring outsourcing fund administration [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth runway for the Investment Managers segment and the overall sales pipeline, indicating a strong outlook for future performance [6][12][15] - The recent partnership with Stratos is expected to enhance awareness and interest in SEI's capabilities, contributing to future growth [13][14] Other Important Information - The company ended the quarter with $793 million in cash and no net debt, with share repurchases totaling $142 million in Q3 [26] - SEI made a $50 million anchor investment in LSV's market-neutral hedge fund, contributing positively to Q3 results [27] Q&A Session Summary Question: Sales events from alternatives - Management confirmed that two-thirds of sales events were from alternatives, with a mix of large and small clients contributing to this growth [30][32] Question: Details on contract loss in private banking - Management clarified that the contract loss was a one-off event due to a major operating model change by the client, not indicative of a trend [34][36] Question: Integrated cash program and fixed rates - Management indicated that the integrated cash program is currently earning about 370 basis points, with plans to adjust investor yields as rates change [42][43] Question: Expense growth in private banking - Management noted that the expense growth is primarily due to investments in talent and onboarding new clients, with no unusual trends observed [45][46] Question: Margin expectations for IMS business - Management expects strong margins going forward but acknowledges the need for ongoing investments that may impact margins in the short term [50][53] Question: International sales mix and strategy - Management is in the early phases of defining a go-to-market strategy for international markets, focusing on existing jurisdictions [60][62] Question: Buyback pace and Stratos acquisition - Management indicated that free cash flow will be returned to shareholders through dividends or buybacks, with a focus on maintaining a consistent buyback pace [67][68] Question: Impact of credit fears on private credit servicing - Management reported no significant impact on the private credit servicing pipeline, with clients remaining confident and actively launching products [70][72] Question: High-risk relationships in private banking - Management stated that there are currently no known high-risk relationships in the private banking client portfolio [75][76] Question: Remaining segments in investment in new businesses - Management highlighted that the remaining segments include the sphere business and private wealth management, which will be reallocated upon re-segmentation [81][82]

Financial Data and Key Metrics Changes - SEI reported an EPS of $1.30, marking an all-time high when excluding one-time items, with earnings growth of 8% sequentially and 17% year over year [3][12] - Net sales events totaled $31 million for the quarter, with a record sales quarter in Investment Manager Services, reflecting strong demand for outsourcing and client expansions [4][9] - Year-to-date net sales events surpassed $100 million, a record for SEI through the third quarter [9] Business Line Data and Key Metrics Changes - Private banking revenue increased by 4% year over year, driven by growth in the SWP platform [13] - Investment Manager Services experienced double-digit revenue and operating profit growth, with alternatives showing robust growth in both the U.S. and EMEA [13] - Advisors' business posted the highest year-over-year revenue growth among all segments, supported by market appreciation and an integrated cash program [14] Market Data and Key Metrics Changes - Assets under administration grew broadly across CITs, alternatives, and traditional funds, with alternatives driving the majority of growth [17] - Assets under management increased, with modestly positive net flows in advisors, particularly in ETFs and SMAs, while institutional flows remained flat [18] Company Strategy and Development Direction - The company is focused on disciplined execution, transparent communication, and creating long-term value for clients and shareholders [3] - SEI is investing in technology, automation, and talent to drive margin expansion and capitalize on high-return opportunities [10] - The company is strategically positioned to support large alternative asset managers exploring outsourcing fund administration [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales pipeline compared to the previous year, highlighting a diversified pipeline of opportunities [9] - The company anticipates that recent and future wins will offset a notable contract loss in private banking, which is viewed as a one-off event [27][28] - Management emphasized the importance of client engagement and the potential for future opportunities despite current challenges [29] Other Important Information - SEI ended the quarter with $793 million in cash and no net debt, with share repurchases totaling $142 million in Q3 [19] - The company made a $50 million investment in LSV's market-neutral hedge fund, contributing positively to Q3 results [19] Q&A Session Summary Question: Sales events from alternatives - Management noted that two-thirds of sales events were from alternatives, with a mix of large and small clients contributing to this growth [23][25] Question: Details on the contract loss in private banking - The contract loss was a one-off event due to a major operating model change by the client, not indicative of a trend [26][27] Question: Integrated cash program yields - The integrated cash program is currently earning about 370 basis points, with competitive yields for investors [32] Question: Expense growth in private banking - Expense growth is attributed to investments in talent and onboarding new clients, with no unusual trends noted [34][35] Question: Investment Manager Services margins - Future margins are expected to remain strong, but investments may lead to some fluctuations in the short term [38][40] Question: International sales mix - The company is in the early phases of defining its international strategy, focusing on maximizing presence in existing jurisdictions [44][46] Question: Buyback pace - The company plans to return 90% to 100% of free cash flow to shareholders through dividends and buybacks, with ongoing buybacks expected [49] Question: Impact of credit fears on private credit servicing - Management indicated no significant impact on the private credit servicing pipeline, with strong performance expected from top-tier managers [50][52] Question: High-risk relationships in private banking - Currently, there are no known high-risk relationships in the private banking portfolio, with strong client engagement noted [55]

Q3 2025 Earnings Presentation Q3 2025 SEI Earnings Presentation Safe Harbor Statement This presentation contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe," "remain" and "continue" or "appear." Our forward-looking statements include our current expectations as to: You should not place undue reliance on our forward-look ...

