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

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

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

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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