SEI INVESTMENTS CO
For the period ended Sep 30, 2026. Filed Oct 26, 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.
Sep 30, 2026 · Filed Oct 26, 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 2026-06-30; filed 2026-07-27.
0000350894-26-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-26.
0000350894-26-000058
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 213 current paragraphs.
149 unchanged; 54 reworded; 9 added; 4 removed; 0 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 (9)
Current report
•Revenues from the Stratos acquisition contributed $126.7 million during the first nine months of 2026.
Current report
•Other expense consists of a charge of $32.5 million during the third quarter 2026 related to a termination agreement with Stratos (See Note 12 to the Consolidated Financial Statements).
Current report
Revenues increased $28.8 million, or 14%, in the three month period and increased $90.0 million, or 15%, in the nine month period ended September 30, 2026 and were primarily affected by:
Current report
Operating margin remained at 39% in the three month period ended and increased to 40% compared to 39% in the nine month period. Operating income increased $11.1 million, or 14%, in the three month period and increased $41.4 million, or 18%, in the nine month period and was primarily affected by:
Current report
Revenues increased $1.6 million, or 20%, in the three month period and decreased $14.0 million, or 34%, in the nine month period ended September 30, 2026 and were primarily affected by:
Current report
Other (expense) income
Current report
Other expense in the three and nine months ended September 30, 2026 is primarily related to a charge resulting from a termination agreement with Stratos during the third quarter 2026 (See Note 12 to the Consolidated Financial Statements).
Current report
(5) This non-GAAP adjustment removes other items that are individually significant and highly unusual. For the three and nine months ended September 30, 2026, this non-GAAP adjustment consisted of the amount recognized related to the mutually agreed Termination Agreement between the Company and Stratos with respect to the previously reported obligations to proceed with the closing of the purchase of the equity of a Mexican RIA owned by Stratos. Management believes this charge is outside the normal course of business and not indicative of ongoing operating performance. Excluding this item enhances comparability between periods and assists investors in evaluating SEI's core operating results.
Current report
•SEI Transfer Agency and Registry Services, or STARS, a retail transfer agent registered with the SEC under the Securities Exchange Act of 1934.
Removed paragraphs (4)
Previous report
•Revenues from our strategic acquisition of Stratos in the first six months of 2026 were $40.1 million.
Previous report
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 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:
Previous 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:
Reworded paragraphs (54)
Previous wording
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 were:
Current wording
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025 were:
Previous wording
The following items had a significant impact on our financial results for the three and six months ended June 30, 2026 and 2025:
Current wording
The following items had a significant impact on our financial results for the three and nine months ended September 30, 2026 and 2025:
Previous 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.
Current wording
•Revenue from Assets under management, administration, and distribution fees increased in the first nine 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 $212.8 billion, or 19%, to $1.3 trillion during the first nine months of 2026, as compared to $1.1 trillion during the first nine months of 2025.
Previous 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.
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. Average assets under management in equity and fixed income programs, excluding LSV, increased $25.7 billion, or 14%, to $212.6 billion in the first nine months of 2026 as compared to $186.9 billion during the first nine months of 2025.
Previous 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.
Current wording
•Revenue from Information processing and software servicing fees increased in the first nine 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 $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.
Current wording
•Earnings from LSV increased to $109.9 million in the first nine months of 2026 as compared to $94.3 million in the first nine 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
•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.
Current wording
•Capitalized software development costs were $17.2 million in the first nine months of 2026, of which $11.2 million was for continued enhancements to SWP. Capitalized software development costs also include $6.0 million of software development costs in the first nine 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 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.
Current wording
•Amortization expense of capitalized software development costs related to SWP was $22.7 million in the first nine months of 2026 as compared to $21.6 million in the first nine months of 2025. Amortization expense related to the SEI Scope platform was $4.5 million in the first nine months of 2026.
Previous wording
•SEI repurchased 3.8 million shares of its common stock for $320.7 million in the first six months of 2026.
Current wording
•SEI repurchased 5.9 million shares of common stock for $535.8 million in the first nine 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 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).
Current wording
In December 2025, we completed our strategic investment in the Stratos business (Stratos), a network of affiliated companies focused on supporting the success of financial advisors. During 2026, we completed the purchases of 100% interests of nine entities and a majority interest in two additional entities and also acquired other entities. Stratos contributed $126.7 million to revenue and $10.5 million to operating profit during the first nine months of 2026, which includes $20.1 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 $1.5 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).
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 September 30, 2026).
Previous wording
(C) Equity and fixed-income programs include $8.9 billion of assets invested in various asset allocation funds at June 30, 2026.
Current wording
(C) Equity and fixed-income programs include $9.0 billion of assets invested in various asset allocation funds at September 30, 2026.
Previous 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).
Current wording
(D) In addition to the assets presented, SEI also administers an additional $16.1 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of September 30, 2026).
Previous 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).
Current wording
(E) Stratos is a network of affiliated companies that provides financial services to $41.7 billion in client assets across business models and affiliation structures (as of September 30, 2026).
Previous 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.
Current wording
(C) Equity and fixed-income programs include $8.9 billion of average assets invested in various asset allocation funds for the three months ended September 30, 2026.
Previous 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.
Current wording
(D) In addition to the assets presented, SEI also administers an additional $15.2 billion of average assets in Funds of Funds assets for the three months ended September 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 $40.6 billion in average client assets across business models and affiliation structures during the three months ended June 30, 2026.
