SEIC earnings analysis
What we found in SEIC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SEI delivered strong underlying Q2 growth: revenue increased 15% to $641.617 million and operating margin expanded 4.1 percentage points year over year to 30.7%. Reported GAAP EPS of $1.59 was down from $1.78 because the prior-year quarter contained a $94.412 million business-sale gain; adjusted EPS increased to $1.66 from $1.20. Growth was broad-based across Investment Managers, Private Banks, and Investment Advisors, while cash generation was robust, although Stratos-related amortization and client losses remain watch items.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth and operating leverage
- Q2 revenue rose 15% year over year to $641.617 million and 3.2% sequentially from $622 million in Q1 2026. Operating income increased 33% to $197.016 million, lifting operating margin to 30.7% from 26.6% a year ago and 30.5% in Q1.
- Investment Managers accelerated
- Investment Managers generated $227.679 million of revenue, up 17%, and operating profit rose 25% to $91.601 million. Management attributed growth to additional services for major alternative-fund clients and positive flows from new and existing clients.
- Private Banks margin expansion
- Private Banks revenue increased 11% to $156.879 million while operating profit rose 39% to $31.659 million; margin expanded 4 percentage points to 20%. New SWP client conversions, existing-client growth, market appreciation, and higher transaction volumes were key drivers.
- Stratos supports advisor growth
- Investment Advisors revenue grew 30% to $177.897 million, including $40.1 million of first-half revenue from Stratos. Despite acquisition-related amortization and higher direct costs, operating profit increased 22% to $74.670 million.
- Cash generation strengthened
- Six-month operating cash flow increased $104.4 million year over year to $347.367 million. Less $15.0 million of capital expenditures, implied free cash flow was $332.367 million, with capex equal to 4.3% of operating cash flow.
- Asset base expanded materially
- Total assets managed, advised, administered, platform-only, and Stratos client assets reached $2.056 trillion, up 21% year over year. Average total assets rose 22% to $2.024 trillion in Q2, supporting asset-based fee revenue.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- GAAP comparisons face prior-sale distortion
- Reported GAAP diluted EPS declined 11% year over year to $1.59 and net income attributable to SEI fell 14% to $195.658 million, as Q2 2025 included a $94.412 million gain on sale of business that did not recur. Adjusted diluted EPS was $1.66 versus $1.20.
- Acquisition and mix pressure on advisor margin
- Investment Advisors operating margin fell to 42% from 45% despite 30% revenue growth. The Stratos contribution included $12.8 million of acquired-intangible amortization in the first six months, while direct separately managed-account costs and personnel expense increased.
- Client losses constrain institutional growth
- Institutional Investors revenue grew only 1% to $69.702 million and operating profit fell 2% to $32.876 million; management cited client losses as a partial offset to market-appreciation and OCIO growth. The filing says there were no material risk-factor changes from the 2025 Form 10-K.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.59
- Operating margin
- 30.71%
- Segment
- Investment Managers: revenue $227.679 million, +17% year over year; operating profit $91.601 million, +25%; operating margin 40% versus 38%.
- Segment
- Private Banks: revenue $156.879 million, +11%; operating profit $31.659 million, +39%; operating margin 20% versus 16%.
- Segment
- Investment Advisors: revenue $177.897 million, +30%; operating profit $74.670 million, +22%; operating margin 42% versus 45%.
- Segment
- Institutional Investors: revenue $69.702 million, +1%; operating profit $32.876 million, -2%; operating margin 47% versus 48%.
- Segment
- Investments in New Businesses: revenue $9.460 million, -43%; operating loss $0.579 million versus a $1.881 million loss.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management states that available funds and operating cash flow are anticipated to fund operational needs, expected M&A activity, and stock repurchases for at least the next 12 months and for the foreseeable future.
The filing reads better than the one before it.
What came before.
- 10-Q · April 27, 2026
- SEI reported Q1 2026 revenue of $622,183,000, up 13% y/y, and GAAP diluted EPS of $1.40, up 20% y/y. Operating income rose 21% to $189,486,000 (GAAP operating margin ~30.4%), driven by broad-based revenue growth across…
- 10-K · February 23, 2026
- SEI presents an integrated technology, custody, and asset-management strategy focused on scaling advice, alternatives, and outsourced operations. In 2025 the company reported Total Revenues of $2,297,381 (in thousands)…
- 10-Q · April 28, 2025
- SEI reported Q1 total revenues of $551,344,000, up $39,765,000 (7.8%) versus Q1 2024, driven by growth in Asset Management fees and Information Processing. Operating income rose to $157,097,000 (28.5% of revenue) and…
- 10-K · February 20, 2025
- SEI’s 2024 10‑K emphasizes a diversified fintech and asset management franchise: total revenues of $2,125,151,000 for the year ended December 31, 2024 and a business mix of ~55% technology & operations outsourcing and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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