SEI Reports Second-Quarter 2025 Financial Results
OAKS, Pa., July 23, 2025 /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the second quarter 2025. Relative to the second quarter 2024, EPS increased by 70%, and revenue and operating income grew by 8% and 9%, respectively, with operating margin increasing to 27%. Q2 2025 EPS benefited by $0.58 from several items affecting comparability against prior quarters, most notably the $94.4 million gain on the sale of SEI's Family Office Services business.
Consolidated Overview
(In thousands, except earnings per share)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
%
2025
2024
%
Revenues
$559,601
$518,986
8 %
$1,110,945
$1,030,565
8 %
Operating income
148,635
136,514
9 %
305,732
262,365
17 %
Operating margin
27 %
26 %
4 %
28 %
25 %
12 %
Net income
227,083
139,120
63 %
378,600
270,520
40 %
Diluted earnings per share
$1.78
$1.05
70 %
$2.95
$2.04
45 %
"SEI achieved another strong quarter across our core businesses. We are executing with conviction and discipline, positioning the company for sustained growth. As we prepare SEI to support that growth and our clients' evolving needs, we are making intentional investments in our talent, technology, and infrastructure to enhance our capabilities and scale," said CEO Ryan Hicke.
"Our strategic investment in Stratos demonstrates our commitment to challenging ourselves to change and innovate in the pursuit of our goal to be the leading provider of wealth management solutions and services. We will continue to invest capital in areas where we have conviction that the long-term opportunity will maximize the return for our clients, employees, and shareholders.
"We're excited to welcome two highly experienced, independent directors to our Board. Karin Risi and Tom Naratil bring tremendous expertise and insight that will be invaluable as we continue to execute our growth strategies."
Summary of Second-Quarter Results by Business Segment
(In thousands)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
%
2025
2024
%
Investment Managers:
Revenues
$195,067
$179,868
8 %
$387,115
$352,521
10 %
Expenses
121,636
111,287
9 %
238,847
220,837
8 %
Operating Profit
73,431
68,581
7 %
148,268
131,684
13 %
Operating Margin
38 %
38 %
38 %
37 %
Private Banks:
Revenues
141,449
132,401
7 %
279,163
262,538
6 %
Expenses
118,724
111,890
6 %
233,473
224,864
4 %
Operating Profit
22,725
20,511
11 %
45,690
37,674
21 %
Operating Margin
16 %
15 %
16 %
14 %
Investment Advisors:
Revenues
137,193
120,587
14 %
273,769
243,305
13 %
Expenses
75,801
68,953
10 %
148,256
135,911
9 %
Operating Profit
61,392
51,634
19 %
125,513
107,394
17 %
Operating Margin
45 %
43 %
46 %
44 %
Institutional Investors:
Revenues
69,343
71,507
(3) %
137,849
143,285
(4) %
Expenses
35,857
38,426
(7) %
71,727
78,535
(9) %
Operating Profit
33,486
33,081
1 %
66,122
64,750
2 %
Operating Margin
48 %
46 %
48 %
45 %
Investments in New Businesses:
Revenues
16,549
14,623
13 %
33,049
28,916
14 %
Expenses
18,430
18,580
(1) %
36,926
36,963
— %
Operating Loss
(1,881)
(3,957)
(52) %
(3,877)
(8,047)
(52) %
Totals:
Revenues
$559,601
$518,986
8 %
$1,110,945
$1,030,565
8 %
Expenses
370,448
349,136
6 %
729,229
697,110
5 %
Corporate Overhead Expenses
40,518
33,336
22 %
75,984
71,090
7 %
Income from Operations
$148,635
$136,514
9 %
$305,732
$262,365
17 %
Second-Quarter Business Highlights:
SEI achieved diluted EPS of $1.78, up 70% from the prior year, reflecting continued momentum in SEI's business in addition to the $0.58 impact of several items affecting comparability in the quarter, specifically:
A $0.60 benefit associated with the gain on sale of the Family Office Services business, and a settlement gain from the resolution of a long-standing vendor negotiation.
A $0.02 combined loss from FX transaction losses and M&A legal fees from our recently announced acquisition of Stratos Wealth Holdings, reflected in Corporate Overhead.
