OAKS, PA — SEI Investments Co. (NASDAQ: SEIC) posted higher second-quarter revenue and operating income as stronger sales momentum and margin expansion offset a decline in reported earnings per share, reflecting continued investment in the business and the absence of a large one-time gain recorded a year earlier.
Revenue rose 15% to $641.6 million for the quarter ended June 30, while operating income increased 33% to $197.0 million. Operating margin expanded to 31% from 27% a year earlier. Diluted earnings per share declined 11% to $1.59, although adjusted diluted earnings per share increased 38% to $1.66.
The decline in reported EPS follows a comparison against the second quarter of 2025, which included a gain from the sale of SEI’s Family Office Services business. Excluding acquisition-related items, litigation settlements and other non-recurring items, adjusted operating income increased 36% and adjusted operating margin reached 32%.
Chief Executive Officer Ryan Hicke attributed the results to strategic and operational changes implemented over the past four years.
“We’ve been deliberate in how we allocate capital, evolve our value proposition, and focus our resources on the areas where we believe we can create sustainable competitive advantage,” Hicke remarked. “Those efforts are driving stronger sales quality, expanding margins, and creating greater leverage across the enterprise.”
All four of SEI’s core operating segments reported higher revenue during the quarter. Investment Advisors led growth with a 30% increase in revenue to $177.9 million, while Investment Managers revenue rose 17% to $227.7 million. Private Banks revenue increased 11% to $156.9 million, and Institutional Investors revenue edged up 1% to $69.7 million.
The company reported total quarterly sales events of $43.5 million, bringing year-to-date sales events to $110.6 million. Investment Managers generated $32.0 million of sales events, driven by new client wins, expanded client relationships and professional services associated with prior implementations. Private Banks contributed $10.1 million, supported by regional banking client wins and continued conversions to the SEI Wealth Platform.
Assets under management increased 9.5% from the prior quarter to $606.7 billion, while total assets managed, advised or administered reached approximately $2.06 trillion as of June 30. The company credited market appreciation, alternative mandate funding and a $2 billion quarter of net inflows at LSV Asset Management for the increase.
During the quarter, SEI repurchased 1.3 million shares of common stock for $112.4 million at an average price of $86.92 per share.
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