SEI INVESTMENTS CO
For the period ended Sep 30, 2025. Filed Oct 27, 2025.
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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.
Sep 30, 2025 · Filed Oct 27, 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 2025-06-30; filed 2025-07-28.
0000350894-25-000104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-27.
0000350894-25-000120
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 203 previous paragraphs and 207 current paragraphs.
144 unchanged; 53 reworded; 10 added; 6 removed; 0 previous and 0 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 (10)
Current report
Stratos Wealth Holdings
Current report
On July 17, 2025, we entered into an agreement with Stratos Wealth Holdings (Stratos), a family of companies focused on supporting the success of financial advisors across business models and affiliation structures. According to the agreement, we will pay a total cash consideration of approximately $527.0 million for 57.5% of the equity of Stratos. Certain legacy Stratos equity holders will continue to own 42.5%, which is subject to three equal put/call options at 36 months, 54 months and 72 months post-closing that, if fully exercised, will result in SEI owning 100.0% of Stratos. Subject to applicable regulatory approval and other customary closing conditions, the transaction is expected to close in two stages: the U.S.-based Stratos business, representing approximately 80.0% of the transaction value, and the Mexico-based NSC business. Professional fees and consulting costs incurred to date for the acquisition of Stratos have been recognized in corporate overhead. We expect to continue to incur these acquisition costs during the fourth quarter 2025.
Current report
Revenues increased $22.4 million, or 12%, in the three month period and increased $57.0 million, or 11%, in the nine month period ended September 30, 2025 and were primarily affected by:
Current report
Operating margin increased to 39% in the three and nine month periods compared to 38% in both prior year periods. Operating income increased $10.6 million, or 15%, in the three month period and increased $27.2 million, or 13%, in the nine month period and was primarily affected by:
Current report
Revenues increased slightly in the three month period and decreased $5.2 million, or 2%, in the nine month period ended September 30, 2025 and were primarily affected by:
Current report
•The divestiture of SEI Family Office Services during the second quarter 2025; partially offset by
Current report
Net gain from consolidated variable interest entities
Current report
Net gain from consolidated variable interest entities in the three and nine months ended September 30, 2025 reflects the total net gains of the LSV Global Market Neutral Fund LP consolidated into our financial statements. The portion of this gain associated with our investment in the fund was $1.5 million during the three and nine months ended September 30, 2025. The portion of this gain associated with other investors in the fund is eliminated through income attributable to non-controlling interests in the accompanying Consolidated Statement of Operations (See Notes 1 and 15 to the Consolidated Financial Statements).
Current report
The decrease in the effective tax rates for the three and nine months ended September 30, 2025 was primarily due to higher tax benefits related to stock option exercises and a decline in state effective tax rates.
Current report
Cash and cash equivalents include cash held in accounts of the LSV Global Equity Market Neutral Fund, LP consolidated into our financial statements and may only be used to settle obligations of the fund (See Note 15 to the Consolidated Financial Statements).
Removed paragraphs (6)
Previous report
•The enactment of the new tax legislation known as the One Big Beautiful Bill Act (OBBBA) on July 4, 2025 is not expected to have a material impact to future effective tax rates (See caption titled "Income Taxes" later in this discussion).
Previous report
Revenues increased $15.2 million, or 8%, in the three month period and increased $34.6 million, or 10%, in the six month period ended June 30, 2025 and were primarily affected by:
Previous report
Operating margin remained at 38% in the three month period and increased to 38% compared to 37% in the six month period. Operating income increased $4.9 million, or 7%, in the three month period and increased $16.6 million, or 13%, in the six month period and was primarily affected by:
Previous report
•Increased investment processing fees earned on our mutual fund trading solution; and
Previous report
Revenues increased $1.9 million, or 13%, in the three month period and increased $4.1 million, or 14%, in the six month period ended June 30, 2025 and were primarily affected by:
Previous report
•Increased revenues from hosted technology offerings through SEI Family Office Services due to increased non-recurring implementation fees and increased fees from existing clients.
Reworded paragraphs (53)
Previous 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 June 30, 2025, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $1.7 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 September 30, 2025, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $1.8 trillion in hedge, private equity, mutual fund and pooled or separately managed assets.
Previous wording
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 were:
Current wording
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 were:
Previous wording
The following items had a significant impact on our financial results for the three and six months ended June 30, 2025 and 2024:
Current wording
The following items had a significant impact on our financial results for the three and nine months ended September 30, 2025 and 2024:
Previous wording
•The sale of the Family Office Services business was completed on June 30, 2025 resulting in a net gain of $94.4 million, or $0.58 diluted earnings per share. The gain from the sale is reflected in Gain on sale of business on the accompanying Consolidated Statement of Operations (See caption titled "Divestiture of Family Office Services Business" later in this discussion).
