SEI Reports Third-Quarter 2025 Financial Results - SEI Investments (NASDAQ:SEIC)

Core Insights - SEI Investments Company reported strong financial results for Q3 2025, with a 9% increase in EPS, 8% growth in revenue, and 11% growth in operating income compared to Q3 2024, leading to an operating margin of 28% [1][2][8] Financial Performance - Revenues for Q3 2025 reached $578.5 million, up from $537.4 million in Q3 2024, marking an 8% increase [2] - Operating income increased to $160.0 million, compared to $143.8 million in the same quarter last year, reflecting an 11% growth [2] - Net income attributable to SEI Investments was $164.2 million, a 6% increase from $154.9 million in Q3 2024 [2][8] - Diluted EPS rose to $1.30, up 9% from $1.19 in the prior year [2][8] Business Segment Highlights - Investment Managers: Revenues increased by 12% to $207.1 million, with operating profit rising 15% to $81.1 million, resulting in an operating margin of 39% [3] - Private Banks: Revenues grew by 4% to $144.0 million, but operating profit declined by 2% to $23.2 million, with an operating margin of 16% [3] - Investment Advisors: Revenues surged by 16% to $147.5 million, and operating profit increased by 21% to $68.3 million, achieving an operating margin of 46% [3] - Institutional Investors: Revenues remained flat at $71.8 million, with operating profit also flat at $33.8 million, maintaining an operating margin of 47% [3] Strategic Initiatives - The company is focusing on targeted investments in technology and talent, aiming to drive margin expansion and allocate capital to high-return opportunities [3][8] - SEI achieved record net sales events of $30.5 million for Q3 2025, contributing to a total of $106.3 million for the nine-month period, driven by strong demand in the Investment Managers segment [8] Asset Management - Ending assets under administration increased by 7%, while assets under management rose by 5% from Q2 to Q3 2025 [8] - The growth in assets under administration was primarily driven by alternatives, which do not benefit from market appreciation [8] Shareholder Returns - SEI repurchased 1.6 million shares for $141.6 million during Q3 2025, with a total of 9.3 million shares repurchased over the trailing 12 months [8]