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Financial Performance - SEI reported Q3 2025 revenues of $578.5 million, an 8% increase from Q3 2024, and operating income of $160.0 million, up 11% year-over-year[3]. - Diluted earnings per share (EPS) for Q3 2025 reached $1.30, reflecting a 9% increase compared to the prior year, with net income attributable to SEI Investments at $164.2 million, a 6% rise[3][6]. - Operating margin improved to 28% in Q3 2025, up from 27% in Q3 2024, indicating effective cost management alongside revenue growth[3][6]. - Net income for the nine months ended September 30, 2025, was $543,186 thousand, compared to $425,420 thousand for the same period in 2024, reflecting a year-over-year increase of 27.7%[17]. - The company reported net cash provided by operating activities of $481,264 thousand for the nine months ended September 30, 2025, compared to $427,074 thousand for the same period in 2024, a growth of 12.7%[17]. Segment Performance - Investment Managers segment revenues increased by 12% to $207.1 million, with operating profit rising 15% to $81.1 million, supported by strong demand for outsourcing services[5]. - Private Banks segment revenues grew by 4% to $144.0 million, although operating profit declined by 2% due to prior year unusual items[5]. - Institutional Investors segment revenues remained flat at $71.8 million, with operating profit also stable, reflecting lower equity exposure[5]. Assets and Liabilities - Total assets increased to $2,845,110 thousand as of September 30, 2025, up from $2,684,606 thousand at December 31, 2024, representing a growth of 6.0%[15]. - Total assets under management reached $541,531 million as of September 30, 2025, up from $493,339 million at the end of September 2024, indicating a growth of 9.8%[19]. - Client assets under administration rose to $1,204,843 thousand as of September 30, 2025, compared to $1,022,515 thousand a year earlier, representing an increase of 17.8%[19]. - Total liabilities decreased slightly to $425,701 thousand as of September 30, 2025, from $432,494 thousand at December 31, 2024, a reduction of 1.8%[15]. - Retained earnings increased to $774,892 thousand as of September 30, 2025, up from $758,003 thousand at December 31, 2024, reflecting a growth of 2.0%[15]. Shareholder Actions - SEI repurchased 1.6 million shares for $141.6 million at an average price of $90.02 per share during Q3 2025, totaling 9.3 million shares repurchased over the trailing 12 months[6]. - The company’s capital in excess of par value rose to $1,648,817 thousand as of September 30, 2025, compared to $1,539,816 thousand at December 31, 2024, an increase of 7.1%[15]. Market Trends and Investments - The company is making targeted investments in technology and talent to drive margin expansion and sustainable long-term value for clients and shareholders[4]. - Assets under administration grew by 7% and assets under management increased by 5% from Q2 to Q3 2025, reflecting continued momentum in the alternatives business[6]. Sales and Events - The company achieved record net sales events of $30.5 million in Q3 2025, contributing to a total of $106.3 million for the nine-month period, driven by strong demand in the Investment Managers segment[6]. - Net recurring sales events totaled $20.917 million in Q3 2025, a decrease from $24.143 million in Q2 2025, reflecting a decline of 13.3%[27]. - Total sales events for Investment Processing-related Businesses reached $30.299 million in Q3 2025, compared to $25.657 million in Q2 2025, an increase of 18.5%[31]. Client Assets and Management - Client assets under advisement for Institutional Investors segment rose to $6.274 billion in Q3 2025, compared to $5.841 billion in Q2 2025, reflecting an increase of 7.4%[23]. - Total platform assets under management increased to $119.123 billion in Q3 2025, up from $109.533 billion in Q2 2025, representing a growth of 8.5%[23]. - Private Banks segment reported total assets under management of $30.888 billion in Q3 2025, up from $29.307 billion in Q2 2025, indicating a growth of 5.4%[23]. - Investments in New Businesses reported total assets under management of $3.189 billion in Q3 2025, up from $2.976 billion in Q2 2025, indicating a growth of 7.1%[23]. - Equity and fixed-income programs for Investment Advisors segment increased to $82.735 billion in Q3 2025, compared to $76.629 billion in Q2 2025, marking a growth of 7.9%[23].