SEI(US:SEIC)2025-10-22 20:02Financial 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].