SEI Investments Company Reports Significant Growth in Q2 Financial Results 2025

SEI Investments Company Reports Strong Q2 2025 Financial Results

SEI Investments Company (NASDAQ: SEIC) recently disclosed its financial results for the second quarter of 2025, showcasing remarkable growth compared to the same period in 2024. The highlights of the report indicate a notable 70% increase in earnings per share (EPS), reflecting the company's robust performance across its primary business sectors.

Overview of Financial Performance

In the second quarter of 2025, SEI reported revenues of $559.6 million, an 8% increase from $519.0 million in the second quarter of 2024. Operating income also witnessed growth, rising by 9% to $148.6 million. This performance resulted in an operating margin of 27%, a slight enhancement from the 26% reported in the prior year.

The surge in earnings per share, which reached $1.78 compared to $1.05 from the previous year, was significantly impacted by various items affecting comparability. A notable contributor to this increase was a $94.4 million gain from the sale of SEI’s Family Office Services business.

Business Segment Highlights

Investment Managers

The Investment Managers segment generated revenues of $195.1 million, up 8% from the previous year, with operating profits growing by 7%. The operating margin remained strong at 38%. This growth was fueled by significant activity across alternative investment offerings, which experienced a double-digit revenue rise.

Private Banks

Revenues from Private Banks reached $141.4 million, marking a 7% increase. Operating profits for this segment increased by 11%, showcasing the successful onboarding of new clients. The operating margin improved to 16% from 15%.

Investment Advisors

This segment excelled with a 14% revenue increase to $137.2 million, and an impressive operating profit growth of 19%, solidifying the segment’s contribution to SEI’s overall performance. The operating margin here was reported at 45%, demonstrating strong management and pricing strategies in the advisory space.

Institutional Investors

While revenues in this segment saw a slight decline of 3% to $69.3 million, operating profits remained stable. The focus on reducing expenses led to a slight increase in operating margin to 48%.

Investments in New Businesses

New initiatives contributed revenues of $16.5 million, a 13% increase from the previous year. However, operating losses were reported due to upfront investment costs, emphasizing the long-term growth strategy SEI is undertaking.

Future Outlook

Ryan Hicke, CEO of SEI, expressed optimism about the company’s ongoing efforts to enhance its operations. He highlighted the importance of strategic investments in talent, technology, and infrastructure to build upon the current momentum. SEI's focus on becoming a leading provider of wealth management solutions is evident in its commitment to innovation and improvement.

The introduction of highly experienced, independent directors to the Board, including Karin Risi and Tom Naratil, is seen as a strategic move to further bolster the company’s growth initiatives.

In addition to its financial achievements, SEI reported considerable growth in average assets under administration and management, reflecting increased client engagement and market recovery. As of June 30, 2025, SEI managed approximately $1.7 trillion in assets, illustrating its significant position in the financial services industry.

Conclusion

SEI Investments Company is clearly establishing a solid track record of growth and resilience. With the strategic actions taken in Q2 2025, including the gain on business divestitures and increasing sales across various units, SEI is well-positioned for continued success. Investors and stakeholders can look forward to an engaging earnings conference call scheduled for 5 p.m. Eastern time on July 23, 2025, for further insights into the company’s performance and future plans.