SEI INVESTMENTS CO
For the period ended Jun 30, 2026. Filed Jul 27, 2026.
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.
Jun 30, 2026 · Filed Jul 27, 2026
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 2026-03-31; filed 2026-04-27.
0000350894-26-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-27.
0000350894-26-000048
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 207 previous paragraphs and 207 current paragraphs.
140 unchanged; 55 reworded; 11 added; 8 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 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 (11)
Current report
•Operating expenses also increased due to the Stratos acquisition in December 2025. The incremental expenses primarily consisted of personnel costs and amortization of acquired intangible assets.
Current report
Operating margin increased to 40% compared to 38% in the three and six month periods. Operating income increased $18.2 million, or 25%, in the three month period and increased $30.2 million, or 20%, in the six month period and was primarily affected by:
Current report
Revenues increased $40.7 million, or 30%, in the three month period and increased $73.8 million, or 27%, in the six month period ended June 30, 2026 and were primarily affected by:
Current report
Operating margin decreased to 42% compared to 45% in the three month period and decreased to 42% compared to 46% in the six month period. Operating income increased $13.3 million, or 22%, in the three month period and increased $21.2 million, or 17%, in the six month period and was primarily affected by:
Current report
Revenues increased $359 thousand, or 1%, in the three month period and increased $3.4 million, or 2%, in the six month period ended June 30, 2026 and were primarily affected by:
Current report
Revenues decreased $7.1 million, or 43%, in the three month period and decreased $15.6 million, or 47%, in the six month period ended June 30, 2026 and were primarily affected by:
Current report
Net gain from investments
Current report
The decrease in the effective tax rate for the three and six months ended June 30, 2026 was primarily due to higher excess tax benefits recognized on employee stock option exercises and the favorable impact of purchased energy tax credits, both of which reduced the Company's income tax expense.
Current report
(1) This non-GAAP adjustment removes incremental and directly attributable costs incurred to execute acquisitions, such as third-party advisory, legal, accounting, valuation, and due diligence. For the three and six months ended June 30, 2025, this non-GAAP adjustment consisted of the legal costs, advisory fees, and due diligence fees in relation to the Stratos acquisition. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
Current report
(3) This non-GAAP adjustment removes realized gains on the sale of assets owned or entities under our control, out of the normal course of business. For the three and six months ended June 30, 2025, the adjustment consisted of the realized gain from the sale of Family Office Services (FOS). Management believes adjusting for these gains helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
Current report
(4) This non-GAAP adjustment removes individually significant litigation settlements and insurance proceeds. For the three and six months ended June 30, 2025, this non-GAAP adjustment consisted of a $4.5M settlement related to a vendor matter. For the three and six months ended June 30, 2026, this non-GAAP adjustment was related to litigation settlements. Management included these transactions as non-GAAP adjustments since they were out of the normal course of business. Management believes adjusting for these items helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
Removed paragraphs (8)
Previous report
•Effective tax rates were 23.4% during the first quarter 2026 and 22.8% during the first quarter 2025.
Previous report
Revenues increased $28.7 million, or 15%, in the three month period ended March 31, 2026 and were primarily affected by:
Previous report
Revenues increased $33.1 million, or 24%, in the three month period ended March 31, 2026 and were primarily affected by:
Previous report
Revenues increased $3.0 million, or 4%, in the three month period ended March 31, 2026 and were primarily affected by:
Previous report
Operating margin remained at 48% in the three month period. Operating income increased $1.7 million, or 5%, in the three month period and was primarily affected by:
Previous report
Revenues decreased $8.5 million, or 52%, in the three month period ended March 31, 2026 and were primarily affected by:
Previous report
Net (loss) gain from investments
Previous report
The increase in the effective tax rate for the three months ended March 31, 2026 was primarily due to non-deductible executive compensation. Under Section 162(m) of the Internal Revenue Code, the our federal income tax deduction for compensation paid to certain covered employees is limited. Compensation expense that exceeds this limitation is not deductible for income tax purposes but is recognized as expense for financial reporting purposes. As a result, we incurred a permanent difference during the three months ended March 31, 2026, which increased the effective tax rate.
Reworded paragraphs (55)
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 March 31, 2026, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $1.9 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 June 30, 2026, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $2.1 trillion in hedge, private equity, mutual fund and pooled or separately managed assets.
