SEI INVESTMENTS CO
For the period ended Mar 31, 2025. Filed Apr 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 28, 2025
SEIC$105.30+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-25.
0000350894-24-000131
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-28.
0000350894-25-000071
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 196 previous paragraphs and 196 current paragraphs.
112 unchanged; 55 reworded; 26 added; 29 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
•The decline in personnel costs was primarily due to severance costs of $6.2 million incurred during the first quarter of 2024. Increased personnel costs due to business growth, primarily in the Investment Managers segment, partially offset this increase.
Current report
•Operating expenses increased primarily from higher costs for consulting and outsourced vendor costs supporting operations in the Investment Managers and Private Banks segments.
Current report
•In February 2025, the Company entered into a definitive agreement with Aquiline Capital Partners LP (Aquiline) for the sale of SEI’s Family Office Services business for a cash consideration of $120.0 million (See caption titled "Divestiture of Family Office Services Business" later in this discussion).
Current report
•Effective tax rates were 22.8% during the first quarter 2025 and 22.9% during the first quarter 2024.
Current report
(E) Client assets under administration include $14.8 billion of assets related to the Family Office Services business to be divested during the second quarter 2025 (as of March 31, 2025).
Current report
(E) Client assets under administration include $14.6 billion of average assets for the three months ended March 31, 2025 related to Family Office Services business to be divested during the second quarter 2025.
Current report
•Increased revenues from services provided to collective investment trusts; and
Current report
Revenues increased $7.6 million, or 6%, in the three month period ended March 31, 2025 and were primarily affected by:
Current report
•Lower investment management fees from the recontracting of an existing client.
Current report
•Increased costs, mainly personnel, consulting and outsourced vendor costs supporting operations.
Current report
•Increased fee revenue of $11.2 million from the SEI Integrated Cash Program; and
Current report
•Decreased average basis points earned on assets in SEI mutual funds.
Current report
•Increased personnel costs from business growth, and
Current report
•Increased stock-based compensation costs.
Current report
•Decreased investment management fees from fee reductions and client losses; partially offset by
Current report
•Revenues from new Outsourced Chief Investment Officer (OCIO) platform clients.
Current report
Operating margin increased to 48% compared to 44% in the three month period. Operating income increased $1.0 million, or 3%, in the three month period and was primarily affected by:
Current report
•Increased revenues from network and data protection services offered through SEI Sphere due to new business;
Current report
Net gain from investments
Current report
Divestiture of Family Office Services Business
Current report
On February 27, 2025, we announced the entry into a definitive agreement with Aquiline, a private investment firm specializing in financial services and technology, to acquire our Family Office Services business. The total purchase price is $120.0 million, subject to adjustment, to be paid in cash at closing, and the transaction is expected to close during the second quarter 2025. We also entered into a transition services agreement to provide certain information technology, administrative and operational services to Aquiline to assist in the transfer of services for a period of time after the closing of the transaction. The Family Office Services business is currently reported in our Investments in New Businesses segment and contributed $9.1 million and $8.8 million to our revenues and $3.2 million and $2.3 million to our income from operations during the three months ended March 31, 2025 and 2024, respectively.
Current report
•Other investing activities. We made strategic investments of $3.8 million and $10.0 million during the first three months of 2025 and 2024, respectively, in innovation platforms for wealth management.
Current report
•the implementation of our outsourcing strategy leveraging a Global Capability Center;
Current report
•failing to keep pace with significant new technologies;
Current report
•failure to identify errors in quantitative investment models;
Current report
•SEI Investments - Guernsey Limited, a provider of custody, administration and reporting services that is regulated by the Guernsey Financial Services Commission.
Removed paragraphs (29)
Previous report
•Operating expenses increased from higher personnel costs due to business growth, primarily in the Investment Managers segment, stock-based compensation, and the impact of inflation on wages and services. Cost containment measures related to consulting and other vendor costs partially offset the increase in operating expenses in the first nine months of 2024.
Previous report
•In July 2024, SEI sold a condominium located in New York, New York and recognized a net pre-tax gain of $8.2 million, or $0.05 diluted earnings per share, after associated costs and expenses. The gain from the sale is included in Other income on the accompanying Consolidated Statement of Operations.
Previous report
•Effective tax rates were 23.5% during the third quarter 2024 and 22.5% during the third quarter 2023. During the first nine months of 2024 and 2023, effective tax rates were 23.4% and 23.2%, respectively.