Current wording
•The sale of the Family Office Services business was completed on June 30, 2025 resulting in a net gain of $94.4 million, or $0.58 diluted earnings per share recorded in the second quarter 2025. The gain from the sale is reflected in Gain on sale of business on the accompanying Consolidated Statement of Operations (See caption titled "Divestiture of Family Office Services Business" later in this discussion).
Previous wording
•Revenue from Assets under management, administration, and distribution fees increased in the first six months 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 $119.7 billion, or 12%, to $1.1 trillion during the first six months of 2025, as compared to $983.6 billion during the first six months of 2024.
Current wording
•Revenue from Assets under management, administration, and distribution fees increased in the first nine months 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 $131.6 billion, or 13%, to $1.1 trillion during the first nine months of 2025, as compared to $998.4 billion during the first nine months 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 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 $7.1 billion, or 4%, to $183.1 billion in the first six months of 2025 as compared to $176.0 billion during the first six months of 2024.
Current 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 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 $9.0 billion, or 5%, to $186.9 billion in the first nine months of 2025 as compared to $177.9 billion during the first nine months of 2024.
Previous wording
•Fees from the SEI Integrated Cash Program of the Investment Advisors segment increased to $41.5 million during the first six months of 2025 as compared to $19.7 million during the first six months of 2024 due to the expansion of the program in late 2024.
Current wording
•Fees from the SEI Integrated Cash Program of the Investment Advisors segment increased to $62.3 million during the first nine months of 2025 as compared to $30.4 million during the first nine months of 2024 due to the expansion of the program in late 2024.
Previous wording
•Revenue from Information processing and software servicing fees increased in the first six months of 2025 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients.
Current wording
•Revenue from Information processing and software servicing fees increased in the first nine months of 2025 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients.
Previous wording
•Earnings from LSV decreased to $62.4 million in the first six months of 2025 as compared to $65.9 million in the first six months 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.
Current wording
•Earnings from LSV decreased to $94.3 million in the first nine months of 2025 as compared to $102.4 million in the first nine months 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 $14.5 million in the first six months of 2025, of which $8.9 million was for continued enhancements to SWP. Capitalized software development costs also include $5.6 million of software development costs in the first six months 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.
Current wording
•Capitalized software development costs were $22.8 million in the first nine months of 2025, of which $14.5 million was for continued enhancements to SWP. Capitalized software development costs also include $8.3 million of software development costs in the first nine months of 2025 for SEI Scope, a new platform for the Investment Managers segment placed into service during the third quarter 2025.
Previous wording
•Amortization expense related to SWP was $14.3 million in the first six months of 2025 as compared to $13.6 million in the first six months of 2024.
Current wording
•Amortization expense related to SWP was $21.6 million in the first nine months of 2025 as compared to $20.5 million in the first nine months of 2024. Amortization expense related to the SEI Scope platform was $1.1 million in the first nine months of 2025.
Previous wording
•Effective tax rates were 22.3% during the second quarter 2025 and 23.9% during the second quarter 2024. During the first six months of 2025 and 2024, effective tax rates were 22.5% and 23.4%, respectively.
Current wording
•Effective tax rates were 21.9% during the third quarter 2025 and 23.5% during the third quarter 2024. During the first nine months of 2025 and 2024, effective tax rates were 22.3% and 23.4%, respectively.
Previous wording
•SEI repurchased 4.7 million shares of its common stock for $373.6 million in the first six months of 2025.
Current wording
•SEI repurchased 6.2 million shares of its common stock for $515.2 million in the first nine months of 2025.
Previous wording
(C) Equity and fixed-income programs include $6.7 billion of assets invested in various asset allocation funds at June 30, 2025.
Current wording
(C) Equity and fixed-income programs include $6.9 billion of assets invested in various asset allocation funds at September 30, 2025.
Previous wording
(D) In addition to the assets presented, SEI also administers an additional $11.4 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of June 30, 2025).
Current wording
(D) In addition to the assets presented, SEI also administers an additional $11.5 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of September 30, 2025).
Previous wording
(C) Equity and fixed-income programs include $6.5 billion of average assets invested in various asset allocation funds for the three months ended June 30, 2025.
Current wording
(C) Equity and fixed-income programs include $6.8 billion of average assets invested in various asset allocation funds for the three months ended September 30, 2025.