Previous wording
Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 were:
Current wording
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 were:
Previous wording
The following items had a significant impact on our financial results for the three months ended March 31, 2026 and 2025:
Current wording
The following items had a significant impact on our financial results for the three and six months ended June 30, 2026 and 2025:
Previous wording
•Revenue from Assets under management, administration, and distribution fees increased in the first three months of 2026 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 $276.6 billion, or 27%, to $1.3 trillion during the first three months of 2026, as compared to $1.0 trillion during the first three months of 2025.
Current wording
•Revenue from Assets under management, administration, and distribution fees increased in the first six months of 2026 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 $212.7 billion, or 19%, to $1.3 trillion during the first six months of 2026, as compared to $1.1 trillion during the first six months of 2025.
Previous wording
•Revenue from Asset management, administration and distribution fees also increased from market appreciation during 2025 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 and lower fee structures 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 $27.1 billion, or 15%, to $206.6 billion in the first three months of 2026 as compared to $179.5 billion during the first three months of 2025.
Current wording
•Revenue from Assets under 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 and lower fee structures 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 $26.7 billion, or 15%, to $209.8 billion in the first six months of 2026 as compared to $183.1 billion during the first six months of 2025.
Previous wording
•Revenues from our strategic acquisition of Stratos in the first three months of 2026 were $19.0 million.
Current wording
•Revenues from our strategic acquisition of Stratos in the first six months of 2026 were $40.1 million.
Previous wording
•Revenue from Information processing and software servicing fees increased in the first three months of 2026 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 six months of 2026 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients.
Previous wording
•Earnings from LSV increased to $32.1 million in the first three months of 2026 as compared to $28.7 million in the first three months of 2025 due to market appreciation of assets under management during 2025. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.
Current wording
•Earnings from LSV increased to $70.4 million in the first six months of 2026 as compared to $62.4 million in the first six months of 2025 due to market appreciation of assets under management and increased performance fees. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.
Previous wording
•The increase in personnel costs was primarily due to business growth, primarily in the Investment Managers segment.
Current wording
•Operating expenses increased primarily from compensation, benefits and other personnel costs and higher direct costs reflected in subadvisory, distribution and other asset management costs. The increase in personnel costs was largely attributable to business growth, primarily in the Investment Managers segment. This increase was partially offset by lower costs for consulting and outsourced vendor costs supporting operations in the Investment Managers and Private Banks segments.
Previous wording
•Capitalized software development costs were $5.5 million in the first three months of 2026, of which $4.0 million was for continued enhancements to SWP. Capitalized software development costs also include $1.6 million of software development costs in the first three months of 2026 for SEI Scope, a new platform for the Investment Managers segment placed into service during the third quarter 2025.
Current wording
•Capitalized software development costs were $11.1 million in the first six months of 2026, of which $7.5 million was for continued enhancements to SWP. Capitalized software development costs also include $3.7 million of software development costs in the first six months of 2026 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 $7.6 million in the first three months of 2026 as compared to $7.1 million in the first three months of 2025. Amortization expense related to the SEI Scope platform was $1.5 million in the first three months of 2026.
Current wording
•Amortization expense of capitalized software development costs related to SWP was $15.2 million in the first six months of 2026 as compared to $14.3 million in the first six months of 2025. Amortization expense related to the SEI Scope platform was $3.0 million in the first six months of 2026.
Previous wording
•SEI repurchased 2.6 million shares of its common stock for $208.3 million in the first three months of 2026.
Current wording
•SEI repurchased 3.8 million shares of its common stock for $320.7 million in the first six months of 2026.
Previous wording
In December 2025, we completed the first stage of our strategic investment in the Stratos business (Stratos), a network of affiliated companies focused on supporting the success of financial advisors. During the first quarter 2026, we completed the purchases of 100% interest of nine entities and a majority interest in two additional entities. These purchases were funded by a cash deposit made in December 2025 and the issuance of promissory notes. Stratos contributed $19.0 million to revenue and $3.1 million to operating profit, which includes $6.0 million of expense associated with acquired intangible amortization, before considering non-controlling interest (See Note 12 to the Notes to Consolidated Financial Statements).
Current wording
In December 2025, we completed the first stage of our strategic investment in the Stratos business (Stratos), a network of affiliated companies focused on supporting the success of financial advisors. During the first six months of 2026, we completed the purchases of 100% interest of nine entities and a majority interest in two additional entities. These purchases were funded by a cash deposit made in December 2025 and the issuance of promissory notes. Stratos contributed $40.1 million to revenue and $6.1 million to operating profit, which includes $12.8 million of expense associated with acquired intangible amortization, before considering non-controlling interest (See Note 12 to the Notes to Consolidated Financial Statements).
