Apr 23, 2025 SOURCE: PR NewsWire
SEI Reports First-Quarter 2025 Financial Results
OAKS, Pa., April 23, 2025 /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the first quarter 2025. Relative to the first quarter 2024, EPS increased by 18%, and revenue and operating income grew by 8% and 25%, respectively, with operating margins increasing to 28%.
Consolidated Overview
(In thousands, except earnings per share)
For the Three
Months
Ended March 31,
2025 2024
%
Revenues $551,344 $511,579 8 %
Operating income 157,097 125,851 25 %
Operating margin 28 % 25 % 12 %
Net income 151,517 131,400 15 %
Diluted earnings per share $1.17 $0.99 18 %
"Building upon our strong momentum heading into 2025, our first-quarter results reflect another record quarter in net sales events, totaling $47 million and reinforcing our enterprise mindset and the evolution of our go-to-market strategy. Our business segments achieved higher operating profits and expanded margins--each contributing to our growth in the quarter," said CEO Ryan Hicke.
"We've built our company and a resilient operating model to navigate market cycles, and we continue to engage with our clients to help them make informed, strategic decisions for long-term success. I'm confident in our team's ability to capitalize on market opportunities, execute our growth strategies, and maximize enterprise value for shareholders."
Summary of First-Quarter Results by Business Segment
(In thousands)
For the Three Months
Ended March 31,
2025 2024
%
Investment Managers:
Revenues $192,048 $172,653 11 %
Expenses 117,211 109,550 7 %
Operating Profit 74,837 63,103 19 %
Operating Margin 39 % 37 %
Private Banks:
Revenues 137,714 130,137 6 %
Expenses 114,749 112,974 2 %
Operating Profit 22,965 17,163 34 %
Operating Margin 17 % 13 %
Investment Advisors:
Revenues 136,576 122,718 11 %
Expenses 72,455 66,958 8 %
Operating Profit 64,121 55,760 15 %
Operating Margin 47 % 45 %
Institutional Investors:
Revenues 68,506 71,778 (5) %
Expenses 35,870 40,109 (11) %
Operating Profit 32,636 31,669 3 %
Operating Margin 48 % 44 %
Investments in New Businesses:
Revenues 16,500 14,293 15 %
Expenses 18,496 18,383 1 %
Operating Loss (1,996) (4,090) (51) %
Totals:
Revenues $551,344 $511,579 8 %
Expenses 358,781 347,974 3 %
Corporate Overhead Expenses 35,466 37,754 (6) %
Income from Operations $157,097 $125,851 25 %
First-Quarter Business Highlights:
-- SEI achieved diluted EPS of $1.17, up 18% from the prior year,
reflecting acceleration on the momentum achieved in the second half of
2024. SEI's strong EPS growth is attributable to both operating profit
growth and margin improvement in each of our reportable segments, and
the benefit of our share repurchase program. SEI had no material items
in Q1 2025 affecting the comparability of EPS.
-- Net sales events during the first quarter 2025 were $46.6 million,
bringing net sales events for the trailing 12 months to $153.2 million.
Both the single-quarter and trailing 12-month net sales events represent
record-high levels for SEI, and similar to last quarter, the drivers of
net sales activity were broad-based, coming from multiple existing and
new clients.
-- Despite recent capital markets volatility, SEI's sales pipeline
remains solid, and we have not yet sensed any slowdown in market
activity.
-- Consolidated revenues and operating income increased by 8% and 25%,
respectively, from Q1 2024. SEI's consolidated operating margin of 28%
represents the highest level achieved in the last three years,
demonstrating increasing focus on profitability and cost leverage
against healthy revenue growth.
-- Private Banks operating profit growth of 34% reflects the inflection
in sales event momentum which began in Q2 2024, in addition to
continued cost discipline.
-- Investment Managers operating profit growth of 19% was driven by
sales event growth, particularly among alternative and global
investment managers. Investment Managers also realized a benefit
from new product offerings, notably our Luxembourg depositary
services, reflecting investments to enhance our global service
offering and operational footprint.
