SEI(US:SEIC)2025-04-28 17:57Financial Performance - Revenues for the three months ended March 31, 2025, increased by 8% to $551.3 million compared to $511.6 million in the same period of 2024[128] - Net income for Q1 2025 was $151.5 million, reflecting a 15% increase from $131.4 million in Q1 2024[128] - Diluted earnings per share increased by 18% to $1.17 in Q1 2025, compared to $0.99 in Q1 2024[128] - Total revenues from Investments in New Businesses increased by $2.2 million, or 15%, to $16.5 million, with significant contributions from SEI Family Office Services and SEI Private Wealth Management[145] Assets and Management - Average assets under administration rose by $122.7 billion, or 13%, to $1.1 trillion in Q1 2025, up from $961.7 billion in Q1 2024[128] - Total assets under management as of March 31, 2025, reached $486.0 billion, a 10% increase from $443.6 billion in 2024[131] - Client assets under administration increased by 10% to $1.1 trillion as of March 31, 2025, compared to $983.3 billion in 2024[131] - Average assets under management for Investment Managers increased by 33% to $209.0 billion in Q1 2025, compared to $157.0 billion in Q1 2024[133] Segment Performance - Investment Managers segment revenues increased by $19.4 million, or 11%, to $192.0 million, with an operating profit of $74.8 million and an operating margin of 39%[137] - Private Banks segment revenues rose by $7.6 million, or 6%, to $137.7 million, with an operating profit of $23.0 million and an operating margin of 17%[139] - Investment Advisors segment revenues increased by $13.9 million, or 11%, to $136.6 million, with an operating profit of $64.1 million and an operating margin of 47%[140] - Institutional Investors segment revenues decreased by $3.3 million, or 5%, to $68.5 million, but operating profit increased by $1.0 million to $32.6 million, resulting in an operating margin of 48%[144] Cash Flow and Expenditures - Net cash provided by operating activities increased to $146.5 million in Q1 2025 from $112.3 million in Q1 2024, reflecting a $34.2 million increase[162] - Cash and cash equivalents at the end of the period were $710.9 million, down from $846.9 million at the end of Q1 2024[162] - Capital expenditures in Q1 2025 were $8.7 million, a decrease from $13.1 million in Q1 2024[172] - Cash dividends paid increased to $62.3 million in Q1 2025 from $60.4 million in Q1 2024[172] Regulatory Environment - The company is subject to increased regulatory scrutiny, which may have a material adverse impact on its operating results or financial position[160] - SEI Investments operates multiple regulated entities, including broker-dealers and investment advisors, across various jurisdictions[178] - The company is subject to ongoing regulatory inquiries and examinations, which may impact its reputation and operational performance[179] - Compliance with anti-money laundering and financial transparency laws is mandatory, potentially affecting sales and requiring modifications to services[180] - Economic sanctions and anti-corruption laws impose higher compliance costs and risks, with potential penalties for violations[181] - Privacy and data protection regulations, such as GDPR and CCPA, require significant ongoing compliance efforts and associated costs[182] - Increased regulatory activity may lead to higher expenses and reduced revenues as the company adapts to new laws and regulations[183] - Bank clients are supervised by various authorities, which may influence their purchasing decisions regarding the company's products and services[184] Market Sensitivity - The company’s revenues and earnings are sensitive to capital market fluctuations and changes in interest rates[186] - There have been no material changes to the market risk disclosures since the last Annual Report on Form 10-K for 2024[187]