Previous 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, 2026).
Current wording
(B) Equity and fixed-income programs include $1.5 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 June 30, 2026).
Previous wording
(C) Equity and fixed-income programs include $8.3 billion of assets invested in various asset allocation funds at March 31, 2026.
Current wording
(C) Equity and fixed-income programs include $8.9 billion of assets invested in various asset allocation funds at June 30, 2026.
Previous wording
(D) In addition to the assets presented, SEI also administers an additional $13.3 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of March 31, 2026).
Current wording
(D) In addition to the assets presented, SEI also administers an additional $14.3 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of June 30, 2026).
Previous wording
(F) Stratos is a network of affiliated companies that provides financial services to $39.9 billion in client assets across business models and affiliation structures (as of February 28, 2026).
Current wording
(E) Stratos is a network of affiliated companies that provides financial services to $41.9 billion in client assets across business models and affiliation structures (as of June 30, 2026).
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 March 31, 2026 was $1.5 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 June 30, 2026 was $1.4 billion.
Previous wording
(C) Equity and fixed-income programs include $8.2 billion of average assets invested in various asset allocation funds for the three months ended March 31, 2026.
Current wording
(C) Equity and fixed-income programs include $8.6 billion of average assets invested in various asset allocation funds for the three months ended June 30, 2026.
Previous wording
(D) In addition to the assets presented, SEI also administers an additional $13.2 billion of average assets in Funds of Funds assets for the three months ended March 31, 2026 on which SEI does not earn an administration fee.
Current wording
(D) In addition to the assets presented, SEI also administers an additional $13.8 billion of average assets in Funds of Funds assets for the three months ended June 30, 2026 on which SEI does not earn an administration fee.
Previous wording
(F) Stratos is a network of affiliated companies that provides financial services to $39.1 billion in average client assets across business models and affiliation structures during the three months ended March 31, 2026.
Current wording
(F) Stratos is a network of affiliated companies that provides financial services to $40.6 billion in average client assets across business models and affiliation structures during the three months ended June 30, 2026.
Previous wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 were as follows:
Current wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 were as follows:
Previous wording
Operating margin remained at 39% in the three month period. Operating income increased $12.0 million, or 16%, in the three month period and was primarily affected by:
Current wording
Revenues increased $32.6 million, or 17%, in the three month period and increased $61.3 million, or 16%, in the six month period ended June 30, 2026 and were primarily affected by:
Previous wording
Revenues increased $14.5 million, or 11%, in the three month period ended March 31, 2026 and were primarily affected by:
Current wording
Revenues increased $15.4 million, or 11%, in the three month period and increased $30.0 million, or 11%, in the six month period ended June 30, 2026 and were primarily affected by:
Previous wording
•Increased investment processing fees from new SWP client conversions and growth from existing SWP clients due to market appreciation during 2025 and increased transaction volumes; and
Current wording
•Increased investment processing fees from new SWP client conversions and growth from existing SWP clients due to market appreciation and increased transaction volumes; and
Previous wording
•Increased investment management fees from existing international clients due to market appreciation during 2025; partially offset by
Current wording
•Increased investment management fees from existing international clients due to market appreciation; partially offset by
Previous wording
Operating margins increased to 21% compared to 17% in the three month period. Operating income increased by $9.3 million, or 40%, in the three month period and was primarily affected by:
Current wording
Operating margins increased to 20% compared to 16% in the three month period and increased to 21% compared to 16% in the six month period. Operating income increased $8.9 million, or 39%, in the three month period and increased $18.2 million, or 40%, in the six month period and was primarily affected by:
Previous wording
•Increased fees from separately managed account programs and Strategist programs due to growth from new and existing clients and market appreciation during 2025; and
Current wording
•Increased fees from separately managed account programs and Strategist programs due to growth from new and existing clients and market appreciation; and
Previous wording
•Revenues from Stratos acquisition of $19.0 million; partially offset by
Current wording
•Revenues from Stratos acquisition of $40.1 million; partially offset by
Previous wording
•Increased investment management fees from existing clients due to higher assets under management due to market appreciation during 2025; and
Current wording
•Increased investment management fees from existing clients due to higher assets under management due to market appreciation; and
Previous wording
Operating margin decreased to 42% compared to 47% in the three month period. Operating income increased $7.9 million, or 12%, in the three month period and was primarily affected by:
Current wording
Operating margin decreased to 47% compared to 48% in the three month period and remained at 48% in the six month period. Operating income decreased $610 thousand, or 2%, in the three month period and increased $1.1 million, or 2%, in the six month period and was primarily affected by:
Previous wording
•Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation during 2025 and new business.