-- Investment Advisors operating profit growth of 15% was largely
driven by a $20.8 million contribution from the Integrated Cash
Program in Q1 2025, more than double the $9.6 million contribution
realized in Q1 2024.
-- Relative to Q4 2024, both Investment Advisors and Institutional
Investors realized modest revenue declines, mostly attributable to
the full-quarter impact of AUM declines occurring in late 2024 and
two fewer calendar days in Q1 2025 vs. Q4 2024.
-- Average assets under administration increased by 3%, and average assets
under management were flat relative to Q4 2024. Ending assets under
management increased by 2% despite a 4.6% decline in US equities in Q1,
reflecting SEI's significant diversification across asset types and
geographies in addition to modest net inflows for the Advisors and
Institutional segments.
-- Institutional Investor and Investment Advisor net flows were
modestly positive as inflows into Strategist and traditional SMA
offerings offset outflows in mutual fund products.
-- Earnings from LSV decreased to $28.7 million in the first quarter 2025
as compared to $31.6 million in the first quarter 2024 due to the
full-quarter impact of late-2024 AUM declines in addition to slightly
lower incentive fees vs. Q1 2024.
-- SEI repurchased 2.5 million shares of common stock for $192.8 million
during the first quarter 2025 at an average price of $77.10 per share,
bringing total shares repurchased to 8.5 million for the trailing 12
months.
Earnings Conference Call
A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on April 23, 2025. Analysts and investors are invited to join the call by completing the registration form. The public is invited to review the presentation and listen to the call and replay at ir.seic.com/ events-presentations/events.
Link for registration form: https://register-conf.media-server.com/register/ BIe62cc6f4c3834b628b007ec32e594a64
About SEI(®)
SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital--whether that's money, time, or talent--so they can better serve their clients and achieve their growth objectives. As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com.
This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to:
-- the benefits to our clients of our engagement;
-- the strength of our pipelines;
-- our focus on profitability and cost leverage;
-- our investment priorities;
-- the value we will deliver to our stakeholders; and
-- when and if we will generate net annualized recurring revenues from
sales events that occurred during the quarter, as well as the amount of
any such revenue.
You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended Dec. 31, 2024, filed with the Securities and Exchange Commission.
SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) (Unaudited)
For the Three
Months
Ended March 31,
2025 2024
Asset management, admin. and distribution fees $432,143 $404,366
Information processing and software servicing fees 119,201 107,213
Total revenues 551,344 511,579
Subadvisory, distribution and other asset mgmt. costs 47,532 46,768
Software royalties and other information processing costs 9,081 8,471
Compensation, benefits and other personnel 190,784 192,916
Stock-based compensation 14,138 11,059
Consulting, outsourcing and professional fees 56,001 51,976
Data processing and computer related 39,319 37,160
Facilities, supplies and other costs 18,755 18,603
Amortization 10,710 10,386
Depreciation 7,927 8,389
Total expenses 394,247 385,728
Income from operations 157,097 125,851
Net gain from investments 493 2,256
Interest and dividend income 10,221 10,819
Interest expense (185) (139)
Equity in earnings of unconsolidated affiliate 28,747 31,643
Income before income taxes 196,373 170,430
Income taxes 44,856 39,030
Net income $151,517 $131,400
Basic earnings per common share $1.20 $1.00
Shares used to calculate basic earnings per share 126,561 131,417
Diluted earnings per common share $1.17 $0.99
Shares used to calculate diluted earnings per share 129,450 132,745
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
March 31, December 31,
2025 2024
Assets
Current Assets:
Cash and cash equivalents $710,685 $839,891
Restricted cash 302 302
Receivables from investment products 49,460 54,118