Previous report
(E) Due to the reorganization of business segments, client assets under administration were reclassified from Investment Managers to Investments in New Businesses (See Note 9 to the Consolidated Financial Statements).
Previous report
(E) Due to the reorganization of business segments, client assets under administration were reclassified from Investment Managers to Investments in New Businesses (See Note 9 to the Consolidated Financial Statements).
Previous report
Revenues increased $19.1 million, or 16%, in the three month period and increased $28.3 million, or 8%, in the nine month period ended September 30, 2024 and were primarily affected by:
Previous report
•One-time early termination fees of $10.5 million from an investment processing client during the second quarter 2023; and
Previous report
•Decreased costs, mainly non-capitalized consulting and other vendor costs from cost containment measures; partially offset by
Previous report
•Increased amortization expense related to SWP; and
Previous report
•Increased personnel and stock-based compensation costs.
Previous report
•New fee revenue of $10.7 million during the third quarter 2024 and $30.4 million during the first nine months of 2024 from the SEI Integrated Cash Program launched in December 2023; partially offset by
Previous report
Operating margin increased to 45% compared to 42% in the three month period and increased to 44% compared to 41% in the nine month period. Operating income increased $10.5 million, or 23%, in the three month period and increased $29.5 million, or 22%, in the nine month period and was primarily affected by:
Previous report
•Decreased non-capitalized consulting costs; partially offset by
Previous report
•Increased personnel and stock-based compensation costs.
Previous report
Revenues increased $1.1 million, or 2%, in the three month period and decreased $5.0 million, or 2%, in the nine month period ended September 30, 2024 and were primarily affected by:
Previous report
•Decreased investment management fees from client losses; partially offset by
Previous report
•Added revenues from the acquisition of XPS Pensions (Nexus) Limited.
Previous report
•A one-time operational charge of $4.5 million related to a client reimbursement during the second quarter 2023; partially offset by
Previous report
•Increased personnel, professional fees, amortization and other costs related to the acquisition of XPS Pensions (Nexus) Limited.
Previous report
Revenues increased $21.6 million, or 13%, in the three month period and increased $60.4 million, or 13%, in the nine month period ended September 30, 2024 and were primarily affected by:
Previous report
•Decreased non-capitalized investment spending, mainly consulting costs; partially offset by
Previous report
Revenues increased $2.4 million, or 18%, in the three month period and increased $5.7 million, or 15%, in the nine month period ended September 30, 2024 and were primarily affected by:
Previous report
Net gain (loss) from investments
Previous report
Other income
Previous report
Other income is related to a net gain of $8.2 million recognized from the sale of property located in New York, New York during July 2024 (See Note 14 to the Consolidated Financial Statements).
Previous report
Fair Value Measurements
Previous report
The fair value of financial assets and liabilities, except for the investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The fair value of all other financial assets are determined using Level 1 or Level 2 inputs and consist mainly of investments in equity or fixed-income mutual funds that are quoted daily and Government National Mortgage Association (GNMA) and other U.S. government agency securities that are single issuer pools that are valued based on current market data of similar assets. Level 3 financial liabilities at September 30, 2024 and December 31, 2023 consist entirely of the estimated fair value of the contingent consideration resulting from an acquisition (See Note 12 to the Consolidated Financial Statements).
Previous report
•Proceeds from fixed asset dispositions. We received proceeds of $9.9 million after associated costs and expenses from the sale of property located in New York, New York in the third quarter 2024.
Previous report
•Other investing activities. In February 2024, we made a strategic investment of $10.0 million in an innovation platform for wealth management.
Reworded paragraphs (55)
Previous wording
SEI delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. Investment processing fees are earned as either monthly fees for contracted services or as a percentage of the market value of our clients' assets processed on our platforms. Investment operations and investment management fees are earned as a percentage of assets under management, administration or advised assets. As of September 30, 2024, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $1.6 trillion in hedge, private equity, mutual fund and pooled or separately managed assets.
Current wording
SEI Investments Company is a leading global provider of financial technology, operations, and asset management services within the financial services industry. Investment processing fees are earned as either monthly fees for contracted services or as a percentage of the market value of our clients' assets processed on our platforms. Investment operations and investment management fees are earned as a percentage of assets under management, administration or advised assets. As of March 31, 2025, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $1.6 trillion in hedge, private equity, mutual fund and pooled or separately managed assets.