Current wording
(F) Stratos is a network of affiliated companies that provides financial services to $41.9 billion in average client assets across business models and affiliation structures during the three months ended September 30, 2026.
Previous 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:
Current wording
Revenues, Expenses and Operating Profit (Loss) for our business segments for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 were as follows:
Previous 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:
Current wording
Revenues increased $16.4 million, or 11%, in the three month period and increased $46.4 million, or 11%, in the nine month period ended September 30, 2026 and were primarily affected by:
Previous 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:
Current wording
Operating margins increased to 20% compared to 16% in the three month period and increased to 20% compared to 16% in the nine month period. Operating income increased $8.9 million, or 38%, in the three month period and increased $27.1 million, or 39%, in the nine month period and was primarily affected by:
Previous wording
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 wording
Revenues increased $37.9 million, or 26%, in the three month period and increased $111.7 million, or 27%, in the nine month period ended September 30, 2026 and were primarily affected by:
Previous wording
•Revenues from Stratos acquisition of $40.1 million; partially offset by
Current wording
•Revenues from Stratos acquisition of $126.7 million; partially offset by
Previous wording
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 wording
Operating margin decreased to 41% compared to 46% in the three month period and decreased to 42% compared to 46% in the nine month period. Operating income increased $7.3 million, or 11%, in the three month period and increased $28.5 million, or 15%, in the nine month period and was primarily affected by:
Previous wording
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 wording
Revenues decreased $1.2 million, or 2%, in the three month period and increased $2.2 million, or 1%, in the nine month period ended September 30, 2026 and were primarily affected by:
Previous 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:
Current wording
Operating margin decreased to 46% compared to 47% in the three month period and decreased to 47% compared to 48% in the nine month period. Operating income decreased $921 thousand, or 3%, in the three month period and increased slightly in the nine month period and was primarily affected by:
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 $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.
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 $36.1 million and $42.8 million in the three months ended September 30, 2026 and 2025, respectively, and $106.9 million and $118.8 million in the nine months ended September 30, 2026 and 2025, respectively. The decline in corporate overhead expenses was primarily due to lower personnel costs and professional fees.
Previous 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).
Current wording
Net gain from investments in the three and nine months ended September 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 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.
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, 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 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%.
Current wording
The increase in earnings from LSV in the three and nine months ended September 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 $23.1 billion to $113.1 billion during the nine months ended September 30, 2026 as compared to $90.1 billion during the nine months ended September 30, 2025, an increase of 26%.
Previous 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).
Current wording
Net gain from consolidated variable interest entities in the three and nine months ended September 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 $8.2 million and $1.5 million during the nine months ended September 30, 2026 and 2025, respectively (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 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).
Current wording
The increase in amortization expense related to capitalized software development costs during the three and nine months ended September 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 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).
Current wording
The increase in amortization expense related to intangible assets during the three and nine months ended September 30, 2026 was due to intangible assets related to the Stratos acquisition (See Note 12 to the Consolidated Financial Statements).
Previous wording
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 wording
The decrease in the effective tax rate for the three and nine months ended September 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.
Previous wording
We recognized $30.8 million and $28.0 million in stock-based compensation expense during the six months ended June 30, 2026 and 2025, respectively. 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 $46.8 million and $42.0 million in stock-based compensation expense during the nine months ended September 30, 2026 and 2025, respectively. 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 $32.4 million in stock-based compensation expense during the remainder of 2026.
Current wording
We expect to recognize approximately $16.0 million in stock-based compensation expense during the remainder of 2026.
Previous wording
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
Current wording
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
Previous wording
Financial Conduct Authority of the United Kingdom (FCA), the Central Bank of Ireland (CBI), the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (CSSF), and others. These regulatory activities typically result in the identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory authorities require remediation activities or pursue enforcement proceedings against us or our subsidiaries. As described under the caption “Regulatory Considerations” in our Annual Report on Form 10-K, the range of possible sanctions that are available to regulatory authorities include limitations on our ability to engage in business for specified periods of time or with certain restrictions, the revocation of registration, censures and fines. The direct and indirect costs of responding to these regulatory activities and of complying with new or modified regulations, as well as the potential financial costs and potential reputational impact against us of any enforcement proceedings that might result, is uncertain but could have a material adverse impact on our operating results or financial position.
Current wording
Comptroller of the Currency, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Financial Conduct Authority of the United Kingdom (FCA), the Central Bank of Ireland (CBI), the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (CSSF), and others. These regulatory activities typically result in the identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory authorities require remediation activities or pursue enforcement proceedings against us or our subsidiaries. As described under the caption “Regulatory Considerations” in our Annual Report on Form 10-K, the range of possible sanctions that are available to regulatory authorities include limitations on our ability to engage in business for specified periods of time or with certain restrictions, the revocation of registration, censures and fines. The direct and indirect costs of responding to these regulatory activities and of complying with new or modified regulations, as well as the potential financial costs and potential reputational impact against us of any enforcement proceedings that might result, is uncertain but could have a material adverse impact on our operating results or financial position.
Previous wording
The following schedules reconcile U.S. GAAP Net income attributable to SEI Investments Company and Income from operations on the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025:
Current wording
The following schedules reconcile U.S. GAAP Net income attributable to SEI Investments Company and Income from operations on the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025:
Previous wording
(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 wording
(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 nine months ended September 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.
Previous wording
(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 wording
(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 nine months ended September 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.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Business model innovation and expansion risks, including entry into new markets or channels (e.g., direct-to-consumer);