Receivables, net of allowance for doubtful accounts of $1,790 and $1,435 601,338 567,634
Securities owned 31,174 29,583
Assets held for sale 22,765
Other current assets 62,663 60,282
Total Current Assets 1,478,387 1,551,810
Property and Equipment, net of accumulated depreciation of $494,941 and $493,219 159,264 159,643
Operating Lease Right-of-Use Assets 25,225 28,905
Capitalized Software, net of accumulated amortization of $648,268 and $641,071 235,696 236,023
Investments 278,084 315,567
Goodwill 167,899 170,287
Intangible Assets, net of accumulated amortization of $37,833 and $55,835 66,484 77,370
Deferred Contract Costs 47,751 45,855
Deferred Income Taxes 55,209 51,984
Other Assets, net 52,043 47,162
Total Assets $2,566,042 $2,684,606
Liabilities and Equity
Current Liabilities:
Accounts payable $11,168 $13,081
Accrued liabilities 224,696 347,513
Current portion of long-term operating lease liabilities 7,359 7,900
Deferred revenue 13,824 12,019
Liabilities related to assets held for sale 4,383
Total Current Liabilities 261,430 380,513
Long-term Income Taxes Payable 803 803
Long-term Operating Lease Liabilities 20,971 24,235
Other Long-term Liabilities 24,986 26,943
Total Liabilities 308,190 432,494
Shareholders' Equity:
Common stock, $0.01 par value, 750,000 shares authorized; 124,784 and 126,840 shares
issued and outstanding 1,247 1,268
Capital in excess of par value 1,558,125 1,539,816
Retained earnings 737,020 758,003
Accumulated other comprehensive loss, net (38,540) (46,975)
Total Shareholders' Equity 2,257,852 2,252,112
Total Liabilities and Shareholders' Equity $2,566,042 $2,684,606
SEI INVESTMENTS COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands) (Unaudited)
For the Three
Months
Ended March 31,
2025 2024
Cash flows from operating activities:
Net income $151,517 $131,400
Adjustments to reconcile net income to net cash provided by operating activities (5,037) (19,106)
Net cash provided by operating activities $146,480 $112,294
Net cash used in investing activities ($38,350) ($37,634)
Net cash used in financing activities ($241,548) ($62,157)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 4,212 (572)
Net (decrease) increase in cash, cash equivalents and restricted cash (129,206) 11,931
Cash, cash equivalents and restricted cash, beginning of period 840,193 834,998
Cash, cash equivalents and restricted cash, end of period $710,987 $846,929
ENDING ASSET BALANCES
(In millions) (Unaudited)
Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31,
2024 2024 2024 2024 2025
Investment Managers:
Collective trust fund programs (A) $161,660 $192,747 $204,429 $202,384 $209,491
Liquidity funds 202 221 233 188 244
Total assets under management $161,862 $192,968 $204,662 $202,572 $209,735
Client assets under administration 959,904 998,315 1,022,515 1,032,812 1,061,067
Total assets $1,121,766 $1,191,283 $1,227,177 $1,235,384 $1,270,802
Private Banks:
Equity and fixed-income programs $25,282 $25,031 $26,565 $25,523 $25,590
Collective trust fund programs 5 5 5 4 4
Liquidity funds 2,733 2,699 2,948 2,688 3,670
Total assets under management $28,020 $27,735 $29,518 $28,215 $29,264
Client assets under administration 8,024 7,813 8,349 8,340 8,365
Total assets $36,044 $35,548 $37,867 $36,555 $37,629
Investment Advisors:
Equity and fixed-income programs $74,715 $74,556 $78,361 $76,283 $75,689
Liquidity funds 4,722 4,301 2,790 3,105 3,153
Total Platform assets under management $79,437 $78,857 $81,151 $79,388 $78,842
Platform-only assets 20,516 21,908 24,501 25,244 25,591
Platform-only assets-deposit program 897 894 2,447 2,398 2,216
Total Platform assets $100,850 $101,659 $108,099 $107,030 $106,649
Institutional Investors:
Equity and fixed-income programs $75,969 $75,542 $79,252 $75,481 $76,491
Collective trust fund programs 1 1 1 1 1
Liquidity funds 2,179 2,309 1,829 1,511 1,580
Total assets under management $78,149 $77,852 $81,082 $76,993 $78,072
Client assets under advisement 6,862 7,886 8,038 5,955 5,573
Total assets $85,011 $85,738 $89,120 $82,948 $83,645
Investments in New Businesses: Equity and fixed-income programs $2,269 $2,285 $2,825 $2,747 $2,661
Liquidity funds 223 631 246 297 288
Total assets under management $2,492 $2,916 $3,071 $3,044 $2,949