Previous wording
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 were:
Current wording
Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 were:
Previous wording
The following items had a significant impact on our financial results for the three and nine months ended September 30, 2024 and 2023:
Current wording
The following items had a significant impact on our financial results for the three months ended March 31, 2025 and 2024:
Previous wording
•Revenue from Assets under management, administration, and distribution fees increased in the first nine months of 2024 primarily from higher assets under administration due to cross sales to existing alternative investment clients of the Investment Managers segment as well as new sales within the segment. Average assets under administration increased $132.4 billion, or 15%, to $998.4 billion during the first nine months of 2024, as compared to $866.0 billion during the first nine months of 2023.
Current wording
•Revenue from Assets under management, administration, and distribution fees increased in the first quarter of 2025 primarily from higher assets under administration due to cross sales to existing alternative investment clients of the Investment Managers segment as well as new sales within the segment. Average assets under administration increased $122.7 billion, or 13%, to $1.1 trillion during the first quarter 2025, as compared to $961.7 billion during the first quarter of 2024.
Previous wording
•Revenue from Asset management, administration and distribution fees also increased from market appreciation and positive cash flows into separately managed account programs and Strategist programs of the Investment Advisors segment. This was partially offset by negative cash flows from SEI fund programs and fee reductions in separately managed account programs. Revenue growth was also partially offset by client losses in the Institutional Investors segment. Average assets under management in equity and fixed income programs, excluding LSV, increased $8.8 billion, or 5%, to $177.9 billion in the first nine months of 2024 as compared to $169.1 billion during the first nine months of 2023.
Current wording
•Revenue from Asset management, administration and distribution fees also increased from market appreciation during 2024 and positive cash flows into separately managed account programs and Strategist programs of the Investment Advisors segment. This was partially offset by negative cash flows from SEI fund programs and fee reductions in separately managed account programs during 2024. Revenue growth was also partially offset by client losses in the Institutional Investors segment. Average assets under management in equity and fixed income programs, excluding LSV, increased $6.6 billion, or 4%, to $182.5 billion in the first quarter of 2025 as compared to $175.9 billion during the first quarter of 2024.
Previous wording
•Fees from the SEI Integrated Cash Program of the Investment Advisors segment launched in December 2023 were $10.7 million during the third quarter of 2024 and $30.4 million during the first nine months of 2024.
Current wording
•Fees from the SEI Integrated Cash Program of the Investment Advisors segment increased to $20.8 million during the first quarter of 2025 as compared to $9.6 million during the first quarter of 2024.
Previous wording
•Revenue from Information processing and software servicing fees increased in the first nine months of 2024 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients. A one-time early contractual buyout fee of $10.5 million recorded during the second quarter of 2023 from an investment processing client of the Private Banks segment acquired by an existing client partially offset the increase in revenues.
Current wording
•Revenue from Information processing and software servicing fees increased in the first quarter of 2025 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients.
Previous wording
•Earnings from LSV increased to $102.4 million in the first nine months of 2024 as compared to $91.5 million in the first nine months of 2023 due to market appreciation and higher performance fees. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.
Current wording
•Earnings from LSV decreased to $28.7 million in the first quarter of 2025 as compared to $31.6 million in the first quarter of 2024 due to negative cash flows from existing clients and client losses. Market appreciation of assets under management partially offset the decrease in earnings from LSV.
Previous wording
•Capitalized software development costs were $18.4 million in the first nine months of 2024, of which $10.5 million was for continued enhancements to SWP. Capitalized software development costs also include $5.0 million of software development costs in the first nine months of 2024 for a new platform for the Investment Managers segment.
Current wording
•Capitalized software development costs were $7.4 million in the first quarter of 2025, of which $4.4 million was for continued enhancements to SWP. Capitalized software development costs also include $3.0 million of software development costs in the first quarter of 2025 for a new platform for the Investment Managers segment. We expect to place this platform into service during the second half of 2025.
Previous wording
•Amortization expense related to SWP was $20.5 million in the first nine months of 2024 as compared to $19.0 million in the first nine months of 2023.
Current wording
•Amortization expense related to SWP was $7.1 million in the first quarter of 2025 as compared to $6.8 million in the first quarter of 2024.
Previous wording
•Interest and dividend income was $36.0 million in the first nine months of 2024 as compared to $29.5 million in the first nine months of 2023. The increase in interest and dividend income was due to an overall increase in interest rates and higher invested cash balances.
Current wording
•Interest and dividend income was $10.2 million in the first quarter of 2025 as compared to $10.8 million in the first quarter of 2024. The decrease in interest and dividend income was due to declining interest rates and lower invested cash balances.
