Financial Data and Key Metrics Changes - SEI reported earnings per share (EPS) of $1.38 for Q4 2025, marking the highest quarterly earnings performance in the company's history, with a 16% year-over-year increase and a 6% sequential increase [3][12] - The company achieved double-digit earnings growth for the year and over a full percentage point of operating margin expansion [21] Business Line Data and Key Metrics Changes - Private Banking segment posted $28 million in net sales events, significantly contributing to the overall strong performance [4] - Investment Manager Services (IMS) benefited from a $3 million revenue accrual true-up, with overall revenue and margins increasing meaningfully from both the prior year and prior quarter [13][14] - Asset management segments experienced sequential growth driven by market appreciation and healthy flows, despite some client losses in the institutional segment [14] Market Data and Key Metrics Changes - The integrated cash program contributed $21 billion to revenue, matching levels achieved in the prior quarter and prior year [14] - Assets Under Management (AUM) grew by 2% and Assets Under Administration (AUA) grew by 3%, supported by strong win momentum and market appreciation [17][18] Company Strategy and Development Direction - SEI is focused on expanding its reach in the advisor channel and capturing new flows through strategic partnerships, such as the Stratos partnership [6][8] - The company plans to accelerate investment management product launches in ETFs, SMAs, models, and select alternative products [8] - SEI is transitioning its IMS business to platform-level services, leveraging automation and AI to lower costs and expand access [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and expects positive developments to be announced in the April earnings call [5][25] - The company is committed to returning 90%-100% of free cash flow to shareholders through dividends and share repurchases [19] - Management acknowledged the need for thoughtful resource reallocation and ongoing cost efficiency efforts to support future investments [20] Other Important Information - SEI repurchased $101 million of shares in Q4, totaling $616 million for the year, representing nearly 6% of total shares outstanding [19] - The company implemented a targeted reduction in force affecting approximately 3% of its global workforce to ensure a more efficient operating model [21] Q&A Session Summary Question: Can you provide more color on the sales events from alts? - Management indicated that over two-thirds of sales events came from a combination of new business and expanding relationships with current clients, with strong visibility for 2026 [25][27] Question: What drives the gap between net recurring and non-recurring sales? - The gap is driven by the growth of the professional services strategy, with many engagements being characterized as one-time professional services [29][30] Question: Can the margin for the private banking segment stay in the high teens range? - Management expects margins to remain in the high teens range, influenced by the mix of professional services [36][37] Question: How should we think about the revenue recognition impact of the two big sales events? - The two wins are recurring revenue SWP wins, and the associated professional services will be realized immediately or over 12-18 months [56][58] Question: How strategically important is the UK market to the institutional business? - The UK market is important but represents a fraction of the overall business, with ongoing efforts to grow that segment [59][60]

Financial Data and Key Metrics Changes - SEI reported earnings per share (EPS) of $1.38 for Q4 2025, marking the highest quarterly earnings performance in the company's history, with a 16% year-over-year increase and a 6% sequential increase [3][12] - The company achieved double-digit earnings growth for the year and over a full percentage point of operating margin expansion [13][21] - Consolidated operating margins were impacted by severance and M&A costs but showed significant improvement when excluding these costs [15][21] Business Line Data and Key Metrics Changes - Private Banking segment reported $28 million in net sales events, driven by strong performance and new professional services wins [4][16] - Investment Manager Services (IMS) segment benefited from a $3 million revenue accrual true-up, with overall revenue and margins increasing significantly [13][14] - Asset Management segments experienced sequential growth due to market appreciation and healthy flows, despite some client losses in the institutional segment [14][18] Market Data and Key Metrics Changes - Assets Under Management (AUM) grew by 2% and Assets Under Administration (AUA) grew by 3%, supported by strong win momentum and market appreciation [18] - The integrated cash program contributed $21 billion to revenue, matching levels from the prior year and quarter [14] Company Strategy and Development Direction - SEI is focusing on expanding its investment management product launches, particularly in ETFs, SMAs, and select alternative products, with over $1 billion of net inflows into ETFs this year [8] - The company is leveraging automation and AI to lower unit costs and expand access to solutions, supporting entry into underserved segments [9] - SEI aims to double down on successful strategies and continue to build on its integrated approach to capture new flows and deliver greater client value [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and expects positive developments in the IMS business by the next earnings call [5][25] - The company is committed to returning 90%-100% of free cash flow to shareholders through dividends and share repurchases, ending the year with $400 million in cash and no debt [19][21] - Management highlighted the importance of maintaining a disciplined approach to investments and cost efficiency while pursuing long-term double-digit earnings growth [21] Other Important Information - SEI completed a significant share repurchase of $101 million in Q4, totaling $616 million for the year, representing nearly 6% of total shares outstanding [19] - The company achieved a major milestone with the first close of its Stratos partnership, enhancing its capabilities in the advisor channel [6][7] Q&A Session Summary Question: Can you provide more color on the sales events from ALTs? - Management indicated that the sales events were a mix of new business and expanding relationships with current clients, with strong pipeline momentum expected to continue into 2026 [25][27] Question: What drives the gap between net recurring and non-recurring sales? - The gap is primarily driven by the growth of the professional services strategy, with many engagements being characterized as one-time professional services [29][30] Question: How should we think about the margin in the private banking segment? - Management expects margins to remain in the high teens range, influenced by the mix of professional services and platform revenues [36][37] Question: What is the impact of workforce reductions on expenses? - The reduction in compensation from workforce reductions is expected to offset annual compensation increases, resulting in a flattish impact on overall expenses [45][46] Question: How significant is the UK market for the institutional business? - The UK market is considered important but is a fraction of the overall institutional business, with ongoing efforts to grow this segment [59][60]

SEI Investments (NasdaqGS:SEIC) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Speaker6Hello, and thank you for standing by. Welcome to SEI Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, ...