Client assets under administration (E) 15,411 14,848 15,110 14,791 14,846
Client assets under advisement 1,248 1,886 2,021 2,185 2,219
Total assets $19,151 $19,650 $20,202 $20,020 $20,014
LSV Asset Management:
Equity and fixed-income programs (B) $93,616 $90,197 $93,855 $86,501 $87,114
Total:
Equity and fixed-income programs (C) $271,851 $267,611 $280,858 $266,535 $267,545
Collective trust fund programs 161,666 192,753 204,435 202,389 209,496
Liquidity funds 10,059 10,161 8,046 7,789 8,935
Total assets under management $443,576 $470,525 $493,339 $476,713 $485,976
Client assets under advisement 8,110 9,772 10,059 8,140 7,792
Client assets under administration (D) 983,339 1,020,976 1,045,974 1,055,943 1,084,278
Platform-only assets 21,413 22,802 26,948 27,642 27,807
Total assets $1,456,438 $1,524,075 $1,576,320 $1,568,438 $1,605,853
(A) Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned
on customized asset management programs.
(B) Equity and fixed-income programs include $1.4 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of March 31,
2025).
(C)
Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds (as of March 31, 2025).
(D) In addition to the assets presented, SEI also administers an additional $10.9 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of March 31, 2025).
(E) Client assets under administration include $14.8 billion of assets related to the Family Office Services business to be divested during the second quarter 2025 (as of March 31, 2025).
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr.
2024 2024 2024 2024 2025
Investment Managers:
Collective trust fund programs (A) $156,737 $189,884 $198,839 $204,954 $208,720
Liquidity funds 207 227 245 223 256
Total assets under management $156,944 $190,111 $199,084 $205,177 $208,976
Client assets under administration 938,804 982,806 1,005,111 1,034,500 1,061,282
Total assets $1,095,748 $1,172,917 $1,204,195 $1,239,677 $1,270,258
Private Banks:
Equity and fixed-income programs $24,593 $24,859 $25,823 $26,067 $25,894
Collective trust fund programs 4 5 5 4 4
Liquidity funds 3,902 2,734 2,858 2,814 2,961
Total assets under management $28,499 $27,598 $28,686 $28,885 $28,859
Client assets under administration 7,753 7,884 8,074 8,395 8,488
Total assets $36,252 $35,482 $36,760 $37,280 $37,347
Investment Advisors:
Equity and fixed-income programs $72,689 $73,793 $76,111 $77,866 $77,287
Liquidity funds 4,649 4,348 4,264 3,031 3,119
Total Platform assets under management $77,338 $78,141 $80,375 $80,897 $80,406
Platform-only assets 19,198 20,897 23,194 25,109 25,939
Platform-only assets-deposit program 849 886 1,176 2,186 2,187
Total Platform assets $97,385 $99,924 $104,745 $108,192 $108,532
Institutional Investors:
Equity and fixed-income programs $76,414 $75,203 $77,473 $77,399 $76,492
Collective trust fund programs 1 1 1 1 1
Liquidity funds 1,812 1,893 2,046 2,154 1,655
Total assets under management $78,227 $77,097 $79,520 $79,554 $78,148
Client assets under advisement 6,498 7,508 7,925 6,991 5,741
Total assets $84,725 $84,605 $87,445 $86,545 $83,889
Investments in New Businesses: Equity and fixed-income programs $2,200 $2,234 $2,432 $2,819 $2,801
Liquidity funds 214 471 546 269 274
Total assets under management $2,414 $2,705 $2,978 $3,088 $3,075
Client assets under administration (E) 15,147 14,713 14,973 14,961 14,630
Client assets under advisement 1,194 2,014 1,885 2,110 2,205
Total assets $18,755 $19,432 $19,836 $20,159 $19,910
LSV Asset Management:
Equity and fixed-income programs (B) $90,708 $90,849 $93,195 $88,880 $87,790
Total:
Equity and fixed-income programs (C) $266,604 $266,938 $275,034 $273,031 $270,264
Collective trust fund programs 156,742 189,890 198,845 204,959 208,725
Liquidity funds 10,784 9,673 9,959 8,491 8,265
Total assets under management $434,130 $466,501 $483,838 $486,481 $487,254
Client assets under advisement 7,692 9,522 9,810 9,101 7,946
Client assets under administration (D) 961,704 1,005,403 1,028,158 1,057,856 1,084,400
Platform-only assets 20,047 21,783 24,370 27,295 28,126
Total assets $1,423,573 $1,503,209 $1,546,176 $1,580,733 $1,607,726
(A) Collective trust fund program average assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees
earned on customized asset management programs.