Net sales events during the second quarter 2025 were $29.2 million, bringing net sales events for the trailing 12 months to $160.4 million, a new record. Sales events were driven by the Investment Managers business, which achieved a balanced mix of wins across alternatives, traditional and international investment managers.
Sales pipelines across all of SEI's businesses remain healthy, including Private Banking and the Asset Management businesses, where net sales events have improved considerably against 2024 losses.
Consolidated revenues and operating income increased by 8% and 9%, respectively, from Q2 2024. SEI's consolidated operating margin of 27% represents a modest improvement over the prior year and a decline vs. Q1 2025, reflecting increased investments in both talent and technology to support expected growth.
Private Banks operating profit growth of 11% reflects continued momentum and the positive impact of several clients going live in the quarter.
Investment Managers operating profit growth of 7% was driven by a double-digit increase in alternative manager revenue, partially offset by a slight decline in traditional revenue due to volatile Q2 market valuations.
Investment Managers operating profit margin declined vs. Q1 2025 due to hiring ahead of expected new business and a challenging comparison due to first quarter delays in hiring.
Investment Advisors operating profit growth of 19% reflects the $21M contribution from SEI's integrated cash program, up $11M from Q2 2024.
Investment Advisors and Institutional Investors realized flat revenue growth relative to Q1 2025 as market appreciation in May and June offset significant declines realized in April.
Average assets under administration increased by 4%, and average assets under management increased 2% relative to Q1 2025. Ending assets under management increased by 6% from Q1 to Q2, reflecting significant market appreciation realized during the months of May and June.
Institutional Investors and Investment Advisors net flows have improved year-to-date, posting just over $1 billion of net outflows against more than $7 billion of net outflows in the first half of 2024.
SEI repurchased 2.2 million shares of common stock for $180.8 million during the second quarter 2025 at an average price of $83.60 per share, bringing total shares repurchased to 9.0 million for the trailing 12 months.
Earnings Conference CallA conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on July 23, 2025. Analysts and investors are invited to join the call by completing the registration form. The public is invited to review the presentation and listen to the call and replay at ir.seic.com/events-presentations/events.
Link for registration form: https://edge.media-server.com/mmc/p/hxy2xx8e/
About SEI®SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of June 30, 2025, SEI manages, advises, or administers approximately $1.7 trillion in assets. For more information, visit seic.com.
This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to:
whether we are positioned for sustained growth;
the nature of our internal investments and the factors that drive these investments;
our goals;
the strength of our pipelines;
our focus on profitability and cost leverage;
our cost discipline and its effects on profitability;
our investment priorities; and
when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of any such revenue.
You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended Dec. 31, 2024, filed with the Securities and Exchange Commission.
SEI INVESTMENTS COMPANYCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) (Unaudited)
For the Three Months Ended June 30,
For the Six MonthsEnded June 30,
2025
2024
2025
2024
Asset management, admin. and distribution fees
$437,543
$409,398
$869,686
$813,764
Information processing and software servicing fees
122,058
109,588
241,259
216,801
Total revenues
559,601
518,986
1,110,945
1,030,565
Subadvisory, distribution and other asset mgmt. costs
49,709
46,542
97,241
93,310
Software royalties and other information processing costs
9,191
8,096
18,272
16,567
Compensation, benefits and other personnel
199,574
185,878
390,358
378,794
Stock-based compensation
13,891
12,469
28,029
23,528
Consulting, outsourcing and professional fees
56,942
53,991
112,943
105,967
Data processing and computer related
41,801
38,074
81,120
75,234
Facilities, supplies and other costs
21,744
18,570
40,499
37,173
Amortization
10,449
10,485
21,159
20,871
Depreciation
7,665
8,367
15,592
16,756
Total expenses
410,966
382,472
805,213
768,200
Income from operations
148,635
136,514
305,732
262,365
Net gain from investments
1,759
666
2,252
2,922
Interest and dividend income
9,283
11,552
19,504
22,371
Interest expense
(92)
(139)
(277)
(278)
Gain on sale of business
94,412
—
94,412
—
Other income
4,500
—
4,500
—
Equity in earnings of unconsolidated affiliate
33,640