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 $36.1 million and $35.5 million in the three months ended March 31, 2026 and 2025, respectively.
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 $34.6 million and $40.5 million in the three months ended June 30, 2026 and 2025, respectively, and $70.7 million and $76.0 million in the six months ended June 30, 2026 and 2025, respectively.
Previous wording
Net loss from investments in the three months ended March 31, 2026 was primarily due to unrealized mark-to-market losses recorded in current earnings associated with Company-sponsored investment funds from market depreciation in 2026 (See Note 5 to the Consolidated Financial Statements).
Current wording
Net gain from investments in the three and six months ended June 30, 2026 was primarily due to unrealized mark-to-market gains recorded in current earnings associated with Company-sponsored investment funds and other investments from market appreciation in 2026 (See Notes 2 and 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 months ended March 31, 2026 was due to lower invested cash balances and, to a lesser extent, an overall decline 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 and six months ended June 30, 2026 was due to lower invested cash balances and, to a lesser extent, an overall decline in interest rates.
Previous wording
The increase in earnings from LSV in the three months ended March 31, 2026 was primarily due to market appreciation of assets under management during 2025. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV. Average assets under management by LSV increased $13.7 billion to $104.6 billion during the three months ended March 31, 2026 as compared to $90.9 billion during the three months ended March 31, 2025, an increase of 15%.
Current wording
The increase in earnings from LSV in the three and six months ended June 30, 2026 was primarily due to market appreciation of assets under management. An increase in performance fees in the second quarter 2026 also positively impacted our earnings from LSV. Negative cash flows from existing clients and client losses partially offset the increase in earnings. Average assets under management by LSV increased $21.6 billion to $110.2 billion during the six months ended June 30, 2026 as compared to $88.6 billion during the six months ended June 30, 2025, an increase of 24%.
Previous wording
On April 1, 2026, LSV provided an interest in the partnership to select key employees which reduced the ownership percentage of each existing partner on a pro-rata basis. As a result, our total partnership interest in LSV was reduced slightly to approximately 38.4% from approximately 38.5% (See Note 2 to the Consolidated Financial Statements).
Current wording
Our total partnership interest in LSV was approximately 38.4% as of June 30, 2026 (See Note 2 to the Consolidated Financial Statements).
Previous wording
Net gain from consolidated variable interest entities in the three months ended March 31, 2026 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 months ended March 31, 2026 (See Notes 1 and 15 to the Consolidated Financial Statements).
Current wording
Net gain from consolidated variable interest entities in the three and six months ended June 30, 2026 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 $6.9 million during the six months ended June 30, 2026 (See Notes 1 and 15 to the Consolidated Financial Statements).
Previous wording
The increase in amortization expense related to capitalized software development costs during the three months ended March 31, 2026 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).
Current wording
The increase in amortization expense related to capitalized software development costs during the three and six months ended June 30, 2026 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 increase in amortization expense related to intangible assets during the three months ended March 31, 2026 was due to intangible assets related to the Stratos acquisition (See Note 12 to the Consolidated Financial Statements).
Current wording
The increase in amortization expense related to intangible assets during the three and six months ended June 30, 2026 was due to intangible assets related to the Stratos acquisition (See Note 12 to the Consolidated Financial Statements).
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
SEI and some of our regulated subsidiaries have undergone or been scheduled to undergo a range of periodic or thematic reviews, examinations or investigations by numerous regulatory authorities around the world, including the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•Operating expenses increased primarily from higher costs for consulting and outsourced vendor costs supporting operations in the Investment Managers and Private Banks segments.
Previous report — wording carried elsewhere
•The increase in amortization expense was primarily due to intangible assets related to the Stratos acquisition.
Previous report — wording carried elsewhere
(E) Client assets under administration related to the Family Office Services business divested on June 30, 2025.
Previous report — wording carried elsewhere
Our businesses are also subject to privacy and data protection information security legal requirements concerning the use and protection of certain personal information. These include those adopted pursuant to the Gramm-Leach-Bliley Act and the Fair and Accurate Credit Transactions Act of 2003 in the United States, the General Data Protection Regulation (GDPR) in the EU, Canada’s Personal Information Protection and Electronic Documents Act, the Cayman Islands' Data