(B) Equity and fixed-income programs during first-quarter 2025 include $1.4 billion of average assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-
based fee.
(C)
Equity and fixed-income programs include $6.4 billion of average assets invested in various asset allocation funds during first-quarter 2025.
(D) In addition to the assets presented, SEI also administers an additional $10.6 billion of average assets in Funds of Funds assets during first-quarter 2025 on which SEI does not earn an
administration fee.
(E) Client assets under administration include $14.6 billion of average assets during first-quarter 2025 related to the Family Office Services business to be divested during the second quarter 2025.
SALES EVENTS
(In thousands) (Unaudited)
Net Recurring Sales Events
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr.
2024 2024 2024 2024 2025
Investment Processing-related Businesses:
Investment Managers $20,407 $17,180 $23,319 $18,027 $25,296
Private Banks 247 4,331 9,417 9,245 7,059
Total Investment Processing-related Businesses $20,654 $21,511 $32,736 $27,272 $32,355
Asset Management-related Businesses:
Private Banks-AMD $(85) $(494) $(854) $495 $(58)
Investment Advisors (942) (3,299) 2,686 1,339 888
Institutional Investors (4,649) (1,787) (576) (2,673) 41
Total Asset Management-related Businesses $(5,676) $(5,580) $1,256 $(839) $871
Newer Initiatives:
Investments in New Businesses (1) $1,494 $(43) $936 $1,778 $3,614
Total Net Recurring Sales Events $16,472 $15,888 $34,928 $28,211 $36,840
Non-Recurring Sales Events
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr.
2024 2024 2024 2024 2025
Investment Processing-related Businesses:
Investment Managers $1,213 $930 $712 $2,465 $835
Private Banks 2,613 4,431 8,796 6,622 7,060
Total Investment Processing-related Businesses $3,826 $5,361 $9,508 $9,087 $7,895
Newer Initiatives:
Investments in New Businesses $987 $717 $1,976 $921 $1,834
Total Non-Recurring Sales Events $4,813 $6,078 $11,484 $10,008 $9,729
Total Sales Events
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr.
2024 2024 2024 2024 2025
Investment Processing-related Businesses:
Investment Managers $21,620 $18,110 $24,031 $20,492 $26,131
Private Banks 2,860 8,762 18,213 15,867 14,119
Total Investment Processing-related Businesses $24,480 $26,872 $42,244 $36,359 $40,250
Asset Management-related Businesses:
Private Banks-AMD $(85) $(494) $(854) $495 $(58)
Investment Advisors (942) (3,299) 2,686 1,339 888
Institutional Investors (4,649) (1,787) (576) (2,673) 41
Total Asset Management-related Businesses $(5,676) $(5,580) $1,256 $(839) $871
Newer Initiatives:
Investments in New Businesses (1) $2,481 $674 $2,912 $2,699 $5,448
Total Sales Events $21,285 $21,966 $46,412 $38,219 $46,569
(1) Includes $1.6 million in total sales events during first-quarter 2025 related to the Family Office Services business to be divested during the second quarter 2025. The net annualized recurring revenues associated with these sales events is approximately $994 thousand.
Investor contact: Media contact:
---
Brad Burke Leslie Wojcik
SEI
SEI
+1 610-676-5350 +1 610-676-4191
bburke2@seic.com lwojcik@seic.com
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SOURCE SEI Investments Company