Previous wording
•SEI repurchased 3.7 million shares of its common stock for $253.0 million in the first nine months of 2024.
Current wording
•SEI repurchased 2.5 million shares of its common stock for $192.8 million in the first quarter of 2025.
Previous wording
(A)Collective trust fund program assets are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
Current wording
(A) Collective trust fund program assets are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
Previous wording
(B) Equity and fixed-income programs include $1.6 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of September 30, 2024).
Current wording
(B) Equity and fixed-income programs include $1.4 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of March 31, 2025).
Previous wording
(D) In addition to the assets presented, SEI also administers an additional $8.5 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of September 30, 2024).
Current wording
(D) In addition to the assets presented, SEI also administers an additional $10.9 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of March 31, 2025).
Previous wording
(B) Equity and fixed-income programs include assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee. The average value of these assets for the three months ended September 30, 2024 was $1.7 billion.
Current wording
(B) Equity and fixed-income programs include assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee. The average value of these assets for the three months ended March 31, 2025 was $1.4 billion.
Previous wording
(C) Equity and fixed-income programs include $6.3 billion of average assets invested in various asset allocation funds for the three months ended September 30, 2024.
Current wording
(C) Equity and fixed-income programs include $6.4 billion of average assets invested in various asset allocation funds for the three months ended March 31, 2025.
Previous wording
(D) In addition to the assets presented, SEI also administers an additional $8.5 billion of average assets in Funds of Funds assets for the three months ended September 30, 2024 on which SEI does not earn an administration fee.
Current wording
(D) In addition to the assets presented, SEI also administers an additional $10.6 billion of average assets in Funds of Funds assets for the three months ended March 31, 2025 on which SEI does not earn an administration fee.
Previous wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 were as follows:
Current wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 were as follows:
Previous wording
•Increased revenues from additional services provided to our largest alternative fund clients; and
Current wording
•Increased administration fees from additional services provided to our largest alternative fund clients;
Previous wording
Operating margin increased to 38% compared to 36% in the three month period and increased to 38% compared to 35% in the nine month period. Operating income increased $11.1 million, or 19%, in the three month period and increased $34.0 million, or 20%, in the nine month period and was primarily affected by:
Current wording
Operating margin increased to 39% compared to 37% in the three month period. Operating income increased $11.7 million, or 19%, in the three month period and was primarily affected by:
Previous wording
•Increased costs associated with new business, primarily personnel and stock-based compensation costs and third-party vendor costs; and
Current wording
•Increased costs associated with new business, primarily personnel costs and third-party vendor costs; and
Previous wording
•Lower investment processing fees from the recontracting of existing clients and a client loss.
Current wording
•Lower investment processing fees from the recontracting of existing clients and a client loss; and
Previous wording
Operating margins increased to 17% compared to 7% in the three month period and increased to 15% compared to 9% in the nine month period. Operating income increased by $15.2 million, or 179%, in the three month period and increased by $26.2 million, or 74%, in the nine month period and was primarily affected by:
Current wording
Operating margins increased to 17% compared to 13% in the three month period. Operating income increased by $5.8 million, or 34%, in the three month period and was primarily affected by:
Previous wording
•Increased fees from separately managed account programs and Strategist programs due to growth from existing clients and market appreciation; and
Current wording
•Increased fees from separately managed account programs and Strategist programs due to growth from existing clients and market appreciation; partially offset by
Previous wording
•Decreased investment management fees from SEI fund programs resulting from the continued shift out of SEI fund programs into separately managed accounts and other investment products; and
Current wording
•Decreased investment management fees from SEI fund programs resulting from the continued shift out of SEI fund programs into separately managed accounts and other investment products;
Previous wording
•Fee reductions in our separately managed account programs.
Current wording
•Fee reductions in our separately managed account programs; and
Previous wording
Operating margin increased to 47% compared to 43% in the three month period and increased to 46% compared to 43% in the nine month period. Operating income increased $3.2 million, or 11%, in the three month period and increased $4.9 million, or 5%, in the nine month period and was primarily affected by:
Current wording
Operating margin increased to 47% compared to 45% in the three month period. Operating income increased $8.4 million, or 15%, in the three month period and was primarily affected by:
Previous wording
•Increased direct expenses associated with the increase in separately managed account fees; and
Current wording
•Increased direct expenses associated with the increase in separately managed account fees;
Previous wording
•Decreased direct expenses associated with investment management fees;
Current wording
•Decreased direct expenses associated with investment management fees; and
Previous wording
•Decreased personnel costs; and
Current wording
•Decreased personnel costs; partially offset by
Previous wording
•A decrease in revenues as mentioned above; and
Current wording
•A decrease in revenues as mentioned above.