Previous wording
(D) In addition to the assets presented, SEI also administers an additional $11.2 billion of average assets in Funds of Funds assets for the three months ended June 30, 2025 on which SEI does not earn an administration fee.
Current wording
(D) In addition to the assets presented, SEI also administers an additional $11.5 billion of average assets in Funds of Funds assets for the three months ended September 30, 2025 on which SEI does not earn an administration fee.
Previous wording
(E) Client assets under administration include $14.9 billion of average assets for the three months ended June 30, 2025 related to Family Office Services business which was divested on June 30, 2025.
Current wording
(E) Client assets under administration related to the Family Office Services business divested on June 30, 2025.
Previous wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were as follows:
Current wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were as follows:
Previous wording
Revenues decreased $2.2 million, or 3%, in the three month period and decreased $5.4 million, or 4%, in the six month period ended June 30, 2025 and were primarily affected by:
Current wording
Revenues increased $5.3 million, or 4%, in the three month period and increased $21.9 million, or 5%, in the nine month period ended September 30, 2025 and were primarily affected by:
Previous wording
•Increased investment management fees from existing international clients due to market appreciation;
Current wording
•Increased investment management fees from existing international clients due to market appreciation; and
Previous wording
Operating margins increased to 16% compared to 15% in the three month period and increased to 16% compared to 14% in the six month period. Operating income increased by $2.2 million, or 11%, in the three month period and increased $8.0 million, or 21%, in the six month period and was primarily affected by:
Current wording
Operating margins decreased to 16% compared to 17% in the three month period and increased to 16% compared to 15% in the nine month period. Operating income decreased by $406 thousand, or 2%, in the three month period and increased $7.6 million, or 12%, in the nine month period and was primarily affected by:
Previous wording
Revenues increased $16.6 million, or 14%, in the three month period and increased $30.5 million, or 13%, in the six month period ended June 30, 2025 and were primarily affected by:
Current wording
Revenues increased $20.6 million, or 16%, in the three month period and increased $51.1 million, or 14%, in the nine month period ended September 30, 2025 and were primarily affected by:
Previous wording
•Increased fee revenue of $21.8 million from the SEI Integrated Cash Program due to the expansion of the program in late 2024; and
Current wording
•Increased fee revenue of $31.9 million from the SEI Integrated Cash Program due to the expansion of the program in late 2024; and
Previous wording
Operating margin increased to 45% compared to 43% in the three month period and increased to 46% compared to 44% in the six month period. Operating income increased $9.8 million, or 19%, in the three month period and increased $18.1 million, or 17%, in the six month period and was primarily affected by:
Current wording
Operating margin increased to 46% compared to 45% in the three month period and increased to 46% compared to 44% in the nine month period. Operating income increased $11.7 million, or 21%, in the three month period and increased $29.8 million, or 18%, in the nine month period and was primarily affected by:
Previous wording
Operating margin increased to 48% compared to 46% in the three month period and increased to 48% compared to 45% in the six month period. Operating income increased $405 thousand, or 1%, in the three month period and increased $1.4 million, or 2%, in the six month period and was primarily affected by:
Current wording
Operating margin remained at 47% in the three month period and increased to 48% compared to 46% in the nine month period. Operating income decreased slightly in the three month period and increased $1.4 million, or 1%, in the nine month period and was primarily affected by:
Previous wording
•A decrease in revenues as mentioned above.
Current wording
•A decrease in revenues in the nine month period as mentioned above.
Previous wording
Revenues increased $9.0 million, or 7%, in the three month period and increased $16.6 million, or 6%, in the six month period ended June 30, 2025 and were primarily affected by:
Current wording
Revenues decreased $7.4 million, or 48%, in the three month period and decreased $3.3 million, or 7%, in the nine month period ended September 30, 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; and
Current wording
•Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation and new business.
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 $40.5 million and $33.3 million in the three months ended June 30, 2025 and 2024, respectively, and $76.0 million and $71.1 million in the six months ended June 30, 2025 and 2024, respectively. The increases in corporate overhead expenses is primarily due to 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.
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 $42.8 million and $37.9 million in the three months ended September 30, 2025 and 2024, respectively, and $118.8 million and $109.0 million in the nine months ended September 30, 2025 and 2024, respectively. The increases in corporate overhead expenses is primarily due to increases in personnel costs, professional fees related to M&A activity, consulting and stock-based compensation costs and investments in upgrading and enhancing various technologies utilized by corporate overhead units. We expect professional fees from the expected acquisition of Stratos to continue into the fourth quarter 2025.
