SEI(SEIC) - 2025 Q4 - Annual Results

Financial Performance - SEI reported a 16% increase in diluted EPS to $1.38 for Q4 2025 compared to Q4 2024, with revenues growing by 9% to $607.9 million[3]. - Operating income for Q4 2025 rose by 11% to $161.6 million, resulting in an operating margin of 27%, up from 26% in the previous year[3]. - Full-year revenues reached $2.3 billion, an 8% increase from $2.1 billion in 2024, while net income attributable to SEI Investments increased by 23% to $715.3 million[3]. Segment Performance - The Investment Managers segment saw a 15% revenue increase to $220.8 million in Q4 2025, with operating profit growing by 25%[5]. - Private Banks reported a 7% revenue increase to $149.8 million, with operating profit up 47% to $29.1 million, reflecting strong demand for services[5]. Acquisitions and Strategic Moves - SEI completed the acquisition of Stratos for $440.8 million, enhancing its capabilities in the advisory space and expanding distribution channels[7]. - The company achieved record net sales events of $149.9 million for the year, with Q4 net sales totaling $43.6 million[7]. Asset Management - Assets under administration increased by 3% and assets under management rose by 2% from Q3 to Q4 2025, driven by client wins and market appreciation[7]. - Total assets under management reached $554,611 million by the end of 2025, an increase from $476,713 million in 2024, representing a growth of approximately 16.3%[17]. - Client assets under administration grew to $1,248,721 million in 2025, up from $1,055,943 million in 2024, indicating an increase of about 18.3%[21]. - Total platform assets increased to $126,483 million in Q4 2025, compared to $107,030 million in Q4 2024, a rise of approximately 18.2%[21]. - The average assets under management for equity and fixed-income programs reached $299,047 million in Q4 2025, up from $273,032 million in Q4 2024, reflecting a growth of approximately 9.6%[22]. - Stratos Wealth Holdings managed $38.4 billion in client assets as of November 30, 2025, contributing to the company's overall asset growth strategy[19]. - Stratos Wealth Holdings manages $38.1 billion in client assets as of November 30, 2025[24]. Sales Performance - Total Net Recurring Sales Events for Q4 2025 reached $18.748 million, a decrease from $28.211 million in Q4 2024[26]. - Total Non-Recurring Sales Events for Q4 2025 increased significantly to $24.851 million, compared to $10.008 million in Q4 2024[28]. - Total Sales Events for Q4 2025 amounted to $43.599 million, up from $38.219 million in Q4 2024[30]. - Investment Processing-related Businesses generated $49.576 million in total sales for Q4 2025, a notable increase from $36.359 million in Q4 2024[30]. - Private Banks within Investment Processing-related Businesses reported a substantial increase in sales to $29.079 million in Q4 2025, compared to $15.867 million in Q4 2024[30]. - Asset Management-related Businesses reported a loss of $7.320 million in total sales for Q4 2025, worsening from a loss of $839,000 in Q4 2024[30]. - Investments in New Businesses contributed $1.343 million to total sales in Q4 2025, a decrease from $2.699 million in Q4 2024[30]. - The performance of Private Banks in Asset Management-related Businesses showed a loss of $1.567 million in Q4 2025, compared to a loss of $495,000 in Q4 2024[30]. - The company is focusing on expanding its Investment Processing-related Businesses to enhance overall sales performance[30]. Expenses and Liabilities - Corporate overhead expenses increased by 61% to $62.1 million in Q4 2025, primarily due to severance and M&A-related costs[5]. - Total assets increased to $3,259,844 million in 2025, up from $2,684,606 million in 2024, representing a growth of approximately 21.3%[15]. - Total current assets decreased to $1,273,337 million in 2025 from $1,551,810 million in 2024, a decline of about 17.9%[15]. - Total liabilities rose to $556,068 million in 2025, compared to $432,494 million in 2024, marking an increase of approximately 28.6%[15]. - Shareholders' equity increased to $2,459,817 million in 2025, up from $2,252,112 million in 2024, reflecting a growth of about 9.2%[15].