SEI(US:SEIC)2025-10-27 18:34Financial Performance - Revenues for the three months ended September 30, 2025, increased by 8% to $578.5 million compared to $537.4 million in 2024[139] - Net income attributable to SEI Investments Company for the nine months ended September 30, 2025, rose by 28% to $542.8 million from $425.4 million in 2024[139] - Total revenues increased by $20.6 million, or 16%, in the three-month period and by $51.1 million, or 14%, in the nine-month period ended September 30, 2025, primarily driven by increased fee revenue from the SEI Integrated Cash Program[155] Assets and Management - Average assets under administration increased by $131.6 billion, or 13%, to $1.1 trillion during the first nine months of 2025 compared to $998.4 billion in 2024[139] - Total assets under management as of September 30, 2025, increased by 10% to $541.5 billion from $493.3 billion in 2024[143] - Client assets under administration rose by 16% to $1.2 trillion as of September 30, 2025, compared to $1.0 trillion in 2024[143] - Total assets for Institutional Investors increased to $88,886 million in Q3 2025, up 2% from $87,445 million in Q3 2024[152] - Total platform assets reached $119,123 million in Q3 2025, reflecting a 14% increase from $104,745 million in Q3 2024[152] Shareholder Actions - SEI repurchased 6.2 million shares of its common stock for $515.2 million in the first nine months of 2025[141] - Cash dividends paid were $123.3 million in the first nine months of 2025, compared to $120.3 million in the same period of 2024[187] Tax and Expenses - The effective tax rate for the first nine months of 2025 was 22.3%, down from 23.4% in the same period of 2024[141] - Corporate overhead expenses rose to $42.8 million in the three months ended September 30, 2025, compared to $37.9 million in 2024, primarily due to increased personnel costs and professional fees related to M&A activity[160] - Stock-based compensation expense increased to $42.0 million for the nine months ended September 30, 2025, compared to $37.2 million in 2024, driven by new equity awards granted[175] Acquisitions and Divestitures - The sale of the Family Office Services business resulted in a net gain of $94.4 million, contributing $0.58 to diluted earnings per share in Q2 2025[139] - SEI entered into an agreement to acquire 57.5% of Stratos Wealth Holdings for approximately $527.0 million, with the transaction expected to close in two stages[140] - The divestiture of the Family Office Services business was completed on June 30, 2025, resulting in a gain of $94.4 million, net of transaction costs[177] Regulatory and Compliance - The company has undergone or is scheduled for reviews and examinations by various regulatory authorities, which may result in remediation activities or enforcement proceedings[179] - Governmental scrutiny and regulatory inquiries have increased significantly, impacting management's focus and potentially affecting business operations[196] - Compliance with anti-money laundering and financial transparency laws is mandatory, which may lead to reduced sales or modifications of investment and banking solutions[197] - The company faces higher costs and compliance risks due to economic sanctions and anti-corruption laws globally[198] - Privacy and data protection regulations, such as GDPR and CCPA, require ongoing compliance efforts, incurring substantial costs[199] - Increased regulatory activity may significantly impact the company, leading to higher expenses and potential revenue reductions[201] - The financial services industry is experiencing extensive changes in regulations, affecting broker-dealers and investment advisors[201] Market Risks - Market risks, including changes in capital markets and interest rates, can significantly affect the company's revenues and earnings[204] - There have been no material changes to the company's market risk disclosures as reported in the Annual Report for 2024[204]