Previous wording
Net gain from investments in the three and six months ended June 30, 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).
Current wording
Net gain from investments in the three and nine months ended September 30, 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 decrease in interest and dividend income in the three and six months ended June 30, 2025 was due to an overall decline in interest rates and lower invested cash balances.
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 and nine months ended September 30, 2025 was due to an overall decline in interest rates and lower invested cash balances.
Previous wording
We recognized a gain of $94.4 million during the three months ended June 30, 2025 from the divestiture of the Family Office Services business (See caption titled "Divestiture of Family Office Services Business" later in this discussion).
Current wording
We recognized a gain of $94.4 million during the second quarter 2025 from the divestiture of the Family Office Services business (See caption titled "Divestiture of Family Office Services Business" later in this discussion).
Previous wording
We recognized a gain of $4.5 million during the three months ended June 30, 2025 from the settlement of a matter with a third-party vendor (See Note 11 to the Consolidated Financial Statements).
Current wording
We recognized a gain of $4.4 million from an insurance recovery during the third quarter 2025 and a gain of $4.5 million during the second quarter 2025 from the settlement of a matter with a third-party vendor.
Previous wording
The decrease in earnings from LSV in the three and six months ended June 30, 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 $2.2 billion to $88.6 billion during the six months ended June 30, 2025 as compared to $90.8 billion during the six months ended June 30, 2024, a decrease of 2%.
Current wording
The decrease in earnings from LSV in the three and nine months ended September 30, 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 $1.5 billion to $90.1 billion during the nine months ended September 30, 2025 as compared to $91.6 billion during the nine months ended September 30, 2024, a decrease of 2%.
Previous wording
The increase in amortization expense related to capitalized software development costs during the three and six months ended June 30, 2025 was primarily due to significant enhancements to SWP. We expect to place the new platform for the Investment Managers segment into service during the second half of 2025 (See Note 1 to the Consolidated Financial Statements).
Current wording
The increase in amortization expense related to capitalized software development costs during the three and nine months ended September 30, 2025 was due to significant enhancements to SWP and the placement into service of SEI Scope during the third quarter 2025 (See Note 1 to the Consolidated Financial Statements).
Previous wording
The effective income tax rates for the three and six months ended June 30, 2025 and 2024 differ from the federal income tax statutory rate due to the following:
Current wording
The effective income tax rates for the three and nine months ended September 30, 2025 and 2024 differ from the federal income tax statutory rate due to the following:
Previous wording
On July 4, 2025, President Donald J. Trump signed new tax legislation known as the One Big Beautiful Bill Act (OBBBA) into law which makes permanent many of the provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were scheduled to expire at the end of 2025. We expect the enactment of the OBBBA to primarily impact the deferred tax liability and income tax payable related to the provisions for the elimination of the capitalization of onshore research and development costs (Section 174) and the reintroduction of 100% bonus depreciation (Section 168). We do not currently expect any material impact to the effective tax rate from the new legislation.
Current wording
On July 4, 2025, President Donald J. Trump signed new tax legislation known as the One Big Beautiful Bill Act (OBBBA) into law which makes permanent many of the provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were scheduled to expire at the end of 2025. The enactment of the OBBBA primarily impacted the deferred tax liability and income tax payable related to the provisions for the elimination of the capitalization of onshore research and development costs (Section 174) and the reintroduction of 100% bonus depreciation (Section 168) and did not have a significant impact to the effective tax rate.
Previous wording
We recognized $28.0 million and $23.5 million in stock-based compensation expense during the six months ended June 30, 2025 and 2024, respectively. The increase in expense was primarily due to new equity awards granted during the fourth quarter 2024. The amount of stock-based compensation expense recognized is primarily based upon management's estimate of when the financial vesting targets of outstanding stock options may be achieved. Any change in the estimate could result in the amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect earnings (See Note 7 to the Consolidated Financial Statements).
Current wording
We recognized $42.0 million and $37.2 million in stock-based compensation expense during the nine months ended September 30, 2025 and 2024, respectively. The increase in expense was primarily due to new equity awards granted during the fourth quarter 2024. The amount of stock-based compensation expense recognized is primarily based upon management's estimate of when the financial vesting targets of outstanding stock options may be achieved. Any change in the estimate could result in the amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect earnings (See Note 7 to the Consolidated Financial Statements).
Previous wording
We expect to recognize approximately $27.6 million in stock-based compensation expense during the remainder of 2025.
Current wording
We expect to recognize approximately $11.8 million in stock-based compensation expense during the remainder of 2025.
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