Previous wording
Revenues increased $16.4 million, or 15%, in the three month period and increased $43.6 million, or 13%, in the nine month period ended September 30, 2024 and were primarily affected by:
Current wording
Revenues increased $2.2 million, or 15%, in the three month period ended March 31, 2025 and were primarily affected by:
Previous wording
•Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation and new business.
Current wording
•Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation and new business; and
Previous wording
•Increased revenues from hosted technology offerings through SEI Family Office Services due to increased non-recurring implementation fees and new business; and
Current wording
•Increased revenues from hosted technology offerings through SEI Family Office Services due to increased non-recurring implementation fees.
Previous wording
Corporate overhead expenses primarily consist of general and administrative expenses and other costs not directly attributable to a reportable business segment. Corporate overhead expenses were $37.9 million and $31.0 million in the three months ended September 30, 2024 and 2023, respectively, and $109.0 million and $94.5 million in the nine months ended September 30, 2024, respectively. The increase in corporate overhead expenses is primarily due to severance costs, stock-based compensation costs and investments in upgrading and enhancing various technologies utilized by corporate overhead units. Additionally, personnel costs increased from enhancements to further build our compliance infrastructure.
Current wording
Corporate overhead expenses primarily consist of general and administrative expenses and other costs not directly attributable to a reportable business segment. Corporate overhead expenses were $35.5 million and $37.8 million in the three months ended March 31, 2025 and 2024, respectively. The decrease in corporate overhead expenses is primarily due to severance costs of $6.2 million incurred in first quarter of 2024. Increases in personnel costs, professional fees, consulting and stock-based compensation costs and investments in upgrading and enhancing various technologies utilized by corporate overhead units partially offset the decline in corporate overhead expenses.
Previous wording
Net gain from investments in the three and nine months ended September 30, 2024 were primarily due to unrealized mark-to-market gains recorded in current earnings associated with LSV-sponsored investment funds and Company-sponsored investment funds from market appreciation (See Note 5).
Current wording
Net gain from investments in the three months ended March 31, 2025 were primarily due to unrealized mark-to-market gains recorded in current earnings associated with LSV-sponsored investment funds and Company-sponsored investment funds from market appreciation (See Note 5 to the Consolidated Financial Statements).
Previous wording
Interest and dividend income is earned based upon the amount of cash that is invested daily. The increase in interest and dividend income in the three and nine months ended September 30, 2024 was due to an overall increase in interest rates.
Current wording
Interest and dividend income is earned based upon the amount of cash that is invested daily. The decrease in interest and dividend income in the three months ended March 31, 2025 was due to an overall decline in interest rates and lower invested cash balances.
Previous wording
The increase in earnings from LSV in the three and nine months ended September 30, 2024 was primarily due to higher assets under management from market appreciation and higher performance fees. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV. Average assets under management by LSV increased $5.5 billion to $91.6 billion during the nine months ended September 30, 2024 as compared to $86.1 billion during the nine months ended September 30, 2023, an increase of 6%.
Current wording
The decrease in earnings from LSV in the three months ended March 31, 2025 was primarily due to lower assets under management from negative cash flows from existing clients and client losses. Market appreciation of client assets partially offset the decrease in earnings from LSV. Average assets under management by LSV decreased $2.9 billion to $87.8 billion during the three months ended March 31, 2025 as compared to $90.7 billion during the three months ended March 31, 2024, a decrease of 3%.
Previous wording
The increase in amortization expense related to capitalized software development costs during the three and nine months ended September 30, 2024 was primarily due to significant enhancements to SWP (See Note 1 to the Consolidated Financial Statements).
Current wording
The increase in amortization expense related to capitalized software development costs during the three months ended March 31, 2025 was primarily due to significant enhancements to SWP. We expect to place a new platform for the Investment Managers segment into service during the second half of 2025 (See Note 1 to the Consolidated Financial Statements).
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Revenues increased $19.4 million, or 11%, in the three month period ended March 31, 2025 and were primarily affected by:
Current report — wording carried from elsewhere
Revenues increased $13.9 million, or 11%, in the three month period ended March 31, 2025 and were primarily affected by:
Current report — wording carried from elsewhere
Revenues decreased $3.3 million, or 5%, in the three month period ended March 31, 2025 and were primarily affected by: